Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

CHAPTER 240. PARI-MUTUEL HORSE RACING

Table of Sections
SectionHeadnote
240.01DEFINITIONS.
240.011APPOINTMENT OF DIRECTOR.
240.02RACING COMMISSION.
240.03COMMISSION POWERS AND DUTIES.
240.04EMPLOYEES.
240.05LICENSES; CLASSES.
240.06RACETRACK LICENSES.
240.07RACING LICENSES.
240.08OCCUPATION LICENSES.
240.09COUNTY FAIR LICENSES.
240.091Repealed, 1994 c 633 art 1 s 17
240.10LICENSE FEES.
240.11LICENSES NONTRANSFERABLE.
240.12LICENSE AGREEMENTS.
240.13PARI-MUTUEL BETTING.
240.135CARD CLUB REVENUE.
240.136COMPULSIVE GAMBLING NOTICE.
240.14RACING DAYS.
240.15PAYMENTS TO STATE.
240.155REIMBURSEMENT ACCOUNTS AND PROCEDURES.
240.16STEWARDS.
240.17LOCAL OPTION.
240.18BREEDERS' FUND.
240.19CONTRACTS.
240.20APPEALS.
240.21RIGHT OF INSPECTION.
240.22FINES.
240.23RULEMAKING AUTHORITY.
240.24MEDICATION.
240.25PROHIBITED ACTS.
240.26PENALTIES.
240.27EXCLUSION OF CERTAIN PERSONS.
240.28CONFLICT OF INTEREST.
240.29REQUIRED RACES.
240.30CARD CLUBS.
240.35DETENTION OF SUSPECTS.
240.01 DEFINITIONS.
    Subdivision 1. Terms. For the purposes of this chapter, the terms defined in this section have
the meanings given them.
    Subd. 2. Horse racing. "Horse racing" is any form of horse racing in which horses carry a
rider or pull a sulky.
    Subd. 3. Person. "Person" is an individual, firm, association, partnership, corporation,
trustee, or legal representative, and any licensee, participant, or patron.
    Subd. 4. Commission. "Commission" is the Minnesota Racing Commission.
    Subd. 5. Pari-mutuel betting. "Pari-mutuel betting" is the system of betting on horse races
where those who bet on horses that finish in the position or positions for which bets are taken
share in the total amounts bet, less deductions required or permitted by law.
    Subd. 6. Breakage. "Breakage" is the odd cents of all money to be distributed based on each
dollar bet exceeding a sum equal to the next lowest multiple of ten.
    Subd. 7. Straight pools and bets. "Straight pool" is a licensed pari-mutuel pool in which
each ticket represents a bet to win, place, or show. A "straight bet" is a bet in a straight pool.
    Subd. 8. Multiple pools and bets. "Multiple pool" is a licensed pari-mutuel pool other than
a straight pool. A "multiple bet" is a bet in a multiple pool.
    Subd. 9. Licensed racetrack. "Licensed racetrack" is a racetrack at which horse racing is
conducted on the premises and which holds a class A or class D license issued by the commission.
    Subd. 10. Racing day. "Racing day" is a day assigned by the commission on which live
racing is conducted.
    Subd. 11. Racing meeting. "Racing meeting" is a series of days in which racing days are not
separated by more than five nonracing days.
    Subd. 12. Average daily handle. "Average daily handle" means the total amount bet in all
pari-mutuel pools at a licensed racetrack during the racing meeting divided by the number of days
that horse racing was conducted at the racetrack during the racing meeting.
    Subd. 13.[Repealed, 1991 c 336 art 1 s 33]
    Subd. 14.[Repealed, 1993 c 13 art 1 s 5]
    Subd. 15.[Repealed, 1991 c 233 s 110]
    Subd. 16. Horseperson. "Horseperson" means a person who is currently licensed by the
commission as an owner or lessee, or a trainer.
    Subd. 17.[Repealed, 1995 c 261 s 26]
    Subd. 18. On-track pari-mutuel betting. "On-track pari-mutuel betting" means wagering
conducted at a licensed racetrack.
    Subd. 19. Simulcasting. "Simulcasting" means the televised display, for pari-mutuel
wagering purposes, of one or more horse races conducted at another location wherein the televised
display occurs simultaneously with the race being televised.
    Subd. 20.[Repealed, 1995 c 261 s 26]
    Subd. 21.[Repealed, 1995 c 261 s 26]
    Subd. 22. Racing season. "Racing season" means that portion of the calendar year starting at
the beginning of the day of the first live horse race conducted by the licensee and concluding at
the end of the day of the last live horse race conducted by the licensee in any year.
For purposes of this chapter, the racing season begins before the first Saturday in May and
continues for not less than 25 consecutive weeks.
    Subd. 23. Full racing card. "Full racing card" means three or more races that are: (1) part
of a horse racing program being conducted at a racetrack; and (2) being simulcast or telerace
simulcast at a licensed racetrack.
    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.
    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.
    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. Unbanked games include those games that involve a player pool.
    Subd. 27. Player pool. "Player pool" means a wagering system or game where wagers lost
in a number of card games may be accumulated into a pool for purposes of enhancing the total
amount paid back to players in any other card game. In such instances, the sponsor or house may
only serve as custodian of the player pool and may not have an active interest in any card game.
