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Thank you for the opportunity to comment on potential changes in the regulations that govern our business.  It seems that too often in the past those of us involved in the business of bingo not only weren’t asked our opinion but were rebuffed when simply asking a question.  There seems to be a new “breeze” blowing through Richmond, bringing with it a new and more welcoming attitude within the Charitable Gaming Dept.  It’s greatly appreciated.

If anecdotal evidence is to be believed, bingo is suffering in all parts of the Commonwealth.  Many of us have felt this coming for quite a while as we see the number of players dropping and the amount of money being spent by those who do play, decreasing as well.  In addition to dwindling numbers, the cost of doing business regularly increases.  Whether it is gaming supplies, utilities, rent, or just the coffee we all give away, prices have gone up by substantial percentages over the last couple of years.

I don’t believe that most bingo halls have fully passed on those price increases to players.  Most of us find ourselves asking the question - What can we do to make more money?  When queried, state officials reply as they have for years – “raise your prices and play pull tabs that pay a higher percentage to the house”. While those answers worked in years past, I for one don’t believe we can continue to follow that path.  We are already losing players and pull tab sales due to the loss of income among players.  Raising prices and percentages can only further our decline.  Bingo players are savvy, they know when the tips they are buying don’t pay-off well and they are slow to buy them thus decreasing sales.

The bottom line is smaller profit for the game sponsors.  As that profit shrinks, so does our ability to meet the requirement of the state for the expense of 10% Use of Proceeds.  Is the net profit of a game 10%?  After paying prizes, vendors for gaming supplies, fees,  rent, utilities, printing, maintaining a computer, copier, cash register and all the supplies needed for them, cleaning the building,, etc, etc, etc – all of which are usual and customary business expenses, many games are hard pressed to come up with 10%.  Many of the expenses remain stable no matter the number of people playing and paying.  Rent doesn’t go down just because attendance is at 50%.  Heat and air still have to be maintained for the square footage whether there are 50 or 100 people in the building. Prize payouts are based on the program, not on attendance.  Game managers can probably come up with other specific costs that remain the same regardless of the amount of play taking place which further prove this point. 

In years past, bingo games were more profitable than they currently are.  Sponsors grew accustomed to easy spending for their charitable endeavors and Use of Proceeds was met without much concern.  Now, finding 10% of GROSS revenues is impossible for some games.  Changing the requirement from gross to NET would be beneficial to sponsoring organizations.  Organizations that have a 501 (c) designation are in the business of providing charitable services to the communities in which they reside.  The funds raised by bingo games are vital to the budgets of the organizations. I can only speak directly about the organization I represent and I know that we need EVERY penny raised.  The proceeds from our bingo game have made a tremendous difference in the services we have been able to provide in the years we have sponsored the game.  I also know that meeting the 10% is impossible right now.   I don’t see anything in the future that  can possibly help this problem.  It’s time to look at the “way things have always been done” and find a better way to do business.  If we don’t find some relief, more games will end up shutting down which leaves the State with less income and makes the real losers, those individuals who have come to rely on the non-profits for so many services.

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