130. GAMBLING
CHAPTER 130: GAMBLING
Section
General Provisions
130.001 Adoption of state law by reference
130.002 City may be more restrictive than state law
130.003 Purpose
130.004 Definitions
130.005 Lawful gambling permitted
130.006 City Council approval
130.007 Contribution of net profits to fund administered by city
130.008 Records and reporting
130.009 Hours of operation
Applicability
130.020 Bingo compensation
130.021 Gambling compensation
130.022 Expenses
130.023 Location and frequency of activities
130.024 Rent terms
130.025 Frequency of organizations
130.026 Frequency on premises
130.027 Prizes for bingo
130.028 Gambling device prize limitations
130.029 Use of profits from an operating organization
130.030 Leasing organization
130.031 Record keeping and reporting of profits for bingo
130.032 Record keeping and reporting of profits for gambling devices
130.033 Reports
130.034 Public inspection
Application and Local Approval of Premises Permits
130.045 Filing
130.046 Decision
130.047 Disapproval
Local Permits
130.060 Permit required
130.061 Application
130.062 Fee
130.063 Disapproval
130.064 Approval
130.065 Revocation and suspension
Licensing
130.080 License conduct of licensee and permit display
130.081 Notification of material changes to application
GENERAL PROVISIONS
§ 130.001 ADOPTION OF STATE LAW BY REFERENCE.
The provisions of M.S. Ch. 349, as it may be amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling, are hereby adopted by reference and are made a part of this chapter as if set out in full. It is the intention of the Council that all future amendments of M.S. Ch. 349, as it may be amended from time to time, are hereby adopted by reference or referenced as if they had been in existence at the time this section was adopted.
(Prior Code, § 505.1)
§ 130.002 CITY MAY BE MORE RESTRICTIVE THAN STATE LAW.
The Council is authorized by the provisions of M.S. § 349.213, as it may be amended from time to time, to impose, and has imposed in this chapter, additional restrictions on gambling within its limits beyond those contained in M.S. Ch. 349, as it may be amended from time to time.
(Prior Code, § 505.2)
§ 130.003 PURPOSE.
The purpose of this chapter is to regulate lawful gambling and the use and operation of bingo and other gambling devices within the city; to protect the public welfare; to prevent the city’s commercialization; to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes.
(Prior Code, § 505.3)
§ 113.004 DEFINITIONS.
In addition to the definitions contained in M.S. § 349.12, as it may be amended from time to time, for the purpose of this chapter, the following definitions apply unless the context clearly indicates or requires a different meaning.
ACTIVE MEMBER. A member who has paid all her or his dues to the organization and who has been a member of the organization for at least six months.
BINGO. A game where each player has a card or board for which a consideration has been paid containing five horizontal rows of spaces, with each row except the central one containing five figures. The central row has four figures with the word "free" marked in the center space thereof. Player wins a game of BINGO by completing any preannounced combination of spaces or, in the absence of a pre-announcement of a combination of spaces, any combination of five spaces in a row, either vertical, horizontal, or diagonal.
BINGO MANAGER or GAMBLING MANAGER. A member who has paid all her or his dues to the organization, has been a member of the organization for at least two years, and has been designated by an organization to supervise bingo occasions conducted by it or to supervise lawful gambling conducted by it.
BINGO OCCASION. A single gathering or session at which a series of one or more successive bingo games are played, not exceeding four consecutive hours.
BOARD. The State Gambling Control Board.
CALENDAR QUARTERS. They shall be deemed to commence on January 1 through March 31, April 1 to June 30, July 1 to September 30, and October 1 through December 31 of each year.
CHECKER. A person who records the number of bingo cards purchased and played during each game and records the prizes awarded to the recorded cards, but does not collect the payment or the cards.
EXEMPT LAWFUL GAMBLING. This shall include state-sponsored lotteries and bingo.
FLARE. The posted display, with registration stamp affixed, that sets forth the rules of a particular game of pull tabs, or tip boards, and that is associated with a specific deal of pull tabs or grouping of tip boards.
GAMBLING DEVICES.
(1) Bingo cards and devices for selecting bingo numbers, pull tabs, jar tickets, paddlewheels, paddle tickets, and tip boards.
(2) GAMBLING DEVICES do not include:
(a) Any gambling device which is activated by the insertion of a coin or token; or
(b) Any gambling game or device in which the winning numbers, ticket, or chances are in any way determined by the outcome of any athletic contest or sporting event.
ILLICIT GAMBLING DEVICES. Slot machines, roulette wheels, punchboards, and pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash.
