THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, April 14, 1996 TAG: 9604150211
SECTION: LOCAL PAGE: B7 EDITION: FINAL
DATELINE: RICHMOND LENGTH: Short : 36 lines
New rules aimed at ensuring that charities get more of the proceeds from bingo games could make it harder for smaller organizations to continue having the games, their representatives said.
The newly created Charitable Gaming Commission, which will take over the monitoring of bingo games from local auditors July 1, has proposed financial reporting requirements and other restrictions on the $200 million industry.
The proposed rule changes, which would go into effect this summer, also would subject bingo-game managers to criminal background checks and require between 6 percent and 16 percent of gross revenues go to charity.
At a public hearing Thursday night, representatives of smaller groups that host the games said the new rules could hurt more than they help.
``When this law goes into effect, I'm out of business, because I'm in violation of the law,'' said Charles Wilkerson of Mechanicsville, who represents the 3rd District of the Veterans of Foreign Wars in Virginia.
His organization would have to give 16 percent of gross revenues to charity. Now, only about 10 percent - about $90,000 a year - goes to charity after prizes and expenses.
Reducing prizes to increase charitable contributions also could hurt by driving away players who lose interest because of smaller prizes.
Bingo auditors have said as little as 2 percent of game revenues get to the charities the games benefit. In Hampton and Newport News, local auditors and the Internal Revenue Service are investigating bingo operations for possible violations of federal tax laws or state bingo regulations. by CNB