VIDEO RAFFLE

Vets and fraternals file for declaratory judgment, receive temporary restraining order

Video raffle system is permitted to operate while court considers case

Today the Ohio Veterans and Fraternal Charitable Coalition and other parties filed suit in Franklin County Common Pleas Court seeking declaratory judgment on the legality of charitable video raffle terminals at our member organization posts and lodges.
Last week, after the legislature adjourned for the remainder of 2013, we abided by the Attorney General’s request to shut down the terminals since no legislation would be considered until the legislature returns in January.  While we understand that the Attorney General’s office was simply doing its job, this was costing our charities over $15,000 per day at a time of year when charitable requests are at their peak.  We could not stand by and do nothing when we believe the video raffle system we are operating is already legal under Ohio law.
So we took the matter to court where we received a temporary restraining order against the State of Ohio while the court considers the case.  This will allow our posts and lodges to continue raising charitable funds through the centralized video raffle system.  Every single dollar raised by the raffle program is tracked electronically in real time and accounted for on our transparent reporting system.  Since its inception, our charitable video raffle program has raised over $6 million for charities.
Our first priority has and will remain to encourage the legislature to pass HB 325 (Rep. Rick Perales), which would clarify state law with regard to the legality of video forms of bingo conducted for charity.  Under Ohio law, our organizations are already permitted to play various forms of charitable bingo in order to raise funds to support our post/lodges and local 501c3 charities, with the net revenue being split 50/50.  HB 325 would simply clarify that we are allowed to play these same games in a more entertaining video format.  The bill would also keep regulatory authority over charitable video bingo with the Attorney General.
We are hopeful that soon after the House returns in January, HB 325 will be scheduled for sponsor testimony in the Policy and Legislative Oversight Committee.  In the meantime, today’s TRO will allow our organizations to continue to raise funds to support their posts/lodges and their designated charities.
The Ohio Lottery Commission continues to offer its video gaming terminals to our organizations.  But as we’ve said in the past, the state commanders and leaders of our member organizations have unanimously decided to discourage posts and lodges from signing contracts with the Lottery because of serious concerns we have with the program.  Click here to see the letter.  Some of those concerns are:
 

• The proposed Lottery program may be unconstitutional.  The Ohio Constitution clearly states that all Lottery revenue must go towards funding education.  We recently sought a legal opinion from a trusted law firm on this issue.  The opinion states that the Lottery program “violates Ohio's constitution.  Specifically, it disregards Article XV, Section 6, which mandates that the entire net proceeds of a state lottery be used solely for education. Because the Proposed Deal runs afoul of the Ohio Constitution, it should not be approved or funded.” Click here to see the legal opinion memo.  Based on this opinion, there are no guarantees that our 501c3 charities will receive a single nickel from the Lottery’s program.
• The Lottery program would give 60% of the revenue to a foreign vendor, and nothing to our local charities.  Under the Lottery’s program, 60% percent of the revenue will go to Intralot, a foreign company based in Athens, Greece.  The Lottery will take 15% and give posts/lodges 25%. Nothing will go to our local 501c3 charities.  Under the current OVFCC raffle program, the vendor receives 40% of the revenue and the charities and posts/lodges receive 60%, or 30% each.
• The Lottery’s next step will be to take over paper forms of bingo. We’ve recently confirmed that the Lottery also has plans to try to take over paper forms of gaming at our posts and lodges, effectively doing away with charitable gaming as we know it.

It’s unfortunate that the legislature has not taken action on this issue and we remain hopeful that legislation will be passed in early 2014.  This has put us in a position where we had no other option but to go to court.  Otherwise our organizations and charities would lose millions of dollars in vital funding.

We would greatly appreciate support for HB 325, which would resolve this situation through sound policy rather than a court battle.

VFW Continues Fight to Remove COLA Penalty

WASHINGTON (December 18, 2013) — The Veterans of Foreign Wars of the United States will continue its fight to remove a proposal in the federal budget deal that unfairly attacks military retirees. The two-year budget deal was passed by the House last week and by the Senate late this afternoon. The package is now on its way to the president for his signature.

