(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, with the exception of Lawful Gambling excluded or exempted from state licensure requirements by M.S. § 349.166, as it may be amended from time to time, shall contribute 10% of the net Profits derived from Lawful Gambling in the city to a fund administered and regulated by the city without cost to the fund. The city shall disburse the funds for charitable contributions as defined by M.S. § 349.12, subd. 7a, as it may be amended from time to time. Payment under this section shall be made on the last day of each quarter. The city's use of such funds shall be determined at the time of adoption of the city's annual budget or when the budget is amended.
(B) Each Organization licensed to conduct gambling within the city shall also expend 50% of the net Profits on Lawful Purposes conducted within the city's Local Trade Area. This section applies only to Lawful Purpose expenditures of net Profits derived from gambling conducted at a premises within the city's jurisdiction.
(C) For the purposes of this section, net Profits proceeds shall be computed as follows: gross receipts from Lawful Gambling less reasonable sums necessarily and actually expended 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, specifically subpart 2(B) of Adopted Rule 7860.160;
(3) Rent;
(4) Utilities used during gambling occasions;
(5) Compensation paid to members for conducting Lawful Gambling activities;
(6) State or federal taxes; and
(7) Maintenance of devices used in Lawful Gambling.
Penalty, see § 112.99