LAWFUL GAMBLING. The operation, conduct or sale of bingo, raffles, paddlewheels, tip boards, and pull tabs.
LICENSED ORGANIZATION. An organization licensed by the Board.
LOCAL PERMIT. A permit issued by the city.
NET PROFIT. The gross receipts collected from lawful gambling, less reasonable sums necessarily, and actually expended for prizes or actually expended for allowable expenses.
ORGANIZATION. Any fraternal, religious, veterans, or other nonprofit organization that has been in existence for the most recent three years and which has at least 15 active members, and either has been duly incorporated as nonprofit organization for at least three years, or has been recognized by the Internal Revenue Service as exempt from income taxation for the most recent three years.
PADDLEWHEEL. A wheel marked off into sections containing one or more numbers, and which, after being turned or spun, uses a pointer or marker to indicate winning chances.
PROHIBITION. No person or organization shall operate any gambling devices nor conduct any bingo occasions within the city without first obtaining a license from the city. No person shall operate any gambling devices or bingo occasions in the city in violation of any of the terms and provisions of this chapter or of any license granted hereunder. No person shall operate any illicit gambling devices in the city.
PULL TABS or TICKET JARS. A single folded or banded ticket or a card, the face of which is initially covered, or otherwise hidden from view, to conceal a number or set of numbers or a symbol or set of symbols. A few of the numbers of symbols out of every set of PULL TABS or TICKET JARS will have been designated in advance and at random as prize winners. A participant pays a consideration to the operator for the opportunity to obtain a folded or banded ticket or a card, view the numbers or symbols on it and possibly obtain a prize-winning PULL TAB or TICKET JAR.
RAFFLE. A game in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing to take place at a location and date printed upon the ticket.
TIP BOARD. A board, place card, or other device marked off in a grid or columns, in which each section contains a hidden number or numbers, or other symbol, which determines the winning chances.
TRADE AREA. This city and each city and township contiguous to this city.
(Prior Code, § 505.4) Penalty, see § 10.99
§ 130.005 LAWFUL GAMBLING PERMITTED.
Lawful gambling is permitted within the city if the Council, by resolution adopted by a majority of its members authorizes lawful gambling to occur, provided it is conducted in accordance with M.S. §§ 609.75 through 609.763, inclusive, as they may be amended from time to time; M.S. §§ 349.11 through 349.23, inclusive, as they may be amended from time to time, and this section.
(Prior Code, § 505.6)
§ 130.006 CITY COUNCIL APPROVAL.
Lawful gambling authorized by M.S. §§ 349.11 through 349.23, inclusive, as they may be amended from time to time, shall not be conducted unless approved by the Council, subject to the provisions of this chapter and state law.
(Prior Code, § 505.7)
§ 130.007 CONTRIBUTION OF NET PROFITS TO FUND ADMINISTERED BY CITY.
(A) Each organization licensed to conduct lawful gambling within the city pursuant to M.S. § 349.16, as it may be amended from time to time, shall contribute 10% of its net profits derived from lawful gambling in the city to a fund administered and regulated by the city without cost to the fund.
(B) The city shall disburse the funds for lawful purposes as defined by M.S. § 349.12, subd. 25, as it may be amended from time to time. Payment under this section shall be made quarterly. The city’s use of these funds shall be determined at the time of adoption of the city’s annual budget or when the budget is amended.
(Prior Code, § 505.13)
§ 130.008 RECORDS AND REPORTING.
(A) Organizations conducting lawful gambling shall file with the City Clerk/Treasurer one copy of all records and reports required to be filed with the Board, pursuant to M.S. Ch. 349, as it may be amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to time.
(B) The records and reports shall be filed on or before the day they are required to be filed with the Board. Organizations licensed by the Board shall file a report with the city proving compliance with the trade area spending requirements. Such report shall be made on a form prescribed by the city and shall be submitted annually and in advance of application for renewal.
(Prior Code, § 505.14)
§ 130.009 HOURS OF OPERATION.
Lawful gambling shall not be conducted between 1:00 a.m. and 8:00 a.m. on any day of the week.
(Prior Code, § 505.15) Penalty, see § 10.99
APPLICABILITY
§ 130.020 BINGO COMPENSATION.
(A) No compensation shall be paid to any person in connection with a bingo occasion except an active member of the organization, or its auxiliary, or the spouse or surviving spouse of an active member, conducting the bingo occasion.
