CR 97-193 Revision Of Lawful Gambling PolicyOctober 17, 1997 Council Report 97 -193
Proposed Action
Staff recommends approval of the following motion: Move that the Hopkins City Council
adopt Resolution 97 -107 and direct staff to prepare a revision of Legislative Policy 4 -D,
to incorporate any changes that the Council recommends.
Approval of this motion will establish a moratorium on any new premises permit
applications and begin the process of revising the City's policy on Lawful Gambling.
Overview
The City Council discussed the current City policy on Lawful Gambling at the October 7
Council Meeting and the October 14 Worksession. The Council requested that staff
provide language addressing various revisions to Legislative Policy 4 -D. The following
issues were raised:
• Establishing a moratorium
• Limiting the number of sites where gambling can take place
Limiting bingo
• Directing where a percentage of lawful expenditures would have to be made
• Limit the number of sites where an organization can conduct gambling
• Prevent the co- mingling of money from one site to another or from one form
of gambling to another
• Requiring organizations, which conduct gambling on premises that they own,
to offer their halls for public use
Primary Issues to Consider
• What options does the City have to address the above issues?
Supporting Documents
• Resolution 97 -107
REVISION OF LAWFUL GAMBLING POLICY
s A. Genellie, Assistant City Manager
Council Report #97 -193
Page 2
Issues to Consider
What options does the City have to address the above issues?
1. Moratorium. Staff has prepared a Resolution imposing a moratorium on the
approval of any new premises permits in the City. The moratorium as currently
written, however, may apply to an existing organization seeking a renewal of a
current premises permit. The moratorium could conceivably be rewritten to only
apply to applications for premises permits at new sites in Hopkins.
2. Limiting the number of sites where gambling can be conducted. If the Council
wishes to incorporate this restriction into its policy, staff suggests using the following
language: "The maximum number of premises permits issued pursuant to
Minnesota Statute section 349.165 shall be eleven (11)."
3. Limiting bingo. The State of Minnesota recognizes that bingo is different from other
forms of Lawful Gambling. An organization must get a Class A license, for which it
must pay more, in order to conduct bingo. The only difference between a Class A
license and a Class B license is the ability to conduct bingo.
The City of Hopkins has also, in the past, treated bingo differently from other forms
of lawful gambling. The City has turned down the Jaycees twice when that
organization sought to establish bingo halls. In 1991 the City Council approved
bingo at the Boston Garden but only with the assurance that bingo would be
conducted on just two nights per week.
There are a number of ways that bingo could be restricted:
Restrict bingo to sites owned and operated by licensed organizations: "A Class A
license will only be approved for an organization that is licensed pursuant to
Minnesota Statute section 349.16 and that conducts gambling on premises that it
owns and operates. Organizations with Class A licenses may not conduct any
other gambling at any other site within the City."
Restrict the number of bingo occasions per week: "No organization with a Class
A license may conduct more than bingo occasions per week."
4. If the City Council wishes to direct where expenditures of charitable gambling funds
are made it can adopt a trade area and /or require 10% of the gross profits to be
contributed to the City.
"Of the gross profits derived from Lawful Gambling in Hopkins, percent of
the licensee's expenditures for lawful purposes must be on lawful purposes
conducted or located only within one or more of the following cities of Hennepin
County, Minnesota: Hopkins, Edina, Minnetonka, and St. Louis Park."
Each organization conducting lawful gambling within the City shall contribute at
least ten percent (10 %) of its net profits derived from lawful gambling in the City
to a fund administered and regulated by the City. The City then shall make
contributions for the purposes defined in Minnesota Statute 349.12, subdivision
11.
Council Report #97 -193
Page 3
5. Limit the number of sites where an organization can conduct gambling. The
following language would accomplish this but current sites would probably have to
be grandfathered: "No organization licensed pursuant to Minnesota Statute section
349.16 may conduct lawful gambling at more than one location within the City,
except any organization that has prior to January 1, 1998, operated lawfully at more
than one location, may continue to operate at the locations licensed as of that date."
6. Prevent the co- mingling of money from one site to another or from one form of
gambling to another. There is no provision in State law for preventing this practice.
