HomeMy WebLinkAboutNo 881 Lawful Gambling
Ordinance 881
Chapter 22
LAWFUL GAMBLING
Article I. In General
Sec. 22-1. Gambling prohibitions.
Article II. Lawful gambling
Sec. 22-2. Adoption of state law by reference.
Sec. 22-3. City may be more restrictive than state law.
Sec. 22-4. Purpose.
Sec. 22-5. Definitions.
Sec. 22-6. Lawful gambling permitted.
Sec. 22-7. Location.
Sec. 22-8. Conditions.
Sec. 22-9. Lawful gambling at on-sale establishments.
Sec. 22-10. Council approval.
Sec. 22-11. Application and local approval of premises permits.
Sec. 22-12. Local permits.
Sec. 22-13. Revocation and suspension of local permit.
Sec. 22-14. License and permit display.
Sec. 22-15. Notification of material changes to application.
Sec. 22-16. Contribution of net profits to fund administered by city.
Sec. 22-17. Designated trade area.
Sec. 22-18. Records and reporting.
Sec. 22-19. Penalty.
Sec. 22-20. Severability.
Sec. 22-21. Effective date.
ARTICLE I. IN GENERAL
Sec. 22-1. Gambling prohibitions.
(a) Any person engaged in gambling as a participant therein or any person who knowingly permits
gambling on his premises, such gambling being defied as gambling within the meaning of Minn. Stats.
§§609.75 – 609.762, shall be guilty of a misdemeanor.
(b) All kinds and descriptions of gaming, gambling and fraudulent devices and practices in gaming and
all playing of dice or other games of chance are hereby prohibited.
(c) All roulette tables; all faro banks; all crap tables; all gambling with cards, gaming tables or
gambling devices; all descriptions of gaming and gambling; all houses and places for the purpose of
gambling and fraudulent devices and practices; and all playing of cards, dice or other games of chance
are hereby prohibited from being set up, used or kept for gaming or gambling purposes in the city.
(d) No person shall bet any money or other property at or upon or in any gaming or gambling table,
game or device prohibited by this section.
(e) No person shall keep any house or place for the purpose of gambling nor shall any person suffer or
allow any gaming table, bank or gambling device or gambling equipment prohibited in this section to be
set up or used for the purpose of gaming in any house, building, boat, lot, hotel, motel, shop, ward, room,
space or garden belonging to him, occupied by him or over which he has no control.
(f) If any person shall engage in a gambling game or make use of any gambling device or equipment
prohibited by this section or shall keep tables, furniture, fixtures or instruments for gaming or gambling or
used or intended for use in gaming or gambling, in or out of any house, room or place, such tables,
instruments or equipment may be seized and taken into custody by any police officer. It is hereby made
the expressed duty of all police officers to enter any place, house, room, tent or booth and seize the
gaming tables, instruments, fixtures or equipment and hold and keep the gaming tables, instruments,
fixtures or equipment.
(g) No person shall visit any place, house or room used, occupied or in any way designed for gaming or
gambling purposes and there bet any money or valuable thing on any game or device, either played with
cards, dice or otherwise. It shall be the duty of the police officers to visit all houses, places, rooms, tents
or booths where any such gambling is carried on in violation of this section and to arrest all persons
violating this section.
(h) No person shall, within the city, whether directly or indirectly, bet or risk any money or other
property at or upon any game, device, horse race, contest of any kind whatever or upon the happening
of any event, whether such event takes place within or without the city limits, or the result of any such
event or engage in any gaming or gambling of any kind whatever, in which money or other property is
directly or indirectly bet, wagered, staked or risked, or aid or abet, directly or indirectly, any other person
in the doing of any such acts.
(i) This section shall not apply to the game of bingo, as defined by state law, if such game of bingo is
duly licensed pursuant to state law and this Code or other city ordinance.
(j) Notwithstanding the other subsections of this section, a fraternal, religious, veterans’ or other
nonprofit organization may set up to operate a gambling device or conduct a raffle, as defined in Minn.
Stats. § 349.12, if licensed by the city and conducted pursuant to Minn. Stats.§ 340.12, and a person
may manufacture, sell or offer for sale a gambling device to such organization.
