(A) The organization licensed to conduct lawful gambling in the city shall contribute 10% of the net profits it derives from the lawful gambling activity in the city to a fund regulated by the city for disbursement of such contributions for lawful purposes as defined by M.S. § 349.12, Subd. 25. In addition, the organization licensed to conduct lawful gambling in the city shall expend a minimum of 70% of the net proceeds it derives from the lawful gambling activity conducted in the city for lawful purposes as defined by M.S. § 349.12, Subd. 25, that will directly benefit the citizens living in Lakeland and/or the local trade area. Such expenditures must occur within the same or following fiscal year that such proceeds are received by the organization conducting the lawful gambling in the city. For purposes of this section, net proceeds shall be computed as follows: gross receipts from lawful gambling activity conducted in the city less reasonable sums necessarily and actually expended to conduct lawful gambling activities in the city for the following items:
(1) Prizes;
(2) Gambling supplies and equipment, which shall be defined as those expenses authorized by the charitable gambling board in adopted rules (see Minn. Rules Ch. 7861);
(3) Rent;
(4) Utilities used during gambling occasions;
(5) Compensation paid to members for conducting lawful gambling activities;
(6) State and/or federal taxes; and
(7) Maintenance of devices used in lawful gambling.
(B) The requirements of division (A) of this section shall not apply to exempt organizations having first obtained an exempt permit from the city.
(Ord. 7521, passed 5-18-2010)