Quick Takeaways
- Illinois taxes the gross proceeds from pull tabs and jar games, and it charges annual license fees for operators, suppliers, and manufacturers.
- To qualify, your organization generally must be a licensed nonprofit-type group in Illinois, have operated continuously for five years before applying, and meet membership and tax-exempt status rules. In some cases, the five-year rule is reduced to two years.
- Ticket price, prize limits, filing deadlines, and licensing rules are strict: tickets cannot exceed $2, no more than 6,000 tickets may be sold for a single game, and the total prizes for a day cannot exceed $5,000. A single prize cannot exceed $500.
- Regular licensees file Form PT-10, limited licensees file Form PT-11, and suppliers file Form PT-16. Illinois says quarterly returns are due by the 20th day of the month after the reporting period ends.
Why This Topic Matters
Tax rules around charitable gaming can feel overwhelming, especially when you are trying to support your organization’s mission and stay compliant at the same time. The good news is that Illinois lays out the basics clearly once you know which forms, limits, and deadlines apply to you. This guide turns the official rules into a simple, practical roadmap.
What Are Pull Tabs and Jar Games in Illinois?
Illinois says the tax is imposed on the gross proceeds of pull tabs and jar games. It also requires an annual license fee for operators, suppliers, and manufacturers. If you are involved in this kind of charitable gaming, you are not just hosting an event — you are participating in a regulated activity with tax and licensing responsibilities.
Who Can Qualify to Sell Pull Tabs or Conduct Jar Games?
To qualify, your organization generally must:
- be licensed by the state,
- be a bona fide religious, charitable, labor, fraternal, youth athletic, senior citizens’, educational, or veterans’ organization in Illinois,
- operate without profit to members, and
- have been in existence in Illinois continuously for five years before applying, with a bona fide membership active throughout that period.
Important exception
Illinois reduces the five-year requirement to two years for a local organization affiliated with and chartered by a national organization that already meets the five-year requirement.
Key Rules You Need to Know Before You Start
Illinois imposes several practical limits on pull tab and jar game activity. Here are the big ones:
| Rule | Illinois requirement |
|---|---|
| Ticket price | No more than $2 per ticket. |
| Tickets per game | No more than 6,000 tickets may be sold for a single game. |
| Daily prize total | No more than $5,000 in prizes or merchandise per day. |
| Single prize limit | No single prize may exceed $500. |
These limits matter because they directly affect how you plan the event, what you advertise, and how you track winnings.
How the Licensing Process Works
Illinois says organizations eligible to sell pull tabs must submit an application at least 30 days before selling begins, and license fees must be paid when the application is filed. The main operator form is Form PT-6, Pull Tabs Application for License, which can be filed through MyTax Illinois or by mail. The application must include a sworn statement confirming the organization’s not-for-profit character. The license is not assignable or transferable.
Qualifying organizations must also complete Form PT-13, Members Selling Pull Tabs, and if renewing, Form PT-12, Expenditures of Pull Tab Fund. If the organization later needs to add or revise an event, it must file Form RCG-1-E at least 30 days before the event.
No license, no sales
Illinois is very direct here: no organization may begin to sell pull tabs without having a valid license in its possession.
Operator Rules: What You Can and Cannot Do
Once licensed, regular and limited licensees must obtain pull tabs only from licensed suppliers, sell pull tabs only to the public, and sell only at the locations listed on the license. A copy of the license must be publicly displayed. If your registration information changes — such as an address or officer change — Illinois says you must notify IDOR.
Illinois also says pull tabs must be sold for the price printed on the tickets, and in no case for more than $2 each. No person under 18 may play or participate in the sale of pull tabs or jar games. Only a bona fide member, employee, or volunteer of the licensed organization may participate in management or operation, and no one may receive remuneration or profit for that work.
Banking and bookkeeping
The net proceeds — meaning gross proceeds less cash returned to winners — must not be mixed with other funds and must be deposited into the pull tabs checking account. That separation helps keep records clean and audit-ready.
Returns and Reporting: The Forms That Matter
Illinois uses different reporting forms depending on your license type:
| License type | Return form | Filing deadline |
|---|---|---|
| Regular license | Form PT-10, Pull Tab and Jar Game Quarterly Tax Return | Quarterly, by the 20th day of the month following the reporting period. |
| Limited license | Form PT-11, Limited Pull Tab and Jar Game Tax Return | By the 20th day after the end of the event. |
| Supplier’s license | Form PT-16, Pull Tabs and Jar Games Supplier’s Quarterly Report | Keep it in your records and make it available upon request. |
Illinois also says suppliers must complete Form PT-16 each quarter, even if there were no sales or leases during the quarter.
Supplier Rules You Should Know
Manufacturers must file Form PT-8, Application for Pull Tab Manufacturer’s or Supplier’s License, either electronically through MyTax Illinois or by mail. Licensed manufacturers may sell only to licensed suppliers, and they must follow production standards. Illinois also expects them to report suspected illegal sales by unlicensed parties in Illinois.
Suppliers also file Form PT-8 to apply for a license, and they may sell only to regular and limited licensees. Each sale requires a receipt with required information, and any advertising or promotional materials sent into Illinois must include the supplier’s name and license number. Suppliers must file Form PT-16 quarterly.
What Happens If You Break the Rules?
Illinois warns that violations can lead to license revocation or civil penalties of up to $250 per violation. Violations can also trigger referral to local authorities for criminal prosecution under Illinois gambling law. In addition, licensed organizations may be required to obtain a certified financial statement and records verification from an Illinois CPA firm at their own expense. If they do not comply within 90 days of notice, their license may be suspended or revoked.
Common Mistakes to Avoid
1) Starting without a valid license
Illinois says you cannot begin selling pull tabs until you have the license in hand.
2) Missing the 30-day application window
The application must be filed at least 30 days before the event or sale begins.
3) Ignoring ticket and prize limits
If you exceed $2 per ticket, 6,000 tickets per game, $5,000 total daily prizes, or $500 per single prize, you may create compliance problems.
4) Using unlicensed suppliers
Regular and limited licensees must purchase pull tabs only from licensed suppliers.
5) Mixing gaming funds with other money
Illinois requires separate handling of net proceeds in the pull tabs checking account.
Pro Tips for Staying Compliant
- Build a compliance checklist before your first sale or event.
- Keep copies of PT-6, PT-8, PT-10, PT-11, PT-12, PT-13, and PT-16 in one place.
- Mark your quarterly due dates on a calendar so you do not miss the 20th day deadline.
- If your organization changes officers, addresses, or event locations, update IDOR right away.
- Review supplier invoices and receipts carefully so your records match what you actually sold.
Final Thoughts
Pull tabs and jar games can help support a good cause, but Illinois treats them as regulated gaming activities with strict tax, licensing, and reporting rules. If you know your organization’s status, keep your records organized, and file on time, you can reduce stress and focus more on the fundraising mission.
Disclaimer
This article is for educational purposes only and is not personal tax, legal, or accounting advice. Tax and licensing rules can change, and your specific facts may affect how the rules apply to you. Please consult a qualified CPA, attorney, or tax professional for advice tailored to your situation.
