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Indiana Bingo Parlors Escape Scrutiny

INDIANA – As reported by the Indianapolis Star: "State regulators inspected fewer than half of Indiana's charity bingo games in the past two years, despite several high-profile investigations into cash-skimming.

"The Indiana Department of Revenue monitors the games and spends about 10 percent of what it collects in annual bingo license fees -- about $400,000 of the $3.9 million -- on making sure the games operate legally; the rest of the money goes to the state general fund.

"Officials say the small number of staff members dedicated to monitoring Indiana's 548 bingo operations makes it tough to visit and audit the operations more frequently.

"…Indiana's bingo industry, the fourth-largest in the nation, grossed more than $583 million in fiscal year 2002, according to a 2003 report by the National Association of Fundraising Ticket Manufacturers.

"But among the 29 states that offer bingo games, Indiana ranks 11th for the percentage of gross receipts that actually go to charity, according to the report.

"…Indiana bingo operations are significant sources of income for churches and church-sponsored schools, fraternal groups and other nonprofit organizations.

"Together they netted $54 million from bingo-related games in the past fiscal year.

"But some operators have been found cheating the charities they are supposed to serve or operating illegal machine gambling from the bingo sites.

"Four Indianapolis bingo parlors were closed in 2001, when a Marion County grand jury investigation found that four people siphoned at least $3.5 million from bingo operations and that the sponsoring charities received only a fraction of the profits…"

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