1.1                          A bill for an act 
  1.2             relating to gambling; regulating and prohibiting 
  1.3             certain activities with respect to gambling; 
  1.4             regulating shipment of gambling devices; providing 
  1.5             penalties; amending Minnesota Statutes 1998, sections 
  1.6             299L.07, subdivisions 2a and 10; 349.2125, subdivision 
  1.7             1; 609.75, by adding subdivisions; and 609.76, 
  1.8             subdivision 2, and by adding subdivisions. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 299L.07, 
  1.11  subdivision 2a, is amended to read: 
  1.12     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  1.13  under this section may sell, offer to sell, lease, or rent, in 
  1.14  whole or in part, a gambling device only to a distributor 
  1.15  licensed under this section. 
  1.16     (b) A distributor licensed under this section may sell, 
  1.17  offer to sell, market, rent, lease, or otherwise provide, in 
  1.18  whole or in part, a gambling device only to: 
  1.19     (1) the governing body of a federally recognized Indian 
  1.20  tribe that is authorized to operate the gambling device under a 
  1.21  tribal state compact under the Indian Gaming Regulatory Act, 
  1.22  Public Law Number 100-497, and future amendments to it; 
  1.23     (2) a person for use in the person's dwelling for display 
  1.24  or amusement purposes in a manner that does not afford players 
  1.25  an opportunity to obtain anything of value; 
  1.26     (3) another distributor licensed under this section; or 
  1.27     (4) a person in another state who is authorized under the 
  2.1   laws of that state to possess the gambling device. 
  2.2      Sec. 2.  Minnesota Statutes 1998, section 299L.07, 
  2.3   subdivision 10, is amended to read: 
  2.4      Subd. 10.  [TRANSPORTATION OF GAMBLING DEVICES.] In 
  2.5   addition to the requirements of this section, the transportation 
  2.6   of gambling devices into or out of Minnesota must be in 
  2.7   compliance with United States Code, title 15, sections 1171 to 
  2.8   1177, as amended. 
  2.9      Sec. 3.  Minnesota Statutes 1998, section 349.2125, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [CONTRABAND DEFINED.] The following are 
  2.12  contraband: 
  2.13     (1) all pull-tab or tipboard deals or paddleticket cards 
  2.14  not stamped or bar coded in accordance with this chapter or 
  2.15  chapter 297E; 
  2.16     (2) all pull-tab or tipboard deals in the possession of any 
  2.17  unlicensed person, firm, or organization, whether stamped or 
  2.18  unstamped; 
  2.19     (3) any container used for the storage and display of any 
  2.20  contraband pull-tab or tipboard deals as defined in clauses (1) 
  2.21  and (2); 
  2.22     (4) all currency, checks, and other things of value used 
  2.23  for pull-tab or tipboard transactions not expressly permitted 
  2.24  under this chapter, and any cash drawer, cash register, or any 
  2.25  other container used for illegal pull-tab or tipboard 
  2.26  transactions including its contents; 
  2.27     (5) any device including, but not limited to, motor 
  2.28  vehicles, trailers, snowmobiles, airplanes, and boats used, with 
  2.29  the knowledge of the owner or of a person operating with the 
  2.30  consent of the owner, for the storage or transportation of more 
  2.31  than five pull-tab or tipboard deals that are contraband under 
  2.32  this subdivision.  When pull-tabs and tipboards are being 
  2.33  transported in the course of interstate commerce between 
  2.34  locations outside this state, the pull-tab and tipboard deals 
  2.35  are not contraband, notwithstanding the provisions of clauses 
  2.36  (1) and (12); 
  3.1      (6) any unaffixed registration stamps except as provided in 
  3.2   section 349.162, subdivision 4; 
  3.3      (7) any prize used or offered in a game utilizing 
  3.4   contraband as defined in this subdivision; 
  3.5      (8) any altered, modified, or counterfeit pull-tab or 
  3.6   tipboard ticket; 
  3.7      (9) any unregistered gambling equipment except as permitted 
  3.8   by this chapter; 
  3.9      (10) any gambling equipment kept in violation of section 
  3.10  349.18; 
  3.11     (11) any gambling equipment not in conformity with law or 
  3.12  board rule; 
  3.13     (12) any pull-tab or tipboard deal in the possession of a 
  3.14  person other than a licensed distributor or licensed 
  3.15  manufacturer for which the person, upon demand of a licensed 
  3.16  peace officer or authorized agent of the commissioner of revenue 
  3.17  or director of alcohol and gambling enforcement, does not 
  3.18  immediately produce for inspection the invoice or a true and 
  3.19  correct copy of the invoice for the acquisition of the deal from 
  3.20  a licensed distributor; and 
  3.21     (13) any pull-tab or tipboard deals or portions of deals on 
  3.22  which the tax imposed under chapter 297E has not been paid; and 
  3.23     (14) any device prohibited by section 609.76, subdivisions 
  3.24  4 to 6. 
