Key: (1) language to be deleted (2) new language
An act
relating to gambling; making clarifying, conforming, and technical changes relating to lawful gambling; modifying games, prizes, and other provisions regulating the conduct of lawful gambling; prohibiting director of State Lottery from offering casino-style games;
amending Minnesota Statutes 2014, sections 349.12, subdivision 18, by adding subdivisions; 349.16, by adding a subdivision; 349.163, by adding subdivisions; 349.1635, subdivision 4; 349.17, subdivisions 5, 6, 9; 349.1711, subdivisions 1, 2; 349.1721, subdivision 4; 349.173; 349.181, subdivision 3; 349.19, subdivisions 2, 10, 11; 349.211, subdivisions 1, 1a, 2, by adding a subdivision; 349A.13; repealing Minnesota Statutes 2014, sections 349.169; 349.19, subdivision 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
new text begin "Continuation raffle" means the selection of winning entries from previously selected winning entries until a final selection of winning entries is determined and no additional consideration is required beyond the initial consideration to enter the raffle. A continuation raffle may be conducted over a period of time but cannot exceed 12 months. new text end
"Gambling equipment" means gambling equipment that is either disposable or permanent gambling equipment.
(a) Disposable gambling equipment includes the following:
(1) bingo hard cards or paper sheets, including linked bingo paper sheets;
(2) paper and electronic pull-tabs;
(3) jar tickets;
(4) paddle tickets and paddle ticket cards;
(5) tipboards and tipboard tickets; deleted text begin anddeleted text end
(6) promotional tickets that mimic a pull-tab or tipboardnew text begin ;new text end
new text begin (7) raffle boards; and new text end
new text begin (8) a disposable sealed placard, containing all 75 randomly placed bingo letter and number combinations, that, when opened, is used to select the bingo numbers in a single game of bingonew text end .
(b) Permanent gambling equipment includes the following:
(1) devices for selecting bingo numbers;
(2) electronic bingo devices;
(3) electronic pull-tab devices;
(4) pull-tab dispensing devices;
(5) programmable electronic devices that have no effect on the outcome of a game and are used to provide a visual or auditory enhancement of a game;
(6) paddlewheels; and
(7) paddlewheel tables.
new text begin "Hot-ball bingo prize" is an additional prize awarded to a winning bingo face for which the last bingo number called in the bingo game matches a previously designated bingo number announced to all players immediately prior to the beginning of the bingo game or the bingo occasion. All players participating in a bingo game that offers a hot-ball bingo prize must be eligible to win the hot-ball bingo prize at no additional cost to the player. new text end
new text begin "Raffle board" means a placard with up to 200 squares whereby participants in the raffle write their names to indicate entry. new text end
new text begin If two or more organizations merge or otherwise join together to form a new organization and at least one of the organizations has an active lawful gambling license, the board shall consider the new organization to have been in existence for the most recent three years if all other requirements of subdivision 2 are met. new text end
new text begin A manufacturer may provide to an organization for use at a premises where lawful gambling is conducted by the licensed organization, marketing, promotional, or point-of-sale items or materials for the promotion of lawful gambling, provided the total value of the items or materials provided to the organization does not exceed $250 per year. Any marketing, promotional, or point-of-sale items and materials used for the promotion of lawful gambling may not include items normally purchased by the lessor of a premises in the lessor's business. new text end
new text begin A disposable sealed placard used for the selection of bingo numbers in a bingo game in this state must have imprinted on it a unique serial and form number and a symbol that is at least one inch high and one inch wide consisting of an outline of the geographic boundaries of Minnesota with the letters "MN" inside the outline. new text end
new text begin (a) A manufacturer may not ship or cause to be shipped into this state or sell for use or resale in this state any raffle board that does not have affixed to or imprinted at the bottom a bar code that provides all information required by the commissioner of revenue under section 297E.04, subdivision 2. A person other than a manufacturer may not manufacture, alter, modify, or otherwise change a raffle board as allowed by this chapter or board rules. new text end
