Decline of Bingo Fundraising in Colorado
The bingo industry in Colorado is facing challenges with declining revenues, shrinking profit margins, and an aging player base. Charitable organizations are finding it harder to rely on bingo for fundraising due to a lack of innovation and changing player preferences. Strategies beyond traditional bingo are being explored to meet fundraising needs.
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Bingo & Raffle Study Bingo & Raffle Study Executive Summary Executive Summary JOHN MANN JOHN MANN MOUNTAIN VIEW INSIGHTS, INC. MOUNTAIN VIEW INSIGHTS, INC. JUNE 28, 2017 JUNE 28, 2017
Methodology Methodology Online survey May 17-June 10, 2017 Closely parallels survey we conducted in 2012. Base: all records for persons registered by the Secretary of State for bingo operations (984 valid unduplicated records). 376 responses (38% response rate) Respondent types: Member of charity sponsoring bingo/raffles 95% Own/operate bingo hall 3% Supplier 2% 2 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Summary of Charitable Summary of Charitable Organization Bingo Feedback Organization Bingo Feedback Bingo continues to decline in Colorado Revenues are declining Profit margins are shrinking Players are aging, and harder to attract younger players There are few complaints about bingo regulations (prize limits, reporting) The game itself not attracting players like it once did No apparent magic bullets to fix bingo short of disruptive innovation Charitable organizations are turning elsewhere to meet their fundraising needs 3 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo profits in general are on the decline. Bingo profits in general are on the decline. What is the approximate annual net proceeds What is the approximate annual net proceeds from bingo (all revenues less all expenses) your from bingo (all revenues less all expenses) your organization made/expects to make in (year)? organization made/expects to make in (year)? 2017 2017 2016 2016 2012 2012 $0 1.7% 37.1% 30.5% 30.7% 6.5% 35.6% 30.6% 27.3% 1.9% 26.9% 36.7% 34.5% <$10K $10K-$39K $40K+ 4 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo is declining in fundraising portfolios. Bingo is declining in fundraising portfolios. What is the approximate annual net What is the approximate annual net proceeds from bingo (all revenues proceeds from bingo (all revenues less all expenses) your organization less all expenses) your organization made/expects to make in (year)? made/expects to make in (year)? 2017 2017 2012 2012 $0 1.7% 37.1% 30.5% 30.7% 1.9% 26.9% 36.7% 34.5% <$10K $10K-$39K $40K+ 5 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Profit margins are thinning. Charities are not Profit margins are thinning. Charities are not able to price to recover increasing costs. able to price to recover increasing costs. 6 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Declining proceeds and lack of volunteer Declining proceeds and lack of volunteer support continue to drive charitable support continue to drive charitable organizations to suspend bingo operations. organizations to suspend bingo operations. To better understand the factors that contributed to your organization's To better understand the factors that contributed to your organization's stopping bingo fundraising, please read the following list of potential issues. stopping bingo fundraising, please read the following list of potential issues. Then indicate on the scale shown how much of a factor each potential issue Then indicate on the scale shown how much of a factor each potential issue was in terms of leading to your organization's stopping bingo. was in terms of leading to your organization's stopping bingo. Average (1-5) Average (1-5) 2017 2017 2012 2012 Declining net proceeds from bingo Lack of sufficient volunteer support Aging players Lack of player interest Switched to other form of fundraising instead of bingo 3.62 3.54 3.15 3.08 2.85 2.85 2.31 1.92 3.17 3.36 1.82 2.43 1.97 2.46 2.23 1.97 Economic downturn Competition from other charities doing bingo Competition from casinos Competition from other charities doing fundraising other than bingo Smoking ban 1.75 1.50 1.50 1.42 1.25 1.00 1.57 1.71 1.26 1.72 2.15 1.38 Note: small base size (n=14 2017, n=37 2012) Decision not to be involved in gambling Competition from lottery games State regulations Organization no longer exists 7 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Charities recognize customer service and Charities recognize customer service and player experience are paramount... player experience are paramount... In your experience, what are the factors that contribute most to the In your experience, what are the factors that contribute most to the success of your bingo fundraising activities? success of your bingo fundraising activities? % Mentioning % Mentioning 2017 2017 28% 26% 23% 22% 20% 15% 13% 10% 10% 10% 9% 9% 7% 5% 5% 3% 3% 2% 1% 1% 0% 0% 2012 2012 22% 24% 6% 36% 9% 9% 11% 22% 8% 5% 14% 4% 3% 7% 0% 15% 3% 1% 7% 2% 2% 2% Trained/Good Volunteers Established/Loyal Player Base Focus on Having Fun Customer Service Community Involvement and Connections Fair/Consistent/Well-Run Operations Effective Advertising/Social Media Timing of Sessions Progressives Nice/Convenient Facility Attractive Payouts For a Good Cause Good Food Pull Tabs Attractive Pricing Variety of Interesting Games Good Games Managers Multiple Sessions per Week "Must Go" Progressives Games People Understand Good Callers Overall Leadership at the Organization S S S S 8 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC. S S
