ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, September 18, 1996 TAG: 9609180104
SECTION: VIRGINIA PAGE: C--1 EDITION: NEW RIVER VALLEY
DATELINE: RICHMOND
SOURCE: Associated Press
Virginia should stop regulating small bingo operators because rules are too burdensome for civic groups that run the games, the chairman of the state Charitable Gaming Commission said Tuesday.
Edward J. Fuhr's recommendation drew applause from a room full of bingo operators attending a public hearing before a legislative subcommittee.
Fuhr suggested deregulation for groups taking in less than $5,000 in gross receipts a year, which is about a quarter of the state's 2,700 bingo operators.
``That's just not where we think the problem is,'' Fuhr said.
Fuhr said he was more concerned about groups that rake in more than $2 million a year from bingo games.
``That's big business. You've got to make very sure that everything is on the up and up,'' he said.
Fuhr also recommended that the 2 percent audit fee charged to bingo operators be changed to a fee of up to 2 percent. The commission does not need a 2 percent fee from all operators to pay for the audits, Fuhr said.
Representatives of groups ranging from the Veterans of Foreign Wars to volunteer fire departments complained about regulations that took effect July 1. They are too costly, require too much bookkeeping and place unreasonable limits on who can run the games, they said.
Fuhr said the commission can enact some changes in its 55-page regulation book, but deregulating small operators and lowering the audit fee would have to be approved by the General Assembly.
The assembly created the commission last year in response to bingo corruption in Henrico County.
Virginians spend about $200 million annually on bingo games, which must benefit charities. But after operators pay prizes and overhead costs, only about 2 percent of the money goes to charities, Fuhr said.
``The nationwide average is closer to 12 to 15 percent,'' he said.
Under the new regulations, games with annual receipts of more than $500,000 have to return 6 percent to charities next year, 9 percent the following year and 12 percent the third year. Those with receipts from $150,000 to $500,000 have to return 4 percent, 6 percent and 10 percent over three years.
Games with receipts of less than $150,000 would have to return 3 percent, 4 percent and 5 percent to charities over three years.
LENGTH: Short : 50 linesby CNB