History: 1983 c 214 s 1; 1985 c 212 s 1; 1988 c 696 s 1; 1989 c 141 s 1,2; 1989 c 334 art 1 s
1,2; 1991 c 336 art 1 s 1-10; 1995 c 261 s 1,2; 1999 c 206 s 1-3; 2001 c 96 s 1,2
240.011 APPOINTMENT OF DIRECTOR.
The governor shall appoint the director of the Minnesota Racing Commission, who serves
in the unclassified service at the governor's pleasure. The director must be a person qualified by
experience in the administration and regulation of pari-mutuel racing to discharge the duties of
the director. The governor must select a director from a list of one or more names submitted by
the Minnesota Racing Commission.
History: 1989 c 334 art 1 s 3; 1993 c 13 art 1 s 2,5
240.02 RACING COMMISSION.
    Subdivision 1. Commission. A Minnesota Racing Commission is established with the
powers and duties specified in this section. The commission consists of nine members appointed
by the governor with the advice and consent of the senate. Not more than five of the members
may belong to the same political party. The governor shall designate the chair of the commission.
Appointments by the governor are for terms of six years. An appointment to fill a vacancy in an
unexpired term is for the remainder of the term and is with the advice and consent of the senate.
    Subd. 2. Qualifications. A member of the commission must have been a resident of
Minnesota for at least five years before appointment, and must have a background and experience
as would qualify for membership on the commission. A member must, before taking a place on
the commission, file a bond in the principal sum of $100,000 payable to the state, conditioned
upon the faithful performance of duties. No commissioner, nor any member of the commissioner's
immediate family residing in the same household, may hold a license issued by the commission or
have a direct or indirect financial interest in a corporation, partnership, or association which holds
a license issued by the commission.
    Subd. 3. Compensation. The compensation of commission members for each day spent on
commission activities, when authorized by the commission, shall be the same as compensation
provided for other members of boards and commissions under section 15.0575, subdivision 3,
plus expenses in the same manner and amount as provided in the commissioner's plan adopted
according to section 43A.18, subdivision 2.
    Subd. 4. Removal; vacancies. The removal of commission members is as provided in
section 15.0575.
    Subd. 5. Actions. The commission may sue and be sued in its own name but no action may
be brought against the commission or any of its members for actions taken in good faith in the
performance of their duties. Suits and actions may be commenced against the commission or any
of its members in any court of competent jurisdiction in this state by service, in the manner
provided in Minnesota rules of court, of any summons, process, or pleadings authorized by the
laws of this state. The attorney general is the legal counsel for the commission.
    Subd. 6. Annual report. The commission shall on February 15 of each year submit a report to
the governor and legislature on its activities, organizational structure, receipts and disbursements,
and recommendations for changes in the laws relating to racing and pari-mutuel betting.
    Subd. 7. Audit. The legislative auditor shall audit or the commission may contract for an
audit of the books and accounts of the commission annually or as often as the legislative auditor's
funds and personnel permit. The commission shall pay the total cost of the audit. All collections
received for the audits must be deposited in the general fund.
History: 1983 c 214 s 2; 1985 c 211 s 1; 1985 c 212 s 2; 1986 c 444; 1989 c 334 art 1 s 4,5;
1991 c 233 s 88-90; 1991 c 336 art 2 s 2; 1994 c 465 art 3 s 53
240.03 COMMISSION POWERS AND DUTIES.
The commission has the following powers and duties:
(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public interest;
(2) to issue licenses as provided in this chapter;
(3) to enforce all laws and rules governing horse racing;
(4) to collect and distribute all taxes provided for in this chapter;
(5) to conduct necessary investigations and inquiries and compel the submission of
information, documents, and records it deems necessary to carry out its duties;
(6) to supervise the conduct of pari-mutuel betting on horse racing;
(7) to employ and supervise personnel under this chapter;
(8) to determine the number of racing days to be held in the state and at each licensed
racetrack;
(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and
(10) to impose fees on the racing and card playing industries sufficient to recover the
operating costs of the commission with the approval of the legislature according to section
16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the
commissioner of finance may grant interim approval for any new fees or adjustments to existing
fees that are not statutorily specified, until such time as the legislature reconvenes and acts upon
the new fees or adjustments. As part of its biennial budget request, the commission must propose
changes to its fees that will be sufficient to recover the operating costs of the commission.
History: 1983 c 214 s 3; 1985 c 212 s 3; 1991 c 336 art 1 s 11; 1Sp2003 c 1 art 2 s 69
240.04 EMPLOYEES.
    Subdivision 1. Director; duties. The director shall perform the following duties:
(a) take and preserve records of all proceedings before the commission, maintain its books,
documents, and records, and make them available for public inspection as the commission directs;
(b) if so designated by the commission, act as a hearing officer in hearings which need not be
conducted under the Administrative Procedure Act to conduct hearings, receive testimony and
exhibits, and certify the record of proceedings to the commission;
(c) act as the commission's chief personnel officer and supervise the employment, conduct,
duties, and discipline of commission employees; and
(d) perform other duties as directed by the commission.
    Subd. 1a. Deputy director. The commission may appoint a deputy director who serves in the
unclassified service at the commission's pleasure.
    Subd. 2. Director of pari-mutuels. The commission may employ a director of pari-mutuels
who serves in the unclassified service at the commission's pleasure. The director of pari-mutuels
shall perform the following duties:
(a) supervise all forms of pari-mutuel betting on horse racing in the state;
(b) inspect all machinery;
(c) make reports on pari-mutuel betting as the commission directs;
(d) subject to commission approval, appoint assistants to perform duties the commission
designates; and
(e) perform other duties as directed by the commission.
