Bingo Bill No Threat Say California Gaming Tribes

18th Sept 2008 – The California Tribal Business Alliance has hit back against the California Charity Bingo Association and its call on Governor Arnold Schwarzenegger to reject an upcoming online bingo bill, accusing the association of raising phoney issues on behalf of a slot machine manufacturer.

As reported here yesterday, the California Charity Bingo Association has urged the Governor to reject the remote caller bingo bill on grounds that it would be damaging to charities and the state lottery, as well as opening the way for tribal gaming to move online.

The Tribal Alliance accuses the Charity Bingo Association of being nothing more than a front for slot machine manufacturer Video Gaming Technology, and alleges that a number of charities have installed illegal gaming machines in their parlours at the behest of the machine manufacturers.

“Essentially, SB 1369 could not permit internet wagering because the use of internet technology is limited strictly to the broadcast of a live bingo game to remote locations. Players must be present in the bingo hall, and no wagers or prize awards are allowed via the internet.

“Internet wagering is also prohibited under federal law, so neither charity bingo operators nor Indian tribes may attempt to offer it,” said the Tribal Alliance.

The alliance also defended a clause in the bill which states that charities may not use electronic bingo or slot machines. “The purpose of this clarification is to avoid a dispute with tribes that are paying hundreds of millions of dollars to the state in return for the exclusive right to operate certain types of gaming,” it said.

As the US economy continues to weaken, competition for Californian’s gambling dollars only looks set to intensify between the state lottery, charities and gaming tribes.

The ultimate decision on the bill however will most likely have nothing to do with gaming or charities. Governor Schwarzenegger has vowed to veto a whole raft of bills, including the bingo bill, in retaliation for the legislature’s threat to override a veto he intends to use on the state budget.

Schwarzenegger Urged to Reject Online Bingo Bill

17th September 2008 – A bill pushed through the California legislature at the last minute is set to allow larger Californian charities to offer bingo games throughout the state online. The bill further jeopardises the future of the California State Lottery, already one of the worst performing lotteries in the US, while presenting opportunities for tribal gaming to move online.

Backed by Senator Gil Cedillo, SB 1369 passed through Senate and is now awaiting submission to Governor Arnold Schwarzenegger amidst protests from hundreds of local charities who face devastation.

The bill outlaws the electronic charity bingo machines that hundreds of small charities throughout the state rely on for funding. In its place, Remote Caller Bingo enables simultaneous bingo games at multiple locations throughout the state online. While organizers of Remote Caller Bingo will be able to offer larger jackpots, the technology will be unavailable to small charities.

According to the California Charity Bingo Association, the introduction of Remote Caller Bingo through the internet also triggers a clause in the Indian tribal gaming compact. The clause states that any casinos operating under the compact have the right to use the internet for gambling if that technology is opened up to anyone else in California.

The Association says that if charities can offer Remote Caller Bingo online, then the door is open for gaming tribes to do the same. As bingo is a game authorised by the lottery, tribes will be able to offer lottery games online, which may yet open the door to offering other casino games such as poker, blackjack and slots.

The California Charity Bingo Association claims that these changes would in turn severely weaken the viability of the California Lottery, operated by GTECH, as a potential revenue source. The state lottery has already projected lower revenues for FY 2009, which is projected to result in $94 million less in revenues for California’s schools. The Association states that additional competition is certain to further reduce the lottery’s revenue at a time when the state is running a dramatic and continuous budget deficit and has no ability to replace these lost funds.

Ravi Mehta of the California Charity Bingo Association said: “The extreme concern of legislative supporters of SB 1369 was eliminating the perceived threat of these charity operations to established gaming operations. This concern was so extreme that legislators didn’t take the time to consider long-term consequences and rushed this bill through the Assembly and Senate in late August.”

“We are now urging the Governor to take a closer look at SB 1369 and realise that in their haste, legislative sponsors left loopholes that could have disastrous and far-reaching consequences not just for small charities, but for all Californians for a long time,” he said.