Organizations which conduct gambling, however, are required to make regular
reports on the amount of money earned and the expenses incurred at each site
where they conduct gambling and each type of gambling that occurs at every site.
The City could require copies of these reports that would provide information for
future changes to the City's policy.
7. Requiring organizations, which conduct gambling on premises that they own. to offer
their halls for public use. Staff is not aware of any way to legally accomplish this.
There is, however, a provision in State law that allows the expenditure of gambling
proceeds for the "Repair or maintenance of real property of capital assets when the
property is or will be used extensively as a meeting place or event location by other
nonprofit organizations or community or service groups and no rental fee is charged
for the use ". Depending on how the various service organizations are justifying the
expenditures this provision may apply.
Alternatives
1. Adopt Resolution 97 -107 and direct staff to prepare a revision of Legislative
Policy 4 -D, to incorporate any changes that the Council recommends.
2. Do not approve Resolution 97 -107 and decide to not make any changes to
the existing policy.
3. Continue the item to another Council Meeting.
Staff recommends alternative one.
WHEREAS, the City of Hopkins has an existing policy regarding Lawful Gambling; and
WHEREAS, the Hopkins City Council believes that it is prudent to review its policy dealing
with Lawful Gambling to determine whether any revision is necessary; and
WHEREAS, there is a need to restrict permits for Lawful Gambling until a study has been
completed and any modifications to the City's policy have been adopted;
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby
declares that it will not consider any application for a premises permit to conduct
Lawful Gambling until the City policy on Lawful Gambling has been revised and
adopted. The moratorium period will expire on April 21, 1998 or upon the adoption
the revised gambling policy whichever occurs first. This moratorium will not effect
any applications that are currently before the City Council
Adopted by the City Council of the City of Hopkins this twenty -first day of October 1997.
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 97-107
By
Charles D. Redepenning, Mayor
ORGANIZATION
LOCATION
Hopkins Elks
30 8th Avenue South
VFW Post 425
100 Shady Oak Road
American Legion Post 320
10 12th Avenue South
Hopkins Jaycees
6 6th Avenue North
Mainstreet Bar & Grill
Lindees
Mitch's Tavern
M.T. Bears
Raspberry Festival
Archies Liquors
Hopkins Family Recreation (Hopkins Bowl)
Raspberries Bar & Grill (Hopkins House)
Memorandum
To: Hopkins City Council
From: Jim Genellie
Date: October 10, 1997
Subject: Lawful Gambling Policy
Community Services Department
The City Council adopted its policy on lawful gambling, Legislative Policy 4 -A, in August
of 1987. The policy was amended in 1994 to require organizations seeking license
renewals to provide additional information to the City.
Currently there are five organizations licensed to conduct gambling in the City of
Hopkins:
Bingo is currently being conducted three times a week by the Elks. The Jaycees are
licensed to conduct bingo at Lindees.
Since 1987 millions of dollars have been gambled in Hopkins and millions of dollars
have been contributed to the City, School District, local sports programs, and local
charities. Charitable contributions have also been made outside the Hopkins area.
To give the Council an idea of where the money goes I have prepared the following
summary based upon the years 1993 and 1994. These years were chosen because the
City has received audits for these years from all the local organizations that conduct
lawful gambling.
Total Amount Wagered 34,980,683
Prizes 29,102,704 83.2%
Net 5,877,979
% of Net
Expenses 2,376,273 40.4%
Cost of games 652,535 11.1
Compensation & payroll taxes 1,295,941 22.0%
Acccounting & legal 69,075 1.2%
insurance 19,839 0.3%
Bank charges & supplies 27,693 0.5%
Maintenance 85,108 1.4%
Utilities 20,280 0.3%
Rent 144,840 2.5%
Rent- Storage 8,685 0.1%
Rubbish Removal 10,033 0.2%
Misc. 42,244 0.7%
Taxes 2,240,999 38.1%
Other 27,550, 0.5%
Lawful Expenditures 1,334,534 22.7%
As you can see $35,000,000 was wagered in during these two years. Over 83% of this
amount was returned as prizes. This left approximately $5.9 million dollars available for
expenses, taxes and charitable giving.
