August 10, 1999
(Government Services and Lands)

New bingo regulations

Government has made significant changes to rules governing bingo operations in the province. The announcement was made today by Government Services and Lands Minister Ernie McLean, minister responsible for lotteries licencing.

Mr. McLean said: "The main objective is to ensure that all bingo operations return a minimum of 15 per cent of gross gaming related revenues to charities."

"Umbrella organizations operating in St. John's and area are a key concern. Returns provided by these organizations are well below the 15 per cent level."

Beginning September 1, all umbrella organizations operating more than three events a week will have six months to meet the required 15 per cent return to their member organizations.

No new licences for umbrella organizations will be approved in the province until all umbrella organizations are in compliance with the 15 per cent requirement for a minimum one-year period.

A key change will allow all bingo licensees to have - in addition to the current maximum prize payout of $3,000 - up to two additional 50/50 bingo games with non-accumulating prizes. An additional game with an accumulating jackpot prize, subject to limits set by the Lotteries Licencing Division, will also be permitted.

Prior to the introduction of these new rules, lottery licencing officials met with umbrella bingo operators to outline government concerns and to seek their input. As well, all bingo operators in the province were invited to provide their views.

The minister said that government wants charities to receive a reasonable amount of the money that is spent on bingos. "I have directed lotteries licencing officials to pay strict attention to these rules to ensure that bingo operators make satisfactory returns to charitable and religious organizations."

Media contact: Paula Dyke, Communications, (709) 729-0329.

1999 08 10         11:35 a.m.