Colorado Bingo-Raffle Advisory Board Meeting Minutes

Date: September 11, 2013

Location: Secretary of State’s Office, Blue Spruce Conference Room, 1700 Broadway, Denver, CO
Board members present:
  Rick Johnson, Perry Jultak, Dan Gincig, Donivon Glassburn, Tom Bednark, Meredith Edwards
Secretary of State officials present:  Mike Hardin, Greg Lestikow, Shannon Bee, Lawrence Runn, Carla Hoke, D.J. Davis, Lisa Marty

 

The meeting was called to order at 10:05.

The pledge of allegiance was conducted. 

A motion was made by Dan Gincig to approve the minutes of the July 10, 2013 meeting.  The motion was seconded by Tom Bednark and approved by a unanimous vote of the Board.

 

Financial report

Greg Lestikow presented a revenue by semester projection.  The projection showed that, since 2010, revenue has decreased in the 2nd half of each year.  These decreases varied in amounts but average about 5%. The Board discussed that the winter months are busier and that the time between Memorial Day and Labor Day can be slower with many people taking vacations during that time.

Additional charts show a drop in gross revenue since 2010 with bingo and progressive bingo revenue dropping by approximately 8% and pulltabs at bingo dropping approximately 7% in the same time frame.  Raffles have shown a steady increase of nearly 66%, due in large part to house and 50/50 raffles.  Pulltabs at bar/clubrooms have increased approximately 9% since 2010.

 

Legislative taskforce

In an effort to work off survey feedback from licensees and the studies by DU students and Jon Runge, the Secretary of State has reached out to a legislative taskforce, comprised of various stakeholders in the bingo/raffle community, to help determine some possible changes that could be made to bingo/raffle statutes for a potential 2014 legislative package.  An overview of the report was provided to the Board members. 

Members of the taskforce present at the meeting provided some insight as to their activities and ideas for the future legislative package.

Randy Kanai of the Colorado Amateur Hockey Association discussed his group’s work with Kroenke Sports Charities and their 50/50 raffles at Mammoth, Nuggets and Avalanche games.  They made over $115,000 in revenue with half going to the winners and half to charity. 

Some challenges Mr. Kanai mentioned included physically drawing tickets and having to stop selling tickets at half time to meet state statute requirements.  With new technology and a change in statutes these difficulties could be avoided. 

Glenn Tiemann discussed having pulltabs at alternate venues.  Having the ability to sell pulltabs at malls or bars to obtain greater sales would be a benefit to the charity and is an idea from other states.

Some other ideas being looked at by the taskforce include

  • New Technology Pilots: The possibility of standardizing a process for the Secretary of State to review new technology and pilot programs.
  • Remuneration of Volunteers: As currently envisioned, this would include allowing only for de minimus amounts of food for volunteers. Any other types of remuneration would have to be allowed for through a change in the Constitution. 
  • Event Games: This change would make it clear that event pull tabs are not progressive pull tabs, and that they are not governed by the same restrictions and requirements. As part of the discussion, Rich Lemon of Rocky Mountain Bingo Supply mentioned that any rules made as a result of this legislation should not limit the number of event pull tabs. .
  • Electronic-Only Bingo: This change would give licensees and players more options.  However, we don’t want to blur the line between charitable gaming and regular gambling.

 

Additional Board member

Board Chair Doni Glassburn has been unable to locate a manufacturer/supplier representative for the Board.  He will keep looking.

 

Rules hearing

Notice of Proposed Rulemaking was submitted on 8-29-2013. There will be a hearing in the Secretary of State’s Blue Spruce Conference Room on 10-2-2013 at 9am.  There is information in the packets available to the Board members on how to submit comments on the proposed rules change.  The rules change deals with progressive raffles, which will go live on 1-1-2014.

 

Open forum

  • Progressive Pulltab Payout

Rich Lemon discussed the desire to increase progressive pulltab payouts to $15,000 rather than the current $5,000.  With the large progressive raffle opportunities this would be good for pulltabs.

  • Cash Payouts

Kevin Fulton discussed progressive bingo deposits from credit cards and paying out pulltab winners over $500 in cash.  The Secretary of State will research this issue.

  • Next Meeting

The Board would like clarification to the TBD’s on the taskforce initiative sheet by the next meeting.  The Secretary of State cannot commit to completion by the next meeting as there is research and unknowns to work on prior to completion.

  • Notification of Meetings

Rich Lemon of Rocky Mountain Bingo stated he was not aware of the Board meeting from the Secretary of State website. The Secretary of State will make sure manufacturers and suppliers are added to the Gov delivery system.

  • Coupons

The question of the use of coupons was brought up by Meredith Edwards.  This is a potential pilot program that the Secretary of State is gathering data on. 

  • Rule Making Issues

Board Chair, Doni Glassburn mentioned that with the casinos and lottery making huge profits in recent years and the bingo industry struggling, it is important to bingo to be open to new ideas and to keep potential ideas within the community.

  • Positive Atmosphere

As a recent addition to the business and licensing division of the Secretary of State’s office, D.J. Davis complemented everyone on how productive the meeting had been.  Everyone was engaged in the conversation and working together to move the bingo/raffle industry forward.

  • Future Meetings

With upcoming legislation Doni Glassburn asked the Board for more meetings.  Additional Board meetings along with the taskforce can help work on legislation and move the industry forward.

 

On the motion of Dan Gincig, seconded by Tom Bednark and approved by a unanimous vote of the Board, meetings have been set for 11/6 and 12/11 at 10:00 AM in the Secretary of State’s Blue Spruce Conference room (no meeting in October due to the rules hearing on 10/2/2013.)

On the motion of Tom Bednark, seconded by Rick Jackson and approved by a unanimous vote of the Board, Perry Jultak was elected Secretary of the Board.

On the motion of Perry Jultak, seconded by Tom Bednark and approved by a unanimous vote of the Board, the meeting was adjourned at 11:35.

 

Homework items

  • SOS
    • Research rule on $500 pull tab payouts by check.
    • Look into whether halls can offer coupons
    • Add manufacturers and suppliers to GovDelivery list

 

The next meeting of the Board will be November 6, 2013.