Bingos Could Raise Jackpots To Battle Casino CompetitionPOSTED: 1:26 pm EST February 21,
2008 There are 380 bingo licenses in Allegheny County, mostly held by schools and volunteer fire departments. Those organizations rely on bingo revenue to fund their operations, but as casinos move into the region, bingo revenue is going down, putting fire protection and other services at risk.For eight months, bingo and slots have lived side by side in Washington County. Next year, they will be doing the same in Pittsburgh and Allegheny County.The two forms of gaming, however, are not in a peaceful coexistence."Historically, when you look across this country, anywhere gaming has come into the region, it's been damaging to the bingo industry, and it really hurt the charities that rely on that industry," said Allegheny County Treasurer John Weinstein. Statistics support that theory, too. In Minnesota, the number of bingo licenses declined by 180 in the last four years due to an increase in the number of casinos.In Michigan the number of bingo licenses has fallen from a little more than 3,000 in 1996 to 1,700 in 2006.Masters students at Carnegie Mellon University have launched a comprehensive study to determine the effects of the Pittsburgh casino on area bingo halls.The three students distribute surveys, asking questions such as how much players typically spend on bingo and if they plan on going to the Pittsburgh casino when it opens."Our initial results show that people are actually spending a lot more money at bingos than we thought," said CMU student David Ledet.Survey results indicate many players are spending as much as $50 to $100 a night on bingo two to three times a week."Those players are who are really bringing in a lot of money for the bingos," said CMU student Ryan Stokes.And if those players decide to spend that money at the casinos rather than their local bingo hall, the charities those bingos support will suffer."I think the Catholic schools will feel it," said CMU professor Robert Strauss. "I think the social clubs will feel it."In many cases, bingo revenue helps Catholic schools to keep the cost of tuition low. Social clubs use bingo to fund activities.Then there are the volunteer fire departments. In Washington County, many have already felt the pinch. In the eight months since the Meadows Casino opened, the South Franklin Volunteer Fire Department bingo games have suffered."Originally, when the casino opened in June, our attendance fell by better than 50 percent," said Mark Knestrick of the Fire Department.That drop in attendance has resulted in a 40 percent loss of revenue for the department.Chartiers Township Volunteer Fire Department, which sits a half-mile from the entrance to the Meadows, has also seen a 50 percent drop in attendance, and their revenue is down to a point where the township is now forced to supplement the departments budget even more."They used to receive $60,000," said Chartiers Township Manager Alice Derian. "Now kicking in $74,100 to help them out."Municipalities in Washington County now face an uncertain future. If volunteer fire departments do survive while bingo revenues continue to decrease, township managers and municipal leaders might have to look elsewhere for funding, which could include higher taxes.State Rep. Don Walko said he believes he has a solution. Concerned about the impact of the Pittsburgh casino on bingo-funded charities, he has drafted legislation that would increase bingo jackpots from a maximum of $4,000 a day to $10,000 a day. He also wants to increase the number of allowable games per week from two to four and allow electronic bingo devices and progressive jackpots."This legislation won't replace casinos," he said. "It will, however, give nonprofit groups a little bit of the edge back and help them keep some more of their customers."But many municipalities and fire departments have said they would rather see the casinos kick some funds back to those organizations to help offset the loss.Jim Cassidy, president of the Mount Oliver Volunteer Fire Department, said he has about 100 players at his bingo games twice a week. The games bring in about $100,000 a year, and that money funds nearly all of the department's budget.He believes his bingo is too small to take advantage of Walko's plan of increasing jackpots."The larger bingos are going to survive," he said. "They're going to be able to pull the customers in and pay that money. I'm a small to midsized operation here, and it's probably going to hurt my operation. Without the bingo, that's my sole means of support to run the fire department. Unless I get grant money or federal money, the doors are probably going to close."Walko's bill has made it out of committee and should be up for a vote in the state House this spring. Related Links: More County NewsGet RSS | E-Mail Alerts Copyright 2008 by ThePittsburghChannel. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |










