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• Mn Gambling Control Board Rules And Regulations

Subdivision 1.Board created.

The Gambling Control Board is created with the powers and duties established by subdivision 4.

Charitable Gambling in Minnesota Charitable gambling has been legal in Minnesota since 1945. This information brief describes the legislative history, rules and regulations, and the outlook for charitable gambling. This information brief is only a summary of the law and rules governing charitable gambling. Minnesota Gambling Control Board Rules The rules for lawful gambling electronic games, sports tipboard games, and other lawful gambling provisions are effective on Monday, July 15, 2019. For those of you affected by language requiring compliance within 180 days from the effective date of the rules, that date is January 11, 2020.

Sales and distribution of tipboards or tipboard tickets is only legal if the organization or individual is licensed by the Minnesota Gambling Control Board, or is exempt or excluded from licensing. The Minnesota state seal and a bar code will be printed on the main tipboard or game flare Only sold by state-licensed non-profit organizations. Gambling Control Board adopts rules for the conduct of gambling, approves all gambling equipment for use, issues licenses, provides training and education to organizations, conducts compliance reviews and site inspections, and imposes penalties for violations.

Subd. 2.Membership.

Terms Used In Minnesota Statutes 349.151

• Advice and consent: Under the Constitution, presidential nominations for executive and judicial posts take effect only when confirmed by the Senate, and international treaties become effective only when the Senate approves them by a two-thirds vote.
• Chair: includes chairman, chairwoman, and chairperson. See Minnesota Statutes 645.44
• Contract: A legal written agreement that becomes binding when signed.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
• state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
• Subpoena: A command to a witness to appear and give testimony.

(a) The board consists of seven members, as follows: (1) five members appointed by the governor; (2) one member appointed by the commissioner of public safety; and (3) one member appointed by the attorney general.

(b) All appointments under this subdivision are with the advice and consent of the senate.

(c) After expiration of the initial terms, appointments are for four years.

(d) The board shall select one of its members to serve as chair. No more than three members appointed by the governor under this subdivision may belong to the same political party.

Subd. 3a.Compensation.

The compensation of board members is as provided in section 15.0575, subdivision 3.

Subd. 4.Powers and duties.

(a) The board has the following powers and duties:

(1) to regulate lawful gambling to ensure it is conducted in the public interest;

(2) to issue licenses to organizations and gambling managers, and to issue licenses and renewals to distributors, distributor salespersons, manufacturers, and linked bingo game providers;

(3) to collect and deposit fees due under this chapter;

(4) to receive reports required by this chapter and inspect all premises, records, books, and other documents of organizations, distributors, manufacturers, and linked bingo game providers to insure compliance with all applicable laws and rules;

(5) to make rules authorized by this chapter;

(6) to register gambling equipment and issue registration stamps;

(7) to provide by rule for the mandatory posting by organizations conducting lawful gambling of rules of play and the odds and/or house percentage on each form of lawful gambling;

(8) to report annually to the governor and legislature on its activities and on recommended changes in the laws governing gambling;

(9) to report annually to the governor and legislature a financial summary for each licensed organization identifying the gross receipts, prizes paid, allowable expenses, lawful purpose expenditures including charitable contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph (a), clauses (8) and (18), and the percentage of annual gross profit used for lawful purposes;

(10) to impose civil penalties of not more than $1,000 per violation on organizations, distributors, distributor salespersons, manufacturers, linked bingo game providers, and gambling managers for violating or failing to comply with any provision of this chapter, chapter 297E, or any rule or order of the board;

(11) to issue premises permits to organizations licensed to conduct lawful gambling;

(12) to delegate to the director the authority to issue or deny license and premises permit applications and renewals under criteria established by the board;

(13) to delegate to the director the authority to approve or deny fund loss requests, contribution of gambling funds to another licensed organization, and property expenditure requests under criteria established by the board;

(14) to suspend or revoke licenses and premises permits of organizations, distributors, distributor salespersons, manufacturers, linked bingo game providers, or gambling managers as provided in this chapter;

(15) to approve or deny requests from licensees for:

(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and

(ii) variances from Gambling Control Board rules under section 14.055; and

(16) to register employees of organizations licensed to conduct lawful gambling;

(17) to require fingerprints from persons determined by board rule to be subject to fingerprinting;

(18) to delegate to a compliance review group of the board the authority to investigate alleged violations, issue consent orders, and initiate contested cases on behalf of the board;

(19) to order organizations, distributors, distributor salespersons, manufacturers, linked bingo game providers, and gambling managers to take corrective actions; and

(20) to take all necessary steps to ensure the integrity of and public confidence in lawful gambling.

(b) The board, or director if authorized to act on behalf of the board, may by citation assess any organization, distributor, distributor salesperson, manufacturer, linked bingo game provider, or gambling manager a civil penalty of not more than $1,000 per violation for a failure to comply with any provision of this chapter, chapter 297E, or any rule adopted or order issued by the board. Any organization, distributor, distributor salesperson, gambling manager, linked bingo game provider, or manufacturer assessed a civil penalty under this paragraph may request a hearing before the board. Appeals of citations imposing a civil penalty are not subject to the provisions of the Administrative Procedure Act.

