HF 2984

as introduced - 86th Legislature (2009 - 2010) Posted on 02/15/2010 10:16am

A bill for an act
relating to gambling; authorizing the State Lottery to offer games involving
sports wagering and sports wagering pools; authorizing sports bookmaking under
licenses issued by the director of the State Lottery; imposing a tax on licensed
sports bookmaking; amending Minnesota Statutes 2008, sections 349A.01, by
adding a subdivision; 349A.02, subdivision 3; 349A.04; 349A.06, subdivisions 1,
5, 6, 7, 8, 11; 349A.08; 349A.09; 349A.10, subdivision 4; 349A.11, subdivision
1; 349A.12; 349A.13; 609.75, subdivision 7; proposing coding for new law
in Minnesota Statutes, chapter 349A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 349A.01, is amended by adding a
subdivision to read:

new text begin Subd. 14. new text end

new text begin Sports games. new text end

new text begin "Sports games" are wagering pools and sports wagering
systems in which winning chances or wagers are determined by the outcome of
professional sports events.
new text end

Sec. 2.

Minnesota Statutes 2008, section 349A.02, subdivision 3, is amended to read:

Subd. 3.

Powers and duties.

In operating the lottery the director shall exercise
the following powers and duties:

(1) adopt rules and game procedures new text begin , including game procedures for sports games new text end ;

(2) issue lottery retailer contracts and rule on appeals of decisions relating to those
contracts;

(3) enter into lottery procurement contracts for the provision of goods and services
to the lottery;

(4) employ personnel as are required to operate the lottery;

(5) enter into written agreements with one or more government-authorized lotteries,
or with an organization created and controlled by those lotteries, for the operation,
marketing, and promotion of a joint lottery;

(6) adopt and publish advertising and promotional materials consistent with section
349A.09; and

(7) take all necessary steps to ensure the integrity of, and public confidence in, the
State Lottery.

Sec. 3.

Minnesota Statutes 2008, section 349A.04, is amended to read:

349A.04 LOTTERY GAME PROCEDURES.

The director may adopt game procedures governing the following elements of the
lottery:

(1) lottery games new text begin , including sports games new text end ;

(2) ticket prices;

(3) number and size of prizes;

(4) methods of selecting winning tickets new text begin and determining winners of sports games new text end ;
and

(5) frequency and method of drawings.

The adoption of lottery game procedures is not subject to chapter 14.

Sec. 4.

Minnesota Statutes 2008, section 349A.06, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

The director shall sell tickets for the lottery through
lottery retailers with whom the director contracts. Contracts under this section are not
subject to the provisions of sections 16C.03, 16C.05, 16C.06, 16C.08, 16C.09, and
16C.10, and are valid for a period of one year. The director may permit a retailer to sell
tickets new text begin and participate in the conduct of sports games new text end at more than one business location
under a contract entered into under this section.

Sec. 5.

Minnesota Statutes 2008, section 349A.06, subdivision 5, is amended to read:

Subd. 5.

Restrictions on lottery retailers.

(a) A lottery retailer may sell lottery
tickets new text begin and participate in the conduct of sports games new text end only on the premises described
in the contract.

(b) A lottery retailer must prominently display a certificate issued by the director on
the premises where lottery tickets will be sold new text begin and sports games conducted new text end .

(c) A lottery retailer must keep a complete set of books of account, correspondence,
and all other records necessary to show fully the retailer's lottery transactions, and make
them available for inspection by employees of the lottery at all times during business
hours. The director may require a lottery retailer to furnish information as the director
deems necessary to carry out the purposes of this chapter, and may require an audit to be
made of the books of account and records. The director may select an auditor to perform
the audit and may require the retailer to pay the cost of the audit. The auditor has the same
right of access to the books of account, correspondence, and other records as is given to
employees of the lottery.

(d) A contract issued under this section may not be transferred or assigned.

(e) The director shall require that lottery tickets may be sold by retailers only for
cash.

(f) A lottery retailer must prominently post at the point of sale of lottery tickets new text begin and
location where sports games are conducted new text end , in a manner approved by the commissioner
of human services, the toll-free telephone number established by the commissioner of
human services in connection with the compulsive gambling program established under
section 245.98.

Sec. 6.

