Say NO to a State Takeover of Charitable Gaming

Kentucky Charities Are the Biggest Loser

The state Department of Charitable Gaming (DCG) has concocted a plan to fundamentally alter the way charitable gaming supplies are sold and distributed in Kentucky. Additionally, the state wants to impose new and unspecified reporting requirements for all charities.

The state's Big Brother takeover plan consolidates the manufacturing and distributing of charitable gaming supplies under the authority of the State. The State wants to exclusively contract with one or two distributors, be the only source for charitable gaming supplies in the State, and require all charities to buy directly from the State. This is another example of the State interfering with free market business relationships. Our State's Charities will lose much needed revenue and be forced to call Frankfort for all their needs.

Higher Costs: Charities currently enjoy the freedom to choose from more than two-dozen distributors that range from local family owned businesses to national companies. Today, each distributor must compete against each other to offer the lowest price. Do you expect the State to negotiate the best price for your charity and your players for pull-tabs, bingo paper and electronic card minders? NO COMPETITION = HIGHER PRICES

Fewer Games: The fewer manufacturers and distributors there are, the fewer games choices there will be. Without a marketplace, there is no incentive for a manufacturer to innovate and create the games players enjoy, motivating them to return and play. le the Kentucky plan is unique among states, the model most closely compares to Michigan's, which only has 12-15 games from which to choose. Kentuckians currently enjoy about 200 games!

Poor Service: The same market forces that drive down prices also drive up service levels. Charities have spent years developing relationships with their distributors, many of whom are local and can provide superior customer service and be responsive to your immediate needs at all hours. Think about the level of service at a government office.Do you prefer the service of your existing distributor over that of the Drivers Licensing or Social Security office?

Lost Revenue: In the other states that have tried this model, the average gross receipts per charity significantly declined. WHY? The State takeover resulted in fewer games, higher prices and fewer players. Are Kentucky's charities willing to take a gamble on this proposal?

What You Can Do

Question State officials and ask for answers by contacting the Governor's Office at (502) 564-2611, or reach out to your State Representative or State Senator. All state legislators can be reached by phone through the legislative Message Line at (800) 372-7181 or via email. All legislative emails can be found at http://www.lrc.ky.gov/whoswho/email.htm.