  3.25     Sec. 4.  Minnesota Statutes 1998, section 609.75, is 
  3.26  amended by adding a subdivision to read: 
  3.27     Subd. 4a.  [ASSOCIATED EQUIPMENT.] Associated equipment 
  3.28  means any equipment used in connection with gambling that would 
  3.29  not be classified as a gambling device, including but not 
  3.30  limited to:  cards, dice, computerized systems of betting at a 
  3.31  race book or sports pool, computerized systems for monitoring 
  3.32  slot machines or games of chance, devices for weighing or 
  3.33  counting money, and links which connect progressive slot 
  3.34  machines. 
  3.35     Sec. 5.  Minnesota Statutes 1998, section 609.75, is 
  3.36  amended by adding a subdivision to read: 
  4.1      Subd. 10.  [GAME.] A game means any game played with cards, 
  4.2   dice, equipment, or any mechanical or electronic device or 
  4.3   machine for money or other value, whether or not approved by 
  4.4   law, and includes, but is not limited to:  card and dice games 
  4.5   of chance, slot machines, banking or percentage games, video 
  4.6   games of chance, sports pools, pari-mutuel betting, and race 
  4.7   book.  "Game" does not include any private social bet. 
  4.8      Sec. 6.  Minnesota Statutes 1998, section 609.75, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 11.  [AUTHORIZED GAMBLING ACTIVITY.] An authorized 
  4.11  gambling activity means any form of gambling authorized by and 
  4.12  operated in conformance with law. 
  4.13     Sec. 7.  Minnesota Statutes 1998, section 609.75, is 
  4.14  amended by adding a subdivision to read: 
  4.15     Subd. 12.  [AUTHORIZED GAMBLING ESTABLISHMENT.] An 
  4.16  authorized gambling establishment means any premises where 
  4.17  gambling authorized by law is occurring. 
  4.18     Sec. 8.  Minnesota Statutes 1998, section 609.76, 
  4.19  subdivision 2, is amended to read: 
  4.20     Subd. 2.  [FELONY GAMBLING SPORTS BOOKMAKING.] Whoever 
  4.21  engages in sports bookmaking is guilty of a felony.  
  4.22     Sec. 9.  Minnesota Statutes 1998, section 609.76, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 3.  [CHEATING.] Whoever cheats in a game, as 
  4.25  described in this subdivision, is subject to the following 
  4.26  penalties: 
  4.27     (i) if the person holds a license related to gambling or is 
  4.28  an employee of the licensee, the person is guilty of a felony; 
  4.29  and 
  4.30     (ii) any other person is guilty of a gross misdemeanor.  
  4.31  Any person who is a repeat offender is guilty of a felony.  
  4.32     A person cheats in a game by intentionally: 
  4.33     (1) altering or misrepresenting the outcome of a game or 
  4.34  event on which wagers have been made, after the outcome is 
  4.35  determined, but before the outcome is revealed to the players; 
  4.36     (2) placing, canceling, increasing, or decreasing a bet 
  5.1   after acquiring knowledge, not available to other players, of 
  5.2   the outcome of the game or subject of the bet, or of events 
  5.3   affecting the outcome of the game or subject of the bet; 
  5.4      (3) claiming or collecting money or anything of value from 
  5.5   a game or authorized gambling establishment not won or earned 
  5.6   from the game or authorized gambling establishment; 
  5.7      (4) manipulating a gambling device or associated equipment 
  5.8   to affect the outcome of the game or the number of plays or 
  5.9   credits available on the game; or 
  5.10     (5) otherwise altering the elements of chance or methods of 
  5.11  selection or criteria which determine the result of the game or 
  5.12  amount or frequency of payment of the game. 
