California Governor Arnold Schwarzenegger has signed a piece of legislation that will allow charities and nonprofit organizations to run high stakes bingo games and at the same time outlawing non-Indian bingo machines. Earlier this month there was strong opposition to this legislation by the California Charity Bingo Association.

The Association believed that if the bill was passed then it would trigger a clause in the Indian Tribal gaming compact that would allow aboriginal-run casinos to use the Internet for gambling. The new legislation allows for ‘remote caller’ bingo games that the charities including the Catholic Church can simultaneously broadcast. This will allow thousands of bingo players to compete for larger prizes.

Since the 1970s the top limit for simulcast bingo games was $250. With the new legislation payouts can be offered that equal 37% of the gross revenues. Officials believe that the prize could now move to the six figure range. 43% of the revenues must go to the sponsoring charity or non-profit organization and 20% are allowed for the running cost.

With this legislation electronic bingo machines can only be used by the Indian tribes. This is causing tension with the charities and non-profits as the machines were their main form of fund raising. Further litigation is expected to be pursued by those opposed.


- 2008-10-06