ARTICLE II. LAWFUL GAMBLING
Sec. 22-2. Adoption of state law by reference.
The provisions of Minnesota Statutes, Chapter 349, as they may be amended from time to time, with
reference to the definition of terms, conditions of operation, provisions relating to sales, and all other
matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this
ordinance as if set out in full. It is the intention of the Council that all future amendments of Minnesota
Statutes, Chapter 349, are hereby adopted by reference or referenced as if they had been in existence at
the time this ordinance was adopted.
Sec. 22-3. City may be more restrictive than state law.
The council is authorized by the provisions of 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.
Sec. 22-4. Purpose.
The purpose of this ordinance is to regulate lawful gambling within the City of Maplewood, to prevent its
commercialization, to insure the integrity of operations, and to provide for the use of net profits only for
lawful purposes.
Sec. 22-5. Definitions.
In addition to the definitions contained in Minnesota Statutes, Section 349.12, as it may be amended
from time to time, the following terms are defined for purposes of this ordinance:
BOARD, as used in this ordinance, means the State of Minnesota Gambling Control Board.
CITY, as used in this ordinance, means the City of Maplewood.
COUNCIL, as used in this ordinance, means the City Council of the City of Maplewood.
LICENSED ORGANIZATION, as used in this ordinance, means an organization licensed by the Board.
LOCAL PERMIT, as used in this ordinance, means a permit issued by the city.
TRADE AREA, as used in this ordinance, is defined as the City of Maplewood and each city and
township contiguous to the City of Maplewood.
RAFFLE,“Raffle" is an activity that requires no skill in order to win a prize. Prizes are awarded through
the purchase of chances.
Sec. 22-6. Lawful gambling permitted.
Lawful gambling is permitted within the city provided it is conducted 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.
Sec. 22-7. Location.
(a) Lawful gambling under license issued by the state lawful gambling board may be conducted only at
the following locations:
(1) In the licensed organization’s hall where it has its regular meetings. No organization shall rent,
lease, or occupy, directly or indirectly, any other property for the purpose of conducting gambling,
except an on-sale establishment as permitted in this division.
(2) In licensed on-sale liquor, wine, and beer establishments.
(3) Notwithstanding subsections (a)(1) and (2) of this section, raffle only licenses may be approved
for any proper location.
(b) No location shall be approved for gambling unless it complies with the applicable zoning, building,
fire, and health codes of the city.
Sec. 22-8. Conditions.
The conduct of lawful gambling under license issued by the state lawful gambling control board shall be
subject to the following conditions in the city:
(1) No sale, consumption, or possession of liquor, wine, 3.2 percent malt liquor shall be permitted
during gambling conducted by a licensed organization, except as permitted under a valid on-sale
liquor, wine, or 3.2 percent malt liquor license or a bottle club permit; provided, further, that no
sale, consumption, or possession of liquor, wine, or 3.2 percent malt liquor shall be permitted in
the room where a bingo session is taking place.
(2) The organization must have been in existence for three years preceding the license application
as a registered Minnesota nonprofit corporation or as an organization designated as exempt from
the payment of income taxes by the Internal Revenue Code. The organization must have at least
15 active members.
(3) Before any person may serve as gambling manager for any organization licensed to conduct
gambling in the city, that person must have satisfactorily completed a course of instruction
conducted by the state lawful gambling control board on the duties and responsibilities of the
gambling manager.
Sec. 22-9. Lawful gambling at on-sale establishments.
Lawful gambling at on-sale liquor, wine, and 3.2 percent malt liquor establishments shall be
conducted in compliance with the following:
(1) Only licenses for lawful gambling and raffles may be issued, except where the licensed gambling
organization also holds the on-sale liquor, wine, or 3.2 percent malt liquor licenses for the
premises, in which case any gambling license may be issued.
(2) On-sale establishments shall be limited to one licensed gambling organization at any one time in
the licensed premises and any rooms adjoining the premises under the same management. No
lease shall be made with one organization while another lease is in effect for the same on-sale
establishment.
(3) Every agreement between a nonprofit organization and an on-sale premises for gambling shall be
in the form of a written lease. The written lease shall be the complete agreement between the
parties, and there shall be no unwritten terms or conditions. The lease shall specifically provide
that the lessee shall operate only after issuance of a license and shall be subject to the terms of
this division.
