HB702 FAQ

Following introduction of HB702, many questions were raised about the bill.  Here are answers to commonly asked questions.

How are the charities going to pay for these electronic machines?

The players will pay for the machines – just as they currently do when they purchase the paper or rent the electronic hand-helds.

This bill leaves a lot of unanswered questions.  Why should we trust government people to fill in the blanks in this bill?  There will be at least a 6 month period in which the OCG will work with manufacturers, distributors, facilities and charities to determine the best method of implementation of the proposed law.  This will allow for a solid basis of operation for all concerned.  In addition it will allow for workable adjustments for the future – without having to go back to the legislature.

Who is going to pay for the computers for electronic reporting?  The law anticipates that most chairpersons have access to a computer.  The intent of this section is to automate and eliminate a substantial amount of time and paperwork.  Also, HB702 has been amended from ‘shall be required’ to ‘may be required’ within four years. 

Why will hall owners have to get bonded?  Bonding facility owners protects the charities’ financial interests in the event a facility defaults on its obligations.   

Why will hall owners have to submit a financial plan?  A simple financial plan by the facility owner illustrates their capability to provide future support for their charities.  This also is intended to encourage stability for the charities.

How many electronic machines are they going to let us have?  We anticipate that the number of machines will be directly correlated to the number of players a facility can support.

Can we still run a regular paper bingo?  Yes. 

Can we still sell paper pulltabs?  Yes.

How is this going to help us make our 40%?  The new reporting system will be streamlined, which will eliminate many errors and penalties.  The statewide linked bingo will bring more players with larger pots to provide more money for charities.  More players equal more profits – both in bingo and pulltabs.

How is the revenue from these machines going to be split?  The charities will take the lion’s share of the revenue.  This has been agreed on by legislators and state officials.  The remaining balance of the revenue will be divided among the manufacturers, distributors and hall owners – dependent on costs of installation and maintenance.

How do any of these changes benefit the charities?  More players, lowered expenses, less dependence on volunteers, less paperwork and fewer fines for clerical errors in reporting.

What will these electronic machines look like?  The machines physical appearance will vary by manufacturer.  We know that they will use a touch screen system.

Are these slots you’re talking about?  No.  The law is explicit about not allowing slots or video poker machines.

Who is going to train us on these electronic devices?  The manufacturers and distributors will provide training.

How are we going to keep one charity’s session separate from another’s?  When a chairperson enters the hall, they will logon to the state server.  All events during that session will be automatically recorded.  When the session is finished, the chairperson will logoff the state server.

What does “contiguous counties” mean, and how will it help?  “Contiguous counties” means counties which touch or border each other.  This law would allow charities in a county that adjoins a county with a facility to cross that county line to participate in charitable gaming.

What is linked bingo?  Linked bingo allows charities playing in different facilities to link through a central server, and participate in a statewide game.  This will create larger jackpots and hopefully more players.  The linkup can only take place through the state’s server.

Further questions?  Please contact the KCGA at 502-554-2749.