Florida gaming score: Tribes, $1.6 billion; state, zero

It's noon on a recent Monday and "Glory Days" is pulsing through the speakers at the Seminole Hard Rock Resort and Casino.

The rhythm beats against the flashing lights of more than 2,000 so-called "bingo slots."

The Seminole and Miccosukee tribes are bending gaming rules to their limits with the bingo slots, which look and act a lot like regular slot machines, and making a fortune — $1.6 billion last year alone. And the state of Florida does not get a cent.

That could happen in Massachusetts if the Mashpee Wampanoag make good on a threat to open a bingo slots facility should state lawmakers fail to legalize Class III gaming, which allows for full-blown casinos.

The tribe is asserting its right to build a bingo slots casino with the same electronic machines on which Florida's Seminole, and the Miccosukee Tribe, have built their respective empires. The Wampanoag say they can do this because bingo, a Class II game, is legal in Massachusetts.

Nationally, five states offer only Class II gaming. But Class II revenue grew last year at a faster rate than revenue from casino gaming — Class III. About 90 percent of Class II revenue growth came from Florida, according to Alan Meister's Indian Gaming Industry Report.

If full casino gambling — traditional slot machines and table games — were legalized in the Bay State, Massachusetts officials would be required under federal law to negotiate a gaming compact with the its two federally recognized tribes. And it would be during those negotiations that the tribes could agree to give the state a cut of the action.

Examples abound. In Michigan, municipalities get 2 percent of tribal gaming revenue from Class III machines through a 1993 agreement between tribes and the state. Under a further agreement with other tribes in 1998, 8 percent of revenue from the machines goes to the state, in addition to the 2 percent to towns. Last year, those contributions totaled $20 million.

And while the Seminole have no revenue-sharing agreement with the state, it does compensate one of its host cities. When the tribe built a casino in Coconut Creek, it agreed to pay the city $1 million a year. That was recently increased to $1.6 million a year.

When Florida refused to let the Seminole open Class III casinos, the tribe turned to bingo slots. It now operates seven such casinos, which are largely responsible for the tribe's success.

Class II gaming was originally designed to include high-stakes bingo when the Indian Gaming Regulatory Act was passed in 1988. But advances in technology have blurred the distinction between bingo and slots.

Bingo slots are rigged so players play against each other — not against the house, as with traditional slots — but the experience is still typical of a Las Vegas casino. Row upon row of tall metal machines with bright flashing lights and rolling sevens line the casino floor.

The Seminole casinos have no table games such as blackjack or roulette, but most casino revenues — more than 70 percent — come from slot machines. Had Florida officials negotiated for 25 percent of slot and table game revenue generated at Indian-run casinos, last year the state would have received almost $400 million.

No compact is required under Class II gaming, however. As all seven Seminole casinos are on reservation land, the tribe does not pay property taxes.

Now, almost 30 years after the Seminole opened their first high-stakes bingo hall, the state of Florida has finally realized it's time to negotiate.

Under Florida law, pari-mutuel facilities are allowed to offer traditional Class III slot machines, but in only one county. The Seminole, however, are asserting their right to do the same.

The tribe is arguing that the Indian Gaming Regulatory Act gives them the right to offer any level of gambling that is legal in the state of Florida.

The Class III slots are expected to give the tribe a big financial boost, because casino gaming generates much more revenue. While Florida's eight bingo slot casinos brought in $1.6 billion in gaming revenue last year, Connecticut's two full gaming casinos brought in $2.5 billion.

$218 million from bingo halls

B.C. casino revenues climbed 11 per cent last year to more than $1.2 billion.

Lower Mainland casinos raked in the bulk of that, collecting $870 million in 2006-07, according to the B.C. Lottery Corporation’s annual report.

The single biggest generator was Richmond’s River Rock Casino, where gamblers left behind a total of $233 million, up eight per cent.

It was the only casino where table game revenue of $125 million beat the slot machines, which took in $108 million there.

Burnaby’s Gateway casino took in $164.8 million (up nine per cent), with Coquitlam’s Boulevard casino close behind at $158.2 million (up 22 per cent).

Langley’s Cascades casino was fourth with nearly $115 million in its first full year of operation and Fraser Downs Racetrack and Casino in Surrey took in $51.9 million (up 11 per cent.)

Total BCLC revenues hit $2.4 billion, with nearly $1 billion coming from lotteries and $218 million from bingo halls.

The corporation’s profit margin rose to 42 per cent, with total profit after expenses passing $1 billion for the first time.

More than $140 million in grants went to community and charitable groups.

Revenue gains are credited in part to ongoing efforts to upgrade older slot machines, the introduction of new games like Pacific Hold’Em Poker, and the addition of slot machines in new community gaming centres.

However, the report notes there have been delays in opening those new centres, which are often updated bingo halls and are central to the BCLC’s strategy to offset the decline of paper bingo.

The BCLC projects net profits will rise $124 million or 12 per cent over the next three years.

Despite the “strong performance” of the casinos, not enough people overall are either betting or playing various lotteries or bingos, according to the BCLC.