(4) A copy of any lease agreement between a nonprofit organization and an on-sale licensee shall be
filed with the city clerk and the police chief with the gambling license application.
(5) A lease agreement between a nonprofit organization and an on-sale establishment shall not
provide for rental payments based on a percentage of receipts of profits from lawful gambling.
There shall be no other compensation paid to the on-sale establishment, directly or indirectly,
other than the rental fee provided in the lease agreement. The maximum rental fee shall be
according to state law.
(6) All gambling shall be conducted from a booth or other area properly segregated from the rest of
the licensed premises. The physical layout of the area set aside for gambling shall be subject to
approval of the police department.
(7) The gambling booth shall be constructed and maintained by the organization licensed to conduct
gambling and shall be under the exclusive control of that organization. The organization licensed
to conduct gambling shall prominently display its name and license number at its gambling booth
and shall indicate that all profits from gambling are for the benefit of the organization.
(8) No employees or agents of the on-sale establishment shall handle gambling devices, gambling
money, prizes, or gambling records; nor shall they record winners, replays, or free games; nor
shall they otherwise conduct or assist the licensed gambling organizations in conducting the
gambling operation.
(9) No person shall be jointly employed by both the nonprofit organization and the on-sale
establishment.
(10) The gambling booth shall be separate from the liquor service bar. No gambling shall be
conducted from the liquor service bar.
(11) The organization licensed to conduct gambling shall have exclusive control over all gambling
devices, money, and records. Whenever the organization is not present, all gambling devices,
money, and records shall be securely locked and shall be inaccessible to employees of the on-
sale establishment.
(12) No gambling funds shall be commingled with funds of the on-sale establishment.
(13) No food, drink, or entertainment discounts or other promotions shall be offered in conjunction with
the sale of gambling devices or chances.
(14) The on-sale establishment shall allow the organization to conduct gambling at any time during its
lawful business hours and shall prohibit gambling at any time other than its lawful business hours.
(15) The on-sale licensee shall make no agreements with any gambling equipment distributor requiring
the use of his gambling equipment in the establishment.
(16) Subsections (6), (7), (8), (9), (10), and (11) of this section shall not apply when the licensed
gambling organization is also the holder of the on-sale license for the establishment where the
gambling is conducted.
(17) The city council may disapprove a gambling license application for an on-sale establishment in
which gambling violations have previously occurred.
Section 22-10. Council approval.
Lawful gambling authorized by Minnesota Statutes, Sections 349.11-349.23, inclusive, as they may be
amended from time to time, shall not be conducted unless approved by the council, subject to the
provisions of this ordinance and state law.
Section 22-11. Application and local approval of premises permits.
(a) Any organization seeking to obtain a premises permit or bingo hall license, or renewal of a premises
permit or bingo hall license from the Board shall file with the city clerk an executed, complete duplicate
application, together with all exhibits and documents accompanying the application as filed with the
Board. The application and accompanying exhibits and documents shall be filed not later than three (3)
days after they have been filed with the Board.
(b) Upon receipt of an application for issuance or renewal of a premises permit or bingo hall license, the
city clerk shall transmit the application to the chief of police for review and recommendation.
(c) The chief of police shall investigate the matter and make its review and recommendation to the city
council as soon as possible, but in no event later than 45 days following receipt of the notification by the
city.
(d) Organizations or bingo halls applying for a state issued premises permit shall pay the city an
investigation fee as set by State Statute for cities of the second class. This fee shall be refunded if the
application is withdrawn before the investigation is commenced.
(e) The applicant shall be notified in writing of the date of which the council will consider the
recommendation.
(f) The council shall receive a report from the city clerk that includes pertinent information from the
background investigation and consider the application within 45 days of the date that the application was
submitted.
(g) The council shall, by resolution, approve or disapprove the application within 60 days of the receipt of
the application.
(h) The council shall disapprove an application for issuance or renewal of a premises permit for any of
the following reasons:
(1) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to
gambling within the last 3 years.