but player and volunteer issues persist. but player and volunteer issues persist. What are the factors that limit the success of your bingo fundraising What are the factors that limit the success of your bingo fundraising activities? activities? % Mentioning % Mentioning 2017 2017 34% 27% 18% 15% 9% 8% 6% 5% 5% 5% 4% 4% 4% 1% 1% 1% 2012 2012 34% 18% 4% 8% 2% 9% 4% 33% 9% 2% 5% 0% 0% 7% 5% 4% Poor Player Turnout Volunteer Issues (Too Few, Not Trained, Turnover) Weather Facility Issues (Too Small, Poor Upkeep) Jackpot Limits ($2000) Cost/Rent/Supplies Aging Player Base Bad Economy Competition from Other Activities (Not Gambling) Rules/Reporting/Regulations Insufficient Advertising/Promotion Illegal Gambling (Internet Gambling Parlors) Competition from For Profit Bingo Competition from Casinos Limited Number of Sessions Cannot Reimburse Volunteers S S S S=statistically different at 95% confidence 9 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Charitable organizations are unsophisticated marketers. Charitable organizations are unsophisticated marketers. Declines persist even with a jump in using social media Declines persist even with a jump in using social media and emails. and emails. What are the main activities your organization does to promote its bingo What are the main activities your organization does to promote its bingo fundraising? Please check all that apply below. fundraising? Please check all that apply below. % Mentioning % Mentioning 2017 2017 2012 2012 69.5% 65.7% 77.9% 66.0% Rely on word-of-mouth Advertise at the place games are held for future games Organization's members/families promote to friends, neighbors, etc. Social media (e.g., Facebook, etc.) 51.4% 58.7% 44.8% 35.2% S 19.1% 34.0% Advertise in local/community papers Rely on the bingo hall operator to advertise the venue, and that brings in our players Signs/posters/flyers in local stores, restaurants, and other businesses 29.5% S 45.5% 23.8% 22.1% 23.8% 6.7% S 10.6% 4.7% Internet emails to player list Radio or other broadcast media S=statistically different at 95% confidence Advertise in the larger local newspapers (e.g., Denver Post, etc.) 6/28/2017 5.7% 5.1% 10 MOUNTAIN VIEW INSIGHTS, INC. 8.6% 8.5% Do not advertise or promote our games actively
Attracting Younger Players to Bingo Attracting Younger Players to Bingo Surprisingly, many organizations report no special efforts to attract younger players. Those who do seem to have rather simple strategies: Social media marketing Allowing families to bring small children Letting children play (but not buy) Keeping a family-friendly tone and environment Door prizes Advertising at local colleges Word of mouth Just being extra friendly to young people 11 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Tepid interest in potential changes to bingo Tepid interest in potential changes to bingo Please read the list of potential changes below and rate them according to your Please read the list of potential changes below and rate them according to your opinion of their potential to increase your organization's bingo net proceeds. opinion of their potential to increase your organization's bingo net proceeds. % Mentioning % Mentioning Helpful Helpful (4-5) (4-5) Not Helpful Not Helpful (1-2) (1-2) Does Not Does Not Apply Apply Increasing the prize limits Ability to pay workers (other than callers and games managers) 28.6% 40.0% 20.0% 19.0% 49.5% 18.1% Ability to pay for professional callers 16.2% 57.1% 21.0% Increase number of faces allowed in electronic bingo Do not make paper required with the purchase of an electronic Ability to pay for professional games managers 16.2% 37.1% 36.2% 14.3% 40.0% 36.2% 10.5% 63.8% 20.0% Increase number of sessions per week/year 10.5% 47.6% 22.9% Ability to sell more than one electronic gaming device per participant 7.6% 46.7% 32.4% Scale: 1=Not At All Helpful to 5=Extremely Helpful 12 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Looking deeper at the underlying responses, the rates of 1=Not at Looking deeper at the underlying responses, the rates of 1=Not at all helpful responses are substantial for all suggestions. Similarly, all helpful responses are substantial for all suggestions. Similarly, about a fifth to a third of respondents are not sure or do not think about a fifth to a third of respondents are not sure or do not think the suggestions apply to their situation. the suggestions apply to their situation. Please read the list of potential changes below and rate them according to your opinion of their potential to Please read the list of potential changes below and rate them according to your opinion of their potential to increase your organization's bingo net proceeds. increase your organization's bingo net proceeds. % Mentioning % Mentioning 2017 RESULTS 2017 RESULTS 1=Not at all helpful 5=Extremely helpful Not sure/ Does not apply 2 3 4 Increasing the prize limits Ability to pay workers (other than callers and games managers) 30.5% 9.5% 11.4% 14.3% 14.3% 20.0% 37.1% 12.4% 13.3% 9.5% 9.5% 18.1% Ability to pay for professional callers 43.8% 13.3% 5.7% 7.6% 8.6% 21.0% Increase number of faces allowed in electronic bingo Do not make paper required with the purchase of an electronic Ability to pay for professional games managers 25.7% 11.4% 10.5% 9.5% 6.7% 36.2% 30.5% 9.5% 9.5% 9.5% 4.8% 36.2% 47.6% 16.2% 5.7% 5.7% 4.8% 20.0% Increase number of sessions per week/year 39.0% 8.6% 19.0% 6.7% 3.8% 22.9% Ability to sell more than one electronic gaming device per participant 28.6% 18.1% 13.3% 6.7% 1.0% 32.4% Scale: 1=Not At All Helpful to 5=Extremely Helpful 13 