new text begin (b) A raffle board sold by a manufacturer for use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high and one inch wide consisting of an outline of the geographic boundaries of Minnesota with the letters "MN" inside the outline and must have the serial number of the board imprinted on the bar code at the bottom of the board in numerals at least one-half inch high. new text end
new text begin (c) A raffle board may not contain more than 200 squares. new text end
(a) Except for services associated exclusively with a linked bingo game, a linked bingo game provider may not participate or assist in the conduct of lawful gambling by an organization. No linked bingo game provider or employee, representative, agent, affiliate, or other employee of a linked bingo game provider may:
(1) hold any financial or managerial interest in a premises leased for the conduct of bingo;
(2) also be licensed as a distributor or hold any financial or managerial interest in a distributor;
(3) sell or lease linked bingo game equipment to any person not licensed as an organization;
(4) purchase gambling equipment to be used exclusively in a linked bingo game from any person not licensed as a manufacturer under section 349.163;
(5) provide a lessor of gambling premises or an appointed official any compensation, gift, gratuity, premium, or contribution; and
(6) provide an employee or agent of the organization any compensation, gift, gratuity, premium, or other thing of value greater than $25 per organization in a calendar year.
new text begin (b) A linked bingo provider may provide to an organization for use at a premises where lawful gambling is conducted by the licensed organization, marketing, promotional, or point-of-sale items or materials for the promotion of lawful gambling, provided the total value of the items or materials provided to the organization does not exceed $250 per year. Any marketing, promotional, or point-of-sale items and materials used for the promotion of lawful gambling may not include items normally purchased by the lessor of a premises in the lessor's business. new text end
deleted text begin (b)deleted text end new text begin (c)new text end Employees of the board and the Division of Alcohol and Gambling Enforcement may inspect the books, records, inventory, and business premises of a licensed linked bingo game provider without notice during the normal business hours of the linked bingo game provider. The board may charge a linked bingo game provider for the actual cost of conducting scheduled or unscheduled inspections of the licensee's facilities.
(a) The board shall by rule require that all licensed organizations: (1) conduct bingo only using a bingo paper sheet or facsimile of a bingo face that bears an individual number recorded by the distributor or linked bingo game provider; and (2) use each bingo paper sheet for no more than one bingo occasion. In lieu of the requirements of clause (2), a licensed organization may electronically record the sale of each bingo hard card or paper sheet at each bingo occasion using an electronic recording system approved by the board.
(b) The requirements of paragraph (a) shall only apply to a licensed organization that received gross receipts from bingo in excess of $150,000 in the organization's last fiscal year.
(c) Each bingo hard card, bingo paper sheet, or a facsimile of a bingo paper sheet must have five horizontal rows of spaces with each row except one having deleted text begin fivedeleted text end new text begin not more than twonew text end numbersnew text begin in each spacenew text end . The center row must have four new text begin spaces with not more than two new text end numbersnew text begin in each spacenew text end and the center space marked "free." Each column must have one of the letters B-I-N-G-O in order at the top. Bingo paper sheets may deleted text begin alsodeleted text end have numbers that are not preprinted but are filled in by players.
The price of a face played on an electronic bingo device may not be less than the price of a face on a bingo paper sheet sold for the same game at the same occasion. A game of bingo begins with the first letter and number called or displayed. Each player must cover, mark, or activate the numbers when bingo numbers are randomly selected and announced or displayed to the players. The game is won when a player, using bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the bingo program, a previously designated pattern or previously determined requirements of the game and declared bingo.new text begin A bingo pattern or bingo game requirement may not be completed with fewer than three bingo numbers having been drawn, unless the game being played is a cover-none game.new text end The game is completed when a winning card, sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
In addition to the requirements of subdivision 8, the following requirements and restrictions apply when linked bingo games are played exclusively on electronic bingo devices.