If no director of pari-mutuels is appointed the duties of that office are assigned to the
executive director. The commission may contract with outside services or personnel to assist the
executive director in the performance of these duties.
    Subd. 3. Director of racing security. The commission may appoint a director of racing
security to serve in the unclassified service at the commission's pleasure. The director of racing
security shall enforce all laws and commission rules relating to the security and integrity of
racing. The director of racing security and all other persons designated by the commission as
security officers have free and open access to all areas of all facilities the commission licenses
and may search without a search warrant any part of a licensed racetrack and the person of
any licensee of the commission on the premises. The director of racing security may order a
licensee to take, at the licensee's expense, security measures necessary to protect the integrity of
racing, but the order may be appealed to the commission. Nothing in this chapter prohibits law
enforcement authorities and agents from entering, in the performance of their duties, a premises
licensed under Laws 1983, chapter 214.
If no director of racing security is appointed the duties of that office are assigned to the
executive director. The commission may contract with outside services or personnel to assist the
executive director in the performance of these duties.
    Subd. 4. Veterinarian. The commission may appoint a veterinarian who must be a doctor of
veterinary medicine and who serves at its pleasure in the unclassified service. The veterinarian
shall, while employed by the commission, perform the following duties:
(a) supervise the formulation, administration, and evaluation of all medical tests the
commission's rules require or authorize;
(b) advise the commission on all aspects of veterinary medicine relating to its powers and
duties; and
(c) supervise all personnel involved in medical testing, subject to the supervision of the
executive director.
If no veterinarian is appointed, the duties of that office may be assigned to the executive
director. The commission may contract with outside personnel to assist the executive director
in the performance of these duties.
The commission may require that a licensee reimburse it for the costs of services provided
by assistant veterinarians.
    Subd. 5. Other employees. Subject to applicable laws, the commission shall employ and
assign duties to other officers, employees, and agents as it deems necessary to discharge its
functions.
    Subd. 6. Compensation. The compensation of all commission employees shall be as
provided in chapter 43A.
    Subd. 7. Assistance. The commission and director may request assistance from any
department or agency of the state in fulfilling its duties, and shall make appropriate reimbursement
for all such assistance.
History: 1983 c 214 s 4; 1985 c 212 s 4; 1Sp1985 c 10 s 83; 1986 c 444; 1989 c 334 art 1
s 6,7
240.05 LICENSES; CLASSES.
    Subdivision 1. Classes. The commission may issue four classes of licenses:
(a) class A licenses, for the ownership and operation of a racetrack with horse racing on
which pari-mutuel betting is conducted;
(b) class B licenses, for the sponsorship and management of horse racing on which
pari-mutuel betting is conducted;
(c) class C licenses, for the privilege of engaging in certain occupations related to horse
racing; and
(d) class D licenses, for the conduct of pari-mutuel horse racing by county agricultural
societies or associations.
No person may engage in any of the above activities without first having obtained the
appropriate license from the commission.
    Subd. 2. Forms. All application forms for licenses must contain a statement to the effect
that by accepting a license from the commission a licensee consents to having property or
person subject to inspection at any time by the director of racing security or by security officers
designated by the commission.
    Subd. 3. Policy. It is the intent of the legislature that authority granted by law to the
commission to issue licenses not be construed as requiring the commission to issue any license.
History: 1983 c 214 s 5; 1985 c 212 s 5; 1986 c 444; 1991 c 336 art 1 s 12; 1994 c 633 art
1 s 1
240.06 RACETRACK LICENSES.
    Subdivision 1. Application. The commission may issue one or more class A licenses, but
not more than one to any one person. An application for a class A license must be on a form the
commission prescribes and must be accompanied by detailed plans and specifications of the track,
buildings, fences, and other improvements. The application must contain:
(a) the name and address of the applicant and, if it is a corporation, the names of all officers,
directors, and shareholders of the corporation and any of its holding corporations;
(b) if required by the commission, the names of any person or persons holding directly,
indirectly, or beneficially an interest of any kind in the applicant or any of its holding corporations,
whether the interest is financial, administrative, policy making, or supervisory;
(c) a statement of the assets and liabilities of the applicant;
(d) an affidavit executed by the applicant setting forth that no officer, director, or other person
with a present or future direct or indirect financial or management interest in the racetrack, to the
best of the applicant's knowledge:
(1) is in default in the payment of an obligation or debt to the state under this chapter;
(2) has ever been convicted of a felony in a state or federal court or has a state or federal
felony charge pending;
(3) is or has been connected with or engaged in any illegal business;
(4) has ever been found guilty of fraud or misrepresentation in connection with racing or
breeding;
(5) has ever been found guilty of a violation of a law or rule relating to horse racing,
pari-mutuel betting or any other form of gambling which is a serious violation as defined by
the commission's rules; or
(6) has ever knowingly violated a rule or order of the commission or a law of Minnesota
relating to racing;
(e) an irrevocable consent statement, to be signed by the applicant, which states that suits and
actions relating to the subject matter of the application or acts or omissions arising from it may
be commenced against the applicant in any court of competent jurisdiction in this state by the
service on the secretary of state of any summons, process, or pleadings authorized by the laws of
this state. If any summons, process, or pleadings is served upon the secretary of state, it must be
by duplicate copies. One copy must be retained in the Office of the Secretary of State and the
other copy must be forwarded immediately by certified mail to the address of the applicant, as
shown by the records of the commission; and
(f) an affirmative action plan establishing goals and timetables consistent with the Minnesota
Human Rights Act, chapter 363A, and in conformity with the goals established by the commission
by rule.
