Bingo licences not being revoked

Walter Noel, Minister of Government Services and Lands, says: "Almost half of all bingo operations appear unlikely to achieve the required minimum 15 per cent return for charities by the end of June. The phase-in policy begun over a year ago has not succeeded in significantly improving returns for charities. However, we are not prepared to revoke licences on this scale. The policy was intended to help charities make more money. We would not achieve that by closing them down. The policy is being reviewed. All existing operations are permitted to continue at least until the review is completed, within the next few weeks."

In March 2000, at the request of the charities, government took three actions to help increase minimum returns to charities. It gave charitable organizations approval to operate satellite bingos, introduced a new phase-in period for compliance with the 15 per cent minimum return, and placed a moratorium on new bingos. The compliance period, which began January 1, 2001, called for a five per cent return by June 30, 2001, a 10 per cent return by December 31, 2001 and a 15 per cent return by June 30, 2002. The moratorium on new bingo licences, with the exception of special events, was put in place in St. John�s, Mount Pearl, Conception Bay South, and parts of Conception Bay North.

The minister said: "As of December 31, 2001, charities were supposed to have reached the 10 per cent mark. Many did not, and almost all appealed. We have been assessing those appeals and consulting with licence holders.

"While many charities do not make 15 per cent, they want to continue operating. They have not been able to develop a consensus for change likely to increase returns."

Bingo is a $50 million industry in this province. It is illegal under the Criminal Code unless run for charitable purposes.

There are close to 350 bingo operations in the province. As of December 31, 2001, 273 charities achieved a 10 per cent return or greater and 60 failed to meet a 10 per cent return. Only 175 charities achieved 15 per cent or greater. The average return for all charities was 14.2 per cent.

Most of the umbrella operations in the St. John�s area achieved less than eight per cent. Less than $1 million of the $12 million of their gross receipts was provided for charitable purposes.

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

2002 06 04                            5:20 p.m.