1	Maximize Progressive Profits Larry Loos Joint Optimist Clubs Cape Girardeau, Missouri
2	Introduction In past year we have seen our attendance grow by 12% and profits by nearly 40% Do you have empty seats in your hall? No? Build a bigger hall. This time add a separate non-smoking section. Yes? Then listen and learn how to fill more of those seats and make more money
3	Outline Introduction Review state progressive rules Cash Reserve Setting the Price Use Two Progressive Games Growing your Jackpot
4	Outline (continued) Consolation Prize What game to play Use “Must Pay” Advertise Prepare for large crowd Prepare for new players
5	Outline (completed) Consider big consolation Summary Q & A
6	State Progressive Rules Statute is very simple. All the rules are set in the Missouri Code of State Regulations (11 CSR 45-30). That’s Title 11 (Dept of Public Safety), Division 45 (Mo Gaming Commission), Chapter 30 (Bingo). http://www.sos.mo.gov/adrules/csr/current/11csr/11c45-30.pdf
7	Progressive Rules (summary) May have 2 progressive games Jackpot must start at no more than $1000 Must increase jackpot each week, but by no more than $250 If no one wins within 10 weeks, must add a ball each following week until a winner
8	Progressive Rules (summary) The consolation prize must be less than the jackpot Progressive prizes do not count against the $3,600 bingo prize limit Operator cannot cease bingo operations unless the progressive is completed unless prior approval given by GC
9	Progressive Rules (summary) Must maintain cash reserves sufficient to cover jackpot IRS requires W2-G form if any bingo prize is $1200 or more (GC has required starting ball count must be such that game is “winnable”, but that is not in the CSR)
10	Jackpot Reserve State requirement If you include weekly jackpot increase as cost of game you get a more accurate picture of profit/loss Using reserve this way doesn’t distort picture when you actually pay the jackpot
11	Jackpot Reserve Calculation “Reserve” is amount in excess of the normal consolation you would pay if someone won the jackpot “Reserve” = “Jackpot” – “Prize” See speadsheet 1
12	How much to charge for progressive game sheets? Since large prize is offered, can charge a premium Don’t give them too many cards per sheet so “big spenders” can buy lots We have found that a 3-on for $2 with three for $5 works well. Some offer a 9-on for $5. Currently selling 6-on for $3 with two for $5 but find that sales per player is down about $1.00
13	Why Two Progressive Games? Add excitement. People come to bingo for value, fun and excitement. Reduce jackpot “slump” (time between when jackpot is won and when next one will probably be won)
14	Why Two Progressives? (cont) Increase sales An organization in our area recently switched from one to two jackpots. Progressive sales per player went from $6.09 to $9.64 (+$3.55).] Have bigger attendance more often (see spreadsheet 2)
15	Growing your Jackpot Start as high as you can afford. Recommend at least $500 Choose start to match your increase Maximum increase is $250 per week Set low enough so sales cover both the reserve and the consolation each week
16	Growing your Jackpot (cont) Use “round” numbers like $100, $125, $150, $200, or $250 To avoid “the slump”, try to get it to target amount within 12 – 20 weeks. With two jackpots this means paying one every 2 months At max start/increase you could reach $5,750 in 20 weeks. That’s high enough.
17	Consolation Prize If $1,200 or more, must give winner an IRS Form W2-G Some use $1,199 Only retailer would use a xx99 price $1,000 will attract as many sales
18	Consolation Prize (cont) With two jackpots can justify paying half as much for each Tell players you’re just splitting same amount between two games but adding twice to the growing jackpots Be sure each week’s sales cover both consolations and the reserve
19	What game to play Most people play a coverall Players know the odds and will come when probability gets high enough Use predraws or odd/even wild to keep it from taking too long Others try to keep them guessing by playing less well known games
20	Where to put in schedule Since progressive is optional, I recommend that it not be last game of session If it is, some will leave rather than play More likely to buy at least one sheet to avoid being idle
21	Use “Must Pay” by 55 or 56 balls We saw that significant crowds didn’t come until 56 or 57 balls but rarely got that far Instead of acting “greedy”, recommend that when ball count would be 55, instead promise to pay no matter how many balls See spreadsheet 3
22	More on “Must Pay” Advertise Give handout to players Put leaflets on cars at other games We have a radio station that does a daily Bingo News Report Buy radio spots (watch advertising limits) 30 second ad 60 second ad
23	More on “Must Pay” (cont) Prepare for very large crowd Avoid bottlenecks: Add extra paper sales line and progressive sales area. Don’t forget concessions. Prepare for new players Warn players about early bingos Consider New Player instructions
24	Consider big consolation GC puts no restriction on your consolation except that it must be less than the jackpot Consider offering a $2,500 (or larger) consolation prize If crowd is large enough then you could offer such a large prize every week by using two progressives like I suggest
25	We use two progressives Start each at $1,000 and 45 balls Add $250 each week When one pays, move next to 47 or 48 balls so will be to $5,000 by ball 55. Then we have a guaranteed jackpot Pay a jackpot every 8 or 9 weeks Will try our first big ($3,000) consolation later this month
26	Suggested Scenarios Here are suggestions for games
27	Consider Rapid Payouts If run jackpot at maximum, you can reach $3000 in nine weeks By using two progressives you can be paying one every month Previous spreadsheet shows three possibilities using different amounts for the consolation
28	Any Questions? E-Mail: Larry@showme.net Plan to post on web at www.bingo-acgm.org