Minnesota Statutes 2008, section 349A.06, subdivision 6, is amended to read:

Subd. 6.

Retention by retailers.

The director may by rule provide for:

(1) amounts which a lottery retailer may retain from gross receipts from the sale of
lottery tickets new text begin and from sports games new text end in order to pay prizes to holders of winning tickets new text begin
and make payments on winning wagers new text end ; and

(2) amounts which a lottery retailer may retain from gross receipts deleted text begin from the sale of
lottery tickets deleted text end as a commission.

Sec. 7.

Minnesota Statutes 2008, section 349A.06, subdivision 7, is amended to read:

Subd. 7.

Retailer rental payments.

If a lottery retailer's rental payments for the
business premises are contractually computed, in whole or in part, on the basis of a
percentage of retail sales, and the computation of retail sales is not explicitly defined to
include the sale of lottery tickets new text begin and wagering in sports games new text end , the compensation retained
by the sales agent for the sale of lottery tickets new text begin and from participation in sports games new text end shall
be considered the amount of the retail sale for purposes of computing the rental payments.

Sec. 8.

Minnesota Statutes 2008, section 349A.06, subdivision 8, is amended to read:

Subd. 8.

Proceeds of sales.

All proceeds from the sale of lottery tickets new text begin and from
the participation in sports games new text end received by a lottery retailer constitute a trust fund until
paid to the director. The lottery retailer is personally liable for all proceeds.

Sec. 9.

Minnesota Statutes 2008, section 349A.06, subdivision 11, is amended to read:

Subd. 11.

Cancellation, suspension, and refusal to renew contracts or locations.

(a) The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer
from selling lottery tickets new text begin or participating in the conduct of sports games new text end at a business
location who:

(1) has been convicted of a felony or gross misdemeanor;

(2) has committed fraud, misrepresentation, or deceit;

(3) has provided false or misleading information to the lottery; or

(4) has acted in a manner prejudicial to public confidence in the integrity of the
lottery.

(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
retailer or prohibit a lottery retailer from selling lottery tickets new text begin or participating in the
conduct of sports games new text end at a business location who:

(1) changes business location;

(2) fails to account for lottery tickets received deleted text begin or deleted text end new text begin , new text end the proceeds from tickets sold new text begin , or
the proceeds from sports games new text end ;

(3) fails to remit funds to the director in accordance with the director's rules;

(4) violates a law or a rule or order of the director;

(5) fails to comply with any of the terms in the lottery retailer's contract;

(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;

(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
continuation as a lottery retailer; or

(8) has violated section 340A.503, subdivision 2, clause (1), two or more times
within a two-year period.

(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's
contract or prohibit a lottery retailer from selling lottery tickets new text begin or participating in the
conduct of sports games new text end at a business location if there is a material change in any of the
factors considered by the director under subdivision 2.

(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery
retailer from selling lottery tickets new text begin or participating in the conduct of sports games new text end at a
business location under this subdivision is a contested case under sections 14.57 to 14.69
and is in addition to any criminal penalties provided for a violation of law or rule.

(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
retailer from selling lottery tickets at a business location without notice for any of the
reasons specified in this subdivision provided that a hearing is conducted within seven days
after a request for a hearing is made by a lottery retailer. Within 20 days after receiving the
administrative law judge's report, the director shall issue an order vacating the temporary
suspension or prohibition or making any other appropriate order. If no hearing is requested
within 30 days of the temporary suspension or prohibition taking effect, the suspension or
prohibition becomes permanent unless the director vacates or modifies the order.

Sec. 10.

Minnesota Statutes 2008, section 349A.08, is amended to read:

349A.08 LOTTERY PRIZES.

Subdivision 1.

Agreement by players.

A person who buys a lottery ticket new text begin or
participates in a sports game new text end agrees to be bound by the rules applicable to the particular
lottery game for which the ticket is purchased new text begin or to the sports game entered new text end . The player
acknowledges that the determination of whether a ticket new text begin or wager new text end is a valid winning
ticket new text begin or wager new text end is subject to the rules of the director, claims procedures established by
the director for that game, and any confidential or public validation tests established by
the director for that game.

Subd. 2.

Prizes not assignable.

