Saturday, March 28, 2009

Frequently asked questions

Writings

OK , lets get to the meat of it shall we? Your either here because your club got busted or your worried your club will be busted. It's inevitable , your going to have a visit from the LCE sooner or later. We here at YCR have talked to numerous clubs that have been cited by the LCE. In all the cases we have looked into , there is one common denominator. They are targeting the gambling aspect of the club. Now I don't want to get into the legalities of it, but in all the cases we have looked into , all the clubs have been cited for the same thing. The ever popular $5000.00 payout limit. In case you don't know what that is, it's simple. You cannot pay out more than $5000.00 in one week, period! Just to make myself clear. Thats not profit , thats payout! Now, I'm figuring the average profit from gambling is 30% ( easy does it, it varies from jar to jar and board to board ) . That means that you can only profit $1500.00 in one week from gambling. Pretty difficult to do seeing is that your food and drinks are at an extremely low gross profit margin and these items are not getting any cheaper on a wholesale level, not to mention the raise of the minimum wage. In this portion of the site, I along with my team will try to cover why this is happening, and how you can make a difference.



Q.Why do you keep mentioning the "LCE"?

A. The LCE ( Liquor Control Enforcement ) enforces law for the LCB. If you address a LCE agent as LCB , he/she will be quick to correct you.

Q. Why is the LCE targeting so many clubs?

A. Well that's based a lot on opinion. Some same it's the bar and tavern owners that are pushing the state to regulate the clubs more. They cannot have gambling to subsidize their food and drink. If they can get the clubs income on gambling down , that means the clubs will have to increase prices on food and drinks therefore making a level playing field. Others say "It's the slots" . Meaning that Mr Rendell and his slot deal want all the gambling monies to go into the casinos. Instead of a club getting the gambling revenue, it will be left for the slots to take. The author of this Q&A section believe the first opinion, and have stuck to it for a long time, but as we dig more I may change that. I have had LCE agents share the same opinion as I have. It's going to get worse due to the fact that people are being educated about what a club can and cannot do. By this I mean that an angry patron, spouse, etc., can now call a complaint in with details.




Q. What can I do to protect myself?

A. Thats simple , follow the rules. Ahh the rules, if you only knew the rules. Don't feel bad. I have called the LCB several times with the same question and received several different responses. LCB/LCE agents will even tell you there are a lot of gray areas in the laws. Now ask yourself this. Can you afford to follow the rules? Could your club survive by abiding by these rules? Now granted , there are some rules that have been being broken for many years, we just feel they need to be updated. The $5000.00 per week rule being one of them.


Q. What can I do to change things?

A.Well if your reading this, then you have taken the first step. The internet has made it possible to give power to the people in so many ways. Send a email to us , let us know what you think.



Q. We give all our monies to charity, the LCE won't come after us... or will they?

A. Yes, one of the many rumors out there being spread by mis-informed club managers ( and patrons of course ) , is that as long as your giving the money to charity the sky is the limit. Not even close. The LCE does not care what your doing with the money you make , unless your mis- appropriating the funds. That's a whole other web page in itself. In a nutshell, you better have your organization setup correctly, or you will get cited for your profits going to wrong place. Most times, this can be an easy fix , but it should be done.




Q. So we get a $2000.00 fine, we can make that up in a few days, why should we be worried?


A. Thats true, but the LCE knows this and threatens the closing or even more the criminal proceedings for the board members. They are aware that the fines did nothing to stop the clubs, so they stepped it up. Very similar to a speeding ticket in that if the fine is only $10 for speeding, you will take that chance. Jack it up to $200.00 and 3 points and you will think again.



Bottom line is that they are on the hunt. This will not only hurt the clubs, but it will help the people who receive monies from the club. It only takes one pissed off patron to call the LCE, and NOW he knows what to tell them to get them in. People hear what others are being cited for and they use that for their gain.




In closing, we have the utmost respect for law enforcement, and for the most part all the LCE agents we have talked too are decent people just doing there job. We really believe that they think this is wrong as well but they are being ordered by someone above them. They are very fair. They will not trump up charges or set you up for failure. In all the dealings we have had they are very professional people that want to see your club comply and will help you in whatever way to make that happen. We need to unite and go to the Lawmakers to have these outdated laws updated.


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