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Summary of Charitable Summary of Charitable Organization Raffle Feedback Organization Raffle Feedback (81 responses) (81 responses) Substantial general satisfaction with how things work now, and relationship with SOS office managing raffles Most often-mentioned suggestions for improvement: Less restrictions on members who can sell (e.g., would like paid receptionist, other non-board members to be able to sell tickets) Make the online registration process a bit more user friendly (seems like a first-timer issue) Allow for multi-calendar year registration. Example, a raffle that spans from November to June. 14 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Player Feedback About Bingo Bingo Player Feedback About Bingo Bingo experience LIKES: Winning! Having fun/socializing, or not being bothered while playing Cheaper/easier gambling opportunity than going up the hill to a casino Variety of games Something to remain active (older players) Bingo experience DISLIKES: Not winning or poor winnings/small pots Facilities (cleanliness, machines not working as the should, poor food/beverages) Callers (too loud/not loud enough, too fast/too slow) Staff (unfriendly, not competent) Young children, especially if they are not well behaved but even if they are Perception of poor value for games or lack of honesty Not being able to play as many electronic games as desired 15 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Player Feedback About Casinos Bingo Player Feedback About Casinos Casino experience LIKES: Chance to get away Customer service/overall experience Interesting games Chance to win big Casino experience DISLIKES: Losing! (some think the casinos are tighter than Vegas) Travel time and expense 16 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Stakeholder Implications Bingo Stakeholder Implications Charities/Operators Short of disruptive innovation, bingo is likely to decline Manage the decline to the best possible outcome Customer service Player experience Look for new ways to fundraise Suppliers Tougher times ahead Disruptive innovation? Regulators Not at all clear any significant barriers to success on the part of regulations Facilitate the migration to more successful fundraising tools for charities 17 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo & Raffle Study Bingo & Raffle Study JOHN MANN JOHN MANN MOUNTAIN VIEW INSIGHTS, INC. MOUNTAIN VIEW INSIGHTS, INC. JUNE 28, 2017 JUNE 28, 2017
Methodology Methodology An online survey was conducted from May 17-June 10, 2017 among the total database of records for persons registered by the Secretary of State for bingo operations (984 valid unduplicated records). A total of 376 responses were received, which is an excellent response rate for this type of survey of 38%. This survey parallels closely a survey we conducted in 2012. Indicative of the database, the vast majority of responses were from persons associated with charitable organizations sponsoring bingo. Which of the following best describes the nature of your Which of the following best describes the nature of your involvement (past or present) in bingo or raffle fundraising involvement (past or present) in bingo or raffle fundraising operations in the state of Colorado? operations in the state of Colorado? % % 94.9% 2.9% 2.2% Member of a charity sponsoring bingo and/or raffles as a Own/operate a bingo hall Provide products and services to bingo halls or charities Initial survey results indicated a number of organizations conduct raffles but not bingo. The survey was amended in progress to allow organizations who conduct raffles to suggest opportunities for improving their raffle returns. 19 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Overall Insights and Conclusions Overall Insights and Conclusions The landscape for bingo is quite similar to 2012. The economy has improved, at least for many, Technology (social media, email) is used more frequently for marketing Underlying factors driving a decline in bingo vitality persist. Most concerning is the continued decline and aging of the loyal player base. Efforts to attract younger players are not succeeding well enough to counter current player attrition. Attracting and retaining experienced volunteers with the necessary customer service and operational skills remains difficult at best. There are no obvious magic bullets (at least in terms of changing regulations or operations) that will solve the player and volunteer issues. Player participation and fundraising revenue will likely continue to decline without fundamental changes to the entertainment value of the game (fun, comradery, payouts). Perhaps it is time to explore other means of charitable fundraising. 20 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Perspective from Current Charitable Perspective from Current Charitable Organizations Operating Bingo Organizations Operating Bingo 21 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Organizations are placing increased emphasis on fun and Organizations are placing increased emphasis on fun and community involvement to be successful. While customer community involvement to be successful. While customer service and game variety are reported less often as positive service and game variety are reported less often as positive factors, their fewer mentions are likely driving the focus on fun. factors, their fewer mentions are likely driving the focus on fun. In your experience, what are the factors that contribute most to the In your experience, what are the factors that contribute most to the success