(A) Purpose. Minnesota Statutes allow for the conduct of lawful gambling in order to allow religious, fraternal, veterans or other non-profit or tax-exempt entities to raise funds for charitable or other lawful purposes. Statutes provide that a city may exercise certain regulatory authority regarding the conduct of lawful gambling operations and activities. The City of Perham wishes to regulate these lawful gambling activities in order to protect and promote the general welfare and safety of the community. The purpose of this section is to regulate and control the conduct of certain gambling activities pursuant to the provisions of M.S. Chapters 349.11 through 349.22 inclusive, as they may be amended from time to time.
(B) Definitions. For the purposes of this section the terms used herein shall have the meanings defined or as used in M.S. Chapters 349.11 through 349.22 inclusive, as they may be amended from time to time.
(C) Prohibition. Gambling shall be allowed in the city only in accordance with the provisions of this section and the provisions of M.S. Chapters 349.11 through 349.22 inclusive, as they may be amended from time to time, and rules adopted subsequent thereto.
(D) Exceptions. The provisions of this section shall not apply to the limited gambling activities described in M.S. Chapter 349.166, as it may be amended from time to time, provided there is compliance with all conditions imposed by that section and the rules and regulations of the Minnesota Gambling Control Board (hereinafter, the “Board”) relating thereto.
(E) Approval by Council. All forms of lawful gambling authorized by M.S. Chapter 349.11 through 349.22 inclusive, as they may be amended from time to time, shall be approved by the Council subject to the provisions of this section and state law.
(F) Application. Any qualified organization seeking to obtain a gambling license from the Board shall file in the Office of the City Manager an application ten days prior to the next regular scheduled Council Meeting for approval by the City Council.
(G) Conditions. Lawful gambling licenses shall be disapproved if the issuing thereof would result in a violation of any of the following conditions:
(1) Lawful gambling shall be limited to the premises for which an on-sale or off-sale liquor license has bee issued.
(2) No more than two licensed, qualified organizations shall conduct lawful gambling activities at one premise except organizations conducting gambling under a special license.
(3) Notwithstanding the conditions of this subdivision, a licensed organization may conduct lawful gambling in accordance with the exceptions described in M.S. Chapter 349.18, Subd. 2, as it may be amended from time to time.
(H) Expenditures for lawful purposes. Each qualified organization licensed to conduct lawful gambling within the city, pursuant to M.S. Chapter 349.213, as it may be amended from time to time, shall be required to expend 75% of its net proceeds on lawful purposes conducted or located within the city’s trade area within the same calendar year that such proceeds are received by the organization conducting the charitable gambling. Any expenditures made during January of any year may, at the option of the charitable organization, be deemed to have been made in the prior calendar year to the extent necessary to meet the requirements of this subdivision. The city’s trade area is defined to include the city and each township which is partially or wholly located in Independent School District #549.
(I) Records and reports.
(1) Organizations licensed by the Board shall file with the Office of the City Manager one copy of all records and reports required to be filed with the Board, pursuant to M.S. Chapter 349.11 through 349.22, as they may be amended from time to time, and rules and regulations adopted pursuant thereto. Such records and reports shall be filed on or before the twentieth of each month. The City Manager may require such additional documentation as the City Manager may deem reasonably necessary to prove that the organizations have met the requirements under division (H).
(2) Every gambling occasion in the city conducted by a licensed organization shall be open to inspection by designated staff of the city.
(3) The city’s Police Department may inspect, at any reasonable time without notice or search warrant, all records of a licensed organization, including gambling accounts and other bank records, required by the Board to be maintained and preserved.
(Ord. 224, passed 6-9-03; Am. Ord. 406, passed 4-8-2019) Penalty, see § 10.99