(A) Purpose. The purpose of this section is to regulate and control the conduct of gambling within the city.
(B) Provisions of state law adopted. The provisions of M.S. Chapter 349, as amended from time to time, relating to the definition of terms, licensing and restrictions of lawful gambling, are adopted and made a part of this section as if set out in full.
(C) Exempt gambling. The City of North Mankato will not impose local regulation upon gambling exempt from licensing by the Charitable Gambling Control Board and as defined in M.S. § 349.214.
(D) Local gambling tax.
(1) A tax of 3% shall be imposed upon the gross receipts generated within the city by licensed organizations from the conduct of lawful gambling activities. Such 3% tax shall be levied on such gross receipts less the cost of prizes actually paid out by the organization. Such tax shall be paid to the city on a monthly basis, not less than 20 days after the end of the month.
(2) Such payment shall be accompanied by a report containing the following information upon such form as may be required by the City Finance Director:
(a) Total amount of receipts from lawful gambling activities within the city during the reporting period;
(b) The total amount of prizes actually paid out by the organization during the reporting period from such gross receipts;
(c) The signature of the person filing the return; and
(d) The period covered by the return.
(3) All proceeds from such tax shall be used for the purpose of regulating charitable gambling.
(E) Specific expenditures.
(1) A licensed organization shall make specific expenditures of 10% from its net profits derived from lawful gambling. Such 10% expenditure shall be levied on gross receipts generated within the city less prizes actually paid out by the organization and amounts expended for allowable expenses attributable to such gross receipts. Such specific expenditure shall be paid monthly towards the lawful purpose established from time to time by resolution of the Council.
(2) At the time that such licensed organization submits to the city its report in support of the payment of the 3% gambling tax, such organization shall also submit the following information upon such form as may be required by the City Finance Director.
(a) Total amount of receipts generated within the city from lawful gambling activities during the reporting period;
(b) The total amount of prizes actually paid out attributable to such gross receipts by the organization during the reporting period;
(c) The total amount of money expended for allowable expenses attributable to such gross receipts;
(d) The amount of net profits derived from lawful gambling during the reporting period attributable to such gross profits;
(e) The identification of the lawful purpose to which such 10% expenditure was made;
(f) The signature of the person filing the report;
(g) The period covered by the report; and
(h) A receipt from the person or entity representing the lawful purpose to which such 10% expenditure was made.
(F) Leasing liquor establishments. If an organization licensed to conduct lawful gambling leases any portion of a premises which are also subject to a license for the sale of alcoholic beverages within the City of North Mankato, Minnesota, then such gambling organization shall conform to the following requirements:
(1) Within 30 days of entering into such lease, such organization shall submit to the City Clerk a copy of the lease as well as a verified statement that 40% of the active members of such organization are North Mankato residents and 80% are residents of Minnesota School District #77.
(2) Such lease shall not exceed the term of 1 year.
(G) Responsible parties. The gambling manager or managers of a licensed gambling organization shall be exclusively responsible for the timely filing of all returns, reports, or other documents required by this section. Violation of this section shall be punished as a misdemeanor. Furthermore, the City Council may pursue such civil remedies as it deems appropriate, including efforts to revoke such organization's license.
(Ord. 93, passed 5-16-1988)