Over 40% of this amount went to expenses, with the largest expenses being payroll and
the cost of the games themselves. 38% of the Net went to pay taxes, primarily to the
State of Minnesota. This left almost 23 %, or $1.3 million, available to be spent on lawful
expenditures. I am preparing a summary of where these expenditures were made.
This summary will be available at the Worksession.
Although I do not have details for every year since 1987, a reasonable estimate of
charitable dollars raised in Hopkins during the last ten years would be over $6,000,000.
The majority of this money is contributed to local organizations and individuals.
The City Council has indicated that it wants to reexamine the current policy on lawful
gambling with the possibility of amending the policy. What changes could the Council
make in the current policy?
1. The City could prohibit lawful gambling in the City of Hopkins.
2. The City Council may institute a local gambling tax. The tax may be imposed only if
the amount to be received by the City is necessary to cover the cost incurred by the
City to regulate lawful gambling. The tax imposed may not exceed 3% of the gross
receipts of a licensed organization from all lawful gambling, less prizes actually paid
out by the organization. A city may not use this money for any purpose other than
for the purpose of regulating lawful gambling. A tax imposed is in lieu of all other
local taxes and local investigation fees on lawful gambling.'
3. The City can require that licensed organizations contribute 10% of their net profits
derived from lawful gambling to a fund, administered and regulated by the City, for
disbursement by the City for any lawful purpose."
4. The City may, by ordinance, require that a licensed organization, conducting lawful
gambling within its jurisdiction, expend all or a portion of its expenditures for lawful
purposes within the city's "trade area ". Such an ordinance must define the city's
trade area and must specify the percentage of lawful purpose expenditures that .
must be expended within the trade area. A trade area must include each city
contiguous to the defining
5. Additional restrictions that the City could adopt include, but are not limited to:
• prohibit the use of paddlewheels (M.S. 349.213, Subd. 1c);
limit the number of bingo occasions;
limit bingo to premises owned by the organization;
.limit the number of locations where an organization can conduct gambling
(current locations would probably have to be grandfathered);
limit the total number of premises permits allowed in the City of Hopkins;
require organizations seeking licenses to make copies for the City of all
documentation required by the State of Minnesota.
Limits on Local Regulation
1. The city may not require an organization to make specific expenditures of more than
10% of its net profits derived from lawful gambling. (See #3 above)
2. The city may not require an organization conducting lawful gambling within its
jurisdiction to make an expenditure to the city as a condition to operate within that
city.
3. A more stringent regulation or prohibition of lawful gambling adopted by a city must
apply equally to all forms of lawful gambling within a jurisdiction.
4. The State of Minnesota controls the amount of rent that may be paid to lease space
for lawful gambling.
Attachments:
City of Maple Grove ordinance.
City of Roseville ordinance
Legislative Policy 4 -A
4
MN Rules, Chapter 7861
The amount of rent an organization may pay for the conduct of lawful gambling may
not exceed:
(1) $1,000 per month for all forms of lawful gambling other than bingo;
(2) for bingo and all other gambling activities which occur during that bingo
occasion, $200 for leased premises of not more than 6,000 square feet, $300 for
leased premises of not more than 12,000 square feet, and $400 for leased premises
of more than 12,000 square feet; and
(3) an organization may not use nongambling funds to directly or indirectly
supplement rent above the amounts provided in this subpart.
M.S. 349.213, Subd. 3. Local gambling tax. A statutory or home rule charter city that has one or
more licensed organizations operating lawful gambling, and a county that has one or more licensed
organizations outside incorporated areas operating lawful gambling, may impose a local gambling tax on
each licensed organization within the city's or county's jurisdiction. The tax may be imposed only if the
amount to be received by the city or county is necessary to cover the costs incurred by the city or county
to regulate lawful gambling. The tax imposed by this subdivision may not exceed three percent of the
gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the
organization. A city or county may not use money collected under this subdivision for any purpose other
than to regulate lawful gambling. A tax imposed under this subdivision is in lieu of all other local taxes
and local investigation fees on lawful gambling. A city or county that imposes a tax under this subdivision
shall annually, by March 15, file a report with the board in a form prescribed by the board showing (1) the
amount of revenue produced by the tax during the preceding calendar year, and (2) the use of the
proceeds of the tax.