(a) The permitted premises must be:
(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent malt beverages, except for a general food store or drug store permitted to sell alcoholic beverages under section 340A.405, subdivision 1; or
(2) a premises where bingo is conducted as the primary business and has a seating capacity of at least 100.
(b) The number of electronic bingo devices is limited to:
(1) no more than six devices in play for permitted premises with 200 seats or less;
(2) no more than 12 devices in play for permitted premises with 201 seats or more; and
(3) no more than 50 devices in play for permitted premises where bingo is the primary business.
Seating capacity is determined as specified under the local fire code.
(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the participating organizations, must provide to the board a bingo program in a format prescribed by the board.
(d) Before participating in the play of a linked bingo game, a player must present deleted text begin and registerdeleted text end a valid picture identification card that includes the player's deleted text begin address anddeleted text end date of birth.new text begin Except for prize receipts required by section 349.19, subdivision 10, an organization is not required to register or retain any information contained on the player's picture identification card.new text end
(e) An organization may remove from play a device that a player has not maintained in an activated mode for a specified period of time determined by the organization. The organization must provide the notice in its house rules.
(a) Tipboard games must be played using only tipboard tickets that are either (1) attached to a placard and arranged in columns or rows, or (2) separate from the placard and contained in a receptacle while the game is in play. The placard serves as the game flare.
(b) Except for a sports-themed tipboard, the placard must contain a sealnew text begin or sealsnew text end that deleted text begin concealsdeleted text end new text begin concealnew text end the winning deleted text begin numberdeleted text end new text begin numbersnew text end or deleted text begin symboldeleted text end new text begin symbolsnew text end . When a tipboard ticket is purchased and opened from a game containing more than deleted text begin 32deleted text end new text begin 100new text end tickets, each player having a tipboard ticket with one or more predesignated numbers or symbols must sign the placard at the line indicated by the number or symbol on the tipboard ticket.
When the predesignated numbers or symbols have all been purchased, or all of the tipboard tickets for that game have been sold, deleted text begin thedeleted text end new text begin anew text end seal must be removed to reveal a number or symbol that determines which of the predesignated numbers or symbols is the winning number or symbol.new text begin The seal must be opened by an employee or volunteer of the organization, but if there is more than one seal on the placard, the eligible player may select which seal is opened.new text end A tipboard may also contain consolation winners, or winning chances that are determined in whole or in part by the numerical outcome of one or more professional sporting events, that need not be determined by the use of the seal.
The following pertain to the use of electronic pull-tab devices as defined under section 349.12, subdivision 12b.
(a) The use of any electronic pull-tab device may only be at a permitted premises that is:
(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent malt beverages, except for a general food store or drug store permitted to sell alcoholic beverages under section 340A.405, subdivision 1; or
(2) a premises where bingo is conducted as the primary business and has a seating capacity of at least 100; and
(3) where the licensed organization sells paper pull-tabs.
(b) The number of electronic pull-tab devices is limited to:
(1) no more than six devices in play at any permitted premises with 200 seats or less;
(2) no more than 12 devices in play at any permitted premises with 201 seats or more; and
(3) no more than 50 devices in play at any permitted premises where the primary business is bingo.
Seating capacity is determined as specified under the local fire code.
(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
(d) All electronic pull-tab games must be sold and played on the permitted premises and may not be linked to other permitted premises.
(e) Electronic pull-tab games may not be transferred electronically or otherwise to any other location by the licensed organization.
(f) Electronic pull-tab games may be commingled if the games are from the same family of games and manufacturer and contain the same game name, form number, type of game, ticket count, prize amounts, and prize denominations. Each commingled game must have a unique serial number.
(g) An organization may remove from play a device that a player has not maintained in an activated mode for a specified period of time determined by the organization. The organization must provide the notice in its house rules.