A prize new text begin or sports game payout on a winning wager new text end
in the state lottery is not assignable except as provided in subdivision 3 and except that:

(1) if a prize winner dies before the prize new text begin or payout new text end is paid, the director shall pay the
prize new text begin or payout new text end to the prize winner's estate; and

(2) the director may pay a prize new text begin or payout new text end to a person other than the winner of that
prize new text begin or payout new text end under an appropriate court order.

Subd. 3.

Prizes won by persons under age 18.

The following provisions govern
the payment of a lottery prize new text begin and sports game payout new text end to a person under age 18:

(1) if the prize new text begin or payout new text end is less than $5,000, the director may give a draft, payable to
the order of the person under age 18, to the person's parents, custodial parent if one parent
has custody, guardian, or other adult member of the person's family; and

(2) if the prize new text begin or payout new text end is $5,000 or more, the director shall deposit the prize
with the district court and section 540.08 applies to the investment and distribution
of the money.

Subd. 4.

Discharge of liability.

The payment of a prize new text begin or sports game payout new text end by
the director discharges the director and the state of all liability for the prize.

Subd. 5.

Payment; unclaimed prizes.

A prize in the state lottery new text begin and payout from a
sports game new text end must be claimed by the winner within one year of new text begin (1) new text end the date of the drawing
at which the prize was awarded or the last day sales were authorized for a game where
a prize was determined in a manner other than by means of a drawing new text begin , or (2) the date
on which the sports game was entered, whichever applies new text end . If a valid claim is not made
for a prize new text begin or payout new text end payable directly by the lottery by the end of this period, the prize
money new text begin or payout new text end is considered unclaimed and the winner of the prize new text begin or payout new text end shall have
no further claim to the prize. A prize new text begin or payout new text end won by a person who purchased the
winning ticket new text begin or entered the sports game new text end in violation of section 349A.12, subdivision 1,
or won by a person ineligible to be awarded a prize new text begin or payout new text end under subdivision 7 must
be treated as an unclaimed prize new text begin or payout new text end under this section. The director must transfer
all unclaimed prize new text begin and payout new text end money at the end of each fiscal year from the lottery cash
flow account to the general fund.

Subd. 6.

Installment payments.

If the director decides to pay all or part of a prize new text begin
or sports game payout new text end in the form of installments over a period of years, the director shall
provide for the payment of all installments by:

(1) entering into a contract with a financially responsible person or firm or by
purchasing an annuity to provide for the payment of the installments; or

(2) establishing and maintaining as a separate and independent fund outside the
state treasury a reserve account with sufficient funds for the payment of the installments
as they become due.

Subd. 7.

Payments prohibited.

(a) No prize new text begin or sports game payout new text end may be paid to
the director or an employee of the lottery, or a member of their families residing in the
same household of the member, director, or employee. No prize new text begin or payout new text end may be paid
to an officer or employee of a vendor which at the time the game or drawing was being
conducted was involved with providing goods or services to the lottery under a lottery
procurement contract.

(b) No prize may be paid for a stolen, altered, or fraudulent ticket.

Subd. 8.

Withholding of delinquent state taxes or other debts.

The director shall
report the name, address, and Social Security number of each winner of a lottery prize new text begin or
sports game payout new text end of $600 or more to the Department of Revenue to determine whether
the person who has won the prize is delinquent in payment of state taxes or owes a debt
as defined in section 270A.03, subdivision 5. If the person is delinquent in payment of
state taxes or owes a debt as defined in section 270A.03, subdivision 5, the director shall
withhold the delinquent amount from the person's prize for remittance to the Department
of Revenue for payment of the delinquent taxes or distribution to a claimant agency in
accordance with chapter 270A. Section 270A.10 applies to the priority of claims.

Subd. 9.

Privacy.

(a) The phone number and street address of a winner of a lottery
prize new text begin or sports game payout new text end is private data on individuals under chapter 13.

(b) Data on an individual, including name, physical and electronic address, and
telephone number, that are given to the lottery for direct marketing purposes are private
data on individuals as defined in section 13.02. For purposes of this subdivision, "direct
marketing" means marketing conducted by the lottery directly with the consumer.

Sec. 11.

Minnesota Statutes 2008, section 349A.09, is amended to read:

349A.09 LOTTERY ADVERTISING.

Subdivision 1.

Odds; required information.