ii 349.213 Local authority. Subdivision 1. Local regulation. (a) A statutory or home rule city or
county has the authority to adopt more stringent regulation of lawful gambling within its jurisdiction,
including the prohibition of lawful gambling, and may require a permit for the conduct of gambling exempt
from licensing under section 349.166. The fee for a permit issued under this subdivision may not exceed
$100. The authority granted by this subdivision does not include the authority to require a license or
permit to conduct gambling by organizations or sales by distributors licensed by the,board. The authority
granted by this subdivision does not include the authority to require an organization to make specific
expenditures of more than ten percent from its net profits derived from lawful gambling. For the purposes
of this subdivision, net profits are gross profits less amounts expended for allowable expenses and paid in
taxes assessed on lawful gambling. A statutory or home rule charter city or a county may not require an
organization conducting lawful gambling within its jurisdiction to make an expenditure to the city or county
as a condition to operate within that city or county, except as authorized under section 349.16,
subdivision 8, or 297E.02; provided, however, that an ordinance requirement that such organizations
must contribute ten percent of their net profits derived from lawful gambling conducted at premises within
the city's or county's jurisdiction to a fund administered and regulated by the responsible local unit of
government without cost to such fund, for disbursement by the responsible local unit of government of the
receipts for lawful purposes, is not considered an expenditure to the city or county nor a tax under section
297E.02, and is valid and lawful.
M.S. 349.213, Subd. 1 b. A statutory or home rule city or county may by ordinance require that a
licensed organization conducting lawful gambling within its jurisdiction expend all or a portion of its
expenditures for lawful purposes on lawful purposes conducted or located within the city's or county's
trade area. Such an ordinance must be limited to lawful purpose expenditures of gross profits derived
from lawful gambling conducted at premises within the city's or county's jurisdiction, must define the city's
or county's trade area, and m.:st specify the percentage of lawful purpose expenditures which must be
expended within the trade area. A trade area defined by a city under this subdivision must include each
city contiguous to the defining city.
5
City of Maple Grove
Section 416 - Lawful Gambling
(Amended, Ord. Nos. 85 -09, Sec.1; 86 -29, Sec. 1)
Section 416:00. Definitions.
Subd. 1. The terms used in Section 416 and defined in Minnesota Statutes, Sections 349.11
through 349.22, inclusive, and defined in the rules adopted pursuant to the authority contained in
the said Statutes shall have the meanings set forth in said Statutes and rules.
Subd. 2. "Gambling" shall mean any activity or device prohibited by Minnesota Statutes, Section
609.75, 609.755, and 609.76, and shall further include any activity, event, or contrivance that
simulates any such activity or device when in or on any commercial establishment or property,
except as otherwise allowed pursuant to Maple Grove Ordinance or Minnesota Statutes, or rules
adopted pursuant to authority contained therein. Prohibited gambling and gambling simulations
include, but are not limited to, sports bookmaking, poker, blackjack, slot machines, and other
similar activities, events and contrivances normally associated with gambling and gambling
locations.
(Amended, Ord. No. 88 -09, Sec. 1)
Section 416:05. Lawful Gambling. There shall be no gambling in the City of Maple Grove
except bingo, raffle games, paddlewheel, and pull -tabs duly licensed or otherwise allowed
pursuant to the provisions of Section 416; Minnesota Statutes, Section 349.11 through 349.22,
inclusive, and rules adopted pursuant to the authority contained in said Statutes.
Subd. 1. No Maple Grove permit shall be required for the conduct of gambling exempt from
licensing under Minnesota Statutes, Section 349.166.
Subd. 2. Nothing in Section 416 of the Maple Grove Ordinance Code shall be deemed to be an
automatic approval of a license applied for with the Charitable Gambling Control Board. The
City reserves the right to disapprove licenses for individual bingo occasions, raffle games,
paddlewheel games and pull -tab distributions.
(Amended, Ord. No 96 -09, Sec. 1)
Section 416:10. Additional Regulations. In addition to the requirements of Minnesota Statutes,
Sections 349.11 through 349.22, inclusive, and rules adopted pursuant to the authority contained
in said Statutes, lawful gambling shall be subject to the regulations set forth in the following
subdivisions.