    Subd. 2. Hearings. Before granting a class A license the commission shall conduct one or
more public hearings in the area where the racetrack is or will be located. The commission shall
also request comments on the application from the city council or town board of the city or
town where the track is or will be located, or from the county board if it is to be located outside
a city or town and from the appropriate regional development commission or the Metropolitan
Council, as the case may be.
    Subd. 3. Investigation. Before granting a class A license the commission shall conduct,
or request the Division of Alcohol and Gambling Enforcement to conduct, a comprehensive
background and financial investigation of the applicant and sources of financing. The commission
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 commission has access to all criminal history data compiled by the Division of
Alcohol and Gambling Enforcement on class A licensees and applicants.
    Subd. 4. License issuance. If after considering the information received at the hearing or
hearings and the comments requested under subdivision 2, the commission determines that the
license will not adversely affect the public health, welfare, and safety, that the racetrack will
be operated in accordance with all applicable laws and rules, that the license will not create
a competitive situation that will adversely affect racing and the public interest, and that the
applicant is financially able to operate a licensed racetrack, it may issue a class A license to the
applicant. The license is effective until revoked or suspended by the commission or relinquished
by the licensee.
    Subd. 5. Prohibited locations. A class A license may not be issued to any location where the
operation of a racetrack is prohibited by a valid local zoning ordinance. Not more than one class
A license may be issued by the commission within the seven-county metropolitan area.
    Subd. 5a. Additional license; metropolitan area. Notwithstanding subdivision 5, the
commission may issue one additional class A license within the seven-county metropolitan area,
provided that the additional license may only be issued for a facility:
(1) located more than 20 miles from any other racetrack in existence on January 1, 1987;
(2) containing a track no larger than five-eighths of a mile in circumference;
(3) used exclusively for standardbred racing;
(4) not owned or operated by a governmental entity or a nonprofit organization; and
(5) that has a current road or highway system adequate to facilitate present and future
vehicular traffic expeditiously to and from the facility.
The consideration of clause (5) shall prevail when two competing licensees are relatively
equal regarding other considerations mandated by law or rule.
An application for an additional class A license within the seven-county metropolitan area
may not delay or adversely affect an application for a class A license for a facility to be located
outside the seven-county metropolitan area.
    Subd. 6. Changes in ownership or management. If a change in the officers, directors,
shareholders, or other persons with a present or future direct or indirect financial or management
interest in the licensee, or a change of ownership of more than five percent of the licensee's shares
is made after the application is filed or the license issued, the applicant or licensee must notify
the commission of the changes within five days of their occurrence and provide the affidavit
required by subdivision 1, clause (d).
    Subd. 7. License suspension and revocation. The commission:
(1) may revoke a class A license for (i) a violation of law, order, or rule which in the
commission's opinion adversely affects the integrity of horse racing in Minnesota, or for an
intentional false statement made in a license application, or (ii) a willful failure to pay any money
required to be paid by Laws 1983, chapter 214, and
(2) may revoke a class A license for failure to perform material covenants or representations
made in a license application; and
(3) shall revoke a class A license if live racing has not been conducted on at least 50
racing days assigned by the commission during any period of 12 consecutive months, unless the
commission authorizes a shorter period because of circumstances beyond the licensee's control.
The commission may suspend a class A license for up to one year for a violation of law,
order, or rule which in the commission's opinion adversely affects the integrity of horse racing in
Minnesota, and may suspend a class A license indefinitely if it determines that the licensee has
as an officer, director, shareholder, or other person with a direct, indirect, or beneficial interest a
person who is in the commission's opinion inimical to the integrity of horse racing in Minnesota
or who cannot be certified under subdivision 1, clause (d).
A license revocation or suspension under this subdivision is a contested case under sections
14.57 to 14.69 of the Administrative Procedure Act, and is in addition to criminal penalties
imposed for a violation of law or rule.
    Subd. 8. Work areas. A class A licensee must provide at no cost to the commission suitable
work areas for commission members, officers, employees, and agents, including agents of
the Division of Alcohol and Gambling Enforcement, who are directed or requested by the
commission to supervise and control racing at the licensed racetrack.
History: 1983 c 214 s 6; 1984 c 654 art 3 s 80; 1985 c 212 s 6; 1987 c 68 s 1; 1987 c
384 art 2 s 1; 1989 c 334 art 1 s 8,9; 1991 c 233 s 91; 1991 c 330 s 1; 1991 c 336 art 1 s 13;
1994 c 633 art 1 s 2; 1997 c 129 art 2 s 15
240.07 RACING LICENSES.
    Subdivision 1. Application. The commission may issue one or more class B licenses for the
sponsorship and management of horse racing at licensed racetracks. An application for a class B
license must be on a form the commission prescribes, and must be accompanied by a bond in
the principal amount of $500,000 payable to the state of Minnesota conditioned on the licensee's
payment of all fees, taxes, and other money due and payable under Laws 1983, chapter 214,
including horse owner's purses and payouts on winning pari-mutuel tickets.
