6.1    The HCA must obtain from the Operator, and the Operator must provide, on a monthly basis, financial reports setting out the revenues earned within the bingo hall by the Operator or any third party with whom the Operator has a contract or who the Operator permits to provide goods and services for sale to players within or adjacent to the bingo hall, from all sources, including the commission from the sale of OLG products, food and beverage sales, including concessions operated by the Operator or by a third party, revenues from any other goods or services provided or sold to players and such other revenues that arise from players being present, including revenues from advertising.

6.2    The licensee and HCA must ensure that the financial report to the HCA is signed by the Operator or an authorized signing officer verifying that the report is accurate.

6.3    The HCA may require the Operator, at the Operator’s expense, to provide and the Operator must provide, copies of its filings in respect of the HST to confirm the hall revenues. Where the Operator does not sell the goods or services to the players directly, the HCA must require the Operator to maintain, or obtain from the person who has it, sufficient documentation about any such sales, and the Operator must provide the said information, to satisfy the HCA that it can confirm the information provided by the Operator about any such sales.

6.4    If the HCA is not satisfied with the financial information or documentation supplied to it by the Operator, the HCA must report its concerns to the Registrar.

6.5    All revenues derived from the operation of the bingo hall, including from any lottery within the bingo hall, the commission from the sale of OLG products, food and beverage sales, including concessions operated on behalf of the Operator by a third party and revenues from any other goods or services provided to players must be divided in accordance with Sections 6.6, 6.7 and 6.8.

6.6    Once the HCA is satisfied with the financial information supplied to it by the Operator in accordance with 6.1, the HCA must calculate the Operator’s share of charitable gaming event revenue as follows:

  1. Deposits into the CDTA (add back in any shortages that are the licensee’s responsibility and out-of-pocket expenses paid)
    1. less eight (8) to 10 per cent of the Win from bingo directed to the Marketing Fund, based on a decision made by the member organizations of the HCA, which must be administered in accordance with Pooling Bingo Halls: Advertising and Marketing Guidelines
    2. less the difference between 10 per cent of the Win from bingo and the percentage of the Win from bingo directed to the Marketing Fund based on the decision made by the member organizations of the HCA
    3. less 10 to 12 per cent of the Win from bingo directed to the Marketing Fund, based on a joint decision made by the member organizations of the HCA and the Operator of the bingo hall, which must be administered in accordance with Pooling Bingo Halls: Advertising and Marketing Guidelines.
  2. less five (5) per cent of the gross wager from the sale of break open tickets directed to the consolidated designated trust account
  3. plus bingo hall revenue as reported in 6.1
  4. equals Net Proceeds.

6.7    The Net Proceeds must be divided as follows:

  1. 55 per cent to the Operator
  2. 45 per cent to the HCA for distribution to its member organizations.

6.8    Payments from the HCA of the Operator’s share of charitable gaming event revenues must be offset by the amount of the HCA’s share of revenues described in 6.1, including the commissions from the sale of OLG products, food and beverage sales, revenues from any other goods or services provided to customers and such other revenues that arise from players being present including revenues from advertising.

6.9    If the HCA is satisfied with the information and documentation provided by the Operator of the bingo hall, payments from the HCA to the Operator must be made on a monthly basis. If the HCA is not satisfied with the information or documentation provided by the Operator, no payments must be made by the HCA to the Operator until additional information or documentation is provided to the HCA’s satisfaction.

6.10  All HCA expenses must be individually detailed and made available to member organizations of the HCA.

6.11  Each member organization of the HCA may choose to provide reimbursement of out-of-pocket expenses to its bona fide members. The funds to cover this expense must be deducted from the licensees’ share of proceeds referred to in 6.12.

6.12  After the payment of all allowable expenses, the HCA must divide the remaining proceeds on a pro-rata basis to member organizations of the HCA based on the number of charitable gaming events conducted by each member during the reporting period. Each member’s share must be reduced by the amount of shortages incurred by them.

6.13  The HCA and the HCA Administrator must comply with any Directive prescribed by the Registrar, and each licensee must ensure that the HCA and the HCA Administrator comply with any such Directive, directing the HCA or the HCA Administrator not to make any payment to the Operator or to reduce any such payment by the amount specified by the Registrar in the Directive.

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