Charitable Bingo and Gaming Revitalization Key Messages Key Messages The Charitable Bingo and Gaming industry has been in decline over the last decade. Charities and commercial operators requested the assistance of OLG to help ensure the viability of the industry that supports approximately 2,800 charities across Ontario and the benefits they generate for their communities. In 2005, OLG launched a pilot test to evaluate the feasibility of modernizing the industry. Since then, OLG has generated more than $43 million for charities in the pilot sites located in Barrie, Kingston, Peterborough, Sudbury and Windsor. OLG, in collaboration with charities, commercial operators and municipalities is now embarking on a multi-year Revitalization Initiative. The collective vision of the Initiative is to sustain and grow the Charitable Bingo and Gaming industry. It will require a cultural change by all stakeholders to achieve this vision with a united focus on the key business driver – the customer, and the key business beneficiary – charities and their local communities. The goal is to create a new entertainment experience in charitable bingo and gaming centres to both retain current players and reach out to attract new ones for the overall benefit of generating revenue for charities and benefits for their communities. There is tremendous interest and support for the Charitable Bingo and Gaming Revitalization Initiative. Of the current 61 bingo centres remaining, fully 37 have chosen and embraced to participate in the Initiative. Charitable Bingo and Gaming Revitalization Q&A 1. What is the Charitable Bingo and Gaming Revitalization Initiative? The Charitable Bingo and Gaming Revitalization Initiative is a partnership between OLG, the charities, municipalities and commercial operators. OLG will roll out a standardized suite of paper and electronic games to all interested bingo halls in Ontario. OLG will offer Bingo, Break-Open Tickets, Raffles and Lottery games or variations of these games to be played on paper electronic devices or delivered through electronic dispensing units. This Initiative will deliver about $475 million for Ontario charities and will create hundreds of part-time jobs while preserving the role of the thousands of volunteers who are currently involved in community-based charitable activity. OLG pilot tested the Charitable Bingo and Gaming Revitalization model since 2005. Since then, over $43 million has been raised for charities in Sudbury, Barrie, Kingston, Peterborough and Windsor. 2. Why is it needed? What is OLG’s role in Charitable Bingo and Gaming Initiative? The objective is to sustain and grow revenue in a declining industry to ensure charities have a long-term viable way to fundraise. The industry has been in decline for more than a decade. We’ve witnessed an average industry decline of 8% to 10% year over year. A decade ago there were about 230 bingo halls supporting more than 6,000 charities. Today, there are about 61 halls remaining, supporting approximately 2,800 charities. Charities will have a viable way to fundraise to support local programs; halls will be able to enhance local operations and support local employment; and customers will be offered a new entertainment experience. Without the modernization of the Charitable Bingo and Gaming sector, charities will face shortfalls in their funding and they will be forced to turn to municipalities for direct support. 3. How does the Charitable Bingo and Gaming Revitalization Initiative work? The Revitalization Initiative provides for the evolution of existing paper games to electronic formats. The suite of games will include Bingo, Break-Open tickets, Raffles and Lottery games or variation of these games played on paper, electronic devices or delivered through electronic dispensing units. We are taking existing games being played on paper (i.e. bingo) and putting them on electronic devices (i.e. e-bingo) Many of these games have been operating successfully at our six pilot sites across Ontario. Since 2005, over $43 million has been raised for charities in Sudbury, Barrie, Kingston, Peterborough and Windsor. We will continue to offer paper-based bingo for traditional players and will offer those same paper-based games on touch screens to appeal to lapsed and new players. Based on our research, we’ve discovered that bingo players want a two to three hour play experience with good entertainment value in a social environment in their own backyard. 4. What is the commercial operators’ role in this? Commercial operators will be contracted by OLG to provide operations management at the charitable bingo and gaming centres as well as invest into facilities upgrades to ensure that customers’ needs are met. 5. What is the charities role in this? Charities will continue to have a meaningful role to promote the benefits that their charities bring to their communities, support customer care 6. What is the municipalities’ role in this initiative? Municipalities will be contract by OLG to provide management of charity eligibility and use of proceeds. 