Licensed charitable organizations are responsible for the conduct and management of bingo events. While only a licensee’s members, employees or volunteers may carry out certain duties, other duties may be carried out by an Operator registered under the Gaming Control Act, 1992.
» supervising the handling of all revenues generated from its own licensed events;
» paying expenses, including hall rental, advertising and reimbursement for bona fide member expenses; and
» setting up and maintaining the lottery trust account(s), including depositing all incoming monies.
» selling bingo paper and tracking sales;
» cash counting and reconciliation; and
» responding to customer complaints.
Each licensee is responsible for deciding how to staff its bingo events, as long as the minimum of three (3) bona fide members of the licensed organization are present to conduct and manage the event.
1. In addition to three (3) bona fide members, licensees may staff their events with any combination of:
2. If the Operator of the bingo hall provides all the runners as in 1(c) above, the licensee and the Operator share the entire staffing costs. When the staffing costs are shared:
For an example of how to calculate the amounts to be distributed to the Operator of the bingo hall and the licensee when the cost of runners is shared, please refer to Figure 1.
Fig. 1: Sharing the Cost of Runners Between the Hall and the Licensee Scenario
$7.00 x 4 = $28.00 $28.00 x 3 = $84.00
$7.00 x 0.10 = $0.70 0.70 x 4 = $2.80 2.80 x 3 hours = $8.40
Total Costs of the Bingo Event |
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Gross Receipts |
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$5,000 |
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Less(-) Prizes |
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(4,000) |
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Gross Profit |
$1,000 |
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Licence Fee |
$120 |
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Actual staffing costs (84.00 + 8.40) |
92.40 |
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HST (92.40 x 0.13) |
12.01 |
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Advertising (2% of prize board) |
80.00 |
(304.41) |
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Less total costs |
$304.41 |
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Net Profit before hall expenses |
$695.59 |
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Hall Operator’s Amount (695.00 x 40%) |
$278.24 |
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+HST on Hall Rental |
36.17 |
(314.41) |
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Less total Hall costs |
$314.41 |
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Net Profit/Licensee’s amount |
$381.18 |
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Less out-of-pocket expenses for designated members in charge |
($30.00) |
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Net Licensee amount |
$351.18 |
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The terms and conditions for bingo licences describe how a licensee must distribute the gross receipts from bingo events. The licensee must calculate the distribution of the gross receipts from the bingo events based upon whether or not it uses the services of a registered Operator of a bingo hall and, if so, which services are provided.
In order to calculate the amount to be paid to the Operator (the hall rent), the licensee must first deduct from the gross receipts the other eligible costs incurred in the conduct and management of the bingo event. These expenses may include the prizes, licence fee, bona fide member expenses, advertising and promotion, hand-held personal bingo verifiers and the cost of transportation as approved by the licensing authority. The amount calculated by deducting these expenses from the gross receipts is referred to as the “Base Amount.” The licensee must then use this “Base Amount” to calculate the hall rent payable to the Operator of the bingo hall for goods and services provided to the licensee for the bingo event, as outlined in 9.6.3(a) to (c).
Calculating the base amount
Less(-) (Prizes + licence fee + reimbursements* + advertising and promotional costs + authorized transportation + hand-held personal bingo verifiers)
Equals (=) Base Amount
*Refers to out-of-pocket expenses or staffing costs of runners shared with the hall
Any remaining expenses (including, but not limited to: bingo paper, security, storage, equipment, costs related to the building and employee wages) must be paid by the Operator of the bingo hall.
If the Operator or its employees makes an error that results in a cash shortage, this shortage must be deducted from the amount paid to the Operator.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount, or up to 15 per cent of the gross receipts, whichever is less.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount or 14 per cent of the gross receipts, whichever is less.
When the licensee and the Operator of the bingo hall share the cost of the runners, the licensee’s share of the staffing costs is paid from the amount allowed for reimbursement of out-of-pocket expenses, which is a maximum of three (3) per cent of the Regular Bingo prize board for that event.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount or 14 per cent of the gross receipts, whichever is less.
Total expenses are capped at 15 per cent of gross receipts, not including the HST. The terms and conditions outline the allowable expenses.
In Super Jackpot calculations, only the prizes, licence fees and advertising and promotion costs are deducted from the gross receipts:
Gross Receipts – (Prizes + Licence Fee + Advertising and Promotion Costs) = Base Amount.
The HCA must keep a minimum of 60 per cent of the Base Amount and pay the Operator a maximum of 40 per cent of the Base Amount, up to a maximum of 15 per cent of the gross receipts, whichever is less.
For an example of how to calculate the monthly Super Jackpot disbursements to a Hall Charities Association’s member groups, please refer to the example in “9.4.1(d)(2)”.
For all other bingo events licensed by the Registrar and conducted in registered charitable gaming sites, licensees must use the “Base Amount” to calculate the hall rental payable to the Operator, as outlined in Section 9.6.3(a) to (c).
At bingo events where American currency is accepted, the total gross receipts are affected by the value of the American dollar. All administrative expenses must be paid in Canadian funds, and the amount of adjusted gross receipts must be calculated taking into account the value of the American currency converted into Canadian dollars.