The director shall include on each
brochure, pamphlet, booklet, or other similar material the director publishes to promote
or explain any lottery game new text begin or sports game new text end , a prominent and clear statement of the
approximate odds of winning each prize offered in that lottery game new text begin or sports game new text end .
Each lottery retailer must post prominently at or near the point of ticket sale new text begin or point of
entry into a sports game new text end a notice or notices printed and provided by the director of the
approximate odds of winning each prize in each game for which the lottery retailer sells
tickets new text begin and each sports game which the retailer conducts on behalf of the director new text end .

Subd. 2.

Content of advertising.

(a) Advertising and promotional materials for
the lottery new text begin , including advertising and promotional materials for sports games, new text end adopted or
published by the director must be consistent with the dignity of the state and may only:

(1) present information on how lottery games new text begin or sports games new text end are played, prizes new text begin or
payouts new text end offered, where and how tickets may be purchased new text begin or sports games entered new text end , when new text begin
lottery game new text end drawings are held, and odds on the games advertised;

(2) identify state programs supported by lottery net revenues;

(3) present the lottery new text begin or sports game new text end as a form of entertainment; or

(4) state the winning numbers or identity of winners of lottery prizes new text begin or sports game
payouts new text end .

(b) The director may not adopt or publish any advertising for the lottery which:

(1) presents directly or indirectly any lottery game new text begin or sports game new text end as a potential
means of relieving any person's financial difficulties;

(2) is specifically targeted with the intent to exploit a person, a specific group or
economic class of people, or a religious holiday by use of a religious theme or symbol;

(3) presents the purchase of a lottery ticket new text begin or participation in a sports game new text end as a
financial investment or a way to achieve financial security;

(4) uses the name or picture of a current elected state official to promote a lottery new text begin
or sports new text end game;

(5) exhorts the public to bet by directly or indirectly misrepresenting a person's
chance of winning a prize new text begin or a payout new text end ; or

(6) denigrates a person who does not buy a lottery ticket new text begin or participate in a sports
game, new text end or unduly praises a person who does buy a ticket new text begin or participates in a sports game new text end .

Subd. 3.

Prizes; required information.

The director must include, in any
publication or print advertising which refers to a prize new text begin or payout new text end which is or may be
paid in installments, a statement to the effect that the prize new text begin or payout new text end will be or may
be paid in installments.

Sec. 12.

Minnesota Statutes 2008, section 349A.10, subdivision 4, is amended to read:

Subd. 4.

Deposit of receipts.

(a) The director may require lottery retailers to:

(1) deposit in a separate account to the credit of the lottery fund, in banks designated
by the director, all money received by the lottery retailer from the sale of lottery tickets new text begin
and participation in sports games new text end , less money retained as the lottery retailer's commission
and for payment of prizes new text begin and payouts new text end ;

(2) file with the director reports of the lottery retailer's receipts and transactions in
ticket sales new text begin and sports game wagers new text end in a form that the director prescribes; and

(3) allow money deposited by the lottery retailer from the sale of lottery tickets new text begin
and participation in sports games new text end to be transferred to the lottery through electronic fund
transfer.

(b) The director may make arrangements for any person, including a financial
institution, to perform functions, activities, or services in connection with the receipt and
distribution of lottery revenues.

(c) A lottery retailer who fails to pay any money due to the director within the time
prescribed by the director shall pay interest on the amount owed at the rate determined by
rule.

Sec. 13.

Minnesota Statutes 2008, section 349A.11, subdivision 1, is amended to read:

Subdivision 1.

Lottery ticket; retailer.

The director, an employee of the lottery,
a member of the immediate family of the director or employee residing in the same
household may not:

(1) purchase a lottery ticket new text begin or participate in a sports game new text end ; or

(2) have any personal pecuniary interest in any vendor holding a lottery procurement
contract, or in any lottery retailer; or

(3) receive any gift, gratuity, or other thing of value, excluding food or beverage,
from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in
excess of $100 in any calendar year.

Sec. 14.

Minnesota Statutes 2008, section 349A.12, is amended to read:

349A.12 PROHIBITED ACTS.

Subdivision 1.

Purchase by minors.

A person under the age of 18 years may not
buy or redeem for a prize a ticket in the state lottery new text begin , or participate in a sports game new text end .

Subd. 2.