of your bingo fundraising activities? success of your bingo fundraising activities? % Mentioning % Mentioning 2017 2017 28% 26% 23% 22% 20% 15% 13% 10% 10% 10% 9% 9% 7% 5% 5% 3% 3% 2% 1% 1% 0% 0% 2012 2012 22% 24% 6% 36% 9% 9% 11% 22% 8% 5% 14% 4% 3% 7% 0% 15% 3% 1% 7% 2% 2% 2% Trained/Good Volunteers Established/Loyal Player Base Focus on Having Fun Customer Service Community Involvement and Connections Fair/Consistent/Well-Run Operations Effective Advertising/Social Media Timing of Sessions Progressives Nice/Convenient Facility Attractive Payouts For a Good Cause Good Food Pull Tabs Attractive Pricing Variety of Interesting Games Good Games Managers Multiple Sessions per Week "Must Go" Progressives Games People Understand Good Callers Overall Leadership at the Organization S S S S S S 22 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Organizations continue to cite poor player turnout as the most impactful Organizations continue to cite poor player turnout as the most impactful negative factor, with volunteer issues directionally even more impactful negative factor, with volunteer issues directionally even more impactful in 2017 than 2012. Bad weather was mentioned more often, likely due in 2017 than 2012. Bad weather was mentioned more often, likely due to the late spring snows this year. The effect of the economy was again to the late spring snows this year. The effect of the economy was again seen as less negative than in 2012. seen as less negative than in 2012. What are the factors that limit the success of your bingo fundraising What are the factors that limit the success of your bingo fundraising activities? activities? % Mentioning % Mentioning 2017 2017 34% 27% 18% 15% 9% 8% 6% 5% 5% 5% 4% 4% 4% 1% 1% 1% 2012 2012 34% 18% 4% 8% 2% 9% 4% 33% 9% 2% 5% 0% 0% 7% 5% 4% Poor Player Turnout Volunteer Issues (Too Few, Not Trained, Turnover) Weather Facility Issues (Too Small, Poor Upkeep) Jackpot Limits ($2000) Cost/Rent/Supplies Aging Player Base Bad Economy Competition from Other Activities (Not Gambling) Rules/Reporting/Regulations Insufficient Advertising/Promotion Illegal Gambling (Internet Gambling Parlors) Competition from For Profit Bingo Competition from Casinos Limited Number of Sessions Cannot Reimburse Volunteers S S S S=statistically different at 95% confidence 23 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Most external factors are currently having a similar level of Most external factors are currently having a similar level of negative impact on charities operating bingo compared to 2012, negative impact on charities operating bingo compared to 2012, except for negative economic impacts are reportedly less severe. except for negative economic impacts are reportedly less severe. Overall, how strong of an impact has each of the following had on your Overall, how strong of an impact has each of the following had on your overall bingo fundraising net proceeds? (Scale -2 = Strong Negative overall bingo fundraising net proceeds? (Scale -2 = Strong Negative Effect to +2 = Strong Positive Effect) Effect to +2 = Strong Positive Effect) Average Average 2017 2017 -0.51 -0.51 -0.48 2012 2012 -0.70 -0.70 -1.10 Casinos Willingness of persons to volunteer to help with bingo Current economic conditions Competition with other charities raising money through bingo S -0.38 -0.60 Aging bingo participants Competition with other charities raising money through activities other than bingo -0.32 -0.60 -0.23 -0.30 -0.14 0.01 0.05 -0.20 -0.10 -0.20 Colorado Lottery (any type of game) Raffles (for example, St. Jude's Dream Home Giveaway) Smoking ban in public places S=statistically different at 95% confidence 24 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Charitable organizations continue to use less Charitable organizations continue to use less- -sophisticated means of promotion, though technology usage (social media, internet) is of promotion, though technology usage (social media, internet) is up significantly. Organizations seem to have taken on more of the up significantly. Organizations seem to have taken on more of the responsibility for promotion, deferring less to hall operators. responsibility for promotion, deferring less to hall operators. sophisticated means What are the main activities your organization does to promote its bingo What are the main activities your organization does to promote its bingo fundraising? Please check all that apply below. fundraising? Please check all that apply below. % Mentioning % Mentioning 2017 2017 2012 2012 69.5% 65.7% 77.9% 66.0% Rely on word-of-mouth Advertise at the place games are held for future games Organization's members/families promote to friends, neighbors, etc. Social media (e.g., Facebook, etc.) 51.4% 58.7% 44.8% 35.2% S 19.1% 34.0% Advertise in local/community papers Rely on the bingo hall operator to advertise the venue, and that brings in our players Signs/posters/flyers in local stores, restaurants, and other businesses 29.5% S 45.5% 23.8% 22.1% 23.8% 6.7% S 10.6% 4.7% Internet emails to player list Radio or other broadcast media Advertise in the larger local newspapers (e.g., Denver Post, etc.) 5.7% 5.1% 8.6% 8.5% Do not advertise or promote our games actively S=statistically different at 95% confidence 25 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Attracting Younger Players to Bingo Attracting Younger Players to Bingo Surprisingly, many organizations report no special efforts to attract younger players. Those who do seem to have rather simple strategies: Social media marketing Allowing families to bring small children Letting children play (but not buy) Keeping a family-friendly tone and environment Door prizes Advertising at local colleges Word of mouth Just being extra friendly to young people 26 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
