By Cindy Schroeder
The Cincinnati Enquirer

COVINGTON - The state Department of Charitable Gaming has suspended the troubled Northern Kentucky Community Center's bingo license.

Reasons cited for the rare emergency order of suspension issued Thursday by Charitable Gaming Commissioner John Winstead ranged from alleged gaming problems and mismanagement to confusion over which of two boards is actually running the center's bingo.

"Our focus is the gaming license and the monies that they've raised from charitable gaming,'' said Chris Stallings, attorney for the state Department of Charitable Gaming.

"Because of the problems that they're having as an organization, we have no way to ascertain what money's being raised, where that money's gone, and where the supplies have gone,'' Stallings said. "I also understand both groups have padlocked the building, and no one can get in.''

To ensure the correct board is notified of the suspension, copies of the order were sent by certified mail Thursday to four people - two from each of the competing boards, Stallings said. A state compliance officer also was attempting to serve at least one of those four.

Normally, information on possible bingo license problems would be referred to the enforcement division for investigation. However, the circumstances in this case warranted drastic action, Stallings said.

"With the amount of money we're talking about, we feel it's best that they not be able to continue to (run a) game until the situation's under control,'' Stallings said.

He said state records showed the center's bingo had gross receipts of $977,000 in 2002.

"Both sides are accusing the other of misappropriating or mismanaging funds,'' Stallings said. "There are about $47,000 in bad checks that have been written, and those are the ones that are directly related to the charitable gaming account, which we oversee. Obviously, there is some level of mismanagement or lack of knowledge.''

Stallings said the center lacks enough chairmen to oversee the bingo operation. Because of the competing boards, state gaming officials are not even sure which group should operate the bingo.

"One board says they're in charge, and the other says it's them,'' he said.

Stallings said executive director Rollins Davis also conducted at least one bingo session "on or about May 30.'' That was 10 days after the reorganized board said it fired Davis, and a month after the center was put on probation for failing to keep 40 percent of its net proceeds for charitable purposes, as required by state gaming regulations.

Davis did not return a phone call Thursday.

The suspension is effective as soon as it's served, Stallings said. There's no time limit on an appeal, but once one is filed, a hearing must be held within 10 days.

Covington resident William Walker, who was elected interim president of the reorganized Northern Kentucky Community Center board on June 14, said Thursday he had not yet seen the order and could not say whether the agency would appeal the suspension of its bingo license.

"It really doesn't affect us because we're not looking at holding a charitable bingo anytime soon,'' Walker said. ..."The main thing we're trying to do right now is access the building and get the financial records in our possession so that we can get an audit done and see what all we need to take care of.''

Within the past two weeks, representatives of the competing boards have twice changed the locks on the center at 824 Greenup St. Police were called after each side locked the other out.

E-mail cschroeder@enquirer.com