Nonprofits Lose Bingo Fight

The following is an excerpt from an article in Mother Jones detailing the recent e-bingo fight between tribal casinos and charity bingos.

"Californians can say goodbye to the electronic bingo machines (better known as e-bingo) in their charitable bingo halls thanks to a ban signed by Gov. Schwarzenegger that takes effect tomorrow. Turns out that bingo isn't just good old-fashioned fun anymore. Instead, it's at the center of a fight between nonprofits and Native American tribes who are all clamoring after bingo's big money.

Federally recognized tribes will still get to operate the machines on their reservation land, but charities will have to shut theirs down. Despite a few upshots for charitable bingo operators in the new law, like an increase on prize caps from $250 to $500 for traditional bingo games, the e-bingo ban still puts them on the losing end because many have come to rely on the machines to keep their business afloat.

Doug Pringle, who operated 80-plus machines out of Sacramento’s North Watt hall for his nonprofit, Disabled Sports USA, worries that he won’t be able to fulfill the terms of his 5-year lease without e-bingo. “Even if we close this building, we’re obligated to about $850,000 in rent over the next 2 years,” he said. “How are we going to replace three-quarters of a million dollars?”

For the complete story, please see Anna McCarthy, California's Charitable E-Bingo Is E-Liminated, Mother Jones, April 10, 2009.