ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, February 26, 1997 TAG: 9702260067
SECTION: VIRGINIA PAGE: C-3 EDITION: NEW RIVER VALLEY
DATELINE: CHESAPEAKE
SOURCE: Associated Press
MEMO: NOTE: Shorter version ran in Metro edition.
Bingo operations that generate less than $25,000 a year could be exempt from tough new charitable gaming regulations if a bill passed by the General Assembly is signed into law.
The exemption keeps alive the Virginia Charitable Gaming Commission until 1999 to give the legislature time to review the regulations again.
The commission, which began enforcing new regulations in June, provoked an immediate revolt among people it was intended to help. Some legislators sought to eliminate the commission after small bingo operators closed, saying the new restrictions and added paperwork were too burdensome.
If Gov. George Allen signs the bill, about 1,100 small bingo operators would be exempt from state regulation beginning in July.
The bill also would allow the commission to continue overseeing the larger, more lucrative bingo operators. There are about 600 games statewide that make more than $25,000.
For the large operations, the bill would gradually reduce a yearly administration fee they must pay on total bingo sales from 2 percent to 1.25 percent by July 1998.
Allen has 30 days to sign, amend or veto the bill, said spokeswoman Julie Overy. He has publicly supported the exemption for smaller organizations.
Last week's legislative wranglings over the commission's future coincided with the disclosure of a major bingo investigation in South Hampton Roads. The Charitable Gaming Commission is investigating allegations of bingo fraud at the Deep Creek Baseball Association by its former bingo manager. Its game took in more than $1million in fiscal 1996.
Charity gaming in Virginia brings in about $215million a year. Proceeds go to a variety of charitable groups, including volunteer fire departments, youth baseball and churches.
Del. Alan Diamonstein, D-Newport News, headed a committee that reviewed the charitable gaming bill. He said the legislation offered a compromise between those who wanted the commission abolished and those who defended it.
``The bill tried to address some of the complaints that smaller groups had about the commission's cumbersome regulations,'' Diamonstein said.
But Del. Jerrauld Jones, D-Norfolk, said he thought the legislature's action on charitable gaming was premature.
``I believe that in an area like bingo, you need very strict regulations, and we had to give the commission a chance to work,'' Jones said.
In addition to exempting smaller organizations, all volunteer fire departments and rescue squads would be freed from regulation. Those groups no longer would need to notify the state of their gaming operations or fill out financial reports, said Jerry Rowe, the commission's executive secretary.
The bill also lowers the age of those eligible to play from 18 to 16. Some bingo operators had complained that the age requirement kept some families with children away.
LENGTH: Medium: 60 lines KEYWORDS: GENERAL ASSEMBLY 1997by CNB