(h) Before participating in the play of an electronic pull-tab game, a player must present deleted text begin and registerdeleted text end a valid picture identification card that includes the player's deleted text begin address anddeleted text end date of birth.new text begin Except for prize receipts required by section 349.19, subdivision 10, an organization is not required to register or retain any information contained on the player's picture identification card.new text end
(i) Each player is limited to the use of one device at a time.
(a) Raffle tickets or certificates of participation at a minimum must list the three most expensive prizes to be awarded and include the location, date, and time of the selection of the winning entries. If additional prizes will be awarded, a complete list of additional prizes must be publicly posted new text begin or visibly on display new text end at the event and copies of the complete prize list made available upon request. 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 prizesnew text begin , or visibly displays the prizes at the event,new text end 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 drawn.
(b) Raffles must be conducted in a manner that ensures:
(1) all entries in the raffle have an equal chance of selection;
(2) entry in the raffle is not conditioned upon any other purchase, except that a certificate of participation may be a button with a nominal value of less than $5;
(3) the method of selection is conducted in a public forum;
(4) the method of selection cannot be manipulated or based on the outcome of an event not under the control of the organization;
(5) physical presence at the raffle is not a requirement to win; and
(6) all sold and unsold tickets or certificates of participation are accounted for.
(c) An organization that is permitted under this section and authorized by the Gambling Control Board to conduct raffles may conduct a raffle in conjunction with a wild game or fish taking event. The wild game or fish must be legally taken under chapters 97A to 97C, and rules adopted pursuant to those chapters. The organization may sell a combined ticket for a single price for the event and raffle, provided that the combined ticket states the amount of the price that applies to the wild game or fish event, and the amount that applies to the raffle. All other provisions of sections 349.11 to 349.23 apply to the raffle.
(d) Methods of selecting winning entries from a raffle other than prescribed in rule may be used with the prior written approval of the board.
(a) For purposes of this section, "volunteer" means a person who is not compensated by an organization but who performs activities in the conduct of lawful gambling for that organization.
(b) For purposes of this section, "conduct of pull-tabs, tipboards, and paddlewheels" includes selling tickets, redeeming tickets, auditing games, making deposits, spinning the paddlewheel, and conducting inventory.
(c) For purposes of this section, "conduct of bingo" includes selling bingo hard cards, bingo paper sheets, or facsimiles of bingo paper sheets; completing bingo occasion records; selecting or announcing bingo numbers; making deposits; and conducting inventory.
(d) An new text begin organization or lessornew text end employee or volunteer who is involved in the conduct of pull-tabs, tipboards, or paddlewheels at a permitted premises may not participate directly or indirectly as a player in a pull-tab, tipboard, or paddlewheel game at that same premises. This restriction is in effect until six weeks after the employee or volunteer is no longer involved in the conduct of pull-tab, tipboard, or paddlewheel games at that same premises.
new text begin (e) A volunteer involved in the conduct of a tipboard or paddlewheel game that has no more than 32 chances per game may participate as a player in pull-tab, tipboard, or paddlewheel games at the same premises, except on the same business day that the volunteer was involved in the conduct of the games. new text end
deleted text begin (e)deleted text end new text begin (f)new text end An employee or volunteer who is involved in the conduct of any lawful gambling during a bingo occasion may not participate directly or indirectly as a player in any lawful gambling during that bingo occasion.
(a) Gross receipts from lawful gambling by each organization must be segregated from all other revenues of the conducting organization and placed in a separate gambling bank account.
(b) All expenditures for allowable expenses, taxes, and lawful purposes must be made from the separate account except (1) in the case of expenditures previously approved by the organization's membership for emergencies as defined by board rule, (2) as provided in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment of taxes for the organization as a whole, the organization may transfer the amount of taxes related to the conduct of gambling to the general account at the time when due and payable.
(c) The name and address of the bank, the account number for the separate account, and the names of organization members authorized as signatories on the separate account must be provided to the board when the application is submitted. Changes in the information must be submitted to the board at least ten days before the change is made.
