- After a couple months of vibrant reports, today’s communication is bitter. Why? Financial performance and uncertainty rising in the Minnesota charitable gambling world.
- Starting with the financial performance, e-tabs had a softer month with sales of $99K (down from $154K last month) but the margin was decent at 19.15%, producing gross profit of $19K
- Getting physical, paper tabs also were down from last month at $74K vs. $77K, respectively
- To pour salt on the wound, the margin deteriorated to 16.0% from 18.4%, respectively; thus, the gross profit was $11.8K
- Bingo continues to be a growing attraction at Boxers as revenue posted an impressive $15K with a record margin of 24.7% for gross profits of $3.8K
- While the sales volume seems adequate, FRYS was punished by the rolling gross receipts tax, totaling $14.4K, dropping the organization to a net loss of $2K for the month of April
- On the positive, the gross receipts tax declines to $11.8K next month, so if April’s performance repeats, profits should return for FRYS
- Alright, so a net loss of $2K is the more comforting of the two topics, time to discuss uncertainty
- MN bureaucrats followed through with the proposed changes to e-tabs à for the best explanation of what caused the stir, please watch the Kare 11 video: Charitable gaming organizations push back on proposed e-pull tab law change - KSTP.com 5 Eyewitness News
- For those unable to observe, a quick summary: Local Native American tribes have a monopoly on slot machines in Minnesota by law and advancements in e-tab gaming began to look to like that of slot machines, prompting a lawsuit by the tribes for which the MN Courts ultimately agreed with them
- What does this mean going forward? E-tabs are not banned by any means but the functionality of e-tabs will be modified
- The “open all” button will be eliminated and gamers will likely need to press each window slot (a total of 3 or 4 presses) to play games, which will be a slower pace of play no doubt from the one press “open all button”
- On the positive, revenue shar percentages with e-tab providers has been capped at 25% starting in July 2024 (FRYS is paying M-Peters 31% right now). FRYS intends to ask M-Peters if any adjustments will be made ahead of time but there is not much leverage to get M-Peters to change ahead of schedule.
Following expenses were approved: - CG MadeEasy = $250
- Inventory = $3,500
- 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
- Audit (already approved by FRYS BoD) = $10,000
- Total Expenses = $39,850
- On a motion by Kurt Halverson & seconded by Dr. Dick Huston, FRYS membership approved expenses for June
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