There has been a shift towards organizations having lower levels There has been a shift towards organizations having lower levels of bingo income in 2017 and 2016 compared to 2012. This of bingo income in 2017 and 2016 compared to 2012. This seems to link with qualitative concerns mentioned about seems to link with qualitative concerns mentioned about declining player bases and net proceeds. declining player bases and net proceeds. What is the approximate annual net proceeds What is the approximate annual net proceeds from bingo (all revenues less all expenses) your from bingo (all revenues less all expenses) your organization made/expects to make in (year)? organization made/expects to make in (year)? 2017 2017 2016 2016 2012 2012 $0 1.7% 37.1% 30.5% 30.7% 6.5% 35.6% 30.6% 27.3% 1.9% 26.9% 36.7% 34.5% <$10K $10K-$39K $40K+ 27 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo fundraising is also declining as a percentage of charitable Bingo fundraising is also declining as a percentage of charitable organizations operating budgets. Only about 34% of organizations organizations operating budgets. Only about 34% of organizations reported bingo to be at least half of their operating budget in reported bingo to be at least half of their operating budget in 2017, compared to about 51% in 2012. 2017, compared to about 51% in 2012. Approximately what percent of your organization's total Approximately what percent of your organization's total operating budget is supported by bingo fundraising? operating budget is supported by bingo fundraising? % Mentioning % Mentioning 2017 2017 43.0% 23.4% 15.9% 15.9% 1.9% 2012 2012 32.5% 16.5% 23.0% 25.1% 2.9% Up to 24% 25-49% 50-74% 75-99% 100% 28 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Profit margins are thinning. Charitable organizations report a Profit margins are thinning. Charitable organizations report a widening gap between the trends in costs and prices charged. widening gap between the trends in costs and prices charged. About 45% of organizations report increased costs, with only About 45% of organizations report increased costs, with only about 14% reporting increased pricing. about 14% reporting increased pricing. 29 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
In addition to bingo, more charitable organizations are using In addition to bingo, more charitable organizations are using food concessions and fewer are using flea markets/bazaars than food concessions and fewer are using flea markets/bazaars than in 2012. But otherwise, charitable organizations are using in 2012. But otherwise, charitable organizations are using fundraising tools similarly to 2012. fundraising tools similarly to 2012. Which, if any, of the following does your organization do to raise funds in Which, if any, of the following does your organization do to raise funds in addition to bingo? Check all that apply, or "none of the above" if applicable. addition to bingo? Check all that apply, or "none of the above" if applicable. % % 2017 2017 45.7% 41.9% 41.0% 36.2% 21.9% 5.7% 14.3% 2012 2012 43.8% 34.0% 46.8% 40.9% 20.9% 11.9% 18.3% Raffles/sweepstakes S Food concessions at events Direct solicitation for funds (charitable donations) Dinners Auctions S Flea markets/bazaars None of the above S=statistically different at 95% confidence 30 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
There was tepid interest in potential changes to bingo provided for There was tepid interest in potential changes to bingo provided for evaluation. Of those surveyed, increasing prize limits drew the most evaluation. Of those surveyed, increasing prize limits drew the most interest. But even so, less than a third of charitable organizations interest. But even so, less than a third of charitable organizations felt this would be helpful (4 or 5 on the five felt this would be helpful (4 or 5 on the five- -point scale). point scale). Please read the list of potential changes below and rate them according to your Please read the list of potential changes below and rate them according to your opinion of their potential to increase your organization's bingo net proceeds. opinion of their potential to increase your organization's bingo net proceeds. % Mentioning % Mentioning Helpful Helpful (4-5) (4-5) Not Helpful Not Helpful (1-2) (1-2) Does Not Does Not Apply Apply Increasing the prize limits Ability to pay workers (other than callers and games managers) 28.6% 40.0% 20.0% 19.0% 49.5% 18.1% Ability to pay for professional callers 16.2% 57.1% 21.0% Increase number of faces allowed in electronic bingo Do not make paper required with the purchase of an electronic Ability to pay for professional games managers 16.2% 37.1% 36.2% 14.3% 40.0% 36.2% 10.5% 63.8% 20.0% Increase number of sessions per week/year 10.5% 47.6% 22.9% Ability to sell more than one electronic gaming device per participant 7.6% 46.7% 32.4% Scale: 1=Not At All Helpful to 5=Extremely Helpful 31 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