The application must contain:
(a) the name and address of the applicant and, if it is a corporation or association, the names
of all officers, directors, and shareholders, including those of any of its holding companies;
(b) if required by the commission, the names of any person or persons holding, directly,
indirectly, or beneficially, an interest of any kind in the applicant or any of its holding companies,
whether the interest is financial, administrative, policy making, or supervisory;
(c) a statement of the assets and liabilities of the applicant;
(d) an affidavit of the type described in section 240.06, subdivision 1, clause (d);
(e) an irrevocable consent statement, to be signed by the applicant, which states that suits and
actions relating to the subject matter of the application or acts or omissions arising from it may
be commenced against the applicant in any court of competent jurisdiction in this state by the
service on the secretary of state of any summons, process, or pleadings authorized by the laws of
this state. If any summons, process, or pleadings is served upon the secretary of state, it must be
by duplicate copies. One copy must be retained in the Office of the Secretary of State and the
other copy must be forwarded immediately by certified mail to the address of the applicant, as
shown by the records of the commission; and
(f) an affirmative action plan establishing goals and timetables consistent with the Minnesota
Human Rights Act, chapter 363A, and in conformity with the goals established by the commission
by rule.
    Subd. 2. Hearings; investigations. Before granting an initial class B license the commission
shall hold at least one public hearing on the license. Comprehensive investigations must be
conducted and their costs paid in the manner prescribed by section 240.06, subdivision 3. The
commission has access to all criminal history data compiled by the Division of Alcohol and
Gambling Enforcement on class B licensees and applicants.
    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.
    Subd. 4. Renewal. On making the same determination as in subdivision 3, the commission
may renew a class B license without a hearing unless it determines a hearing to be necessary.
    Subd. 5. Changes in ownership. If a change in the officers, directors, or other persons with
a direct or indirect financial or management interest in the licensee, or a change of ownership
of more than five percent of the licensee's shares is made after the initial application or license
issuance, the applicant or licensee must notify the commission of the changes within five days of
their occurrence and provide the affidavit required in subdivision 1.
    Subd. 6. License suspension and revocation. Suspension, revocation, and refusal to
renew a class B license is as provided in section 240.06, subdivision 7. A license suspension or
revocation or a refusal to renew a class B license, is a contested case under section 14.57 to
14.69 of the Administrative Procedure Act, and is in addition to criminal penalties imposed for
a violation of law or rule.
    Subd. 7. Multiple licenses. A person may simultaneously hold one class A and one class
B license.
History: 1983 c 214 s 7; 1987 c 384 art 2 s 1; 1989 c 334 art 1 s 10; 1991 c 330 s 2;
1997 c 129 art 2 s 15; 1999 c 206 s 4
240.08 OCCUPATION LICENSES.
    Subdivision 1. Authority. The commission may issue class C occupational licenses to
persons who wish to be employed in horse racing where pari-mutuel betting is conducted as:
(a) horse owners or lessees;
(b) jockeys or drivers;
(c) exercise riders;
(d) grooms;
(e) trainers and their assistants;
(f) pari-mutuel personnel;
(g) security officers;
(h) other occupations the commission by rule determines require licensing to ensure the
integrity of horse racing in Minnesota.
    Subd. 2. Application. An application for a class C license must be on a form the commission
prescribes and must be accompanied by an affidavit of qualification that the applicant:
(a) is not in default in the payment of an obligation or debt to the state under Laws 1983,
chapter 214;
(b) does not have a felony conviction of record in a state or federal court and does not
have a state or federal felony charge pending;
(c) is not and never has been connected with or engaged in an illegal business;
(d) has never been found guilty of fraud or misrepresentation in connection with racing or
breeding;
(e) has never been found guilty of a violation of law or rule relating to horse racing,
pari-mutuel betting or any other form of gambling which is a serious violation as defined by
the commission's rules; and
(f) has never knowingly violated a rule or order of the commission or a law of Minnesota
relating to racing.
The application must also contain an irrevocable consent statement, to be signed by the
applicant, which states that suits and actions relating to the subject matter of the application
or acts or omissions arising from it may be commenced against the applicant in any court of
competent jurisdiction in this state by the service on the secretary of state of any summons,
process, or pleading authorized by the laws of this state. If any summons, process, or pleading is
served upon the secretary of state, it must be by duplicate copies. One copy must be retained in
the Office of the Secretary of State and the other copy must be forwarded immediately by certified
mail to the address of the applicant, as shown by the records of the commission.
    Subd. 3. Investigations. The commission shall investigate each applicant for a class C
license to the extent it deems necessary, and may request the assistance of and may reimburse
the Division of Alcohol and Gambling Enforcement in investigating applicants. The commission
may by rule require that an applicant be fingerprinted or furnish the applicant's fingerprints.
Investigations must be conducted and their costs paid in the manner prescribed by section 240.06,
subdivision 3
. The commission may cooperate with national and international organizations and
agencies in conducting investigations. The commission may by rule provide for examining the
qualifications of an applicant for the license being applied for. The commission has access to all
criminal history data compiled by the Division of Alcohol and Gambling Enforcement on class
C applicants and licensees.