The report estimates 61 per cent of B.C. adults participated in some form of gaming last year, but that was below the corporation’s target of 65 per cent, a goal that is rising to 68 per cent by 2009.

“It is our objective to achieve a high level of participation while emphasizing responsible play,” the report said.

The annual report puts current public support of gaming at 56 per cent, above the BCLC’s target of at least 52 per cent backing.

The report acknowledges the Ombudsman’s damning findings in May that customers have been inadequately protected from potential fraud by lottery retailers, who sometimes have won with disturbing frequency.

Corporation president and CEO Vic Poleschuk was fired last month.

“We take the report seriously,” his replacement, Dana Hayden, said in the BCLC annual report. “The industry knows that it must now meet a higher standard of player protection.”

Mail blocks bingo site

The UK's Daily Mail newspaper has blocked access to its online bingo site following calls from gaming firms and church leaders last week, which accused the paper of failing to adhere to guidelines set out by Gamcare and Responsibility in Gambling Trust.

A source from the Mail's publisher Associated Newspapers told the Observer that Cashcade, the company that runs the site, had introduced games they felt should not be included on the site after finding that its contract had been terminated.

Production will now be taken in-house and the site revamped according to the report.

Seniors again yell "Bingo!"

After a three-month scramble to obtain permits from the state, the township's five senior citizens clubs have received permission to resume their weekly bingo games and 50/50 raffles.

"It was a long time coming and everybody was elated," said Marta Afonso, president of the Bonhamtown senior club. "They were so elated — it was unbelievable."

The Bonhamtown club was holding its weekly meeting Friday when a representative from the state Legalized Games of Chance Control Commission visited to tie up loose ends and hand-deliver official state identification cards for each of the senior clubs.

The Bonhamtown seniors didn't waste any time. They immediately started exchanging quarters for bingo cards, playing again for $2 prizes.

"Today was a very happy day for everyone," Afonso said. "They really enjoyed themselves and so did I.

There was a big burden lifted off my shoulders."

Paid bingo and 50/50 raffles were banned in the township three months ago, when township officials discovered that state law requires senior clubs to obtain special permits.

In a letter dated April 13, the township's director of health and human services instructed the senior clubs to "cease and desist immediately."

"Apparently it is blatantly illegal to engage in any raffle, 50/50, or bingo for money or prizes without the organization having a valid state registration and a license issued through the Township Clerk's office," John Grun wrote in the letter.

Some clubs continued playing bingo without charging for cards, but others found their members didn't want to play without the prospect of a $2 prize and halted their games altogether.

State law mandates that the clubs must now obtain permits from the township, but township officials have allowed the seniors to resume their games in the interim, said Judi Gillingham, the township's assistant director for aging.

"As of 11:30 this morning the clubs were given permission to begin playing bingo again," said Gillingham, who worked with each of the senior clubs to help complete the paperwork for the state. "They're thrilled, we're thrilled for them — I'm so thrilled for them."

Senior club presidents and treasurers spent hours trying to sort through the information requested by the state. They needed to provide proof of net proceeds from the last year of 50/50 raffles and how that money was spent and figures for the bingo-card sales and payout amounts.

Alice Sporer, president of the Lindeneau club, spent four or five hours going over the paperwork with her club's treasurer.

"To me, its like, why do they have to know?" Sporer asked. "It would just make more paperwork for the state. We hand out maybe $30 in $5 increments for our 50/50, so what are we taking in? Maybe $30 a week?

Eileen Davis, president of the Stelton club, also had a hard time with the paperwork.

"It was a confusing procedure for ordinary people like us," Davis said. "But we got a lot of help from Judi Gillingham, and we appreciate all the help we got from her."

She already called all her club's table captains to tell them that bingo would be returning next week. Since attendance dropped off after bingo was banned, she expects more seniors to be on the buses to next week's meeting.

"We're just glad to have it back," she said.

But Bob Curtis, president of the Clara Barton senior club, is peeved with everyone involved in the bingo situation — from the township to the state.

"What aggravates me is when this initially started it was like pulling teeth to get the township officials to help you," said Curtis, whose club received its state license on Wednesday — two days before the others. "When there's a problem, some people dive head-first into the pool, and some people put their toe in water — and they put their toe in the water."

He plans to write letters to the attorney general and the governor to complain.

"It seems to be an awful waste of resources," he said, referring to the state office that regulates bingo and raffles. "They're wasting their resources with a couple senior-citizen centers playing bingo? What — are you out of your mind?"

The Legalized Games of Chance Control Commission oversees bingo and raffle licensing laws for nonprofit organizations throughout the state. Penalties for violating the laws are up to $7,500 for a first offense and $15,000 for repeat offenders.

Since some of the senior clubs have been playing bingo for free since April, getting the OK to resume their 50/50 raffles is an even bigger deal. The proceeds, while small, go toward luncheons for the seniors, charities, scholarship programs, care packages for grandkids in Iraq and a slew of senior-citizen activities.

The senior clubs will have to apply for a renewal of their state licenses every two years.