“The VFW has never been against the bipartisan deal that funds the government and temporarily ends the sequester, but we are against one of the budget deal’s proposals because it directly targets the earned retirement pay of those who have honorably served our nation for decades, to include those who were medically retired because of their wounds,” said VFW National Commander William A. Thien.
According to Thien, the budget legislation penalizes working-age military retirees younger than 62 by automatically subtracting a full percentage point from annual cost-of-living increases, which for an E-7 retiring today at age 40 could amount to a cumulative loss of $80,000 by age 62.
“This proposal has outraged our members and the military retiree community, as well as the active duty, Guard and Reserve ranks, because the COLA penalty breaks faith with military retirees,” said Thien. “It requires those who have sacrificed so much for our nation to sacrifice even more, which could result in a mass exodus of midcareer NCOs and officers once the economy rebounds, which will directly impact the continued viability of a professionally-led, All Volunteer Military.”
The VFW will now work with its allies in both the House of Representatives and the Senate to find a solution to overcome the COLA penalty, and mobilize its membership and supporters to urge their members of Congress to support the solutions.
“We know the federal government needs to curb its spending, balance its budget and put an end to the sequester,” said Thien, “but to penalize military retirees, especially those who have been medically retired as a result of wounds received defending this nation, is totally unacceptable.”

ANNUAL MEMBERS

IF YOU HAVE NOT PAID YOUR ANNUAL DUES, NOW IS THE TIME TO DO IT. AFTER JANUARY 1, 2014 ANNUAL DUES WILL INCREASE.

IF YOU KNOW SOMEONE THAT IS AN ANNUAL MEMBER, INCLUDING MEMBERS AT LARGE, LET THEM KNOW.

CHARITIES LOSING REVENUE

Ohio’s veterans, fraternals and charities are losing $15,000 per day do to legislative inaction

Holiday charity donations to be drastically cut

(Columbus OH - December 12, 2013) Ohio’s veteran and fraternal organizations have recently been forced to shut down a video raffle pilot program under threat of state government enforcement and it’s costing Ohio charities $15,000 per day going into the Holiday Season, a critical time of year for charities in need.

These groups had hoped to see movement on House Bill 325 (Rep. Rick Perales), which would clarify a gray area of state law, legalizing video forms of bingo, the very same games which veterans and fraternal are already permitted to play under Ohio law.  But with the legislature adjourning for the rest of 2013, the Attorney General decided to take enforcement action against the video raffle system since legislation is unlikely to pass anytime soon.

“It’s unfortunate for our posts, lodges and 501c3 charities that we have been unable to get the Ohio House to move this bill through the committee process,” said Bill Seagraves, President of the veterans and fraternal coalition and Director of VFW of Ohio Charities.  “We have to make funding cuts, turning down request ranging from toys for inner-city Christmas parties to assistance for indigent veterans housing and support.  Legislators in Columbus need to understand that this is having a real negative impact on our communities.”

While veterans and fraternal organizations are hopeful House Bill 325 will receive its first hearing in January when the legislature returns, they are now left to make hard choices about which charities to cut over the Holidays.

“When you are losing $15,000 in revenue, cuts have to be made,” said Glenn Hickman of the American Legion Department of Ohio Charities.  “We take great pride in our charitable contributions and the impact on communities, which makes this situation hard to swallow.”

With declining revenues from paper forms of bingo, a number of veterans’ posts throughout Ohio are under threat of having to sell off their assets and close their doors.  The charitable video bingo program was helping these posts make a turnaround with half of the revenue supporting their overhead expenses and half going to local 501c3 charities.

“My own AMVETS post in Columbus is up for sale,” said Merle Pratt, AMVETS Department of Ohio.  “The video raffle program was helping the post remain open while supporting charities in need.  But we are running out of time and will likely have to close our doors early next year.”