BINGO! JACKPOT DOESN'T GO TO CHARITIES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 10, 1993                   TAG: 9303100396
SECTION: EDITORIAL                    PAGE: A8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium
BINGO! JACKPOT DOESN'T GO TO CHARITIES
IN ITS unhappiness that so little bingo money is actually spent on charitable purposes, Roanoke City Council has a point. But making the point - alerting the public - is about all the council can do.
Years before it established a state lottery, Virginia was allowing charity-run bingo games. It sounds innocent enough, this exemption to the state's anti-gambling laws so that church clubs and civic groups, volunteer fire departments and fraternal lodges, can raise pin money to support their good works. But the law has proved nettlesome.
For one thing, more than pin money is involved. In Roanoke last year, legal bingo grossed nearly $3 million.
For another, after you make prize payouts and cover expenses, sometimes there's little left for charitable purposes. Less than 10 percent of last year's bingo gross in the city was cleared by the five local organizations that run bingo games. Of that 10 percent, about half (or 5 percent of gross) remains in the organizations' accounts, available for future spending on qualified activities.
By contrast, the state lottery turns over about 40 percent of its proceeds to the state. Half is spent on payouts, and about 10 percent covers operational and marketing costs.
Give city officials credit for spreading the word that so low a percentage of the bingo gross actually goes toward the charitable activities of the nonprofit organizations that run the games. That's worthwhile consumer information.
But the council also wants General Assembly authorization to set a minimum percentage of the gross that must go to charitable use. This would be OK, but only if the state applies any new regulations uniformly.
Over the years, the bingo law has been revised several times to ensure that its intent is followed. The frequency of games is regulated. Rental of playing halls must be at fair-market value. The organizations themselves, not a hired contractor, must run the games. Permits must be obtained from local government. Detailed financial records must be submitted and be open for public inspection.
State law already gives authorization to set a minimum percentage for cities with a population of from 200,000 to 210,000 - that is, Richmond. If there must be further fiddling with the bingo law, it at least should be part of a statewide policy. It shouldn't apply only to cities, say, with a population of from 95,000 to 100,000 - that is, Roanoke.
Meantime, bingo consumers should understand what city officials are saying: There are better ways to support charities. If you want some fun gambling, fine. But don't think you're doing it for a good cause.

by Archana Subramaniam by CNB