We asked about a similar list of potential changes in 2012. Interest We asked about a similar list of potential changes in 2012. Interest this year was directionally or significantly lower than in 2012 for this year was directionally or significantly lower than in 2012 for most of the ideas. most of the ideas. Please read the list of potential changes below and rate them according to Please read the list of potential changes below and rate them according to your opinion of their potential to increase your organization's bingo net your opinion of their potential to increase your organization's bingo net proceeds. (Average Rating 1-5 Scale) proceeds. (Average Rating 1-5 Scale) 2017 2017 2.65 2012 2012 2.89 Increasing the prize limits Increase number of faces allowed in electronic bingo Ability to pay workers (other than callers and games managers) Do not make paper required with the purchase of an electronic Increase number of sessions per week/year Ability to pay for professional callers Ability to sell more than one electronic gaming device per participant Ability to pay for professional games managers S 2.37 2.56 2.29 2.37 2.19 Not Asked 2.06 2.04 S 2.30 1.98 2.01 S 2.26 1.80 1.93 Scale: 1=Not At All Helpful to 5=Extremely Helpful S=statistically different at 95% confidence 32 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Declining proceeds and lack of volunteer support continue to drive Declining proceeds and lack of volunteer support continue to drive charitable organizations to suspend bingo operations. An aging charitable organizations to suspend bingo operations. An aging player base and general lack of player interest are also key factors. player base and general lack of player interest are also key factors. To better understand the factors that contributed to your organization's To better understand the factors that contributed to your organization's stopping bingo fundraising, please read the following list of potential issues. stopping bingo fundraising, please read the following list of potential issues. Then indicate on the scale shown how much of a factor each potential issue Then indicate on the scale shown how much of a factor each potential issue was in terms of leading to your organization's stopping bingo. was in terms of leading to your organization's stopping bingo. Average (1-5) Average (1-5) 2017 2017 2012 2012 Declining net proceeds from bingo Lack of sufficient volunteer support Aging players Lack of player interest Switched to other form of fundraising instead of bingo 3.62 3.54 3.15 3.08 2.85 2.85 2.31 1.92 3.17 3.36 1.82 2.43 1.97 2.46 2.23 1.97 Economic downturn Competition from other charities doing bingo Competition from casinos Competition from other charities doing fundraising other than bingo Smoking ban 1.75 1.50 1.50 1.42 1.25 1.00 1.57 1.71 1.26 1.72 2.15 1.38 Decision not to be involved in gambling Competition from lottery games State regulations Organization no longer exists Note: small base size (n=14 2017, n=37 2012) 33 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Summary of Charitable Summary of Charitable Organization Bingo Feedback Organization Bingo Feedback Bingo continues to decline in Colorado Costs are up, profits are down Players are aging, and harder to attract to the game There is competition from for-profit bingo, and reportedly from illegal internet bingo operations There are a few complaints about regulations (prize limits, reporting) But in general, it seems to be more about the game itself not attracting players like it once did Where else can charitable organizations turn to meet their fundraising needs? 34 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Summary of Charitable Summary of Charitable Organization Raffle Feedback Organization Raffle Feedback (81 responses) (81 responses) Substantial general satisfaction with how things work now, and relationship with SOS office managing raffles Suggestions for improvement: Most mentioned: Less restrictions on members who can sell (e.g., would like paid receptionist, other non-board members to be able to sell tickets) Make the online registration process a bit more user friendly (seems like a first-timer issue) Allow for multi-calendar year registration. Example, a raffle that spans from November to June. Quarterly reports laborious for groups doing raffles once a year (three quarter without activity) Faster approval of websites, confirmation emails and tickets to allow more time for marketing Present State raffle rules require licensed organizations to own all raffle prizes prior to selling any raffle tickets. This rule prevents many license holders from offering large prizes such as cars, trucks, recreational equipment, etc., as bonus raffle prizes. State approval of the use of "prize indemnity insurance" to cover the cost of a major prize if a winning number were drawn, would certainly increase the potential raffle ticket sales for small clubs. 35 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Service Provider Perspective: Service Provider Perspective: What Works What Works (6 responses) (6 responses) Based on your observations, what are the best practices of those organizations that are most successful with bingo fundraising? (open-end responses) Clean, well-run facilities with modern equipment Having a stable volunteer base so the players have a consistent experience every time they attend a session. Having the hall provide a paid caller as part of the hall staff. A bingo caller could be counted as part of the "bingo equipment" provided by the hall. Strong manager; consistent policies; friendly service; willingness to try new techniques The groups that provide the best customer service and atmosphere to the players see the greatest number of return players. Groups with lagging attendance make their payouts based on the number of people attending the session or the number of packets sold, in order to keep them from losing money quarter after quarter. Progressive bingo games have definitely saved bingo by giving it a fighting chance against the mountain gaming towns due to the greed factor involved in the Jackpots. The groups that put the highest percentage back into the jackpots seem to receive the best returning attendance. 