(2) Violation by the on-sale establishment, or organization leasing its premises for gambling, of any
state statute, state rule, or city ordinance relating to the operation of the establishment, including,
but not limited to, laws relating to alcoholic beverages, gambling, controlled substances,
suppression of vice and protection of public safety within the last 3 years.
(3) Lawful gambling would be conducted at premises other than those for which an on-sale liquor
license has been issued.
(4) Lawful gambling would be conducted at more than 4 premiseswithin the city.
(5) Failure of the applicant to pay the investigation fee within the prescribed time limit.
(6) Operation of gambling at the site would be detrimental to health, safety, and welfare of the
community.
Otherwise the council shall pass a resolution approving the application.
Sec. 22-12. Local permits.
(a) No organization shall conduct lawful gambling excluded or exempted from state licensure
requirements by Minnesota Statute, Section 349.166, as it may be amended from time to time, without a
valid local permit.
(b) Applications for issuance or renewal of a local permit shall be on a form prescribed by the city. The
application shall contain the following information:
(1) Name and address of the organization requesting the permit.
(2) Name and address of the officers and person accounting for receipts, expenses, and profits for
the event.
(3) Dates of gambling occasion for which permit is requested.
(4) Address of premises where event will occur.
(5) Copy of rental or leasing arrangement, if any, connected with the event including rental to be
charged to organization.
(6) Estimated value of prizes to be awarded.
(c) When filing an application for the issuance of a local permit under this division, the applicant must
pay to the city clerk, in full, the amount of the permit fee as imposed, set, established and fixed by the
city council.
(d) Upon receipt of an application for issuance or renewal of a local permit, the city clerk shall transmit
the notification to the chief of police for its review and recommendation.
(e) The chief of police shall investigate the matter and make review and recommendation to the city clerk
as soon as possible to be included in the report for the council, but in no event later than 45 days
following receipt of the notification by the city.
(f) The applicant shall be notified in writing of the date on which the council will consider the
recommendation.
(g) The council shall receive the public safety department’s report and consider the application within 45
days of the date the application was submitted to the city clerk.
(h) The council shall disapprove an application for issuance or renewal of a premises permit for any of
the following reasons:
(1) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to
gambling within the last 3 years.
(2) Violation by the on-sale establishment, or organization leasing its premises for gambling, of any
state statute, state rule, or city ordinance relating to the operation of the establishment, including,
but not limited to, laws relating to the operation of the establishment, laws relating to alcoholic
beverages, gambling, controlled substances, suppression of vice and protection of public safety
within the last 3 years.
(3) The organization has not been in existence for at least 3 consecutive years prior to the date of
application.
(4) The organization does not have at least 15 active members.
(5) Exempted or excluded lawful gambling will not take place at a premises the organization owns or
rents.
(6) Exempted or excluded lawful gambling will not be limited to a premises for which an on-sale
liquor license has been issued.
(7) Exempted or excluded lawful gambling will occur at more than 4 premiseswithin the city.
(8) More than one licensed, qualified organization will be conducting exempted or excluded lawful
gambling activities at any one premises.
(9) Failure of the applicant to pay the permit fee within the prescribed time limit.
(10) Operation of gambling at the site would be detrimental to health, safety, and welfare of the
community.
Otherwise the council shall approve the application.
Sec. 22-13. Revocation and suspension of local permit.
(a) A local permit may be revoked, or temporarily suspended for a violation by the gambling organization
of any state statute, state rule, or city ordinance relating to gambling.
(b) A license shall not be revoked or suspended until notice and an opportunity for a hearing have first
been given to the permitted person. The notice shall be personally served and shall state the provision
reasonably believed to be violated. The notice shall also state that the permitted person may demand a
hearing on the matter, in which case the permit will not be suspended until after the hearing is held. If the
permitted person requests a hearing, the council shall hold a hearing on the matter at least one week
after the date on which the request is made. If, as a result of the hearing, the council finds that an
ordinance violation exists, then the council may suspend or revoke the permit.
Sec. 22-14. License and permit display.
All permits issued under state law or this ordinance shall be prominently displayed during the permit year
at the premises where gambling is conducted.
Sec. 22-15. Notification of material changes to application.
An organization holding a state issued premises permit or a local permit shall notify the city in writing
whenever any material change in the information submitted in the application occurs within ten days of
the change.