Sale to minors.

A lottery retailer may not sell and a lottery retailer or other
person may not new text begin (1) new text end furnish or redeem for a prize a ticket in the state lottery to any person
under the age of 18 years new text begin , (2) allow a person under the age of 18 years to participate in
a sports game, or (3) make a sports game payout to a person under the age of 18 years new text end .
It is an affirmative defense to a charge under this subdivision for the lottery retailer or
other person to prove by a preponderance of the evidence that the lottery retailer or other
person reasonably and in good faith relied upon representation of proof of age described in
section 340A.503, subdivision 6, in making the sale or furnishing or redeeming the ticket new text begin ,
or allowing participation in or making a payout for a sports game new text end .

Subd. 3.

Prohibited sales.

(a) A person other than a lottery retailer may not sell a
ticket in the state lottery new text begin or participate in the conduct of a sports game new text end .

(b) A lottery retailer may not sell a ticket for a price other than the price set by the
director.

Subd. 4.

Lottery retailers and vendors.

A person who is a lottery retailer, or is
applying to be a lottery retailer, a person applying for a contract with the director, or a
person under contract with the director to supply goods or services to lottery may not pay,
give, or make any economic opportunity, gift, loan, gratuity, special discount, favor,
hospitality, or service, excluding food or beverage, having an aggregate value of over
$100 in any calendar year to the director, employee of the lottery, or to a member of the
immediate family residing in the same household as that person.

Subd. 5.

Exceptions.

Nothing in this chapter prohibits giving a state lottery ticket new text begin
or a wager in a sports game new text end as a gift, provided that a state lottery ticket new text begin or sports game
wager new text end may not be given to a person under the age of 18.

Subd. 6.

Violations.

A violation of subdivision 1 or 2 or a rule adopted by the
director is a misdemeanor. A violation of subdivision 3 or 4 is a gross misdemeanor.

Sec. 15.

Minnesota Statutes 2008, section 349A.13, is amended to read:

349A.13 RESTRICTIONS.

Nothing in this chapter:

(1) authorizes the director to conduct a lottery game or contest new text begin , excluding sports
games, new text end the winner or winners of which are determined by the result of a sporting event
other than a horse race conducted under chapter 240;

(2) authorizes the director to install or operate a lottery device operated by coin or
currency which when operated determines the winner of a game; and

(3) authorizes the director to sell pull-tabs as defined under section 349.12,
subdivision 32.

Sec. 16.

new text begin [349A.19] SPORTS BOOKMAKING LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin Notwithstanding sections 609.755 and , a person
may engage in sports bookmaking if the person holds a license from the director under
this section. A license under this section authorizes the licensee to accept wagers on
professional sports events.
new text end

new text begin Subd. 2. new text end

new text begin License application. new text end

new text begin An application for a license under this section
must be made to the director on a form the director prescribes. The application must be
accompanied by an affidavit of qualification that the applicant has not (1) been convicted
within the previous five years of a felony or gross misdemeanor, a crime involving fraud
or misrepresentation, or a gambling-related offense, or (2) been determined to have
violated a rule of the director, the racing commission, or the gambling control board, or a
gambling-related regulatory body in another state.
new text end

new text begin Subd. 3. new text end

new text begin Investigation. new text end

new text begin The director shall investigate each applicant for a license
under this section to the extent the director deems necessary, and may request the assistance
of and may reimburse the division of alcohol and gambling enforcement in investigating
applicants. The director may require by rule that an applicant be fingerprinted or furnish
the applicant's fingerprints. The director may charge an applicant an investigation fee to
cover the cost of the investigation, and shall from this fee reimburse the division of alcohol
and gambling enforcement for its share of the cost of the investigation. The director has
access to all criminal history data compiled by the division of alcohol and gambling
enforcement on licensees and applicants under this section. The director may cooperate
with national and international organizations and agencies in conducting investigations.
new text end

new text begin Subd. 4. new text end

new text begin Issuance. new text end

new text begin If the director determines that an applicant is not disqualified
under subdivision 3 and that licensing the applicant is consistent with the public health,
welfare, and safety, the director shall issue a license to an applicant or renew a license
already issued. Licenses issued under this subdivision are valid for one year from the
date of issuance.
new text end

