Office of the Revisor of Statutes
Minnesota Session Laws - 1999, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 206-H.F.No. 1825
An act relating to gambling; allowing a class B
licensee of a class A racetrack to conduct card club
activities; expanding the use of pull-tab dispensing
machines; making technical changes; setting forth
conduct of raffles; modifying progressive bingo
prizes; specifying maximum tipboard prizes; amending
Minnesota Statutes 1998, sections 240.01, by adding
subdivisions; 240.07, subdivision 3; 240.10; 240.25,
subdivision 8; 349.151, subdivision 4b; 349.1711, by
adding a subdivision; and 349.211, subdivision 2, and
by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapters 240; and 349.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 240.01, is
amended by adding a subdivision to read:
Subd. 24. [CARD CLUB.] "Card club" means a facility or
portion of a facility where the commission has authorized a
licensee to conduct card playing.
Sec. 2. Minnesota Statutes 1998, section 240.01, is
amended by adding a subdivision to read:
Subd. 25. [CARD PLAYING.] "Card playing" means an activity
wherein individuals compete and wager with each other utilizing
a 52-unit system comprised of a series of numbers, numbered two
through ten, and the letters J, Q, K, and A, combined with four
symbols commonly known as hearts, diamonds, spades, and clubs,
wherein each individual unit constitutes the display of one of
the 52 possible combinations. The symbol commonly known as a
joker may be incorporated into the system.
Sec. 3. Minnesota Statutes 1998, section 240.01, is
amended by adding a subdivision to read:
Subd. 26. [UNBANKED.] "Unbanked" means a wagering system
or game where the individual participants compete against each
other and not against the sponsor or house. In an unbanked
system or game, the sponsor or house may deduct a percentage
from the accumulated wagers and impose other charges for hosting
the activity, but does not have an interest in the outcome of a
game. The sponsor or house may add additional prizes, awards,
or money to any game for promotional purposes.
Sec. 4. Minnesota Statutes 1998, section 240.07,
subdivision 3, is amended to read:
Subd. 3. [LICENSE ISSUANCE.] (a) If after considering the
information received from the hearing and investigations, the
commission determines that the applicant will conduct horse
racing in accordance with all applicable laws and rules, will
not adversely affect the public health, welfare, and safety,
that the license will not create a competitive situation that
will adversely affect racing and the public interest and that
the applicant is fit to sponsor and manage racing, the
commission may issue a class B license.
(b) If the commission determines that the licensee will
operate a card club in accordance with all applicable law and
rules and the applicant's approved plan of operation under
section 240.30, subdivision 6, that the operation of a card club
by the licensee will not adversely affect the public health,
welfare, and safety, and that the licensee is fit to operate a
card club, the commission may include with the class B license
an authorization to conduct a card club at the licensee's class
A racetrack as provided in section 240.30. The commission may
give an interim authorization for the operation of a card club
that is effective until the expiration of the licensee's class B
license, and may charge for the interim authorization a
proportionate amount of the additional class B license fee under
section 240.10.
(c) The license is for a period of one year.
Sec. 5. Minnesota Statutes 1998, section 240.10, is
amended to read:
240.10 [LICENSE FEES.]
The fee for a class A license is $10,000 per year. The fee
for a class B license is $100 for each assigned racing day on
which racing is actually conducted, and $50 for each day on
which simulcasting is authorized and actually takes place, plus
$10,000 per year if the class B license includes authorization
to operate a card club. The fee for a class D license is $50
for each assigned racing day on which racing is actually
conducted. Fees imposed on class B and class D licenses must be
paid to the commission at a time and in a manner as provided by
rule of the commission.
The commission shall by rule establish an annual license
fee for each occupation it licenses under section 240.08 but no
annual fee for a class C license may exceed $100.
License fee payments received must be paid by the
commission to the state treasurer for deposit in the general
fund.
Sec. 6. [240.135] [CARD CLUB REVENUE.]
(a) From the amounts received from charges authorized under
section 240.30, subdivision 4, the licensee shall set aside the
amounts specified in this section to be used for purse payments.
These amounts are in addition to the breeders fund and purse
requirements set forth elsewhere in this chapter.
(1) For amounts between zero and $6,000,000, the licensee
shall set aside ten percent to be used as purses.
(2) For amounts in excess of $6,000,000, the licensee shall
set aside 14 percent to be used as purses.