Subd. 1. Except as provided in this Subdivision, it shall be unlawful to disseminate in the City, in
any manner, information concerning any present or future lawful gambling event or opportunity.
(a) An organization conducting lawful gambling, duly licensed or otherwise allowed pursuant to
the Statutes and Rules referred to in Section 416:15, may disseminate information to its own
membership about such games.
(b) Signs advertising bingo, a raffle or a pull -tab distribution shall be regulated pursuant to the
provisions of Section 345 of the Maple Grove Ordinance Code.
(c) Advertising and news reporting contained in newspaper, radio and television media available
to the general public of more than one municipality and addressed to said general public, and not
addressed to the residents of Maple Grove, is exempt from the provisions of this Subdivision.
City of Maple Grove
Subd. 2. It is unlawful to make side bets or other wagers in connection with the conduct of lawful
gambling.
Subd. 3. A bingo or raffle game duly licensed or otherwise allowed pursuant to Section 416 may
only be conducted or operated by members of the licensed organization, who are eighteen (18)
years of age or older. No member shall receive any compensation whatsoever for his services in
conducting, assisting in conducting, or operating any such game, and no person shall so assist in
operating the same unless he shall have been and shall then be a member or the spouse of a
member in good standing in said organization for at least one (1) year. This subdivision shall not
apply to pull -tab distributions.
Subd. 4. No bingo or raffle license will be approved for an organization that also operates
another bingo or raffle game in the City of Maple Grove. No person who is under the age of
twenty -one (21) years shall operate or assist in operating a pull -tab distribution in Maple Grove.
(Amended, Ord. No. 88 -47, Sec. 1)
Subd. 5. No pull -tab license or premises permit, nor any renewal of either, will be approved for:
(a) Any organization to conduct a pull -tab distribution on any premises other than a church, the
premises of a fraternal, veterans or other non - profit organization, or the premises of an on -sale
liquor licensee of the type referred to in Section 805:03, Subd. 1(a) and Subd. 2 of the Maple
Grove Ordinance Code.
(b) Any organization or local subdivision thereof unless all the following requirements are met:
(1) The organization or the local subdivision has been in continuous existence holding meetings
and conforming with the requirements of this paragraph (b) for more than one (1) year prior to
the approval of the license, and
(2) Ten percent (10 %) of the net profits of the Maple Grove pull -tab distribution will be spent in
the City of Maple Grove or on items or activities that will directly benefit citizens of Maple
Grove. For purposes of this subparagraph (2), the term "net profits" shall mean gross profits from
pull -tab sales in Maple Grove less amounts related to the pull -tab distribution in Maple Grove
and expended for statutorily allowable expenses and paid in taxes on pull -tab sales of the
organization or local subdivision in the City of Maple Grove.
(Amended, Ord. No. 94 -31, Sec. 1)
(Amended, Ord. No. 88 -47, Sec. 2)
(3) Of the gross profits derived from pull -tab sales in Maple Grove, fifty percent (50 %) of the
licensee's expenditures for lawful purposes must be on lawful purposes conducted or located
only within one or more of the following cities of Hennepin County, Minnesota: Maple Grove,
Dayton, Champlin, Corcoran, Osseo, Brooklyn Park, and Plymouth. (Amended, Ord. No. 94 -31,
Sec. 2)
(4) The organization must file with the City a copy of all expenditure reports required to be filed
with the State of Minnesota, and said filing with the City must be made according to the same
schedule as that required by said State.
(c) The conduct of a pull -tab distribution by more than one organization on premises where such
activities are authorized.
2
City of Maple Grove
(d) Any one organization to conduct pull -tab distributions at more locations than the Council
deems reasonable and appropriate based upon the following factors:
(1) The number of locations of the type referred to in paragraph (a) above,
(2) The number of applications for pull -tab distributions by other organizations,
(3) The extent of the applicant's present distribution system, and
(4) The City's desire to prevent monopolies and promote equitable application of Section 416.