new text begin Subd. 5. new text end

new text begin Revocation; refusal to renew. new text end

new text begin (a) The director may revoke or refuse to
renew a license under this section for (1) conduct, including a violation of a law or rule,
that the director determines adversely affects the integrity of sports bookmaking, and (2)
intentionally making a false statement in a license application. The director may suspend a
license for a period of time the director determines for a violation of law or rule.
new text end

new text begin (b) A license revocation or suspension under this subdivision for more than 90 days
is a contested case under sections to of the Administrative Procedure Act and
is in addition to criminal penalties imposed for a violation of law or rule. The director
may summarily suspend a license for more than 90 days prior to a contested case hearing
where it is necessary to ensure the integrity of sports bookmaking. A contested case
hearing must be held within 20 days of the summary suspension and the administrative
law judge's report must be issued within 20 days from the close of the hearing record. In
all cases involving summary suspension the director must issue its final decision within 30
days from receipt of the report of the administrative law judge and subsequent exceptions
and argument under section .
new text end

new text begin Subd. 6. new text end

new text begin License fee. new text end

new text begin The director shall set the fee for a license under this section
in an amount necessary to defray all expenses of the director in issuing and enforcing
the terms of the license.
new text end

new text begin Subd. 7. new text end

new text begin Bond. new text end

new text begin The director may require that a licensee under this section post a
bond, securities, or an irrevocable letter of credit, in an amount as the director deems
necessary, to protect the integrity of sports bookmaking and the interests of persons
making wagers with the licensee. If securities are deposited or an irrevocable letter of
credit filed, the securities or letter of credit must be of a type or in the form provided under
section new text begin 349A.07, subdivision 5 new text end , paragraphs (b) and (c).
new text end

new text begin Subd. 8. new text end

new text begin Nonapplicability. new text end

new text begin Sections , , 609.755, , and
do not apply to activities licensed under this section.
new text end

Sec. 17.

new text begin [349A.20] LICENSED SPORTS BOOKMAKING TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition of tax. new text end

new text begin An excise tax is imposed on the gross revenues of
persons licensed under section 349A.19. The rate of the tax is:
new text end

new text begin (1) For a person with gross revenues of $50,000 or less in the month being reported,
three percent of gross revenues.
new text end

new text begin (2) For a person with gross revenues of more than $50,000 but less than $134,000 in
the month being reported, four percent of gross revenues.
new text end

new text begin (3) For a person with gross revenues of $134,000 or more in the month being
reported, 6.25 percent of gross revenues.
new text end

new text begin Subd. 2. new text end

new text begin Gross revenues defined. new text end

new text begin For purposes of this section, "gross revenues"
means the total value of all wagers accepted by a person licensed under section ,
less amounts paid out by those persons as payouts on winning wagers. In determining
the value or amount of any wager for purposes of this section, all charges incident to
the placing of the wager must be included.
new text end

new text begin Subd. 3. new text end

new text begin Tax returns. new text end

new text begin A person licensed under section 349A.19 must file monthly
tax returns with the commissioner of revenue, in the form required by the commissioner,
of all bookmaking activity, and shall include information on all bets recorded, accepted,
forwarded, and placed. The returns must be filed on or before the 20th day of the month
following the month in which the bets reported were recorded, accepted, forwarded, or
placed. The tax imposed by this section is due and payable at the time when the returns
are filed.
new text end

new text begin Subd. 4. new text end

new text begin Deposit of revenue. new text end

new text begin Net proceeds from the tax imposed under this section
must be deposited in the general fund.
new text end

Sec. 18.

Minnesota Statutes 2008, section 609.75, subdivision 7, is amended to read:

Subd. 7.

Sports bookmaking.

Sports bookmaking is the activity of intentionally
receiving, recording or forwarding within any 30-day period more than five bets, or offers
to bet, that total more than $2,500 on any one or more sporting events. new text begin For purposes of
this chapter and chapter 297E, "sports bookmaking" does not include activities licensed
under section 349A.19.
new text end

Sec. 19. new text begin REPORT.
new text end

new text begin The director of the State Lottery shall report to the legislature by January 1, 2012,
on the present status and future prospects of legal and illegal sports bookmaking in
Minnesota, and recommended changes in this act.
new text end

Sec. 20. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 19 are effective July 1, 2010.
new text end