(B) No person not an active member of the organization or its auxiliary or the spouse or surviving spouse of an active member may participate in the conduct of a bingo occasion, except that by resolution of a majority of the membership, recorded in the official minutes of the organization, non‑management, assistants, who are not active remembers of the organization, or its auxiliary, or the spouse or surviving spouse of an active member, may be hired to assist members in conducting a bingo occasion. Compensation shall not exceed $30 for a bingo occasion.
(Prior Code, § 505.5) Penalty, see § 10.99
§ 130.021 GAMBLING COMPENSATION.
(A) No person shall be compensated for more than 38 hours per week in connection with the operation of a gambling device or the conduct of a raffle by a licensed organization, except that a licensed organization may elect to pay a percent of raffle ticket sales to nonprofit organizations selling for the licensed organization except as otherwise provided by this chapter.
(B) Any person approved by the organization or is an active member of any organization, or its auxiliary, or the spouse or surviving spouse of an active member may participate in the organization’s operation of a gambling device or conduct of a raffle, except that the licensed organization may utilize nonmember nonprofit organizations in raffle ticket sales.
(Prior Code, § 505.5) Penalty, see § 10.99
§ 130.022 EXPENSES.
No expenses shall be incurred in amounts paid in connection with a bingo occasion in the operation of gambling devices except the compensation authorized under §§ 130.020 and 130.021.
(Prior Code, § 505.5) Penalty, see § 10.99
§ 130.023 LOCATION AND FREQUENCY OF ACTIVITIES.
(A) Any organization may conduct a bingo occasion or operate gambling devices only upon property owned by the organization or property leased by the organization with a written lease for a term which expires on or after the expiration date of the bingo or gambling license granted by the city.
(B) The license shall designate the premises upon which the licensee may conduct a bingo occasion or operate gambling devices. Raffle tickets may, however, be sold off the premises and raffles may, with the authorization of the city, be held on premises not owned or leased by the organization.
(C) Upon application and approval by the City Council, an organization may conduct the gambling activity at another location within the city limits for a limited period of time not to exceed three days per application.
(Prior Code, § 505.5)
§ 130.024 RENT TERMS.
Any lease for premises upon which an organization intends to conduct a bingo occasion or operate a gambling device must specify a fixed monthly rent or a fixed rent per bingo occasion or gambling activity. The fixed rent shall not be subject to change during the terms of this lease. The lease may not require payments based on a percentage of receipts or profits.
(Prior Code, § 505.5) Penalty, see § 10.99
§ 130.025 FREQUENCY OF ORGANIZATIONS.
No organization may conduct more than two bingo occasions per week or more than 104 bingo occasions each year without express written authorization from the city.
(Prior Code, § 505.5)
§ 130.026 FREQUENCY ON PREMISES.
No more than four bingo occasions may be conducted on any one premises in any given week.
(Prior Code, § 505.5) Penalty, see § 10.99
§ 130.027 PRIZES FOR BINGO.
Prizes for a single bingo game shall not exceed $100 except prizes for a game of the type commonly known as a cover‑all game. Cover‑all prizes may exceed $100 provided that the aggregate value of such prizes for a bingo occasion shall not exceed $500. The aggregate value of prizes for a bingo occasion shall not exceed $2,500 except that in the case of a bingo occasion during which a cover‑all game is played for a maximum prize of more than $100 but not more than $500 the aggregate value of prizes for the bingo occasion shall not exceed $3,000. Merchandise prizes shall be valued at fair market retail value. Each bingo winner shall be determined and every prize shall be awarded and delivered the same day on which the bingo occasion is conducted.
(Prior Code, § 505.5)
§ 130.028 GAMBLING DEVICE PRIZE LIMITATIONS.
Total prizes resulting from any single spin of a paddlewheel, or from any single seal of a tip board, each tip board limited to a single seal, or from a single pull tab or ticket jar, shall not exceed $250.
(Prior Code, § 505.5)
§ 130.029 USE OF PROFITS FROM AN OPERATING ORGANIZATION.
Profits from a bingo occasion and from the operation of gambling devices shall be expended only for lawful purposes as authorized at a regular meeting of the organization.
(Prior Code, § 505.5)
§ 130.030 LEASING ORGANIZATION.
Any organization leasing property to another organization for purposes including bingo occasions or operation of gambling devices shall use the rentals, less reasonable sums for maintenance, furnishings, and other necessary expenses, only for lawful purposes.
(Prior Code, § 505.5)
§ 130.031 RECORD KEEPING AND REPORTING OF PROFITS FOR BINGO.
(A) Each organization shall keep records of its gross receipts and profits for each bingo occasion. Gross receipts shall be compared to the checker’s records for the bingo occasion by a person who did not sell cards for the bingo occasion. All deduction from gross receipts from a bingo occasion shall be documented with receipts or other records. The distribution of profits shall be itemized as to payee, amount and date of payment. Bingo gross receipts shall be segregated from other revenues of an organization and placed in a separate account.