(c) All penalties received by the board must be deposited in the general fund.

(d) All fees imposed by the board under sections 349.16 to 349.167 must be deposited in the state treasury and credited to a lawful gambling regulation account in the special revenue fund. Receipts in this account are available for the operations of the board up to the amount authorized in biennial appropriations from the legislature.

Subd. 4a.

MS 1989 Supp [Repealed, 1990 c 590 art 1 s 55]

Subd. 4a.Paddlewheel rules.

The board shall promulgate rules governing paddlewheels for operation procedures, internal control standards, posted information, records, and reports.

Subd. 4b.Pull-tab sales from dispensing devices.

The board may by rule authorize but not require the use of pull-tab dispensing devices.

Subd. 4c.Electronic bingo devices.

(a) The board may by rule authorize but not require the use of electronic bingo devices.

(b) The board, or the director if authorized by the board, may require the deactivation of an electronic bingo device for violation of a law or rule and to implement any other controls deemed necessary to ensure and maintain the integrity of electronic bingo devices and the electronic bingo games played on the devices.

Subd. 4d.Electronic pull-tab devices and electronic pull-tab game system.

(a) The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab devices, the electronic pull-tab games played on the devices, and the electronic pull-tab game system necessary to operate them.

(b) The board may not require an organization to use electronic pull-tab devices.

(c) Before authorizing the lease or sale of electronic pull-tab devices and the electronic pull-tab game system, the board shall examine electronic pull-tab devices allowed under section 349.12, subdivision 12b. The board may contract for the examination of the game system and electronic pull-tab devices and may require a working model to be transported to locations the board designates for testing, examination, and analysis. The manufacturer must pay all costs of any testing, examination, analysis, and transportation of the model. The system must be approved by the board before its use in the state and must have the capability to permit the board to electronically monitor its operation and internal accounting systems.

Mn Gambling Control Board Minnesota

(d) The board may require a manufacturer to submit a certificate from an independent testing laboratory approved by the board to perform testing services, stating that the equipment has been tested, analyzed, and meets the standards required in this chapter and any applicable board rules.

(e) The board, or the director if authorized by the board, may require the deactivation of an electronic pull-tab device for violation of a law or rule and to implement any other controls deemed necessary to ensure and maintain the integrity of electronic pull-tab devices and the electronic pull-tab games played on the devices.

Subd. 4e.Sports-themed tipboard rules.

The board may adopt rules for the conduct of tipboards for which the winning numbers are determined in whole or in part by the numerical outcome of one or more professional sporting events. The rules must provide for operation procedures, internal control standards, posted information, records, and reports. The rules must provide for the award of prizes, method of payout, wagers, determination of winners, and the specifications of these tipboards.

Subd. 5.Attorney general.

The attorney general is the attorney for the board.

Subd. 7.Orders.

Minnesota Gambling Control Board Forms

The board may order any person subject to its jurisdiction who has violated this chapter or a board rule or order to take appropriate action to correct the violation.

Subd. 8.Criminal history.

The board may request the director of alcohol and gambling enforcement to assist in investigating the background of an applicant for a license under this chapter, and the director of alcohol and gambling enforcement may bill the license applicant for the cost thereof. The board has access to all criminal history data compiled by the Division of Alcohol and Gambling Enforcement on licensees and applicants.

Subd. 9.Response to requests.

An applicant, licensee, or other person subject to the board’s jurisdiction must:

(1) comply with requests for information or documents, or other requests, from the board or director within the time specified in the request or, if no time is specified, within 30 days of the date the board or director mails the request; and

Minnesota Gambling Control Board Rules

(2) appear before the board or director when requested to do so, and must bring documents or materials requested by the board or director.

Subd. 10.Production of evidence.

For the purpose of any investigation, inspection, compliance review, audit, or proceeding under this chapter, the board or director may (1) administer oaths and affirmations, (2) subpoena witnesses and compel their attendance, (3) take evidence, and (4) require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the board or director determines are relevant or material to the inquiry.

Subd. 11.Court orders.

In the event of a refusal to appear by, or refusal to obey a subpoena issued to, any person under this chapter, the district court may on application of the board or director issue to the person an order directing the person to appear before the board or director, and to produce documentary evidence if so ordered or to give evidence relating to the matter under investigation or in question. Failure to obey such an order may be punished by the court as contempt of court.

Subd. 12.Access.

The board or director has free access during normal business hours to the offices and places of business of licensees or organizations conducting excluded or exempt gambling, and to all books, accounts, papers, records, files, safes, and vaults maintained in the places of business or required to be maintained.

Subd. 13.Rulemaking.

In addition to any authority to adopt rules specifically authorized under this chapter, the board may adopt, amend, or repeal rules under chapter 14, when necessary or proper in discharging the board’s powers and duties.

Members,

Below was posted on the GCB website this morning. Attached are the Frequently Asked Questions, Executive Order 20-63 and Form LG272.

May 28, 2020

June 1 Restart – Frequently asked questions:

Executive Order to Assist Veterans and Fraternal Organizations: Governor Walz signed Executive Order 20-63 (see page 9, paragraph G) on May 27, 2020, allowing veterans or fraternal organizations to lend gambling funds to their general account to pay for expenses necessary to reopen such organizations’ permitted premises.