36 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Service Provider Perspective: Service Provider Perspective: What Needs To Be Better What Needs To Be Better (6 responses) (6 responses) Again, based on your observations, what do organizations need to do better to improve their bingo fundraising? (verbatim responses) Running their sessions consistently from week to week. Advertising and promotions by the halls to attract new players. Customer Service; Self Promotion; Utilize New Techniques Groups need good honest volunteers and reasonable packet pricing based on their market Most of all it comes down to the customer service. Most people attending a bingo session are doing it just as much for the entertainment and socialization, as they are for the gambling factor. The bingo caller is the most important volunteer in the facility. Changing the rules so the caller could either be paid or included in the rent would greatly improve attendance on a regular bases. [Use my equipment] 37 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Hall Operator Perspective: Bingo Hall Operator Perspective: What Works What Works (8 responses) (8 responses) Based on your observations, what are the best practices of your clients who are most successful with bingo fundraising? Groups that offer electronic bingo and event games like Firehorse and Panther. Plenty of volunteers Excellent customer service Good food in snack bar Clean facility Good working equipment Friendly place to play bingo 38 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Hall Operator Perspective Bingo Hall Operator Perspective What Needs to Be Better What Needs to Be Better (8 responses) (8 responses) Again, based on your observations, what do organizations renting your facilities need to do better to improve their bingo fundraising? Better customer service Better knowledge of the rules and regulations Make sure they have enough volunteers Pay out the max per session Good customer service 39 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Charitable Organization Demographics Charitable Organization Demographics 40 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Characteristics of the Charitable Organizations Characteristics of the Charitable Organizations What is the likelihood you organization will be operating bingo What is the likelihood you organization will be operating bingo fundraising a year from now? fundraising a year from now? What is the current state of your bingo fundraising operations? What is the current state of your bingo fundraising operations? % Mentioning % Mentioning % Mentioning % Mentioning 2017 2017 81.7% 7.3% 11.0% 2012 2012 88.3% 10.3% 1.5% 2017 2017 85.4% 6.9% 3.8% 0.8% 3.1% 2012 2012 89.8% 4.6% 4.6% 0.4% 0.7% Currently operating bingo fundraising Have operated bingo fundraising within Operated bingo more than five years ago, Very likely Somewhat likely Might or might not Somewhat unlikely About how many years has your organization been conducting About how many years has your organization been conducting bingo fundraising? bingo fundraising? Very unlikely % Mentioning % Mentioning What is the size of the organization you represent (not bingo What is the size of the organization you represent (not bingo attendance, but the size of the group you represent)? attendance, but the size of the group you represent)? 2017 2017 23.1% 10.4% 13.4% 13.4% 12.7% 26.9% 2012 2012 24.1% 15.5% 11.3% 18.2% 12.4% 18.6% Less than 5 years 5-9 years 10-14 years 15-19 years 20-24 years % Mentioning % Mentioning 2017 2017 16.9% 13.1% 20.8% 13.1% 13.1% 16.2% 6.9% 2012 2012 17.3% 17.6% 17.3% 12.0% 12.0% 13.4% 10.6% Under 50 persons 50-99 100-199 200-299 300-499 500-999 25 or more years Which of the following best describes your current charitable Which of the following best describes your current charitable bingo operations: (check all that apply) bingo operations: (check all that apply) 1,000 or more % Mentioning % Mentioning 2017 2017 2012 2012 Which of the following best describes your organization? Which of the following best describes your organization? We pay to rent space from bingo halls set up expressly for that purpose We use our own space to conduct bingo games Other (please specify) 45.4% S 67.4% % Mentioning % Mentioning 2017 2017 10.0% 12.3% 24.6% S 23.1% 7.7% S 0.0% 22.3% S 2012 2012 12.3% 15.9% 15.8% 20.1% 15.5% 0.0% 13.0% 44.6% S 28.7% Faith-based group (such as church, Veterans group (such as VFW, DAV, etc.) Non-faith based fraternal organization Educational (school of any type) Sports team (such as youth soccer, Labor organization Other charitable organization (describe) 13.1% 7.0% What style(s) of bingo and other games you conduct? (Check What style(s) of bingo and other games you conduct? (Check all that apply.) all that apply.) % Mentioning % Mentioning 2017 2017 2012 2012 Traditional bingo (more quiet during game, targeting traditional and usually older players) Pull tabs Contemporary bingo (more lights, noise, excitement targeting younger players) Does your organization have 501 (c) status of any kind, or not? Does your organization have 501 (c) status of any kind, or not? 86.2% S 95.4% % Mentioning % Mentioning 2017 2017 75.4% 10.8% 13.8% 2012 2012 65.5% 11.3% 23.2% Yes No Not sure 62.3% 70.9% 13.8% S 6.7% S=statistically different at 95% confidence 41 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Characteristics