6 key takeaways from 3-month investigation into Colorado’s charitable gaming world

A summary of the findings of senior investigative reporter David Migoya’s three-month probe into the inner workings of the state’s $110 million charitable gaming world:

  • The operators of charitable games get the lion’s share of the earnings from fund-raisers like bingo and raffles, leaving the sponsoring nonprofits with little of the proceeds. One group got barely 1%.
  • Oversight of charitable gaming is so dysfunctional that an advisory board designed to counsel the secretary of state on regulations hasn’t met in years and efforts to rebuild one have largely stalled.
  • Despite a prohibition against it, at least a dozen felons are certified as charitable gaming managers, including several who spent years in prison for their misdeeds. At least two are registered sex offenders.
  • Charities that rely on bingo have devised ways of remunerating volunteer workers even though the practice is illegal under state law.
  • Nonprofits that run raffles are not required to alert the winners even though they know who they are and, instead, are allowed to keep all of the prize money if the winner doesn’t step forth.
  • There is no one checking what Colorado nonprofits report to the IRS, with at least one group failing to report its charitable gaming income for two decades.

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