What does this executive order mean?

This executive order is a special allowance for veterans and fraternal organizations to make a loan from the organization’s gambling account to its general account to get their posts/clubs up and running. Prior authorization from the Gambling Control Board must be received first.

How does your post/club get prior authorization?

To get prior authorization fill out form LG272, Request for Lawful Gambling Account Loan to General Account, and submit it to the Gambling Control Board. Once the form is reviewed and approved, you will receive authorization to make the loan from your gambling account to the general account.

Are there any restrictions?

• The loan proceeds may not be used as collateral for any other loan.
• The loan proceeds may not be used for gambling-related expenses.
• The loan must be repaid to the gambling account in full within one year or suspend its gambling operation.
• If the organization terminates lawful gambling and the loan has not been repaid, the loan repayment will be included in the terms of the license termination plan.

Access form LG272, Request for Lawful Gambling Account Loan to General Account, here.

Minnesota Gambling Control Board June 1 Lawful Gambling Restart –

Q & A Minnesota Gambling Control Board

Mn Gambling Control Board Rules Regulations

June 1 Lawful Gambling Restart Q & A, Page 1, May 28, 2020

Q. Can a bar have a window that opens to the outside to sell paper pull-tabs and electronic pull-tabs to customers who come up to the window?
A. Yes.
Q. How many paper pull-tab deals need to be available to customers in order to also sell electronic pull-tabs?
A. One. The pull-tab game can have regular multi-ply window tickets or jar tickets.
Q. Can a seller bring paper pull-tab games on a cart or tray to sell directly to the player outside?
A. Yes, so long as the entire deal, flare, and house rules are visible to the player at the point of purchase.
Q. Can a seller collect money from a player outside who is able to see the flare, house rules, and pull-tab container that is located inside, and subsequently go inside to collect the pull-tab ticket or electronic device and return that ticket/device to the player outside?
A. Yes, so long as the same individual who collects the money from the player is the same seller who is authorized to go inside and conduct the lawful gambling.
Q. In full view of the player, will the waitstaff be able to collect money for paper pull-tabs or electronic devices and go inside to the bar to get the tickets/electronic device from the actual seller, and then deliver them back to the player outside?
A. No. The player must complete the purchase while outdoors without any intermediary.
Q. Will customers be allowed to go inside a bar/restaurant to purchase pull-tabs from a pull-tab dispensing device if they take the tickets back outside to open them?
A. No. Customers may not go inside to purchase any gambling equipment. Organizations would be allowed to bring the dispensing device outside if they’re able to do so (see last question below). The outdoor pull-tab dispensing device would need to be in a location where it’s visible by bar/restaurant staff.
Q. Can customers go inside to purchase electronic pull-tabs?
A. No. Customers are not allowed in the building. This is per the governor’s announcement allowing bars and restaurants to open for business outdoors only.
Q. If a bar has seating for 300 people and no executive order restrictions, it can have up to 12 electronic devices. However, in compliance with the Executive Order 20-63, if the number of seats is reduced to only 50 people outside, is that site’s limit now 6 devices?
A. No. The executive order limiting the number of customers would not reduce the 12 devices allowed.
Q. If an organization conducts gambling from midnight to 2:00 AM on June 1, is that activity reported as May or June receipts?
A. Normally for lawful gambling reporting purposes, receipts from midnight to 2:00 AM are considered as part of the previous business day’s receipts. However, given that bars and restaurants will not be open on May 31 (the last day of May), it will be acceptable to combine the June 1 midnight to 2:00 AM receipts with the receipts from the June 1 business day’s receipts.
Minnesota Gambling Control Board
June 1 Lawful Gambling Restart – Q & A, page 2
Minnesota Gambling Control Board
June 1 Lawful Gambling Restart Q & A, Page 2
May 28, 2020
Q. Once lawful gambling sales resume inside the building, if pull-tab boxes were being sold outside, will those open boxes be allowed for continued sale inside or will those boxes need to be closed and start only new boxes inside?
A. When organizations resume pull-tab sales inside, organizations will be allowed to move inside those pull-tab games that were in play outside but not yet closed.
Q. Are there any concerns with bringing a pull-tab dispensing device outside?
A. Yes. Although there are no specific restrictions on locating a pull-tab dispensing device outdoors, please consider the following:
• Devices can be 300 lbs. without tickets.
• Some devices can be moved with a two-wheel cart, while others would require a four-wheel flat cart. Dispensing devices are top heavy and cannot be left on a cart.
• Dispensing devices are not made for outdoor use and must be taken inside each night.
• Tickets may swell with humidity which may cause jamming.
• Moving a dispensing device can also cause jamming.
• Dispensing devices should be kept out of the direct sun; the screens are difficult to see in the sun, and buttons may melt.

Mn Gambling Control Board Rules And Regulations

Al Lund

Executive Director

Allied Charities Of Minnesota (ACM)
3250 Rice St
Saint Paul, MN 55126-3080
Office #: 651-224-4533

Fax #: 866-240-6160