(d) new text begin Except as provided in paragraph (e), new text end gambling receipts must be deposited into the gambling bank account within four business days of completion of the bingo occasion, deal, or game from which they are received.
(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of the deal is sold or the organization does not continue the play of the deal during the next scheduled period of time in which the organization will conduct pull-tabs.
(2) A tipboard game is considered complete when the seal on the game flare is uncovered or the organization does not continue the play of the deal during the next scheduled period of time in which the organization will conduct tipboards.
(e) Gambling receipts from deleted text begin alldeleted text end electronic deleted text begin pull-tab games and all linked electronic bingo gamesdeleted text end new text begin gamblingnew text end must be recorded on a daily basis and deposited into the gambling bank account deleted text begin within four business daysdeleted text end new text begin when the total net receipts from all electronic games at the premises reach the sum of $2,000 or on or before the first day of the month immediately following the month during which the receipts were generated, whichever occurs firstnew text end .
(f) Deposit records must be sufficient to allow determination of deposits made from each bingo occasion, deal, or game at each permitted premises.
(g) The person who accounts for gambling gross receipts and profits may not be the same person who accounts for other revenues of the organization.
(a) The board shall by rule require a licensed organization to require each winner of a paper pull-tab prize of $100 or more to present identification in the form of a driver's license, Minnesota identification card, or other identification the board deems sufficient to allow the identification and tracking of the winner. The rule must require the organization to retain winning paper pull-tabs of $100 or more, and the identification of the winner of the pull-tab, for 3-1/2 years.
(b) new text begin A licensed organization must require each person cashing out an electronic pull-tab device with $600 or more in credits to present identification in the form of a driver's license, Minnesota identification card, or other identification the board deems sufficient to allow the identification and tracking of the winner. The organization must retain the identification of the winner for 3-1/2 years.new text end
new text begin (c) new text end An organization must maintain separate cash banks for each deal of paper pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the organization uses a cash register, of a type approved by the board, which records all sales of paper pull-tabs by separate deals.
deleted text begin (c)deleted text end new text begin (d)new text end The board shall:
(1) by rule adopt minimum technical standards for cash registers that may be used by organizations, and shall approve for use by organizations any cash register that meets the standards; and
(2) before allowing an organization to use a cash register that commingles receipts from several different paper pull-tab games in play, adopt rules that define how cash registers may be used and that establish a procedure for organizations to reconcile all pull-tab games in play at the end of each month.
A licensed organization which receives a copy of deleted text begin a written audit under subdivision 9, ordeleted text end an audit or compliance report deleted text begin prepared by an agency of the state,deleted text end must place the audit report or compliance report in the minutes of the next meeting of the organization following receipt of the report. Copies of such minutes must be made available to all members of the organization upon request.
Except as provided in subdivisions 1anew text begin , 1b, new text end and 2, prizes for a single bingo game may not exceed $200 except prizes for a cover-all new text begin or cover-none new text end game, which may exceed $200 if the aggregate value of all cover-all new text begin or cover-none new text end prizes in a bingo occasion does not exceed $1,000. Total prizes awarded at a bingo occasion may not exceed $2,800, unless a cover-all new text begin and cover-none new text end game is played in which case the limit is deleted text begin $3,800deleted text end new text begin $4,800new text end . A prize may be determined based on the value of the bingo packet sold to the player. For purposes of this subdivision, a cover-all game is one in which a player must cover all spaces except a single free space to win and includes a game in which all odd or all even numbers are designated by the organization as covered prior to the start of the gamenew text begin and a cover-none game is one in which a player does not cover any numbered spaces to winnew text end .