  5.13     Sec. 10.  Minnesota Statutes 1998, section 609.76, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 4.  [CERTAIN DEVICES PROHIBITED.] (a) Whoever uses or 
  5.16  possesses a probability-calculating or outcome-affecting device 
  5.17  at an authorized gambling establishment is guilty of a felony.  
  5.18  For purposes of this subdivision, a "probability-calculating" or 
  5.19  "outcome-affecting" device is any device to assist in: 
  5.20     (1) projecting the outcome of a game other than pari-mutuel 
  5.21  betting authorized by chapter 240; 
  5.22     (2) keeping track of or counting cards used in a game; 
  5.23     (3) analyzing the probability of the occurrence of an event 
  5.24  relating to a game other than pari-mutuel betting authorized by 
  5.25  chapter 240; or 
  5.26     (4) analyzing the strategy for playing or betting in a game 
  5.27  other than pari-mutuel betting authorized by chapter 240.  
  5.28     For purposes of this section, a book, graph, periodical, 
  5.29  chart, or pamphlet is not a "probability-calculating" or 
  5.30  "outcome-affecting" device. 
  5.31     (b) Whoever uses, or possesses with intent to use, a key or 
  5.32  other instrument for the purpose of opening, entering, and 
  5.33  affecting the operation of any game or gambling device or for 
  5.34  removing money, chips, tokens, or other contents from therein, 
  5.35  is guilty of a felony.  This paragraph does not apply to an 
  5.36  agent or employee of an authorized gambling establishment acting 
  6.1   within the scope of employment. 
  6.2      Sec. 11.  Minnesota Statutes 1998, section 609.76, is 
  6.3   amended by adding a subdivision to read: 
  6.4      Subd. 5.  [COUNTERFEIT CHIPS PROHIBITED.] Whoever 
  6.5   intentionally uses counterfeit chips or tokens to play a game 
  6.6   designed to be played with or operated by chips or tokens is 
  6.7   guilty of a felony.  For purposes of this subdivision, 
  6.8   counterfeit chips or tokens are chips or tokens not approved by 
  6.9   the government regulatory agency for use in an authorized 
  6.10  gambling activity. 
  6.11     Sec. 12.  Minnesota Statutes 1998, section 609.76, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 6.  [MANUFACTURE, SALE, AND MODIFICATION 
  6.14  PROHIBITED.] (a) Whoever manufactures, sells, distributes, or 
  6.15  otherwise provides cards, chips, tokens, dice, or other 
  6.16  equipment or devices intended to be used to violate this 
  6.17  section, is guilty of a felony. 
  6.18     (b) Whoever intentionally marks, alters, or otherwise 
  6.19  modifies lawful associated equipment or gambling devices for the 
  6.20  purpose of violating this section is guilty of a felony. 
  6.21     Sec. 13.  Minnesota Statutes 1998, section 609.76, is 
  6.22  amended by adding a subdivision to read: 
  6.23     Subd. 7.  [INSTRUCTION.] Whoever instructs another person 
  6.24  to violate the provisions of this section, with the intent that 
  6.25  the information or knowledge conveyed be used to violate this 
  6.26  section, is guilty of a felony. 
  6.27     Sec. 14.  Minnesota Statutes 1998, section 609.76, is 
  6.28  amended by adding a subdivision to read: 
  6.29     Subd. 8.  [VALUE OF CHIPS OR TOKENS.] The value of chips or 
  6.30  tokens approved for use in a game designed to be played with or 
  6.31  operated by chips or tokens, as the term "value" is used in 
  6.32  section 609.52, is the amount or denomination shown on the face 
  6.33  of the chip or token representing United States currency.  Chips 
  6.34  used in tournament play at a card club at a class A facility 
  6.35  have no United States currency value. 
  6.36     Sec. 15.  [EFFECTIVE DATE.] 
  7.1      Sections 1 to 14 are effective the day following final 
  7.2   enactment.