Sec. 22-16. Contribution of net profits to fund administered by city.
(a) Each organization licensed to conduct lawful gambling within the city pursuant to Minnesota Statute,
Section 349.16, as it may be amended from time to time, shall contribute ten percent of its 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 lawful purposes as defined by Minnesota Statutes Section
349.12, Subdivision 25, as it may be amended from time to time. An organization’s receipts from lawful
gambling that is exempt from licensing under Minn. Stats. § 349.166 are not subject to ten-percent
contribution imposed by this section.
(b)The ten-percent contribution imposed by this section shall be paid to a fund administered and
regulated by the city, without cost to the city, for disbursement for lawful purposes on a monthly basis
and shall be reported on a duplicate copy of the gambling tax return filed with the state lawful gambling
control board each month. The report shall be an exact duplicate of the report filed with the state lawful
gambling control board, without deletions or additions, and must contain the signatures of organization
officials as required on the report form. At the time of submitting a copy of the gambling tax return, each
organization shall also file a computation of charitable contribution form.
The gambling tax return and payment of the contribution due must be postmarked or, if hand-delivered,
received in the office of the finance director on or before the last day of the month following the month for
which the report is made.
An incomplete gambling tax return will not be considered timely unless corrected and returned by the due
date for filing. Delays in the mailing, mail pickups, and postmarking are the responsibility of the
organization.
The tax return and contribution shall be delivered to:
Finance and Administration Manager
City of Maplewood
1830 East County Road B
Maplewood, MN 55109
Checks shall be made payable to the city.
(c) There shall be an interest charge of eight percent per annum on the unpaid balance of all overdue
contributions owed by an organization under this section.
(d) The city council shall disapprove any pending application for renewal or the original issue of a lawful
gambling license for any organization which owes delinquent contributions to the city. Further, the police
chief may notify the state lawful gambling board of any organization owing delinquent contributions to the
city and may request that the board revoke or suspend the organization’s license during the license year.
The city council shall not issue or renew any on-sale or off-sale alcoholic beverage license, bottle club
permit, or food license to any organization which owes delinquent contributions to the city. The remedies
in this subsection are not exclusive and shall be in addition to any other powers and remedies provided
by law.
Sec. 22-17. Designated trade area.
(a) Each organization licensed to conduct gambling within the city shall expend 51 percent of its lawful
purpose expenditures on lawful purposes conducted within the city’s trade area.
(b) This section applies only to lawful purpose expenditures of gross profits derived from gambling
conducted at a premise within the city’s jurisdiction.
Sec. 22-18. Records and reporting.
(a) Organizations conducting lawful gambling shall file with the city clerk one copy of all records and
reports required to be filed with the Board, pursuant to Minnesota Statutes, Chapter 349, as it may be
amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to
time. The records and reports shall be filed on or before the day they are required to be filed with the
Board.
(b) Organization licensed by the Board shall file a report with the city proving compliance with the trade
area spending requirements imposed by Section 16. Such report shall be made on a form prescribed by
the city and shall be submitted annually and in advance of application for renewal.
Sec. 22-19. Penalty.
Any person who violates
(1) any provision of this ordinance;
(2) Minnesota Statutes, Sections 609.75-609.763, inclusive, as they may be amended from time to
time; or
(3) Minnesota Statutes, Sections 349.11-349.21, as they may be amended from time to time or any
rules promulgated under those sections, as they may be amended from time to time shall be
guilty of a misdemeanor and shall be subject to a fine of not more than $1,000 or imprisonment
for a term not to exceed 90 days, or both, plus in either case the costs of prosecution.
Sec. 22-20. Severability.
If any provision of this ordinance is found to be invalid for any reason by a court of competent jurisdiction,
the validity of the remaining provisions shall not be affected.
Sec. 22-21. Effective date.
This ordinance becomes effective on the date of its publication, or upon the publication of a summary of
the ordinance as provided by Minnesota Statute, Section 412.191, Subdivision 4, as it may be amended
from time to time, which meets the requirements of Minnesota Statute Section 331A.01 Subdivision. 10,
as it may be amended from time to time.
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Passed by the City Council of the City of Maplewood, Minnesota, this 11 day of June, 2007.