Prizes for a linked bingo game shall be limited as follows:
(1) deleted text begin for linked bingo games played without electronic bingo devices, an organization may not contribute to a linked bingo game prize pool more than $300 per linked bingo game per site;deleted text end
deleted text begin (2) for linked bingo games played exclusively with electronic bingo devices,deleted text end an organization may not contribute more than 85 percent of the gross receipts per permitted premises to a linked bingo game prize pool;
deleted text begin (3)deleted text end new text begin (2)new text end no organization may award more than $200 for a linked bingo game consolation prize. For purposes of this subdivision, a linked bingo game consolation prize is a prize awarded by an organization after a prize from the linked bingo prize pool has been won;
deleted text begin (4)deleted text end new text begin (3)new text end for a progressive linked bingo game, if no player declares a valid bingo for a progressive prize or prizes based on a predetermined and posted win determination, a portion of the gross receipts may be carried over to another game until the accumulated progressive prize is won. The portion of the prize that is not carried over must be awarded to the first player or players who declares a valid bingo as additional numbers are called. If a valid bingo is declared, the entire prize pool for that game is awarded to the winner; and
deleted text begin (5)deleted text end new text begin (4)new text end for linked bingo games played exclusively with electronic bingo devices, linked bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the player within three business days. Winners of linked bingo prizes in excess of $599 will be given a receipt or claim voucher as proof of a win.
new text begin An organization may award up to $500 for a hot-ball bingo prize in a bingo occasion. new text end
Except as provided in subdivision 1a, 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 new text begin up to new text end $500 and be increased by up to $100 for each occasion during which the progressive bingo game is played. A consolation prize of up to $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.
deleted text begin Nothing in this chapterdeleted text end new text begin The director shall notnew text end :
(1) deleted text begin authorizes the director todeleted text end conduct a lottery game or contest 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) deleted text begin authorizes the director todeleted text end install or operate a lottery device operated by coin or currency which when operated determines the winner of a game; deleted text begin anddeleted text end
(3) deleted text begin authorizes the director todeleted text end sell pull-tabs as defined under section 349.12, subdivision 32new text begin ;new text end
new text begin (4) offer the play of, on an electronic terminal, through a Web site, or by any other means or device, casino-style games, including but not limited to blackjack, craps, keno, dice games, roulette, or poker; new text end
new text begin (5) sell lottery tickets through a self-service device that is part of, shares a display with, or is adjacent to a retail petroleum dispenser under section 239.751; new text end
new text begin (6) sell lottery tickets through a self-service device that is part of, shares a display with, or is adjacent to an electronic financial terminal under section 47.61, subdivision 3; and new text end
new text begin (7) sell instant win lottery tickets through a Web site. The restriction in this clause does not apply to the sale of tickets of a joint lottery within the meaning of section 349A.02, subdivision 3, or games that rely on a drawing to select a winnernew text end .
new text begin This section is effective 130 days following final enactment. new text end
new text begin (a) The director of the State Lottery shall suspend all contracts relating to the sale of lottery tickets through: (1) a self-service device that is part of, shares a display with, or is adjacent to a retail petroleum dispenser under Minnesota Statutes, section 239.751; and (2) a self-service device that is part of, shares a display with, or is adjacent to an electronic financial terminal under Minnesota Statutes, section 47.61, subdivision 3. The suspension under this paragraph remains in effect until repealed or amended by law. new text end
new text begin (b) The director of the State Lottery shall suspend all contracts related to the sale of instant win lottery tickets through a Web site. The suspension under this paragraph remains in effect until repealed or amended by law. The suspension under this paragraph does not apply to contracts relating to the sale of tickets of a joint lottery within the meaning of Minnesota Statutes, section 349A.02, subdivision 3, or games that rely on a drawing to select a winner. new text end
new text begin This section is effective 130 days following final enactment. new text end
new text begin Minnesota Statutes 2014, sections 349.169; and 349.19, subdivision 9, new text end new text begin are repealed. new text end
new text begin Sections 1 to 24 and 27 are effective the day following final enactment. new text end
Presented to the governor May 14, 2015
Became law without the governor's signature May 19, 2015
Official Publication of the State of Minnesota
Revisor of Statutes