Missouri Gaming Commission Charitable Games Division

Best Practices

Presented by

Jane Bax

Charitable Games Manager

& Rachel Farr

Senior Auditor

Missouri Constitutional Restrictions Article III, Section 39(a)

• Only religious, charitable, fraternal, veteran or service organizations with an IRS 501(c) (3), (4), (5), (7), (8), (10), (19), or 501 (d) exemption

• All net receipts over and above the actual cost of conducting the game as set by law shall be used only for charitable, religious or philanthropic purposes, and no receipts shall be used to compensate in any manner any person who works for or is in any way affiliated with the licensed organization

• Any person involved in the management, conduct or operation of bingo must be a bona fide member of the licensed organization for the two years immediately preceding such participation, volunteer the time and service necessary to conduct the game, and have never been convicted of any felony

Number of Licensees

• Regular Licensees - 400Annual license for organization playing a maximum of one day per week on a regularly scheduled day.

• Special Licensees – 300Valid for an annual event for a period of 1 to 7 days.

• Abbreviated Pull-Tab Licensees – 132Valid for a 24 hour period to play only pull tabs – maximum of 4 licenses per year per organization.

• Hall Providers - 126Annual license issued for January through December to entities that rent the hall to bingo organizations.

• Manufacturers – 10Annual license issued for January through December to entities that manufacture bingo paper, pull-tabs and/or equipment used in Missouri.

• Suppliers – 6Annual license issued for January through December to entities that sell bingo paper, pull-tabs and/or equipment to bingo licensees in Missouri.

Charitable Games Division Staff

4 Missouri State Highway Patrolmen• Investigations• Manufacturer/Supplier Backgrounds

3 Auditors• Manufacturers, Suppliers & Bingo Operators

3 Administrative Staff Members• Process Bingo Licenses• Quarterly Reports• Pull-Tab Approvals

TaxesPrior to 1995• 2 ½ % of the gross receipts realized from bingo

• Paid by the operator on monthly basis

Effective January 1, 1995

• Licensed supplier collects taxes from the bingo licensee when product is sold.

• Taxes paid by the supplier monthly on the last day of the month following the month sold.

• Supplier may retain 2% for cost of collection

• Tax Rates– 2/10 of one cent per bingo face sold in Missouri

– 2% of the retail sales value of each pull tab deal

Missouri’s Best Practices

New licensee visits• Within the first few months of operation• Answer any questions regarding regulations• Review records to ensure proper records are

being kept

Missouri’s Best PracticesIssued “No Tolerance” letter on illegal

gambling devicesBanned bingo & bingo themes on Missouri

riverboatsOffer assistance in setting up viable

bookkeeping systemToll free number to assist licenseesPublish annual Bingo NewsletterDistribute Bingo Bulletins to keep

licensees informed

Missouri’s Best PracticesChanged several bingo regulations

• Permitted sale of bingo paper prior to 10:00am

• Eliminated 2400 ticket count max on pull-tabs• Approved pull-tab packaging in either random

or random select• Allowed 2 progressive bingo games• Approved membership transfers within same

organization without 2 year wait• Allowed electronic bingo card monitoring

devices• Paperless system• One-way wireless technology

Missouri’s Best Practices

Meet with Association of Charitable Games of Missouri (ACGM)• Discuss possible legislative or rule changes• Communicate licensee requirements

ACGM Mini-Conventions• Various locations throughout the state• Answer questions• Willingness to assist licensees

Change In Auditor’s Role More helpful Previously, operator audits were unannounced audits

conducted during bingo occasions. Necessary records were not always available Limited time with organization representatives

Setting appointments with the operators during the day rather than during game. Ensures necessary records are available Ensures appropriate representatives are present to ask any

questions and receive assistance in areas of concern to them. Teacher instead of auditor

More Audits Conducted

• More comfortable with the process• More compliant with regulations• Keeping better records• More willing to ask our staff questions

FY02 FY03 FY04* FY05* FY06

AUDITS 55 63 85 132 189

INSPECTIONS 23 21 11 11 14

TOTAL 78 84 96 143 203

Bingo On The Decline

Suggestions to revitalize bingo or

at least slow down the decline?

Bingo Tax & Fees Collections and Licenses Issued

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Fiscal Year

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(Mil

lio

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100

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Lic

ense

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COLLECTIONS

REG LIC

SPEC LIC

SPEC PULL TAB LIC

Missouri Gaming Commission Charitable Games Division

Best Practices

Presented by

Jane Bax

Charitable Games Manager

& Rachel Farr

Senior Auditor