(Amended, Ord. No. 90 -41, Sec. 1)
Subd. 6. It is unlawful to sell, give or otherwise transfer in the City of Maple Grove, any raffle
ticket, paddle ticket or any other opportunity to participate in any gambling event not approved
by the City of Maple Grove pursuant to the provisions of the Statutes and Rules adopted by
reference in Section 416:15 below. This prohibition extends to any gambling event which would
otherwise be allowed pursuant to the exemptions set forth in Minnesota Statutes, Section
349.166 if the organization to which the exemption applies is located outside the City of Maple
Grove.
Section 416:15. Adoption by Reference. Minnesota Statutes, Section 349.11 through 349.22,
inclusive, and rules adopted pursuant to the authority contained in said Statutes are hereby
adopted by reference and are incorporated in Section 416 as completely as if set out in full.
Section 416:20. Violations. Any person who violates a provision of Section 416 or the Statutes
or rules adopted by reference herein shall be guilty of a misdemeanor.
Section 416:25. Effect. The Ordinance by which Section 416 - Lawful Gambling is adopted is
meant to be and serve as a total repeal of and replacement for Ordinance 78 -07, as amended by
Ordinance 83 -25. Ordinance 86 -29 is meant to be and serve as a total repeal of and replacement
for Ordinance 85 -09.
City of Roseville
CHAPTER 304
LAWFUL GAMBLING
304.01: LAWFUL GAMBLING PERMITTED:
Lawful gambling as regulated in Minnesota Statute chapter 349 is permitted in the City if the
organization conducting such activities meets the following criteria:
304.01A. Is licensed by the Minnesota Gambling Control Board.
304.O1B. Is a tax exempt organization pursuant to 501(c) of the Internal Revenue Code or has a
501(c) application pending with the Internal Revenue Service.
304.01C. Maintains an address within the City.
304.01D. Has been in existence at least three (3) consecutive years prior to the date it begins its
gambling operations.
304.01E. Complies with all of the provisions of this Chapter. (Ord. 1114, 8- 24 -92)
304.02: NUMBER OF LICENSES AND PERMITS:
304.02A. No organization licensed pursuant to Minnesota Statute section 349.16 may conduct
lawful gambling at more than one location within the City, except any organization that does not
conduct bingo and has prior to April 1, 1992, operated lawfully at more than one location, may
continue to operate at the locations licensed as of that date.
304.02B. The maximum number of bingo hall licenses and locations issued pursuant to
Minnesota Statute section 349.64 within the City shall be one. Once the bingo hall license is
issued by the City, it shall be limited to the location and to the owner specified on the license.
Any change of location or ownership without the approval of the City shall result in the
termination of the license.
304.02C. The maximum number of licensees conducting gambling at the bingo hall license
location described in subsection B above shall be five (5).
304.02D. The maximum number of premises permits issued pursuant to Minnesota Statute
section 349.165 in addition to one bingo hall license described in subsection A above shall be
eight (8). The gambling a1 owed at those eight (8) locations shall be those allowed under Class B
licenses as referred to in Minnesota Statute section 349.16, subdivision 6, except as provided in
subsection E below.
304.02E. An organization in existence and qualified under section 501(c)7 or section 501(c)19
of the Internal Revenue Code and which had its principal place of business or place of
conducting meetings in the City prior to and continuing since 1980 may be granted a Class A
premises permit.
Such organizations are not eligible for a bingo hall license as provided in Minnesota Statute
section 349.164 and may conduct gambling activities or bingo only on their own property.
(Ord. 1138, 4- 25 -94)
1
City of Roseville
304.03: APPROVAL OF LICENSES:
304.03A. Required Documentation: Any organization applying to the Gambling Control Board
for a premises permit, bingo hall license or for the renewal of the same to conduct lawful
gambling in the City shall, within ten (10) days of making such application, file the following
with the City:
304.03A1. Application: A duplicate copy of the Gambling Control Board application along
with all supporting documents submitted to the Gambling Control Board.
304.03A2. Corporate Documents: A copy of the articles of incorporation and bylaws of the
organization.
304.03A3. Officers and Directors: The names and addresses of all officers and directors of the
organization.
304.03A4. Written Procedures: A copy of the organization's written procedures and /or criteria
for distribution of funds derived from lawful gambling, its standardized application form and its
written fiscal control procedures.
304.03A5. IRS Exempt Letter: A copy of the Internal Revenue Service's tax exempt letter.