    Subd. 4. License issuance and renewal. If the commission determines that the applicant is
qualified for the occupation for which licensing is sought and will not adversely affect the public
health, welfare, and safety or the integrity of racing in Minnesota, it may issue a class C license to
the applicant. If it makes a similar finding for a renewal of a class C license it may renew the
license. Class C licenses are effective for one year.
    Subd. 5. Revocation and suspension. The commission may revoke a class C license for a
violation of law or rule which in the commission's opinion adversely affects the integrity of horse
racing in Minnesota, or for an intentional false statement made in a license application.
The commission may suspend a class C license for up to one year for a violation of law,
order or rule.
The commission may delegate to its designated agents the authority to impose suspensions
of class C licenses, and the suspension may be appealed to the commission according to its rules.
A license revocation or suspension for more than 90 days is a contested case under sections
14.57 to 14.69 of the Administrative Procedure Act and is in addition to criminal penalties
imposed for a violation of law or rule. The commission 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 racing. 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 commission 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 14.61.
History: 1983 c 214 s 8; 1984 c 655 art 1 s 35; 1985 c 212 s 7,8; 1986 c 444; 1987 c 69 s
1; 1989 c 334 art 1 s 11; 1997 c 129 art 2 s 15; 2001 c 59 s 1
240.09 COUNTY FAIR LICENSES.
    Subdivision 1. Application. The commission may issue class D licenses to county
agricultural societies or associations incorporated under chapter 38 or nonprofit corporations
organized under chapter 317A in existence and operating fairs on April 21, 1951, to conduct and
manage, on their own fairgrounds, horse racing on which pari-mutuel betting is conducted. An
application for a class D license must be on a form the commission prescribes and must be
accompanied by a certified copy of a resolution of the county board of the county where racing is
to be conducted stating that it has reviewed the license application and does not object to it. An
application for a class D license must be accompanied by detailed plans and specifications of the
track, buildings, fences, and other improvements.
    Subd. 2. Occupational licenses. A person who participates in the management or conduct
of horse racing or pari-mutuel betting for a county fair holding a class D license who is in an
occupation listed in section 240.08, subdivision 1, or the rules of the commission must have a
class C license from the commission except for active members, as defined in section 349.12, of
nonprofit organizations who act without compensation as concession workers.
    Subd. 3. Hearing. Before granting an initial class D license, the commission must hold at
least one public hearing in the county where the license is to be issued, and if the racetrack to be
licensed is within a city, it must also request comments on the application from the city council.
    Subd. 3a. Investigation. Before granting a class D license the director shall conduct,
or request the Division of Alcohol and Gambling Enforcement to conduct, a comprehensive
background and financial investigation of the applicant and the sources of financing. 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 class A licensees and applicants.
    Subd. 4. Issuance. If after considering the information received at the hearing or hearings
and considering the comments requested under subdivision 3, the commission determines that the
license will not adversely affect the public health, welfare, and safety and that the racing to be
licensed will be conducted in accordance with all applicable laws and rules, it may issue a class D
license to the applicant. The license is for a period of one year.
    Subd. 5. Renewal. On making the same determination as in subdivision 4, the commission
may renew a class D license without a hearing unless it determines a hearing is necessary.
    Subd. 6. Revocation and suspension. Revocation and suspension of class D licenses, and
refusals to renew class D licenses, are as provided in section 240.06, subdivision 7. A license
suspension or revocation or a refusal to renew a class D license is a contested case under sections
14.57 to 14.69 of the Administrative Procedure Act and is in addition to criminal penalties
imposed for a violation of law or rule.
History: 1983 c 214 s 9; 1983 c 216 art 2 s 17 subd 1; 1985 c 212 s 9-11; 1989 c 304 s 137;
1991 c 336 art 2 s 3; 1994 c 633 art 1 s 3; 1997 c 129 art 2 s 15
240.091 [Repealed, 1994 c 633 art 1 s 17]
240.10 LICENSE FEES.
The fee for a class A license is $253,000 per year and must be remitted on July 1. The
fee for a class B license is $500 for each assigned racing day and $100 for each day on which
simulcasting is authorized and must be remitted on July 1. Included herein are all days assigned to
be conducted after January 1, 2003. The fee for a class D license is $50 for each assigned racing
day on which racing is actually conducted. Fees imposed on 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.
History: 1983 c 214 s 10; 1989 c 141 s 3; 1991 c 336 art 1 s 15; 1995 c 261 s 3; 1999
c 206 s 5; 1Sp2003 c 1 art 2 s 70
240.11 LICENSES NONTRANSFERABLE.
A license issued under this chapter may not be transferred.
History: 1983 c 214 s 11; 1991 c 336 art 1 s 16
240.12 LICENSE AGREEMENTS.
The commission may enter into agreements with comparable bodies in other racing
jurisdictions for the mutual recognition of occupational licenses issued by each body. The
commission may by rule provide for and may charge a fee for the registration of each license
issued in another jurisdiction.
History: 1983 c 214 s 12
240.13 PARI-MUTUEL BETTING.
    Subdivision 1. Authorized. (a) Class B and class D licenses give the licensees authority to
conduct pari-mutuel betting on the results of races run at the licensed racetrack, and on other races
as authorized by the commission under this section.
(b) A class B or class D license gives the licensee the authority to transmit and receive
telecasts and conduct pari-mutuel betting on the results of horse races run at its class A facility,
and of other horse races run at other locations, as authorized by the commission. The class B or
class D licensee may present racing programs separately or concurrently.