7. Why did municipalities agree to the new Charitable Bingo and Gaming Initiative? The modernization of the Charitable Bingo and Gaming sector is based on a vision of delivering a great entertainment experience for customers, and sustained revenues for charities and benefits for the local community. Without the modernization of the Charitable Bingo and Gaming sector, charities will face shortfalls in their budgets, funding and they will be forced to turn to municipalities for direct support. Commercial operators of bingo halls will also face closure, as the current decline in their revenues will continue if they are not able to offer modern and exciting electronic games. 8. Which municipalities are involved? So far, 37 charitable bingo and gaming centres have chosen to participate. OLG has been working with the first locations for implementation. These centres are located in Barrie, Kingston, Mississauga, Penetanguishene, Peterborough, Pickering, Richmond Hill, Sudbury and Newmarket 9. Is it true slot machines are being installed in my Charitable Bingo and Gaming Centre? No. Break-Open Ticket Dispensers are not slot machines. The Government of Ontario has given OLG very specific parameters around the electronic gaming equipment that will be permitted at eBingo sites. These parameters are clearly defined in regulation (Ontario Regulation 81/12) that OLG is required to follow. The types of electronic games permitted at eBingo sites are restricted to break open tickets sold by an electronic break open ticket dispenser, break open tickets on an electronic bingo device, bingo played on an electronic bingo device and instant games played on an electronic bingo device. We are taking existing games being played on paper (i.e. bingo) and putting them on electronic devices (i.e. e-bingo). The objective is to sustain and grow revenue in a declining industry to ensure charities have a long-term viable way to fundraise. Without this revitalization, more bingo halls would close, and charities would be forced to turn to municipalities, with already strained budgets, for direct support. OLG has been working in partnership with municipalities, charities, commercial operators across Ontario on the Charitable Gaming and Bingo Initiative. 10. Are these the slot machines that used to exist in racetracks across Ontario? No. Break-Open Ticket Dispensers are not slot machines. These Break-Open Ticket Dispensers are new to Ontario and do not exist in any location today. They are electronic devices that dispense today’s permitted paper Break-Open Tickets. As for some extra slot machines in our gaming inventory, they are only used at our casinos or slots facilities. 11. Some municipalities have concerns that by offering eBingo first, OLG will also offer Video Lottery Terminals at these new bingo sites. Is that true? No. OLG has been very clear that Video Lottery Terminals will not be offered. The Government of Ontario has given OLG very specific parameters around the electronic gaming equipment that will be permitted at eBingo sites. These parameters are clearly defined in regulation (Ontario Regulation 81/12) that OLG is required to follow. The types of electronic games permitted at eBingo sites are restricted to break open tickets sold by an electronic break open ticket dispenser, break open tickets on an electronic bingo device, bingo played on an electronic bingo device and instant games played on an electronic bingo device. 12. What is your response to some Responsible Gambling advocates who say that this type of gambling will cause addictions? OLG is committed to employing its same rigorous approach and methodology of responsible gaming within bingo halls that it has used across its other lines of business. The RG Program for Charitable Gaming is designed to educate and inform players about the risks of gambling; encourage safe play. The RG program includes: CAMH Training for all gaming floor managers and staff; and Information resources available at key traffic areas including on new games. This material will explain: how games work; signs of risks for problem gambling; Tips for safe play; and information on obtaining a range of counseling services in local communities. Also, self-guided electronic information kiosks will be installed including digital screens with ongoing messages and interactive devices that engage players to educate them on the realities the games. On-site RG education campaigns by both OLG and the Responsible Gambling Council (RGC). The RGC is an independent non-profit organization dedicated to problem gambling prevention. 13. How much money can charities expect from this new initiative? Over eight years of operation, this Charitable Bingo and Gaming Initiative will deliver about $475 million for Ontario charities.
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