The March gambling report is coming to you on a Friday as I am likely to be MIA for the first half of next week and therefore unable to deliver the commentary. But have no fear, Brenda will be able to present the findings with pristine precision. Today’s report brings a mix of good and bad news – let’s start with the good.
Electronic pull tabs established a new revenue record, crushing the previous record of $138K by 12% with total sales of $154K. Gross profits on the sector were also a new record at $24K with a margin of 15.6%, which is an average performance in terms of margin/probability. As Brenda noted at Rotary on Wednesday with Murray’s follow-up email, if the MN Legislature makes changes to electronic pulls tabs, FRYS can expect to see a sizeable drop in revenue. Who knows how much but the $154K record would likely be etched in stone given regulatory changes.
Paper tabs, while not setting a new record, had a strong month at $77K with gross profits of $14K on a margin of 18.4%. Paper tab sales have been volatile when looking at as a percentage of e-tabs, ranging from the high 70%s down to the low 30%s. Thus, if e-tab sales were to be overhauled, paper tabs would pick up some slack but the Boxers’ cohort clearly prefers e-tabs, which is why Brenda’s call to action is so important to keep the cash flows coming back into the Faribault Youth community.
Bingo continues to be a hot commodity at Boxers as sales totaled $16K, which was only slightly below last month’s record high of $17K. Unlike last month, someone must have hit the jackpot(s) in March as gross profits fell to $2K vs. last month’s $6K. While total revenues established a new record at $249K, which was up from last month’s prior record of $223K for an increase of 11.65%, net income for the month was only $8.6K (3.46% net profit margin) vs. last month’s $19.7K (8.82% profit margin).
What is to blame for the soft net income? One of the only two things assured in this life, death, and in our case, taxes. FRYS cut a tax check of $13K to the MN Department of Revenue. Make sure to reference that number when emailing your public servants on the potential disruptions from changes in pull-tabs!
Month | Operation | Revenue | Prizes | Gross Profit | Gross Margin % | Monthly Net Profit | Net Profit Margin | Misc. Notes |
Sep-22 | E-Tabs | 112,995 | 90,667 | 22,328 | 19.76% | 26,935 | 6.30% | Strong net profit driven by starting cash of $13.6K ---> "True" net income = $13,284 |
Paper Tabs | 83,985 | 69,548 | 14,437 | 17.19% | ||||
Non-Linked Bingo | 13,073 | 10,788 | 2,285 | 17.48% | ||||
Linked Bingo | 931 | 791 | 140 | 15.05% | ||||
Oct-22 | E-Tabs | 110,604 | 88,258 | 22,346 | 20.20% | 10,103 | 5.53% | Strongest e-tab gross profit margin on record at 20.2% |
Paper Tabs | 59,864 | 49,813 | 10,051 | 16.79% | ||||
Non-Linked Bingo | 11,412 | 9,145 | 2,267 | 19.87% | ||||
Linked Bingo | 706 | 600 | 106 | 15.01% | ||||
Nov-22 | E-Tabs | 90,406 | 80,444 | 9,962 | 11.02% | -8,126 | -5.79% | Weak sales in paper tabs combined with heavy "aggregate" tax of $6K made for poor month |
Paper Tabs | 37,422 | 30,845 | 6,577 | 17.58% | ||||
Non-Linked Bingo | 11,730 | 10,808 | 922 | 7.86% | ||||
Linked Bingo | 752 | 639 | 113 | 15.03% | ||||
Dec-22 | E-Tabs | 122,991 | 107,460 | 15,531 | 12.63% | 6,120 | 3.46% | |
Paper Tabs | 42,343 | 36,019 | 6,324 | 14.94% | ||||
Non-Linked Bingo | 9,620 | 9,149 | 471 | 4.90% | ||||
Linked Bingo | 2,075 | 1,763.75 | 311 | 15.00% | ||||
Jan-23 | E-tabs | 108,407 | 97,364 | 11,043 | 10.19% | -1,125 | -0.65% | Weak gross margins on e-tabs combineded with elevated gross receipts tax drained earnings |
Paper Tabs | 52,888 | 44,203 | 8,685 | 16.42% | ||||
Non-Linked Bingo | 9,254 | 7,455 | 1,799 | 19.44% | ||||
Linked Bingo | 1,267 | 1,076 | 190 | 15.00% | ||||
Feb-23 | E-tabs | 134,413 | 113,562 | 20,851 | 15.51% | 19,707 | 8.82% | Record revenue & net profit due to strong bingo |
Paper Tabs | 68,241 | 55,602 | 12,639 | 18.52% | ||||
Non-Linked Bingo | 17,480 | 11,366 | 6,114 | 34.98% | ||||
Linked Bingo | 3,255 | 2,766 | 489 | 15.01% | ||||
Mar-23 | E-tabs | 154,416 | 130,341 | 24,075 | 15.59% | 8,631 | 3.46% | NEW Record revenue & but net profit softened due to $13K in taxes |
Paper Tabs | 76,531 | 62,425 | 14,106 | 18.43% | ||||
Non-Linked Bingo | 15,788 | 13,593 | 2,195 | 13.90% | ||||
Linked Bingo | 2,437 | 2,071 | 366 | 15.02% |
In other FRYS news, the inaugural charitable gambling audit is underway. Looking forward to the commentary from the CPAs as this is the first look at FRYS’ charitable gambling operations, processes and structures that were built from the ground up, offering a chance to improve our performance and generate even greater profits for youth in the community.
The Following Expenses Were Approved for May
- CG MadeEasy = $250
- Inventory = $5,500
- Charitable Gambling Team Comp = $2,800
- Bingo Team Comp = $2,800
- MPeters = $10,000
- City of Faribault = $1,000
- Boxers = $7,000
- Misc. = $2,500
- Total Expenses = $31,850
- On a first by Laura Bock and second with Kay Hoaglin, FRYS membership approved the expenses for May 2023
Happy Wednesday,
Chad
Faribault Rotary Youth Services |
Charitable Gambling Operation |