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By The Associated Press
FORT WAYNE — The poker tables at Doug Pelz’s facility are filled most weekends, as are the blackjack tables and the roulette tables. Pelz doesn’t run a casino, though.
Pelz is the head trustee of the Fraternal Order of Eagles No. 3512, one of the fraternal clubs and veterans groups in Indiana that depend on gambling proceeds to raise money at a time when regular casinos continue to report declining attendance and revenue figures. The Journal Gazette reports that receipts statewide from charity casino gambling in clubs grew to more than $15.4 million last year, up from in $1.4 million in 2008.
“Our club was in dire need of this,” Pelz said. “We were sinking. We had to find more ways to make money for the club.”
Fraternal organizations and veterans clubs with an annual charity game night license can operate casino games three days a week. There are some restrictions, such as the clubs must use volunteers to run the games, can be open only at certain times during the day and can’t be open more than two consecutive days.
In Allen County, where Fort Wayne is located, five such organizations brought in more than $5.7 million in 2012, more than a third of the state total, according to gaming commission numbers. The Eagles No. 248 in Fort Wayne led the way with gross receipts totaling $2.5 million.
The clubs are not allowed to keep all the money. Some must be spent on expenses, while some goes to charity. While the law does not set a certain amount that must be donated to charity, an Indiana Gaming Commission official said some of a club’s net proceeds is supposed to be used for the club’s “lawful purpose.”
For instance, the Eagles No. 248 brought in $2.5 million through casino gambling in 2012, but it spent $2.4 million of that on expenses, according to the gaming commission. That left more than $96,000 in net proceeds, nearly $30,000 of which was donated to charity, leaving the club with $66,383.
Pelz’s club brought in $2.2 million in gross receipts, spent $2.1 million of that and donated more than $34,000, leaving it with a profit of nearly $88,000.
“It was a mere fact we weren’t donating like we used to donate,” Pelz said.
The change comes at a time when casinos in Indiana are reporting lower profits. Indiana had tax revenue of $496.5 million from its 13 casinos during the 2012 budget year. As recently as 2008, Indiana’s casino revenue totaled nearly $583 million, but at the same time there has been a rise in casinos in neighboring states. Experts say any correlation between the rise of charity casinos and the trouble at permanent casinos might be hard to assess.
“We’ve looked at some of that over the years, and the impact has not been as pronounced as you might assume,” said Ed Feigenbaum, editor of Indiana Gaming Insight, which tracks gambling in the state.
He said there may be several factors at play with an increase in charity casino revenues.
People may like the atmosphere in their club better or the smoke-free environment, or they may view going to their charity casino as a social obligation.
“It gives them different kinds of options and alternatives,” Feigenbaum said.

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