missouri gaming commission charitable games division best practices
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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). - PowerPoint PPT PresentationTRANSCRIPT
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
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Fiscal Year
Co
llec
tio
ns
(Mil
lio
ns)
0
100
200
300
400
500
600
700
800
900
Lic
ense
s
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