LITTLE ROCK—The Arkansas House has passed a bill eliminating the penny tax on charitable bingo cards, after hearing promises that strict enforcement will remain in place to keep illegal bingo halls from doing business.

The House voted 90-7 on Friday to eliminate the tax, which finance officials estimate will cost the state $1.1 million annually. Bill sponsor Rep. Tracy Pennartz, D-Fort Smith, says the tax raises more than is necessary to enforce bingo rules and regulations. Pennartz says the money raised by bingo licensing fees can cover enforcement fees.

Nonprofits such as the VFW and American Legion have lobbied for the elimination of the tax, saying that the groups end up paying far more in taxes than in donations to charity.

The bill now heads to the Senate.