I want to make it clear to bingo operators, bingo patrons and the general public why the Trade Practices Division of my department recently suspended the bingo/nevada licences for Community Charities Bingo (Pot of Gold Bingo Hall) for the period May 21 - May 27.

Certain media reports and comments from the operator and landlord indicate to me that the Communities Charities Bingo (Pot of Gold Bingo Hall) does not fully understand the reasons for this suspension. For example, this action had absolutely nothing to do with the donation of food articles.

My officials advise that the organization conducted a give-away scheme at its May 15, 2001 event and that the total amount of prizes awarded exceeded existing guidelines. As well, they have advised me that the give-away scheme was conducted in conjunction with the landlord and that this was in clear contravention of the guidelines.

The purpose of the suspension is to ensure that all bingo operators abide by the regulations that are in place and that there is a level playing field for all involved. I would also like to point out that the prize payout ceiling was requested by the operators themselves in an effort to prevent excessive competition.

I have instructed my officials to strictly enforce our guidelines and to ensure that the system operates as intended. By not enforcing the guidelines, we would in fact be penalizing those who live within them.

My department recently circulated a memo to all operators advising that there would be zero tolerance for infractions of the guidelines and I would much rather be criticized for enforcing the regulations than for failing to do so.

The 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. It is important to realize that all gaming in Canada is illegal by virtue of the Criminal Code, and that only certain groups are given an exemption and permitted to run lottery events.

Charitable and religious organizations are one such group and it is lawful for them to conduct and manage lottery schemes in a province provided the proceeds are used for charitable or religious purposes.

There are over 600 organizations licenced annually to conduct bingo from very small single events to very large seven night operations. Government has a responsibility to ensure that the industry is properly regulated and that the charities get the highest possible returns.

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. The 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 enforce all of its guidelines to ensure that bingos are operated properly and, at the end of the day, officials will ensure that these minimum returns are met.

2001 05 24                                              3:10 p.m.