SF 5192
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/22/2026 09:03 a.m.
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A bill for an act
relating to local government; permitting townships to regulate lawful gambling;
amending Minnesota Statutes 2024, sections 349.16, subdivision 8; 349.213.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 349.16, subdivision 8, is amended to read:
Subd. 8.
Local investigation fee.
A statutory or home rule charter citynew text begin , township,new text end or
county may assess an annual investigation fee on organizations applying for an initial
premises permit or conducting lawful gambling at a site within its jurisdiction under section
349.213, subdivision 2. An investigation fee may not exceed the following limits:
(1) for cities of the first class, $500;
(2) for cities of the second class, $250;
(3) for all other citiesnew text begin and for townshipsnew text end , $100; and
(4) for counties, $375.
Sec. 2.
Minnesota Statutes 2024, section 349.213, is amended to read:
349.213 LOCAL AUTHORITY.
Subdivision 1.
Local regulation.
(a) A statutory or home rule citynew text begin , township,new text end or county
has the authority to adopt more stringent regulation of lawful gambling within its jurisdiction,
including the prohibition of lawful gambling.
(b) A statutory or home rule citynew text begin , township,new text end or county may require a permit for the
conduct of gambling exempt from licensing under section 349.166. The fee for a permit
issued under section 349.166 may not exceed $100.
(c) The authority granted by this subdivision does not include the authority to require a
license or fee for a license or permit to conduct gambling by organizations, gambling
managers, gambling employees, or sales by distributors or linked bingo game providers
licensed by or registered with the board.
(d) The authority granted by this subdivision does not include the authority to require
an organization to make specific expenditures of more than ten percent per year from its
net profits derived from lawful gambling.
(e) For the purposes of this subdivision, net profits are gross profits less amounts
expended for allowable expenses and paid in taxes assessed on lawful gambling.
(f) A statutory or home rule charter citynew text begin , township,new text end or deleted text begin adeleted text end county may not require an
organization conducting lawful gambling within its jurisdiction to make an expenditure to
the citynew text begin , township,new text end or county as a condition to operate within that citynew text begin , township,new text end or county,
except:
(1) as authorized under section 349.16, subdivision 8, or 297E.02; or
(2) by an ordinance requirement that such organizations must contribute ten percent per
year of their net profits derived from lawful gambling conducted at premises within the
city'snew text begin , township's,new text end or county's jurisdiction to a fund administered and regulated by the
responsible local unit of government without cost to such fund. The funds must be disbursed
by the local unit of government for (i) charitable contributions as defined in section 349.12,
subdivision 7a, or (ii) police, fire, and other emergency or public safety-related services,
equipment, and training, excluding pension obligations. A contribution made by an
organization is not considered an expenditure to the citynew text begin , township,new text end or county nor a tax
under section 297E.02, and is valid and lawful. A citynew text begin , township,new text end or county receiving and
making expenditures authorized under this clause must by March 15 of each year file a
report with the board, on a form the board prescribes, that lists all such revenues collected,
interest received on fund balances, and expenditures for the previous calendar year. A home
rule or statutory citynew text begin , township,new text end or county making charitable contributions authorized under
this clause must acknowledge financial contributions of organizations conducting lawful
gambling to the community and to the recipients of the funds. This may occur in
communications about the funds as well as in the distribution of funds.
(g) A statutory or home rule citynew text begin , township,new text end or county may by ordinance require that a
licensed organization conducting lawful gambling within its jurisdiction expend all or a
portion of its expenditures for lawful purposes on lawful purposes conducted or located
within the city'snew text begin , township's,new text end or county's trade area. Such an ordinance must be limited to
lawful purpose expenditures of gross profits derived from lawful gambling conducted at
premises within the city'snew text begin , township's,new text end or county's jurisdiction, must define the city'snew text begin ,
township's,new text end or county's trade area, and must specify the percentage of lawful purpose
expenditures which must be expended within the trade area. A trade area defined by a citynew text begin
or townshipnew text end under this subdivision must include each city and township contiguous to the
defining citynew text begin or townshipnew text end .
(h) A more stringent regulation or prohibition of lawful gambling adopted by a political
subdivision under this subdivision must apply equally to all forms of lawful gambling within
the jurisdiction of the political subdivision, except a political subdivision may prohibit the
use of paddlewheels.
Subd. 2.
Local approval.
The board may not issue an initial premises permit unless
approval is received from:
(1) the city council of the statutory or home rule city in which the organization's premises
is located; deleted text begin or
deleted text end
new text begin
(2) the township board of the township where the premises is located; or
new text end
deleted text begin (2)deleted text end new text begin (3)new text end the county board of the county where the premises is located.
The organization must submit a resolution from the city councilnew text begin , township board,new text end or county
board approving the premises permit. The resolution must have been adopted within 90
days of the date of application for the new permit.
Subd. 3.
Local gambling tax.
A statutory or home rule charter city that has one or more
licensed organizations operating lawful gambling, new text begin a township that has one or more licensed
organizations operating lawful gambling, new text end and a county that has one or more licensed
organizations outside incorporated areas operating lawful gambling, may impose a local
gambling tax on each licensed organization within the city'snew text begin , township's,new text end or county's
jurisdiction. The tax may be imposed only if the amount to be received by the citynew text begin , township,new text end
or county is necessary to cover the costs incurred by the citynew text begin , township,new text end or county to regulate
lawful gambling. The tax imposed by this subdivision may not exceed three percent per
year of the gross receipts of a licensed organization from all lawful gambling less prizes
actually paid out by the organization. A citynew text begin , township,new text end or county may not use money
collected under this subdivision for any purpose other than to regulate lawful gambling. All
documents pertaining to site inspections, fines, penalties, or other corrective action involving
local lawful gambling regulation must be shared with the board within 30 days of filing at
the citynew text begin , township,new text end or county of jurisdiction. A tax imposed under this subdivision is in lieu
of all other local taxes and local investigation fees on lawful gambling. A citynew text begin , township,new text end
or county that imposes a tax under this subdivision shall annually, by March 15, file a report
with the board in a form prescribed by the board showing (1) the amount of revenue produced
by the tax during the preceding calendar year, and (2) the use of the proceeds of the tax.