Published: October 02, 2009 09:34 am      

Bingo groups can meet with state about modernization

By Carl Keith Greene / Staff Writer

A meeting set for Oct. 15 at the Corbin Bingo Parlor on Cumberland Falls Highway will address concerns of bingo groups in the area regarding the proposed modernization of the state’s Department of Charitable Gaming’s (DCG) accounting software and procurement of supplies by the groups.

The 6 p.m. meeting will be the 10th of 11 meetings scheduled around the state, which began Sept. 22.

That time and date will deprive three Corbin area groups from attending because they will be holding their own bingo events at that time, said Thelma Hilbert of Women Helping Others, which operates another bingo parlor on the same highway.

In late August, the DCG announced a proposal to “drastically reduce the paperwork filed with DCG” by requiring bingo groups to use an approved electronic inventory monitoring system and require that all bingo materials be purchased through the DCG.

The system, if adopted, would use a bar code to allow the DCG to monitor in real-time the receipts, payouts and inventory of each of the charities. It would track inventory such as bingo playing cards, pull-tabs and daubers from the manufacturer through the distributors to the organizations.

And it would allow automatic computer filing of all paperwork to the DCG.

“This will be the first major reform of the way Kentucky regulates and oversees charitable gaming since the original laws were adopted in 1994,” said DCG Commissioner Henry Lackey.

He said the new procedures would relieve the burden the groups are under in manually accounting for and reporting their supplies, rental costs and payouts for each session.

“This modernization of charitable gaming could mean an actual increase in the net proceeds that many charities receive by simply having more accurate records,” he added.

Prior to sending proposed legislation to the upcoming General Assembly, the DCG is seeking bids from manufacturers and distributors which could make materials available at a reduced cost to the charities.

Bids are being sought from software makers to develop reporting procedures from the charities to the DCG, as well as suppliers of bingo supplies.

Marty Hammons of the DCG said if bids sought from five or six potential bidders are favorable, the DCG will continue with its pursuit of legislation, but “if for any reason it will cost more than we expect, we will go back to the drawing board.”

He said costs to the charitable groups should not be increased.

Through audits of some of the groups, it has been determined that about $100 million, about 20 percent of the total amount accounted for in charity games, is unreported because of theft and clerical problems.

It has also been estimated that the state’s 655 bingo-playing charities lose $600,000 a year from accepting bad checks, and spend $300,000 a year on paper bookkeeping costs.

If the bids indicate money can be saved, the DCG would seek a bill that would allow the new system to be put into effect by fall 2010.

Organizations that offer bingo will be required to have the equipment to provide the proper data to the DCG, but will not be charged for the equipment or software and will be trained in its use by the DCG.

Hammonds said leaders of major gaming groups across the state — such as Catholic groups, fraternal groups and volunteer fire departments — said they favor the change. Among those leaders is Charles Pugh, state commander of the Veterans of Foreign Wars.

Gaming groups around the state have questioned the proposal, and local groups have varying opinions of the idea.

Hershel Blanton, chairman of the board of directors of the Laurel County Fire Department, which operates Bingo Zone in London, said he thinks the department right now will take a “wait and see” attitude while the process is being developed.

The department already uses computerized bookkeeping and bar code readers to input inventory information.

Hilbert, speaking for the Women Helping Others group, said she is in opposition to the proposal.

“I feel I should be able to shop where I want to shop (for bingo supplies) and no one should tell me where to shop,” she said.