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Division of Gaming | |
Department of Administration | |
September 2012 | |
Report Highlights | |
The Division of Gaming in the Department of Administration (DOA) oversees the gaming operations of 11 tribes that have negotiated compacts with the State. The compacts permit Indian gaming in Wisconsin and define regulations for tribal gaming operations. The Division also regulates charitable bingo and raffles, and other games that are subject to regulation by the State. While the Division is authorized to regulate pari-mutuel racing, the last remaining greyhound racetrack in Wisconsin closed in December 2009. Under s. 13.94(1)(eg), Wis. Stats., the Legislative Audit Bureau is required to conduct an annual financial audit and a biennial performance evaluation. In completing our work, we reviewed:
Division Staffing
The number of authorized positions
for the Division decreased from
34.35 full-time equivalent (FTE)
positions in fiscal year
The Act also authorized an
additional
State Gaming Revenue
Compacts require each tribe to pay
the State a percentage of its net
revenue from Class III gaming
at tribal casinos, including slot
machines and table games such
as blackjack. These payments
constitute the source of most of the
State’s gaming revenue. Revenue
from all gaming sources was stable
at approximately
State gaming revenue funds the
staffing and operations of the
Division of Gaming. In
Tribal Revenue from
Gaming
Compacts require each tribe to contract for an annual independent audit of its gaming operations and to submit the audit report to the Division and our office. We may release financial information only in aggregated form.
Tribal gaming revenue from all
sources was approximately
Tribes incur gaming expenses
for general operations, including
employee salaries and fringe
benefits, promotion and marketing,
and depreciation. Tribal gaming
expenses decreased
Oversight of Indian Gaming
The State’s regulation of Indian gaming protects the interests of casino patrons, who expect the games to be fair, as well as both the tribes and the State, which depend on accurate accounting of revenue from Class III gaming activities to determine payments required under the compacts. The Division conducts financial and compliance audits to verify tribal compliance with provisions of their compacts. From January 2010 through July 2012, it conducted 66 financial audits and 55 compliance audits. We analyzed the Division’s working papers and other documentation associated with its 2011 and 2012 on-site financial and compliance audits of five casinos. The documents we reviewed were sufficient to show that the Division followed its audit procedures.
The compacts and statutes require
DOA to certify the vendors that
provide casinos with gaming-related
products and services. From
Other Gaming Activities
Any organizations for which contributions are deductible for state and federal income tax purposes may be licensed by the Division to conduct bingo or raffles.
The maximum prize value allowable
for a single bingo game is $500, and
the total prize value for any playing
session may not exceed $2,500. From
The Division issues two types of
raffle licenses. Class A raffle licenses
limit the ticket price to a maximum
of $100 and Class B raffle licenses
limit the ticket price to no more
than $10. From
The Division also registers crane
games. Revenue from one-time
crane game registration fees
totaled |
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