(c) Subject to the approval of the commission the types of betting, takeout, and distribution
of winnings on pari-mutuel pools on simulcast races at a class B or class D facility are those in
effect at the sending racetrack. Pari-mutuel pools may be commingled with pools at the sending
racetrack, for the purposes of determining odds and payout prices, via the totalizator computer at
the class A facility.
(d) The commission may not authorize a class B licensee to conduct simulcasting or telerace
simulcasting unless 125 days of live racing, consisting of not less than eight live races on each
racing day, have been conducted at the class A facility within the preceding 12 months. The
number of live racing days required may be adjusted by agreement between the licensee and the
horsepersons' organization representing the majority of horsepersons racing the breed racing the
majority of races at the licensee's class A facility during the preceding 12 months. The number of
live racing days required must be reduced by one day for each assigned racing day that the licensee
is unable to conduct live racing due to natural occurrences or catastrophes beyond its control.
(e) The commission may authorize no more than five class D licensees to conduct
simulcasting in any year. Simulcasting may be conducted at each class D licensee's facility:
(1) only on races conducted at another class D facility during a county fair day at that
facility; and
(2) only on standardbred races.
A class D licensee may not conduct simulcasting for wagering purposes unless the licensee
has a written contract, permitting the simulcasting, with a horseperson's organization representing
the standardbred industry the breed being simulcast under authority of the class D license.
    Subd. 2. Requirements. (a) A licensee conducting pari-mutuel betting must provide at the
licensed track:
(1) the necessary equipment for issuing pari-mutuel tickets; and
(2) mechanical or electronic equipment for displaying information the commission requires.
All mechanical or electronic devises must be approved by the commission before being used.
(b) A licensee conducting pari-mutuel betting must post prominently at each point of sale of
pari-mutuel tickets, 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.
    Subd. 3. Types of betting. The commission shall by rule designate those types of pari-mutuel
pools which are permitted at licensed racetracks, and no licensee may conduct any type of
pari-mutuel pool which has not been so designated.
    Subd. 4. Takeout; distribution of winnings. A licensee conducting pari-mutuel betting must
deduct from a straight pari-mutuel pool, before payments to holders of winning tickets, an amount
equal to not more than 17 percent of the total money in that pool. The licensee must deduct from a
multiple pari-mutuel pool, before payments to the holders of winning tickets, an amount equal
to not more than 23 percent of the total money in that pool. The remaining money in each pool
must be distributed among the holders of winning tickets in a manner the commission by rule
prescribes for each type of pool. Breakage must be computed on the basis of payoffs rounded
down to the next lowest increment of 10 cents, with a minimum payoff of $1.10 on a $1 ticket,
except that the licensee may reduce the minimum payoff to $1.05 on a $1 ticket if there is not a
sufficient amount in a pool to make a minimum payoff of $1.10.
    Subd. 5. Purses. (a) From the amounts deducted from all pari-mutuel pools by a licensee, an
amount equal to not less than the following percentages of all money in all pools must be set aside
by the licensee and used for purses for races conducted by the licensee, provided that a licensee
may agree by contract with an organization representing a majority of the horsepersons racing the
breed involved to set aside amounts in addition to the following percentages:
(1) for live races conducted at a class A facility, and for races that are part of full racing card
simulcasting that takes place within the time period of the live races, 8.4 percent;
(2) for simulcasts conducted during the racing season other than as provided for in clause (1),
50 percent of the takeout remaining after deduction for taxes on pari-mutuel pools, payment to the
breeders fund, and payment to the sending out-of-state racetrack for receipt of the signal; and
(3) for simulcasts conducted outside of the racing season, 25 percent of the takeout remaining
after deduction for the state pari-mutuel tax, payment to the breeders fund, payment to the sending
out-of-state racetrack for receipt of the signal and, before January 1, 2005, a further deduction
of eight percent of all money in all pools. In the event that wagering on simulcasts outside of
the racing season exceeds $125 million in any calendar year, the amount set aside for purses by
this formula is increased to 30 percent on amounts between $125,000,000 and $150,000,000
wagered; 40 percent on amounts between $150,000,000 and $175,000,000 wagered; and 50
percent on amounts in excess of $175,000,000 wagered. In lieu of the eight percent deduction,
a deduction as agreed to between the licensee and the horsepersons' organization representing
the majority of horsepersons racing at the licensee's class A facility during the preceding 12
months, is allowed after December 31, 2004.
The commission may by rule provide for the administration and enforcement of this
subdivision. The deductions for payment to the sending out-of-state racetrack must be actual,
except that when there exists any overlap of ownership, control, or interest between the sending
out-of-state racetrack and the receiving licensee, the deduction must not be greater than three
percent unless agreed to between the licensee and the horsepersons' organization representing the
majority of horsepersons racing the breed racing the majority of races during the existing racing
meeting or, if outside of the racing season, during the most recent racing meeting.
In lieu of the amount the licensee must pay to the commission for deposit in the Minnesota
breeders fund under section 240.15, subdivision 1, the licensee shall pay 5-1/2 percent of the
takeout from all pari-mutuel pools generated by wagering at the licensee's facility on full racing
card simulcasts of races not conducted in this state.
