POCAHONTAS — Although parishes are reporting profits since the July 31 reinstatement of charitable bingo, many feel the Arkansas Department of Finance and Administration is the big winner.
Fifty-three parishes, schools and Knights of Columbus councils throughout the Diocese of Little Rock hold an active bingo and raffle license and many, like St. Michael Church in Cherokee Village, have been forced to raise the cost of the games as a result of the state one-cent sales tax imposed on each game card.
In addition to the tax, charities have to pay $25 for a one-time bingo or raffle license or $100 for a regular annual bingo and raffle license. The number of parishes and councils with licenses jumped from 20 in the past five months.
A constitutional amendment was passed by Arkansas voters in November 2006 to allow charitable bingo and raffles. In the legislative session last spring, the representatives and senators OKed a method for taxing the games and equipment. Each organization hosting the games must obtain a license and buy bingo cards sold through licensed vendors.
At the direction of Bishop J. Peter Sartain, bingo and raffles were not held at parishes from 2004 until July 31, 2007.
Isabelle Wiest serves as director of the Cherokee Village parish bingo games, played each Thursday evening and the first Sunday afternoon of each month, and also served as director for nine years before the games were discontinued. Wiest said bingo games were reinstated at St. Michael Sept. 13 and were now profitable, having reimbursed the parish for the initial start-up cost.
“At least we’re out of the red,” Wiest said. “But the taxes are terrible. I purchased $1,000 worth of supplies and my bill was over $3,000. It’s supposed to be a charitable bingo.”
St. Michael had 87 players its opening night and has been averaging 50 to 60 people each week. Fifteen games are offered each session at a cost of $15 for a nine pack and $10 for six games, which Wiest said were slightly higher in order to help offset the state tax and fees.
“A lot of bingo places are hurting because they have smaller crowds,” Wiest said. “We’re fortunate in that we did well the first couple of weeks.”
Kathy Dust serves as bingo director of St. Paul the Apostle Church in Pocahontas and also feels the one-cent sales tax is unfair. Dust is in the process of circulating a petition that will be distributed to other bingo sites for signatures. She will send the petition to the state legislature requesting a reduction on the bingo tax during the 2009 legislative session.
Dust said since reinstating bingo in September, St. Paul bingo averages 60 to 70 players each Monday evening. Bingo packets include 20 games for $15. All proceeds benefit St. Paul School.
James Malik, bingo director for Knights of Columbus Council 5209 in Morrilton, referred to the tax as “a pain” but could be offset by an increase in attendance.
“We’re actually making more money than before it was shut down because of our attendance,” Malik said.
Malik said bingo has an attendance of 90 to 100 each Monday evening since it was reinstated in mid-August, an increase of approximately 40 players. Half of the proceeds from the games benefit Sacred Heart School, with the remainder benefiting a variety of Knights charities.
This is the first year in which Mary Mother of God Church in Harrison has been affiliated with charitable bingo, yet Joe Koenig, an accountant by profession, said he was “amazed over how much buying paper cost.”
Koenig serves as accountant for the bingo games managed and operated by the Knights of Columbus. Grand Knight Tom Wilson serves as director and all proceeds are divided equally between the two entities. Games are held each second and fourth Monday evening. Koenig said the group had made the decision to implement the bingo games for a six-month trial run before making a long-term commitment.
While the group is pleased with the early success of its first-ever charitable bingo venture, Koenig said the proceeds could be greater without the state fees and tax.
“When it (legalized bingo and raffles) was voted on as a charity,” he said, “I don’t think people realized how much money the state was going to get out of it. It all sounded great and it passed.”
According to the Department of Finance and Administration, the licenses and taxes have generated more than $700,000 since September, exceeding projections. When the legislature enacted the law, it said the money collected would go toward administrative costs.