of the Charitable Organizations Characteristics of the Charitable Organizations What is the approximate annual net proceeds from bingo (all What is the approximate annual net proceeds from bingo (all revenues less all expenses) your organization expects to make revenues less all expenses) your organization expects to make in (year)? in (year)? Which, if any, of the following does your organization do to Which, if any, of the following does your organization do to raise funds in addition to bingo? Check all that apply. raise funds in addition to bingo? Check all that apply. % Mentioning % Mentioning % Mentioning % Mentioning 2017 2017 45.7% 41.9% 2012 2012 43.8% 34.0% 2017 2017 2012 2012 Raffles/sweepstakes Food concessions at events Direct solicitation for funds (charitable donations) Dinners Auctions Flea markets/bazaars None $1 - $4,999 $5,000 - $9,999 $10,000 - $14,999 $15,000 - $19,999 $20,000 - $24,999 $25,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 1.7% 28.2% 8.9% 9.7% 5.6% 4.8% 4.8% 5.6% 7.3% 14.5% 2.5% 3.2% 1.6% 1.6% 1.9% 18.6% 8.3% 8.7% 6.8% 4.9% 8.7% 7.6% 11.0% 11.7% 5.3% 2.7% 1.5% 2.3% S 41.0% 46.8% 36.2% 21.9% 5.7% 14.3% 40.9% 20.9% 11.9% 18.3% S None of the above In which of the following general geographic areas in Colorado In which of the following general geographic areas in Colorado % Mentioning % Mentioning 2017 2017 28.0% 20.2% 18.7% 13.5% 7.8% 6.7% 6.2% 6.2% 4.7% 3.6% 2012 2012 37.3% 21.9% 13.0% 11.7% 4.9% 3.6% 4.9% 3.6% 2.4% 2.8% Denver Metro Area Colorado Springs/Pueblo/South Front Grand Mesa/Western Slope Fort Collins/Greeley/North Front Range Eastern Plains Central Mountains Boulder Metro Area Durango/Southwest Mountains Northern Mountains S $150,000 or more What is the relative contribution of the bingo game itself versus What is the relative contribution of the bingo game itself versus other aspects of the operation to your overall net proceeds other aspects of the operation to your overall net proceeds (total revenues less total costs)? (total revenues less total costs)? Average % Mentioned Average % Mentioned 2017 2017 43.4% 21.0% 24.4% 6.1% 5.0% 2012 2012 41.7% 27.9% 23.0% 4.5% 2.9% Regular bingo game Progressive bingo Side games like pull tabs Concession operations (food, drinks, etc.) Alcohol beverage sales. Sangre de Cristo/San Luis Valley S S=statistically different at 95% confidence Approximately what percent of your organization's total Approximately what percent of your organization's total operating budget is supported by bingo fundraising? operating budget is supported by bingo fundraising? Average % Mentioned Average % Mentioned 2017 2017 43.0% 23.4% 15.9% 15.9% 1.9% 2012 2012 32.5% 16.5% 23.0% 25.1% 2.9% Up to 24% 25-49% 50-74% 75-99% 100% 42 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Player Study Bingo Player Study JOHN MANN JOHN MANN MOUNTAIN VIEW INSIGHTS, INC. MOUNTAIN VIEW INSIGHTS, INC. JUNE 28, 2017 JUNE 28, 2017
Methodology Methodology An online survey was conducted from May 17-June 21, 2017 to get feedback from bingo players. Respondents were recruited a major bingo halls, and were given a card with an invitation to participate in an online survey. The link to the survey was provided on the card. We were not able to provide an incentive for participation, which understandably limited interest. The survey was closed at the last possible moment, and at that time 30 responses were collected. Given the small base of responses, and recruitment limited to major bingo halls, these results should be interpreted with great caution. 44 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Players Bingo Players Key characteristics of players who responded: Mostly older - only about a tenth of respondents were under age 40 Nearly all female - 84% 44% are employed full time, and 32% are retired Mostly frequent players. 60% play bingo more than once a week 87% play at professional halls (not surprising this is where they were recruited for the survey) It s about a $90 session on average: $46 on bingo $27 on pull tabs $16 on food and beverages The average rating for their bingo experience was 3.8 on a five-point scale (1=Poor, 2=Fair, 3=Good, 4=Very Good, 5=Excellent) About half have been to a Colorado casino in the past month. For most, it s a 50-99 mile drive. They rate their overall casino experience was 3.4 (compared to 3.8 for bingo) 45 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Player Feedback Bingo Player Feedback Bingo experience LIKES: Winning! Having fun Socializing or not! Some go for the interaction with friends (other players, those running the games) Others like the solitary aspect of the game, and go to escape Cheaper/easier gambling opportunity than going up the hill to a casino A variety of games Something to remain active (older players) Bingo experience DISLIKES: Not winning or poor winnings/small pots Facilities (cleanliness, machines not working as the should) Callers (too loud/not loud enough, too fast/too slow) Staff (unfriendly, not competent) General complaints about food and beverages Young children, especially if they are not well behaved but even if they are Perception of poor value for games or lack of honesty Not being able to play as many electronic games as desired 46 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
Bingo Player Feedback Bingo Player Feedback Casino experience LIKES: Chance to get away Customer service/overall experience Interesting games Chance to win big Casino experience DISLIKES: Losing! (some think the casinos are tighter than Vegas) Travel time and expense 47 6/28/2017 MOUNTAIN VIEW INSIGHTS, INC.
