Division of Charitable Gaming Director Henry Lackey told state lawmakers today that gross receipts from charitable gaming were down $40 million in 2007. The money from the games has been steadily falling since 2002 when charities raked in $602 million in gross receipts. Last year's revenue was $487 million.

Lackey says players are spending less because of the lousy economy. But he also says smoking bans in cities like Louisville and Lexington have had a big impact on bingo halls in those cities. He says the so-called "40 percent rule" is not hurting most charities, who are actually doing a better job of managing their games and pocketing a larger share of their gross receipts.

Lackey is also projecting a $150,000 budget shortfall for his agency in 2010, mainly due to the legislature's transfer of $700,000 to the general fund. Lackey says he'll be talking to the governor's office about ways to plug the budget hole.