(Draft - not yet approved by Board)
Date: February 20, 2013
Location: Secretary of State’s Office, Blue Spruce
Conference Room, 1700 Broadway, Denver, CO
Members Present: Dan Gincig, Beau Williams, Tom Bednark, Austin
Members Absent: Vera Craven
Secretary of State Officials Present: Mike Hardin, Greg Lestikow, Shannon Bee, Brian
Gryth, Lisa Marty, Darleen Herrera
Meeting was called to
order at 10:05 A.M.
The Pledge of Allegiance
A motion was made by Tom Bednark to approve the September 12, 2012,
meeting minutes as presented. The motion
was seconded by Dan Gincig and approved by unanimous vote of the Board.
Potential Board Members
Dan Gincig discussed the new and potential new board members.
Mr. Gincig reported that Rick Johnson has been appointed by the
legislature and will take office on July 1, 2013. The Secretary of State has
not yet received the appointment letter Three more potential candidates are
waiting on house approval:
- Perry Jultak - present at meeting - licensee
- Doni Glassburn - landlord
- Hank Gavin - Elk member
These individuals are waiting on the process of being approved. With these members in place, the Board will still
be in need of two more members.
Current board members who will be leaving include Austin (leaving today)
and Tom Bednark who will complete his term on 7-1-13.
Secretary of State
Suzanne Staiert, Deputy Secretary of State, recognized Austin Gomes
for his 40 years of service to the bingo community. The Deputy Secretary presented Mr. Gomes
with a certificate and coin.
Shannon Bee was also recognized for her promotion to Bingo/Raffle
Shannon Bee and Greg Lestikow provided an overview of the financial
- Gross revenue is up 1.2 million mainly due to an
increase in raffles of $1,000,000
- Bingo revenue increased slightly from 2011 to 2012,
but is still below 2010 levels
- Pulltab revenue has decreased but the profit margin
is being maintained.
- The margins indicate raffles exceeding all other
activity. Overall net profit for all
charitable gaming has remained consistent at 16-19%.
There was discussion between the board, the audience and staff about the
reduction of progressive pulltabs. Progressive pulltabs are thought to be more
complicated/difficult than other activities.
Current bingo event games (bullets) have taken over progressive pulltab
players (comments included from Rich Lemon (supplier), Perry Jultak (licensee)
and Marc Walegur (licensee)).
The Secretary of State’s fee reduction for the 3rd and 4th
quarter of 2012 has resulted in a savings of $300,000 to charities to put back
into their organization. Fee reductions are
reviewed quarterly and may remain in place at least until the state's fiscal
year end, which is 6/30.
Adopted Rules Changes
Greg Lestikow provided an overview on the approved rules changes and
those not changed. The Secretary of State’s
office received comments from the board and bingo community with regard to
potential rules changes.
- Clarify posting requirements for cash and
merchandise prizes at bingo occasions, making it easier for licensees to offer
merchandise bingo prizes.
- Licensees can now offer alternative cash prize,
allowing them to split prize in the case of multiple winners.
- Clarify that bingo-raffle proceeds may not be
commingled with funds in other accounts.
- This is one of the most common mistakes we see
- Rule change should make infractions less likely
- New rule allows licensees to maintain a separate
cash fund in a bar or clubroom. The cash fund may not exceed $2,000.
- Our work in the field demonstrated that licensees
that have their own clubroom needed these cash funds, but they were not allowed
prior to this new rule
- Changes to promotions rules clarify that a licensee
must allow promotion participants to be present at the promotional drawing
without paying any applicable entry fees.
- This should help decrease player complaints that
they are being unfairly excluded from promotions
- New raffle rules allow licensees to establish a
contract with a call fulfillment center in order to process raffle ticket
orders, and outlines requirements for licensees that utilize these services.
- This should provide licensees with more options for
raising money through raffles.
Rules Not Adopted
Greg Lestikow also went over the rules that were not changed.
Did not increase
electronics from 36 to 54. Discussion
on this topic included the fact that in the past the Secretary of State’s
office had a test done to see how many faces an individual could accurately
play at one time, which was determined to be 36.
Dan Gincig commented that tests were done in his hall to determine if
you were more likely to win if you played a machine or played paper. According to Mr. Gincig, the test determined
no notable difference. Fifty percent won
with paper and fifty percent won with machines.
There was discussion that with more faces on machines the probability of
winning would change. Future tests may
need to be conducted.
- Perry stated older people are more willing to play
machines as they are easier to operate
- Tom Bednark stated there is no harm to spend more
to increase odds – especially since profits go to charities
- Lydia Lopez a player since 1988, stated those on
fixed incomes cannot afford the machines.
Did not increase
number of occasions or prize limit. Feedback
received by the Secretary of State’s office from small groups stated these changes
would harm small groups. Small groups
would be affected by the larger groups that could afford more occasions and higher
prize limits. In addition, these changes were recommended to accommodate
pari-mutuel games, which are relatively new in the Colorado market. The
Secretary of State is reluctant to make such significant changes for games
whose effects on the community are still unknown.
Mike Hardin testified on February 6, 2013 on a bill presented by Representative
Jonathan Singer that would allow for progressive raffles. With raffle revenue
increasing this is another way to improve revenue for licensees.
Lydia Lopez discussed groups allowing one individual to buy out a
pulltab bucket. Investigator Herrera
stated there is no rule against it. It is
up to the licensee. Dan Gincig stated halls can place rules against this
activity as well.
Beau Williams again addressed his concerns about charging fees on gross
profit rather than net profit. Veterans
groups, such as his, sometimes make small profits and paying fees on the gross
negatively affects many groups. Dan Gincig
reminded everyone that paying administrative fees funds the bingo section of
the Secretary of State’s office, and that the calculation of these fees is set
Dan again mentioned the new potential members. Greg Lestikow and Corky Kyle have both been
in contact with the Legislative Director of the House regarding the process of
the new members. It is in process but
Dan Gincig is working with a legislator on a bill to deal with
electronics and number of patterns allowed.
The bill is in the process of being written. Mr. Gincig anticipates the bill passing but
the Secretary of State’s office would not comment on the bill until they have a
chance to review it.
Revenue and Profits
The Secretary of State’s office has obtained the services of Runge Consulting
to review and comment on improving bingo in Colorado. Mr. Runge has conducted interviews with
players, licenses, landlords, suppliers, as well as discussions with other
states operating bingo. With Mr. Runge’s
marketing background he brings a great deal of experience to his study. This is a positive step toward improving bingo
revenue and interest in charitable gaming.
The Secretary of State’s office anticipates the report being completed
by the next board meeting.
The next meeting
of the Board will be April 17, 2013.