Bingo regulations amended

Following extensive consultation, government has approved amendments to the Lottery Licensing Regulations to remove the requirement for bingo operations to return a minimum of 15 per cent to charities. Instead, bingo operators will now be expected to work toward achieving a 15 per cent minimum return. The maximum allowable expenses of 20 per cent from gross proceeds will remain in force. Without these amendments, approximately half of all charity bingo operations in the province would have closed.

A moratorium on bingo licences in the St. John�s/Mount Pearl/Conception Bay area has also been lifted since it was only intended to last for the 18-month phased-in compliance period which ended June 30, 2002.

Since 1982, bingo licensees have been required to raise a minimum 15 per cent of gross revenues for charitable purposes. Government has tried to help achieve this, but has never revoked a licence if an operator wanted to continue. Government Services and Lands Minister Walter Noel says government will not begin revoking licences now.

"Many charities do not make a 15 per cent return, but they depend on the funds they raise through bingo to help finance their activities. Revoking licences would undermine the good work they do."

About two years ago, at the request of some licence holders, changes were made to help increase charitable returns. While the desired results have not been achieved, there are indications progress has been made. A number of charities have gotten better control of their operations, reduced expenses, and increased returns for their projects. Many, however, are unable to reach the 15 per cent for various reasons.

"While we believe most people feel a 15 per cent minimum is reasonable, very few support revoking licences if it is not achieved. We will continue helping licence holders find ways to increase returns for charities. This decision will enable perhaps 175 organizations to continue their fund raising efforts without having to worry about losing their licences. They are all committed to raising money for charitable purposes."

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

2002 07 10                              10:45 a.m.