(b) From all amounts set aside under paragraph (a), the
licensee shall set aside ten percent to be deposited in the
breeders fund. The licensee and the horseperson's organization
representing the majority of horsepersons who have raced at the
racetrack during the preceding 12 months may negotiate
percentages different from those stated in this section if the
agreement is in writing and filed with the racing commission.
(c) It is the intent of the legislature that the proceeds
of the card playing activities authorized by this chapter be
used to improve the horse racing industry by improving purses.
The commission shall annually review the financial details of
card playing activities and determine if the present use of card
playing proceeds is consistent with the policy established by
this paragraph. If the commission determines that the use of
the proceeds does not comply with the policy set forth herein,
then the commission shall direct the parties to make the changes
necessary to ensure compliance. If these changes require
legislation, the commission shall make the appropriate
recommendations to the legislature.
Sec. 7. [240.136] [COMPULSIVE GAMBLING NOTICE.]
A class B licensee who has been authorized to operate a
card club must prominently post in the card club premises 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. 8. Minnesota Statutes 1998, section 240.25,
subdivision 8, is amended to read:
Subd. 8. [AGE UNDER 18.] A person under the age of 18 may
not place a bet or present a pari-mutuel ticket for payment with
an approved pari-mutuel system or participate in card playing at
a card club at a licensed racetrack.
Sec. 9. [240.30] [CARD CLUBS.]
Subdivision 1. [CARD CLUB OPERATION.] A class B licensee
conducting pari-mutuel betting on horse racing at a class A
racetrack may operate a card club at the racetrack and offer
card playing services to patrons only if the commission has
authorized the licensee to operate a card club operation under
section 240.07, subdivision 3, paragraph (b), and the commission
has approved the licensee's plan of operation under subdivision
6. The commission may withdraw its authorization for operation
of a card club at any time for a violation of a law or rule
governing card club operation.
Subd. 2. [SUPERVISION.] The authorized licensee is
responsible for conducting and supervising the card games,
providing all necessary equipment, services, and personnel, and
reimbursing the commission for costs related to card club
regulation and enforcement.
Subd. 3. [TYPE OF WAGERING.] All card club wagering
activities must be conducted in an unbanked system.
Subd. 4. [CHARGES.] The authorized licensee may charge
patrons for card playing services by deducting and retaining
money from wagers, by charging a fee based on playing time, or
by any other means authorized by the commission.
Subd. 5. [LIMITATION.] The commission shall not authorize
a licensee to operate a card club unless the licensee has
conducted at least 50 days of live racing at a class A facility
within the past 12 months or during the preceding calendar year.
Subd. 6. [PLAN OF OPERATION.] (a) The commission shall not
authorize a class B licensee to operate a card club unless the
licensee has submitted, and the commission approved, a plan of
operation for card playing activities. The plan must set forth
all necessary details for conducting card playing activities,
including, among other things:
(1) specifying and defining all card games to be played,
including all governing aspects of each game;
(2) time and location of card playing activities;
(3) amount and method by which participants will be charged
for card playing services;
(4) arrangements to ensure the security of card playing
activities;
(5) designation of all licensed employees of the licensee
who undertake supervisory positions related to card playing
activities;
(6) internal control systems for card playing activities;
and
(7) a plan for the training of card club personnel in
identification of problem gamblers and appropriate action to
prevent or control problem gambling.
(b) The licensee must prepare and make available to all
customers a written manual that covers all portions of the
current plan of operation. The licensee must also publish, in
pamphlet form, a condensed and comprehensive version of the
manual and make it available to all customers.
Subd. 7. [AMENDMENTS TO PLAN; VIOLATIONS; RELATION TO
OTHER LAWS.] (a) The licensee may amend the plan of operation
only with the commission's approval. The commission may
withdraw its approval of a plan of operation.
(b) Card club activities are deemed to be relevant to the
integrity of horse racing activities in Minnesota for purposes
of sections 240.03; 240.06, subdivision 7; 240.08; and 240.27,
subdivision 1.
(c) A violation of a law or rule relating to card club
operation or a violation of an approved plan of operation is
deemed to be a violation of law or rule for purposes of section
240.22.
(d) A violation of an approved plan of operation is deemed
to be a violation of a rule of the commission for purposes of
section 240.26, subdivision 3.
(e) Card playing at a card club is deemed to be a bet at a
licensed racetrack for purposes of section 240.28, subdivision 2.
