# Can a business with gambling revenue get an SBA loan?

**Short answer:** Yes, if legal gambling brings in one-third or less of annual gross revenue, rental income included. Gambling cannot be the purpose of the business. Casinos, racetracks and skill-game businesses are out at any percentage. Source: 13 CFR § 120.110(g); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.

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Last checked: 2026-11-09

Yes, up to a point. 13 CFR § 120.110(g) bars businesses earning more than one-third of gross annual revenue from legal gambling. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E applies that limit to the prior year and counts rental income.

## When gambling revenue is allowed

A business may qualify if one-third or less of its annual gross revenue comes from:

- Commissions on official state lottery ticket sales under a state license.
- Gambling activities licensed and supervised by a state authority where those activities are legal.

A convenience store selling lottery tickets is one example. Track the gambling line separately in your books.

## When it is not allowed at any level

If the purpose of the business is gambling, it is not eligible regardless of the percentage. The SOP names pari-mutuel betting racetracks, casinos and skill games such as video poker.

## Rental income counts

Gambling income includes rental income. If you lease space for gambling, count that rent toward the one-third.

## Disclosure

Form 1919, question 7, asks whether any of your revenue comes from gambling. A yes requires a separate attachment with details. Any activity illegal under federal, state or local law makes a business ineligible (13 CFR § 120.110(h)).

## Sources

- [13 CFR § 120.110(g), (h)](https://www.ecfr.gov/current/title-13/section-120.110)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Gambling (about p. 21)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Form 1919 (02/2025)](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)