(B) Each organization shall maintain separate records of its bingo operations, which records shall be maintained for at least three years. The person who accounts for bingo gross receipts and profits shall not be the same person who accounts for other revenues of the organization.
(Prior Code, § 505.5)
§ 130.032 RECORD KEEPING AND REPORTING OF PROFITS FOR GAMBLING DEVICES.
(A) Each organization shall keep records of its gross receipts, quantity of free plays if any, expenses and profits for each single gathering or occasion at which gambling devices are operated or a raffle is conducted. All deductions from gross receipts for each single gathering or occasion shall be documented with receipts or other record indicating the amount, a description of the purchases item or service or other reason for the deduction, and the recipient. The distribution of profits shall be itemized as to payee, purpose, amount, and date of payment.
(B) Gross receipts from the operation of gambling devices and revenues of the organization, including bingo gross receipts must be segregated from all other revenues of the conducting organization, and placed in a separate account. Each organization shall have separate records of its gambling operations, which shall be maintained for at least three years.
(C) The person who accounts for gross receipts, expenses, and profits from the operation of gambling devices or the conduct of raffles may be the same person who accounts for bingo gross receipts, expenses, and profits, but not for the other revenues of the organization.
(Prior Code, § 505.5)
§ 130.033 REPORTS.
(A) Each organization shall report monthly to its membership and every quarter to the city its gross receipts, expenses, and profits from gambling devices and from bingo occasions and the distribution of profits previously itemized.
(B) Not less than once each year any organization receiving rentals from other organizations for use of its facilities for bingo occasions or the operation of gambling devices shall report to the city the disposition of all such rental receipts. All quarterly reports shall be made in writing prior to the Council meeting.
(Prior Code, § 505.5)
§ 130.034 PUBLIC INSPECTION.
Organizations shall make their records relating to bingo and gambling devices available for public inspection at reasonable times and places. The city may investigate such records at any reasonable time.
(Prior Code, § 505.5)
APPLICATION AND LOCAL APPROVAL OF PREMISES PERMITS
§ 130.045 FILING.
Any organization seeking to obtain a premises permit or bingo hall license or renewal of a premises permit or bingo hall license from the Board shall file with the City Clerk/Treasurer an executed, complete duplicate application together with all exhibits and documents accompanying the application as filed with the Board.
(Prior Code, § 505.8)
§ 130.046 DECISION.
The Council shall, by resolution, approve or disapprove the application within 60 days of receipt of the application.
(Prior Code, § 505.8)
§ 130.047 DISAPPROVAL.
(A) The City Council shall disapprove an application for issuance or renewal of a premises permit for any of the following reasons.
(B) Otherwise, the Council shall pass a resolution approving the application.
(1) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three years.
(2) Violation by the on-sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three years.
(3) Lawful gambling would be conducted at premises other than those for which an on-sale liquor license has been issued.
(4) Lawful gambling would be conducted at more than one premises within the city. The city may limit the number of premises where lawful gambling may be conducted.
(5) An organization would be permitted to conduct lawful gambling activities at more than one premises in the city.
(6) More than one licensed organization would be permitted to conduct lawful gambling activities at one premises.
(7) Failure of the applicant to pay any investigation fee as set by the city within the prescribed time limit.
(8) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community.
(Prior Code, § 505.8)
LOCAL PERMITS
§ 130.060 PERMIT REQUIRED.
No organization shall conduct lawful gambling excluded or exempted from state licensure requirements by M.S. § 349.166, as it may be amended from time to time, without a valid local permit. This section shall not apply to lawful gambling exempted from local regulation.
(Prior Code, § 505.9) Penalty, see § 10.99
§ 130.061 APPLICATION.
(A) Applications for issuance or renewal of a local permit shall be on a form prescribed by the city. Any organization desiring to operate gambling devices or conduct bingo occasions within the city must apply in writing for a license.
(B) The application shall be on a form provided by the city and shall contain at least the following information:
(1) Name and address of the organization requesting the permit;
(2) Name and address of the officers and person accounting for receipts, expenses, and profits for the event including name of the applicant organization’s bingo manager or gambling manager, and number of members in applicant organization;
(3) Dates of gambling occasion for which permit is requested and time of existence of applicant organization in the city;
(4) Address of premises where event will occur, including location of any and all premises for which applicant organization desires a license, and a copy of any leases by which the organization is renting any of the premises; copy of rental or leasing arrangement, if any, connected with the event, including rental to be charged to organization;
(5) Type of license applied for; and
(6) Estimated value of prizes to be awarded.