Subd. 8. [LIMITATIONS.] The commission may not approve any
plan of operation under subdivision 6 that exceeds any of the
following limitations:
(1) the maximum number of tables used for card playing at
the card club at any one time may not exceed 50;
(2) the opening wager by any player in any card game may
not exceed $15; and
(3) no single wager that increases the total amount staked
in any card game may exceed $30.
Subd. 9. [REIMBURSEMENT TO COMMISSION.] The commission
shall require that the licensee reimburse it for the
commission's actual costs, including personnel costs, of
regulating the card club. Amounts received under this
subdivision must be deposited as provided in section 240.155,
subdivision 1.
Sec. 10. Minnesota Statutes 1998, section 349.151,
subdivision 4b, is amended to read:
Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a)
The board may by rule authorize but not require the use of
pull-tab dispensing devices.
(b) Rules adopted under paragraph (a):
(1) must limit the number of pull-tab dispensing devices on
any permitted premises to three;
(2) must limit the use of pull-tab dispensing devices to a
permitted premises which is (i) a licensed premises for on-sales
of intoxicating liquor or 3.2 percent malt beverages; or (ii) a
licensed bingo hall that allows gambling only by persons 18
years or older; and
(3) must prohibit the use of pull-tab dispensing devices at
any licensed premises where pull-tabs are sold other than
through a pull-tab dispensing device by an employee of the
organization who is also the lessor or an employee of the lessor.
(c) Notwithstanding rules adopted under paragraph (b),
pull-tab dispensing devices may be used in establishments
licensed for the off-sale of intoxicating liquor, other than
drugstores and general food stores licensed under section
340A.405, subdivision 1.
(d) The director may charge a manufacturer a fee of up to
$5,000 per pull-tab dispensing device to cover the costs of
services provided by an independent testing laboratory to
perform testing and analysis of pull-tab dispensing devices.
The director shall deposit in a separate account in the state
treasury all money the director receives as reimbursement for
the costs of services provided by independent testing
laboratories that have entered into contracts with the state to
perform testing and analysis of pull-tab dispensing devices.
Money in the account is appropriated to the director to pay the
costs of services under those contracts.
Sec. 11. Minnesota Statutes 1998, section 349.1711, is
amended by adding a subdivision to read:
Subd. 4. [TIPBOARD RULES.] The board may by rule permit
tipboard games with multiple seals. The board may also adopt
rules for cumulative or carryover tipboard prizes.
Sec. 12. [349.173] [CONDUCT OF RAFFLES.]
Raffle tickets at a minimum must list the three most
expensive prizes to be awarded. If additional prizes will be
awarded that are not contained on the raffle ticket, the raffle
ticket must contain the statement "A complete list of additional
prizes is available upon request." Notwithstanding section
349.12, subdivision 33, raffles conducted under the exemptions
in section 349.166 may use tickets that contain only the
sequential number of the raffle ticket and no other information
if the organization makes a list of prizes and a statement of
other relevant information required by rule available to persons
purchasing tickets and if tickets are only sold at the event and
on the date when the tickets are sold.
Sec. 13. Minnesota Statutes 1998, section 349.211,
subdivision 2, is amended to read:
Subd. 2. [PROGRESSIVE BINGO GAMES.] A prize of up to
$2,000 may be awarded for a progressive bingo game, including a
cover-all game. The prize for a progressive bingo game may
start at $300 and be increased by up to $100 for each occasion
during which the progressive bingo game is played. A
consolation prize of up to $100 $200 for a progressive bingo
game may be awarded in each occasion during which the
progressive bingo game is played and the accumulated prize is
not won. The total amount awarded in progressive bingo game
prizes in any calendar year may not exceed $36,000.
Sec. 14. Minnesota Statutes 1998, section 349.211, is
amended by adding a subdivision to read:
Subd. 2c. [TIPBOARD PRIZES.] The maximum prize which may
be awarded for a tipboard ticket is $500, not including any
cumulative or carryover prizes. Cumulative or carryover prizes
in tipboard games shall not exceed $2,500.
Sec. 15. [EFFECTIVE DATE.]
Sections 1 to 13 are effective the day following final
enactment. Section 14 is effective the day following final
approval of the rules established in section 11.
Presented to the governor May 21, 1999
Signed by the governor May 24, 1999, 9:51 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes