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501(c)Files | Nonprofit News

Missing the Mission | Maryland Nonprofits Take a Gamble

by Tom Durso on February 26th, 2008

The older I’ve gotten, the more libertarian I’ve become. In general, people should be able to do what they want, I believe, especially in their personal lives, as long they’re  not misled about the risks involved and as long as their behavior doesn’t harm others. Gambling, for example, I’m fine with: I play poker every few weeks, and in a few months I’ll be going to Las Vegas, where I’m sure I’ll engage in a few games of chance.

And so the news that bars in St. Mary’s County, Maryland, were making a ton of scratch off of video bingo devices wouldn’t bother me ordinarily. Except that county nonprofits, including Catholic schools and parishes, nursing centers, fire departments, and civic groups, are allowing themselves to be used by the bars and the gaming companies as cover to exploit a loophole in the state law banning slot machines.

Unlike most counties in the state, St. Mary’s permits “gaming devices” if the proceeds go to a nonprofit organization. By law, the company that owns the machine can take a cut to cover expenses, as can the bar or restaurant where it is located.

In one example cited in the Washington Post story describing the trend, a fire department benefiting from the proceeds of five machines installed at a bar on a pier that extends into the Potomac River is given 30 to 35 percent of the take, while the bar gets 5 to 10 percent. The gaming company that owns the machines pockets a whopping 60 percent.

I’m fully supportive of exploring alternate revenue streams, but the notion of these nonprofits pimping themselves out this way just feels skeevy. It’s a long way from bingo night in the church basement to subsidizing private enterprise.

“Missing the Mission,” a weekly commentary about nonprofits that have taken their eye off the ball, appears Tuesdays at the 501(c) Files. | 501(c)

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POSTED IN: Ethics, For-profit, Mission

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