Forget the image of old ladies in the church hall waiting for a call of “B-6.”
Bingo is big business in Indiana and, specifically, in Northwest Indiana.
Last year, bingo generated $48 million for dozens of Northwest Indiana charities.
But a Post-Tribune investigation has found that after paying out winnings and door prizes, some charities are left with just a small percentage of the revenues they aimed to keep.
Valparaiso’s Knights of Columbus Council 738, Munster’s Order of AHEPA No. 123, VFW Post 802 in Hammond and Schererville’s Order of AHEPA No. 157 get less money from their bingo games than any other charities in Northwest Indiana.
That’s according to Indiana Department of Revenue filings from the more than 2,000 not-for-profit groups licensed to conduct bingo in Indiana.
Of the top bingo operations in Northwest Indiana, Hammond FOP Lodge 51 gives the least amount back to itself, according to state records.
Last year, the FOP generated $1.1 million in bingo revenues, of which, only 5 percent made it back to the FOP.
“That’s not the entire truth,” said FOP president Mike Jorden. “I don’t know what our exact numbers are, but I’d say 5 percent is not accurate.”
But that’s what the FOP reported to the state last year.
The varying percentages bingo operators give back to the charity they represent won’t vary quite as much after May.
That’s when a new state rule will take effect, requiring all bingo parlors that make more than $500,000 to give at least 10 percent of all revenues back to the charity they represent.
There are 15 charities in Northwest Indiana that would not meet that new requirement, based on last year’s revenues.
Financial records show the Hammond FOP, American Legion Post 168 in Hammond, VFW Post 802 in Hammond and St. Francis Xavier Catholic Church in Lake Station will have to make the biggest changes to their bingo games to meet the new state rules.
But the charities aren’t alone in being forced to find new ways to conduct bingo games.
Across the state, records show, dozens of not-for-profit groups will be forced to either give up bingo operations or change the way they operate, so as to realize a greater profit.
“One of two things were happening in a lot of cases,” Larry McKee, deputy commissioner of the Indiana Department of Revenue, told the Indianapolis Star last week. “One is that they are operating a very poor bingo game, or there is so much skimming going on that it is eating into the profits. Which one of the two it is, we have no idea.”
Bingo contrasts
Utility bills are killing the bottom line at VFW Post 802.
The roof is leaking, heating bills are high and bingo profits are down at the Hammond hall.
Andrew Rosario, VFW quartermaster, says the new 10 percent requirement could bring an end to their bingo operation.
After expenses, including paying those bills, Rosario said, they can only come up with a 3 percent profit for the VFW.
Last year, records show, that meant of the $872,246 generated by bingo, only $27,437 made it back to the VFW.
Next year, it will have to make a profit of $87,224, if revenues remain the same.
“It’s a Catch-22,” Rosario said. “Our utilities go up every year, our roof has spots in it ... but the state doesn’t want to concern themselves with our expenses. So what are we supposed to do?”
Maybe it will be charging more for cards or stampers, or maybe it will be giving out less at the door and with winnings.
But to meet the new state rule, something is going to have to change at the VFW post, Rosario acknowledges.
Ellen Balash, a parent volunteer at St. Paul Catholic School in Valparaiso, said the school realizes its 24 percent profit by keeping expenses low.
That 24 percent is among the highest percentages of profit in Northwest Indiana bingo.
“We have a progressive jackpot each week, so your chance of winning gets easier each week,” Balash said. “As that number gets higher, our attendance gets higher, thanks to the bingo grapevine.
“As long as we’re making money, we’ll keep doing it.”
Still, others struggle with ways to meet a profit.
The Griffith Girls Softball Club generated $687,000 in bingo revenues last year, but had greater expenses, leading to a 1 percent loss.
After much controversy last year, the club opted to stop fund-raising around bingo.
The St. Joseph Young Men’s Society in Michigan City, which realized a 1 percent profit on the $115,000 it made last year, also dropped bingo.
McKee told the Star that charities that see losses or low profits from bingo raise concerns about illegal cash-skimming and other misdealings in what is a cash-only industry.
While gambling casinos fall under the supervision of the well-regulated Indiana Gaming Commission, bingo and other charity-related gambling falls under the supervision of the Department of Revenue.
State officials confirmed there are just five investigators monitoring concerns among Indiana’s 2,000-plus bingo halls.
“But they have the ability to call in additional help when it’s needed,” said Cathy Henninger, of the department’s charity gaming division. “But, yes, we have five people 'on the street,’ so to speak.”
Rich get richer
For decades, the Michigan City Stars Baseball Club has relied on bingo as its major source of fund-raising revenue.
Last year, records show, the group raised more than $2.1 million in bingo revenues, more than all but two other bingo halls in Northwest Indiana.
Al Shinn, who advises Star bingo operators Ken Behrendt and Suzanne Westman, said the group prides itself on the 15 percent profit it sees on bingo.
“Careful operation and watching what you spend,” is what Shinn attributed to the profit.
He said, “If you spend all your money on bingo and don’t have a bankable item at the end, then maybe it’s not being run as wisely as it should be.
“If you give out too much or don’t charge enough at the door or for your papers, you’re not going to make a profit,” he said. “We like to think we’re doing something right, running it the way it’s supposed to be run, giving people something to come out for and still making sure we’re making money.”
Shinn expects smaller bingo operations to struggle to meet that 10 percent requirement, but adds that those run properly won’t struggle at all.
The Michigan City Stars was one of nine bingo operators in Northwest Indiana to see more than $1 million in revenues last year, according to records.
The biggest money-maker, Hobart’s Order of AHEPA No. 78, made $2.5 million, while East Chicago’s Cesare Battisti Lodge 27 was close behind, at $2.3 million, followed by the $2.1 million made by the Stars.
AHEPA gives 10 percent back to its group, while the Battisti Lodge gives 17 percent.
Yet while those larger groups won’t have a problem meeting the state’s new requirement in May, those at the post are wondering how to survive.
Cutting into payouts, Rosario said, will cut into turnout.
“The people will only go where they feel they can get more money,” he said. “This could kill us.”
Reporter Steve Patterson can be reached at 648-3105 or spatterson@post-trib.com.
The Associated Press contributed to this report.
