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Lawful Gambling
State Regulation
The State of Minnesota regulates lawful gambling through the Gambling Control Board.  The Board issues the following licenses and permits:
  • Organization licenses.
  • Gambling manager licenses.
  • Premises permits.
Therefore, the City cannot require an additional license to conduct gambling from a qualified organization, a gambling manager, or gambling employees whom the Board licenses.

City Regulation
The State Gambling Control Board issues gambling licenses to specific organizations to conduct lawful gambling; however, before the Board will grant a gambling license, the Board issues a premises permit, which involves cities.

State-Issued Premises Permits
The Board must not approve an initial premises permit unless the City Council approves it.

Investigation Fee

The City of Brooklyn Center assesses a $250 investigation fee on state licensed organizations.

City Code Section 11-123.  GAMBLING REGULATIONS.
Subdivision 1.  Lawful Gambling Permitted.  No gambling or any gambling device shall be permitted on any licensed Premises with the exception of lawful gambling on a licensed on-sale Liquor Premises by licensed charitable nonprofit organizations that have been in existence in Brooklyn Center for at least three years.

Subdivision 2.  Lease Agreement Terms.  The charitable organization’s use of the licensed on-sale Liquor Premises shall be by means of a written lease agreement between the Liquor licensee and the charitable organization.  The lease shall be for a term of at least one year; a copy of which shall be filed with the City Manager’s designee, and an additional copy must be kept on the Premises and available for public inspection upon request.  The lease shall contain the following terms:

a. The amount of rent charged may not exceed the amount authorized by law;

b. Rental payments shall not be based on a percentage of profits from gambling;

c. The charitable organization shall not reimburse the Liquor licensee for any Liquor license fees or other gambling related expenses incurred by the Liquor licensee.  The only compensation that the Liquor licensee may obtain from the charitable organization is the rent fixed in the lease agreement;

d. Lawful gambling shall not be conducted by employees of the Liquor licensee or at the bar service area; and
 
e. The lease shall contain a provision permitting the Liquor licensee to terminate the lease if the charitable organization is found guilty of any violation of State or local gambling statutes, ordinances, rules, or regulations.

Subdivision 3.  Limit on Organizations.  Only one charitable organization shall be permitted to conduct lawful gambling on the licensed on-sale Liquor Premises.

Subdivision 4.  Minimum Hours.  The Liquor licensee must commit to a minimum of twenty-five (25) hours of lawful gambling on the licensed Premises for the charitable organization per week.

Subdivision 5.  Responsibility for Violations.  The Liquor licensee shall be responsible for the charitable organization's conduct of lawful gambling.  The City Council may order that the lawful gambling cease on the licensed Premises for a period up to sixty (60) days or disallow lawful gambling altogether on the licensed Premises for any violation of State or local gambling laws or regulations that occur on the Premises by anyone, including the Liquor licensee or the charitable organization.  Any violation of this Section may also be considered by the City Council as grounds for suspension or revocation of the Liquor license.

City Code Section 23-1900.  CHARITABLE GAMBLING.
Section 23-1900.  STATEMENT OF POLICY.  The City of Brooklyn Center deems it desirable to regulate lawful gambling within its jurisdiction as authorized by Minnesota Statutes, Section 349.213, as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minnesota Statutes, Chapter 349, as it may be amended from time to time.

Section 23-1901.  DEFINITIONS.  The definitions in Minnesota Statute 349 are adopted by reference in this chapter.

Section 23-1902.  LAWFUL GAMBLING IN ON-SALE PREMISES.  Lawful gambling is permitted in on-sale licensed premises within the City of Brooklyn Center provided it is conducted by qualified and state licensed charitable organizations in accordance with Minnesota Statutes, Sections 609.75-609.763, inclusive, as they may be amended from time to time; Minnesota Statutes, Sections 349.11-349.23, inclusive, as they may be amended from time to time, and this ordinance.  The following regulations and qualifications must be complied with by all such charitable organizations:

1. The organization must have been in existence in Brooklyn Center for at least three years.

2. The organization must expend 85% of its expenditures for lawful purposes on lawful purposes conducted or located within the Cities of Brooklyn Center, Brooklyn Park, Minneapolis, Crystal, Robbinsdale, and Fridley.

3. The organization must file a list containing the names and addresses of all current members with the City Manager’s designee on an annual basis.

4. The organization must file charitable gambling financial reports monthly with the City Manager’s designee.

5. The organization must conduct lawful gambling in a method as required by the City.

6. Workers or managers may not divulge the number of or the dollar amount of the winners at any time.

7. Workers or managers shall not co-mingle game cards.

8. The organization shall comply with all the provisions of Minnesota Statutes, Chapter 349.

9. The organization shall register with the State Gambling Board all equipment and supplies used in a licensed on-sale establishment.

10. The charitable organization will be responsible for the booth and other equipment used in the conduct of lawful gambling.

11. The organization must pay the City of Brooklyn Center an investigation fee of $250 per year.

Section 23-1903.  SEVERABILITY.  Every section, provision or part of this chapter is declared separable from every other section, provision or part to the extent that if any section, provision or part of this chapter shall be held invalid, such holding shall not invalidate any other section, provision or part thereof.

Section 23-1904.  PENALTIES.  Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than one thousand dollars ($1,000) and imprisonment for not more than ninety (90) days, or both, together with the cost of prosecution.