304.03A6. Felony Conviction: Confirmation that no employee or principal officer of the
organization has been convicted of a felony. No employee or organization whose principal
officers or employees have a felony conviction shall be employed or retained in a gambling
related activity by any permitted organization.
304.03A7. Investigation Reports: A copy of all records, all testimony or other information
submitted to the State of Minnesota or Federal government as part of any previous or current
investigation or inquiry on any matter related to gambling.
304.03B. Investigation: Upon receipt of the materials required by Subsection A above, and not
later than sixty (60) days from receipt of notice from the Gambling Control Board, City staff
shall investigate the applicant and based upon said investigation, the City Council shall act on4he
application.
304.03C. Resolution: The action of the City Council to approve an application for a premises
permit or bingo hall license within the City shall be by resolution. Failure to receive a majority
affirmative vote of the City Council shall constitute a denial of the application.
304.03D. Additional Documents: Copies of any other reports or documents which are required
to be subsequently filed by such organization with the Gambling Control Board, including
monthly financial statements, shall be filed with the City within ten (10) days of filing such
materials with the Gambling Control Board.
304.03E. Compliance: To assure compliance with this Chapter, the City may require a
premises permit holder or bingo hall licensee to provide copies of the records described in
Minnesota Statute 349.215.
2
City of Roseville
304.03F. Suspension: Approval of a premises permit issued by the City under any part of this
Chapter may be suspended by the City for violation of Chapter or revoked or any renewal
delayed, for failure to meet the qualifications set out in subsection A or a wilful violation of any
part of this Chapter or a failure to comply, for any reason, with any provision, guarantee or claim
made in an applicant's original license application to either the City or the State of Minnesota.
304.03G. Liability of City: No license or permit issued by the City grants the licensee a
property right or entitlement to the license or permit. The City may not issue, renew nor revoke
the license or permit for any reason and will not incur liability for any damages including, but
not limited to, direct, consequential or incidental damages, deprivation of property, loss of
income, loss of profits or loss of livelihood.
304.03H. Employment of Certified Public Accountant: All Class A licensees and permittees in
the City shall use a certified public accounting firm for all accounting, bookkeeping and tax
preparation services related directly to lawful gambling and charged as an allowable expense of
the gambling operation. All agreements providing for such services shall be in writing and shall
be submitted to the City as part of the application for review by the City to determine compliance
with local and State regulations and laws. Any such agreements entered into or modified after
issuance of a license or permit shall be filed with the City prior to the new agreement or
modification becoming effective. The initial approval and the continuance of a license or permit
is contingent upon such agreements complying with this Chapter and State statutes and
regulations.
304.03I. Management: All licensees and permittees in the City will assure continuous and
active management of the gambling operation and will not delegate managerial responsibilities,
will work continuously to operate in the most efficient manner to increase the amount of
available lawful proceeds, will maintain the lowest possible costs and will encourage and use
volunteers to the fullest extent possible. (Ord. 1114, 9- 24 -92)
304.04: CONTRIBUTIONS:
304.04A. Each organization conducting lawful gambling within the City shall contribute at least
ten percent (10 %) of its net profits derived from lawful gambling in the City to a fund
administered and regulated by the City. The City then shall make disbursements to the Roseville
Community Foundation, a Minnesota nonprofit corporation. This contribution shall be for the
purposes defined in Minnesota Statute 349.12, subdivision 11. The City's directive to the
Roseville Community Foundation as to the use of the funds shall be made at the time of the
City's adoption of its annual budget or any amendments thereto.
304.04B. Each organization conducting lawful gambling shall expend or contribute a minimum
of seventy five percent (75 %) of its net profits from Roseville gambling sites by the end of each
premises permit year. The remaining percentage may be carried over to the subsequent permit or
license year. The City Council may grant a variance authorizing the organization to carry over
more that twenty five percent (25 %) of all its net profits for expenditure in the subsequent permit
or license year.
