NLIS 4
May 22, 2001
(Government Services and Lands)

Bingo operations suspended for violation of guidelines

The Trade Practices Division of the Department of Government Services and Lands advises that the Bingo/Nevada Licences for Community Charities Bingo (Pot of Gold Bingo Hall) have been suspended for the period May 21 - May 27, 2001 for violation of two conditions of licence.

Specifically, the organization conducted a give-away scheme at the May 15, 2001 event wherein the total amount of prizes awarded exceeded existing guidelines. As well, the give-away scheme was conducted in conjunction with the landlord and the guidelines clearly state that a landlord is to have no involvement in the conduct, management or operation of a bingo event.

Lottery Licencing Regulations are in place to ensure that only those organizations which qualify for a licence conduct bingo events and that licensees comply with the conditions of their licences.

The goal of compliance is to ensure that all bingos are conducted in accordance with the same rules and to ensure that the required returns are provided to charities.

Failure to comply with licence conditions undermines the integrity of the Lotteries Control Program.

The organization in question has a right to appeal this decision to the Minister of Government Services and Lands.

Media contact: Rick Callahan, Director of Communications, (709) 729-4860.

NOTE TO EDITORS: The following backgrounder may be of interest.

Backgrounder - Bingos
Government recently made several changes to bingo regulations, in consultation with licensees, to allow satellite bingo, escalating jackpots, and 50/50 style games, which, hopefully, will result in greater revenues for charities.

Most recent statistics indicate that total gross revenues from bingo events generated approximately $50 million annually with $5 million returned to charities after prize payouts and expenses (an average return of 10 per cent).

Of this $50 million total, approximately $11 million in gross revenues was generated at umbrella bingo association events with a return to charity of approximately $400,000, or 3.6 per cent. (Umbrella bingo operations run bingos on behalf of a number of charities.)

This leaves total revenues generated for all other bingo halls in the province at approximately $39 million with net revenues to charity of approximately $4.6 million (11.8 per cent).

New dates have been set for compliance with respect to returns to charities. A deadline for 15 per cent has been set for June 30, 2002, a deadline for 10 per cent has been set for December 31, 2001 and the five per cent deadline is June 30, 2001.

Government intends to ensure that charities receive these rates of return by the dates indicated.

A moratorium on new bingo licences, with the exception of special events, has also been put in place in St. John's, Mount Pearl, Conception Bay South, and parts of Conception Bay North during the phased-in compliance period.

2001 05 22                                                1:25 p.m.