Myths and Facts
About Charitable Use of Electronic Bingo Aids
MYTH: Electronic bingo is illegal.
FACT: Senate Bill 1369 attempts to ban electronic bingo, but Federal Court Judge John Mendez ruled that electronic bingo machines are legal to use in California until a trial court decides their ultimate fate. CCBA believes the machines are both legal and required under the American’s with Disabilities Act. Many players with disabilities are able to operate electronic machines, but are physically unable to play traditional paper bingo.
MYTH: Electronic bingo does not help charities.
FACT:California charities are extremely dependent on charity electronic bingo. Funds raised through electronic bingo pay for critical services throughout the state, including programs that serve people with disabilities. Electronic bingo generates millions every year to help needy students, athletes, musicians, hungry families, veterans and the disabled. Without access to fundraising through electronic bingo, these and other charities would have to cut programs that help millions of Californians.
MYTH: Electronic bingo machines are just like slot machines.
FACT: There are many differences between electronic bingo and slots. First, players are still issued paper cards with winning combinations and compete against other players in the same bingo hall, as opposed to the house as in casinos. Also, unlike bingo at casinos, charitable bingo limits prizes to $500 for each game. And the money benefits charities, not big corporations.
MYTH: Charities can do just fine with old fashioned paper bingo
FACT: Paper bingo alone is often a money loser for charities. It takes approximately 150 bingo players for each session of paper bingo just to break even. There is also difficulty finding the 20 volunteers necessary to staff the event. Using paid staff is prohibited by law.
MYTH: Bingo revenue can be used for anything.
FACT: Bingo revenue must be used for charitable purposes. Charities receive 100 percent of all bingo revenue after paying overhead and other expenses. California law specifically prohibits bingo revenue from being used for a wage or salary. The only exception to that rule is paying for security personnel at bingo halls.
MYTH: Bingo is unregulated and anyone can host a bingo operation.
FACT: Counties and cities issue licenses and conduct background checks for each individual licensee, vendor and anyone else associated with a bingo operation. Authorities also conduct a minimum of one annual audit of each bingo operation. Charities are also required to report on a monthly basis all bingo revenues and expenses. By law, only qualified charities can operate a bingo event and no other individual, or entity, can hold a financial interest in the conduct of the game.
MYTH: SB 1369 gave bingo operators the ability to operate remote caller bingo.
FACT:The bill authorizes remote caller bingo as a replacement for electronic bingo machines, but the system currently doesn’t work. Remote caller is a system that links bingo games electronically across the state, but because the technology is not available to charities, they system is not operational.
MYTH: Electronic bingo will proliferate throughout California.
FACT: The state already restricts electronic charity bingo to counties and cities that specifically authorize bingo by ordinance. The law further restricts bingo to be played on property owned or leased by a charity. Each county and city individually determines if it will permit bingo and also determines when, where, who and how many charity bingo operations should exist in their community. Local governments and Californians should continue to determine what's best for their own communities when considering charity bingo.