(Prior Code, § 505.9)
§ 130.062 FEE.
The fee for a local permit shall be $100. The fee shall be submitted with the application for a local permit. This fee shall be refunded if the application is withdrawn before the investigation is commenced. A separate application must be filed for a bingo license and a gambling license.
(Prior Code, § 505.9)
§ 130.063 DISAPPROVAL.
The Council shall disapprove an application for issuance or renewal of a premises permit for any of the following reasons:
(A) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three years;
(B) Violation by the on-sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to the operation of the establishment, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three years;
(C) The organization has not been in existence in the city for at least three consecutive years prior to the date of application;
(D) The organization does not have at least 20 active members;
(E) Exempted or excluded lawful gambling will not take place at a premises the organization owns or rents;
(F) Exempted or excluded lawful gambling will not be limited to premises for which an on-sale liquor license has been issued;
(G) An organization will have a permit to conduct exempted or excluded lawful gambling activities on more than one premise in the city;
(H) More than one licensed qualified organization will be conducting exempted or excluded lawful gambling activities at any one premises;
(I) Failure of the applicant to pay a permit fee as set by the city above within the prescribed time limit; and/or
(J) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community.
(Prior Code, § 505.9)
§ 130.064 APPROVAL.
Local permits shall be valid for one year after the date of issuance unless suspended or revoked.
(Prior Code, § 505.9)
§ 130.065 REVOCATION AND SUSPENSION.
(A) A local permit may be revoked or temporarily suspended for a violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling.
(B) (1) However, a license shall not be revoked or suspended until notice and an opportunity for a hearing have first been given to the permitted person.
(2) The notice shall be personally served and shall state the provision reasonably believed to be violated.
(3) The notice shall also state that the permitted person may demand a hearing on the matter, in which case the permit will not be suspended until after the hearing is held.
(4) If the permitted person requests a hearing, the Council shall hold a hearing on the matter at least one week after the date on which the request is made.
(C) If, as a result of the hearing, the Council finds that an ordinance violation exists, then the Council may suspend or revoke the permit.
(Prior Code, § 505.10) Penalty, see § 10.99
LICENSING
§ 130.080 LICENSE CONDUCT OF LICENSEE AND PERMIT DISPLAY.
(A) Issuance of license. The city shall act upon an application not less than 30 days or more than 180 days from the date of receipt of the application by the City Clerk/Treasurer. Prior to issuance of any license, the city shall consult the police and fire authorities.
(B) Terms of license. A license issued by the city shall be valid for one year, unless earlier suspended or revoked for violation of any of the provisions of this chapter or M.S. Ch. 349, as it may be amended from time to time.
(C) General provisions. Any organization licensed to conduct lawful gambling within the city shall donate 10% of its net profits from the conduct of its lawful gambling to the city, excluding bingo authorities. The donation shall be used to pay lawful city expenses and shall be made to the city within 15 days from the end of each calendar quarter.
(D) Manager. All operation of gambling devices and the conduct of raffles shall be under the supervision of a single gambling manager designated by the organization. All bingo occasions shall be under the supervision of a single bingo manager designated by the organization.
(E) Responsibility. The gambling manager or bingo manager shall be responsible for gross receipts and profits from the gambling devices or bingo. The manager shall further be responsible for the conduct of the activities in compliance with all applicable laws and ordinances.
(F) Multiple positions. A person may act as both gambling manager and bingo manager for a single organization, but a person in either position for one organization may not hold either position for any other organization.
(G) Bond. The bingo manager and the gambling manager shall give $10,000 fidelity bond in the favor of the organization condition on the faithful performance of his or her duties. The city may include a waiver of this requirement in the license if the City Council so elects by unanimous vote.
(H) Checkers required. One or more checkers shall be engaged for each bingo occasion. The checker or checkers shall record the number of cards played in each game prior to the completion of the game and record the prizes awarded to the recorded cards. Each checker will certify all figures which she or he has recorded as accurate and correct to the best of her or his knowledge.
(I) Display. All permits issued under state law or this section shall be prominently displayed during the permit year at the premises where gambling is conducted.
(Prior Code, § 505.11)
§ 130.081 NOTIFICATION OF MATERIAL CHANGES TO APPLICATION.
An organization holding a state-issued premises permit or a local permit shall notify the city in writing whenever any material change in the information submitted in the application occurs within ten days of the change.
(Prior Code, § 505.12)