- Charitable gambling revenue took a step back with total sales of $168K in April compared to $212K in March for a reduction of 20.7%
- The slowdown was largely driven by weaker demand for paper tabs, totaling $64K in April against $100K one month prior
- E-tab sales were also down but to a lesser degree at $96K versus $104K, respectively.
- On the positive side, the gross margin on E-tabs was strong at 19.9% in April compared to 13.9% one month earlier
- On paper tabs, the gross margin slipped to 18.0% against March’s 20.4%
- In addition to softer demand in April, the profit-sharing arrangements that are paid in arrears (March’s success paid out in April) resulted in a significant decline in net income for the month, totaling $4K compared to $13K in March.
- Softer net income in April should be a supportive base for stronger net income in May all else being equal
- FRYS obtained clearance from the MN Gambling Control Board to sell pull-tabs at the MN Town Ball State Tournament at Bell Field this summer. FRYS will be selling the long Labor Day Weekend of Friday, September 2 through Monday, September 5.
The following expenses were approved:
- CG Made Easy Administrative Fee = $250
- Inventory = $4,000
- Paper tab sales slowed in April and Dawn projects weaker demand going forward, so a slight reduction in inventory purchases is anticipated
- Rotary Gambling Team Compensation = $2,600
- Bingo Team Compensation = $2,000
- Bingo is being hosted every Thursday night now, requiring greater compensation
- Revenue Share with MPeters = $10,000
- Profit share is 31% of e-tab gaming à Growth in e-tabs have slowed as gamblers turn to paper tabs
- City of Faribault = $1,500
- Revenue share with the city is up with stronger sales
- Revenue Share with Boxers = $6,500
- Profit-share w/ e-tabs = 15% & paper tabs = 20% à Paper tabs sales were soft in April for what could be a harbinger of slower months to come
- Misc. Cost = $3,000
- FRYS is hiring Reece, Winter payroll processing is ~$1k a month
- Total Expenses = $29,850
- On a motion by Rod Muller with a second by Kurt Halverson, the FRYS membership approved the expenses for June
The charitable giving committee has recommended the following gits for membership to vote on at today’s meeting:
1: United Way of Rice County “Dolly Parton Imagination Library” $2,500 – Program provides free books each month to children birth to age 5. A total of 375 children in Faribault benefit and they are seeking funds to increase to 425. Funds are to be allocated to Faribault youth only.
2: Somali Community Resettlement Services “Summer Soccer League for Somali Youth in Faribault” $5,080 – Program provides opportunity for Somali youth to be engaged in a youth soccer program specific for Somali youth and to compete in a league against similar teams.
3: Faribault Soccer Club “ASL Interpreters” $4,000 – Request is to fund ASL interpreting services for two teams. There are 2 youth/families who require ASL interpreters. Having interpreters available will allow the Club to be more inclusive of the deaf/hard of hearing community.
Total Approvals = $11,580
- On a motion by Dick Huston with a second by Rebecca Freed, the FRYS membership approved the charitable gifts.
