A bill to amend the Internal Revenue Code of 1986 to provide that the conducting of certain games of chance shall not be treated as an unrelated trade or business.

Amends the Internal Revenue Code to provide that the conducting of certain games of chance shall not be treated as an unrelated trade or business for purposes of the tax imposed on tax-exempt organizations.

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 490 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 490

    To amend the Internal Revenue Code of 1986 to provide that the 
   conducting of certain games of chance shall not be treated as an 
                      unrelated trade or business.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 25, 1999

   Mr. Grams introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide that the 
   conducting of certain games of chance shall not be treated as an 
                      unrelated trade or business.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CONDUCT OF CERTAIN GAMES OF CHANCE NOT TREATED AS UNRELATED 
              TRADE OR BUSINESS.

    (a) In General.--Paragraph (1) of section 513(f) of the Internal 
Revenue Code of 1986 (relating to certain bingo games) is amended by 
inserting before the period ``or qualified games of chance''.
    (b) Qualified Games of Chance.--Subsection (f) of section 513 of 
the Internal Revenue Code of 1986 (relating to unrelated trade or 
business) is amended by adding at the end the following:
            ``(3) Qualified games of chance.--For purposes of paragraph 
        (1), the term `qualified game of chance' means any game of 
        chance (other than bingo) conducted by an organization if--
                    ``(A) such organization is licensed pursuant to 
                State law to conduct such game,
                    ``(B) only organizations which are organized as 
                nonprofit corporations or are exempt from tax under 
                section 501(a) may be so licensed to conduct such game 
                within the State, and
                    ``(C) the conduct of such game does not violate 
                State or local law.''
    (c) Conforming Amendment.--The subsection heading of section 513(f) 
of the Internal Revenue Code of 1986 is amended by striking ``Bingo 
Games'' and inserting ``Games of Chance''.
    (d) Effective Date.--The amendments made by this section shall 
apply to games conducted after the date of enactment of this Act.
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