- Brenda DeMars led the membership meeting as Chad Koepke was out of the state on the day of the meeting
- Total revenue surged to an FRYS record of $190K
- Paper tab sales set a new record at $86K
- Prior to February’s $86K in paper tab sales, the prior record was $46K in November 2021
- The gross margin on paper tabs was the strongest on record as well at 21.6% for a gross profit of $19K
- Electronic tabs rebounded as well with sales of $96K with gross profit of $11K for a gross margin of 11.8%
- Also contributing to February’s record high revenue was the new addition of non-linked Bingo (“regular” Bingo) to the FRYS CG operation with sales of $7K in February and gross profit of $2K
- Turning to other developments, the charitable gambling operation had a surprise audit in the first week of March from Isaac Mixon, Field Audit Specialist for the MN Gambling Control Board. The audit revealed one area of attention, which was that paper tab sellers should be wearing nametags or posted somewhere visible
- FRYS received formal approval to repay the $10K startup loan that the main FRYS bank account funded to the gambling account to purchase inventory, processing systems, etc…
- Natalie Ginter has been putting in the structure and rules in place to assist with the charitable donations from the gambling profits
- Of note, FRYS received confirmation that charitable gambling profits can be donated back to the main FRYS bank account and avoid any unrelated business income taxes as FRYS is a 501 C3 organization. Charitable giving still needs to comply with FRYS’ non-profit objectives to help improve the lives of the youth in Faribault
- The following expenses were approved:
- CG Made Easy Administrative Fee = $250
- Inventory = $4,500
- Paper tab sales set a record high in February 2022, which means inventory might need to be higher going forward with the positive momentum and warmer weather on the horizon
- Rotary Gambling Team Compensation = $2,600
- Bingo Team Compensation = $1,000
- Revenue Share with MPeters = $10,000
- Profit share is 31% of e-tab gaming à Activity rebounded to more normal levels in February and could be in line for stronger numbers as the warmer climate approaches
- City of Faribault = $1,500
- Revenue share with the city is going to be higher going forward with greater activities
- Revenue Share with Boxers = $8,500
- Profit-share w/ e-tabs = 15% & paper tabs = 20% à Paper tabs set record highs in February and that means higher revenue share with Boxers given the 20% share
- Misc. Cost = $5,000
- FRYS is hiring Reece, Winter for payroll processing à first invoice is still on the way
- Dawn is potentially interested in FRYS buying a horse racing game for Boxers à costs on such a game are not known, so over allocate if purchase takes place in April
- FRYS’ paper tab weighing scale broke, so a new one is needed for purchase at $535
- Total Expenses Approved: $33,350
- On a motion by Todd Sesker with a second by Jake Kohl, the expenses for the month of April were approved
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