City of Roseville
4
304.04C. In the event any organization contributes to the City any sum in excess of the ten
percent (10 %) as required in subsection A above, said funds will be deposited and allocated to
the Roseville Community Foundation. In the event the Roseville Community Foundation is in
any way unable to receive the allocated funds as set forth in subsection A above, the funds will
be deposited in an interest bearing escrow account in a bank located in the City and allocated to
uses by further order of the City Council. (Ord. 1114, 9- 24 -92)
304.05: LAW ENFORCEMENT AND ADMINISTRATIVE COSTS:
All organizations conducting lawful gambling within the City shall, within thirty (30) days of the
end of each month, pay to the City an amount equal to three percent (3 %) of the gross receipts
from lawful gambling conducted in the City in such month, less amounts actually paid for prizes,
to cover the City's law enforcement and administrative costs in regulating lawful gambling.
(Ord. 1114, 9- 24 -92)
304.06: GAMBLING EXEMPT FROM STATE LICENSING REQUIREMENTS:
304.06A. Organizations which conduct lawful gambling which is exempt from State gambling
licensing requirements may conduct such gambling within the City upon receipt of a permit from
the City, except this requirement does not apply to door prizes or raffles and bingo . where total
prizes are less than seven hundred fifty dollars ($750.00) in a calendar year.
304.06B. An application for such a permit, along with a twenty five dollar ($25.00) fee, shall be
made at least thirty (30) days prior to the date such gambling is to be conducted. The application
shall contain the following:
304.0681. The name of the organization.
304.06B2. The address of the organization.
304.06B3. The place where such gambling will occur.
304.06B4. The total prizes to be awarded.
304.06C. Within thirty (30) days of filing any reports with the Gambling Control Board, the
organization shall file a copy of such reports with the City.
304.06D. The provisions relating to law enforcement and administrative costs set forth in
Section 304.05 shall not apply to gambling permitted pursuant to this Section. All other
provisions of this Chapter apply to such organizations. (Ord. 1114, 9- 24 -92)
304.07: VIDEO GAMES OF CHANCE:
"Video games of chance ", as defined by Minnesota Statutes, are prohibited in the City. (Ord.
1114, 9- 24 -92)
POLICY 4 -A
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in
the City of Hopkins.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter
349 relating to the definition of terms, licensing and restrictions of gambling are
adopted and made a part of the statement of policy promulgated by the City of Hopkins
as if set out in full
2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an
organization which is designated as exempt from the payment of income taxes by the
Internal Revenue Code and whose principal location or office is within the City of
Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its activities for the benefit
of the community within the City of Hopkins for at least five years on a perpetual,
continuous, uninterrupted basis and have at least 30 active members.
2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied
or leased by the organization except such activities permissible under M.S. 349.166.
2.05 More than one organization, as defined in Section 2.02, may conduct gambling within a
single owned, occupied or leased premise. More than one organization may jointly
conduct a lawful gambling game at one location. However, two or more organizations
shall not separately conduct the same game at the same time at one location.
2.06 The operation of gambling devices and the conduct of bingo and raffles licensed or
approved pursuant to the authority granted to the City of Hopkins shall be carried on
under the supervision of a gambling manager designated by the organization. The
gambling manager shall be responsible for the operation of the gambling activity and
the receipts and profits generated from the operation.
2.07 The gambling manager shall be an active member of the organization issued the license
and shall qualify under state law.
Legislative Policy Manual -- Chapter 4 -A
2.08 Participants in raffles, paddlewheels, pull tabs and tip boards shall be restricted to
individuals who have attained the legal drinking age. This restriction only applies to
premises where liquor, wine, beer or 3.2 beer is served. Where intoxicating beverages
are not served the age shall be eighteen.
2.09 Organizations wishing to renew a gambling license must provide the City with a
financial audit of its lawful gambling activities and funds for the previous two years.
The audit(s) must be performed by an independent accountant licensed by the state of
Minnesota.
In addition, such organizations must provide the City with information on all
expenditures of lawful gambling funds during the previous two years. Such information
must include at a minimum the name of the recipient, the amount of the expenditure or
contribution, and a brief description of how the expenditure or contribution meets the
definition of "lawful purposes" as defined in M.S. 349.12.
2.10 A fee of $100.00 shall be charged to all licensed organizations submitting a Premises
Permit Renewal Application for approval by the City.
Legislative Policy Manual -- Chapter 4 -A
Established 8/18/87
Revised 4/19/94
City of Hopkins