1.1                          A bill for an act 
  1.2             relating to horse racing; card clubs; defining terms; 
  1.3             modifying wagers; assigning parimutuel taxes to pay 
  1.4             for compulsive gambling; amending Minnesota Statutes 
  1.5             2000, sections 240.01, subdivision 26, by adding a 
  1.6             subdivision; 240.30, subdivision 8, by adding a 
  1.7             subdivision; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 240. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 240.01, 
  1.11  subdivision 26, is amended to read: 
  1.12     Subd. 26.  [UNBANKED.] "Unbanked" means a wagering system 
  1.13  or game where the individual participants compete against each 
  1.14  other and not against the sponsor or house.  In an unbanked 
  1.15  system or game, the sponsor or house may deduct a percentage 
  1.16  from the accumulated wagers and impose other charges for hosting 
  1.17  the activity but does not have an interest in the outcome of a 
  1.18  game.  The sponsor or house may add additional prizes, awards, 
  1.19  or money to any game for promotional purposes.  Unbanked games 
  1.20  include those games that involve a player pool.  
  1.21     Sec. 2.  Minnesota Statutes 2000, section 240.01, is 
  1.22  amended by adding a subdivision to read: 
  1.23     Subd. 27.  [PLAYER POOL.] "Player pool" means a wagering 
  1.24  system or game where wagers lost in a number of card games may 
  1.25  be accumulated into a pool for purposes of enhancing the total 
  1.26  amount paid back to players in any other card game.  In such 
  1.27  instances, the sponsor or house may only serve as custodian of 
  2.1   the player pool and may not have an active interest in any card 
  2.2   game. 
  2.3      Sec. 3.  Minnesota Statutes 2000, section 240.30, 
  2.4   subdivision 8, is amended to read: 
  2.5      Subd. 8.  [LIMITATIONS.] The commission may not approve any 
  2.6   plan of operation under subdivision 6 that exceeds any of the 
  2.7   following limitations: 
  2.8      (1) the maximum number of tables used for card playing at 
  2.9   the card club at any one time, other than tables used for 
  2.10  instruction, demonstrations, or tournament play, may not exceed 
  2.11  50; 
  2.12     (2) the opening wager by any player in any card game may 
  2.13  not exceed $15; and 
  2.14     (3) (2) except as provided in clause (3), no single wager 
  2.15  that increases the total amount staked in any card game may 
  2.16  exceed $30.; 
  2.17     (3) for games in which each player is allowed to make only 
  2.18  one wager or has invited opportunity to change that wager, no 
  2.19  wager may exceed $300; and 
  2.20     (4) wager limitations do not apply in a tournament held at 
  2.21  a card club, whether that tournament uses a player pool or any 
  2.22  other form of card playing, provided that only one such 
  2.23  tournament may be held in any given year, and such a tournament 
  2.24  may last a maximum of 14 days. 
  2.25     Sec. 4.  Minnesota Statutes 2000, section 240.30, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 10.  [REPORTING.] The class B licensee shall report 
  2.28  all income generated by the card club in an annual report to the 
  2.29  racing commission.  The report shall also account for all costs 
  2.30  of operation, taxes paid, amounts paid to the breeder's fund, 
  2.31  and net profits to the class B licensee. 
  2.32     Sec. 5.  [240.31] [COMPULSIVE GAMBLING.] 
  2.33     Parimutuel taxes paid by the class B licensee under section 
  2.34  240.15, subdivision 1, are appropriated annually to the 
  2.35  compulsive gambling program created under section 245.98, and 
  2.36  shall be transferred to that program by the commissioner of 
  3.1   finance.