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Bingo changes could level profit among groups
Proposed changes would give each group just under $2,000 for each bingo worked

Samantha Stokell
Northern News Services
Published Thursday, November 3, 2011

INUVIK
The lottery committee in Inuvik has proposed changes to how profits from fundraising bingos are divided. The changes would see funds evenly split between all organization.

The current system has different organizations in town vying for more profitable dates, such as Saturday evenings or government paydays, to get the money from bingos. The changes would have the profits from the entire year evenly split amongst all groups, no matter which night members volunteer on.

"We want to make it fair for everyone," said Tony Devlin, a member of the lottery licensing committee. "What it came down to is the day of the week. A group could make $10,000 on a Saturday, but on a Monday they could lose money. It's made our job very difficult because of the imbalance."

A rating system set up by the committee determined which groups chose their bingo dates first, giving organizations that have a broader impact on the community more points, such as the food bank or Ingamo Hall.

The proposed changes would have each group that works a four hour block receive $1,935, an equal portion based on the 2010 profits. Bingo sales brought in $2.3 million in 2010, with $553,000 net profit divided amongst 24 groups who applied. If a group volunteered to run a Saturday bingo, which runs for eight hours, they would receive two blocks of $1,935, which would equal out to $3,870.

"Basically, it guarantees a group $500 an hour, which is a great amount for volunteer hours," Devlin said. "It guarantees income for groups that are willing to put in the time on bingos. Some groups will see a drop from last year. It takes any excitement out of it over how much groups can make, but makes it fair."

Of the 24 groups that applied for bingos in 2010, 15 didn't hit the $1,935 mark per bingo, or came within $100. Five groups claimed 55 per cent of the total profit – $307,000.

While some groups have benefitted from the mega bingos, other groups have actually had to write a cheque to the Town of Inuvik or New North, who runs the bingos, if they didn't make a profit.

The town charges a number of fees for the type of games offered at each bingo. For games with wins under $1,250, a fee of $50 is charged. For "Share the Wealth" games, a $20 fee is charged. For jackpots on Mondays, Tuesdays and Fridays, a $50 fee is charged and on Saturday nights where bingos can have a jackpot of $10,000, the fee is $1,140. On other nights, the total lottery fee for a licence could be $440.

New North charges organizations $425 per night to host a bingo and then sells bingo cards for $25 per 500 cards, adding another minimum $450 to the bingo fees.

Paul MacDonald, commanding officer of the 2749 Inuvik Royal Canadian Army Cadet Corps, thinks the lottery licensing committee should have looked at changing the fees before changing the way profits are divided. He also noted that New North has a monopoly on the bingo business in Inuvik, leaving organizations with no other options.

MacDonald is against the proposed changes to the equal distribution of funds amongst all groups. At a bingo a few weeks ago, the cadets raised $12,500, which the group has already spent on renovations to a cabin, new uniforms and field training exercises. Without that money, the group would have trouble operating.

"The way it works now, some groups put in extra effort and get out of it what they put in to it," MacDonald said. "(The changes) will be taking money away from a group that's highly active in the community."

Devlin stated that the changes are still proposed and not yet set in stone. The committee may also look at creating eligibility rules for groups that apply to run bingos for fundraising.

MacDonald will attend the Town of Inuvik committee of the whole meeting on Nov. 7 to discuss his concerns with the proposed changes.

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