(b) From the money set aside for purses, the licensee shall pay to the horseperson's
organization representing the majority of the horsepersons racing the breed involved and
contracting with the licensee with respect to purses and the conduct of the racing meetings and
providing representation, benevolent programs, benefits, and services for horsepersons and their
on-track employees, an amount, sufficient to perform these services, as may be determined by
agreement by the licensee and the horseperson's organization. The amount paid may be deducted
only from the money set aside for purses to be paid in races for the breed represented by the
horseperson's organization. With respect to racing meetings where more than one breed is racing,
the licensee may contract independently with the horseperson's organization representing each
breed racing.
(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization representing
the majority of the horsepersons racing a breed at a meeting, and the members thereof, may
agree to withhold horses during a meeting.
(d) Money set aside for purses from wagering, during the racing season, on simulcasts must
be used for purses for live races conducted at the licensee's class A facility during the same racing
season, over and above the 8.4 percent purse requirement or any higher requirement to which the
parties agree, for races conducted in this state. Money set aside for purses from wagering, outside
of the racing season, on simulcasts must be for purses for live races conducted at the licensee's
class A facility during the next racing season, over and above the 8.4 percent purse requirement or
any higher requirement to which the parties agree, for races conducted in this state.
(e) Money set aside for purses from wagering on simulcasts must be used for purses for live
races involving the same breed involved in the simulcast except that money set aside for purses
and payments to the breeders fund from wagering on full racing card simulcasts of races not
conducted in this state, occurring during a live mixed meet, must be allotted to the purses and
breeders fund for each breed participating in the mixed meet in the same proportion that the
number of live races run by each breed bears to the total number of live races conducted during
the period of the mixed meet.
(f) The allocation of money set aside for purses to particular racing meets may be
adjusted, relative to overpayments and underpayments, by contract between the licensee and the
horsepersons' organization representing the majority of horsepersons racing the breed involved at
the licensee's facility.
(g) Subject to the provisions of this chapter, money set aside from pari-mutuel pools for
purses must be for the breed involved in the race that generated the pool, except that if the breed
involved in the race generating the pari-mutuel pool is not racing in the current racing meeting, or
has not raced within the preceding 12 months at the licensee's class A facility, money set aside for
purses may be distributed proportionately to those breeds that have run during the preceding 12
months or paid to the commission and used for purses or to promote racing for the breed involved
in the race generating the pari-mutuel pool, or both, in a manner prescribed by the commission.
(h) This subdivision does not apply to a class D licensee.
    Subd. 6. Simulcasting. (a) The commission may permit an authorized licensee to conduct
simulcasting at the licensee's facility on any day authorized by the commission. All simulcasts
must comply with the Interstate Horse Racing Act of 1978, United States Code, title 15, sections
3001 to 3007.
(b) The commission may not authorize any day for simulcasting at a class A facility during
the racing season, and a licensee may not be allowed to transmit out-of-state telecasts of races the
licensee conducts, unless the licensee has obtained the approval of the horsepersons' organization
representing the majority of the horsepersons racing the breed involved at the licensed racetrack
during the preceding 12 months.
(c) The licensee may pay fees and costs to an entity transmitting a telecast of a race to the
licensee for purposes of conducting pari-mutuel wagering on the race. The licensee may deduct
fees and costs related to the receipt of televised transmissions from a pari-mutuel pool on the
televised race, provided that one-half of any amount recouped in this manner must be added to the
amounts required to be set aside for purses.
(d) With the approval of the commission and subject to the provisions of this subdivision, a
licensee may transmit telecasts of races it conducts, for wagering purposes, to locations outside
the state, and the commission may allow this to be done on a commingled pool basis.
(e) Except as otherwise provided in this section, simulcasting may be conducted on a separate
pool basis or, with the approval of the commission, on a commingled pool basis. All provisions
of law governing pari-mutuel betting apply to simulcasting except as otherwise provided in this
subdivision or in the commission's rules. If pools are commingled, wagering at the licensed
facility must be on equipment electronically linked with the equipment at the licensee's class A
facility or with the sending racetrack via the totalizator computer at the licensee's class A facility.
Subject to the approval of the commission, the types of betting, takeout, and distribution of
winnings on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage
for pari-mutuel pools on a televised race must be calculated in accordance with the law or rules
governing the sending racetrack for these pools, and must be distributed in a manner agreed
to between the licensee and the sending racetrack. Notwithstanding subdivision 7 and section
240.15, subdivision 5, the commission may approve procedures governing the definition and
disposition of unclaimed tickets that are consistent with the law and rules governing unclaimed
tickets at the sending racetrack. For the purposes of this section, "sending racetrack" is either
the racetrack outside of this state where the horse race is conducted or, with the consent of the
racetrack, an alternative facility that serves as the racetrack for the purpose of commingling pools.
(f) If there is more than one class B licensee conducting racing within the seven-county
metropolitan area, simulcasting may be conducted only on races run by a breed that ran at the
licensee's class A facility within the 12 months preceding the event.
    Subd. 6a.[Repealed, 1991 c 336 art 1 s 33]
    Subd. 7. Time limit for payments. The licensee must pay off on an uncashed ticket
presented for payment within 90 days of the end of the racing meeting during which it was
issued. A ticket not presented for payment within that period is an unredeemed ticket and shall be
reported to the commission as provided in section 240.15, subdivision 5.
    Subd. 8. Prohibited acts. A licensee may not accept a bet or a pari-mutuel ticket for
payment from any person under the age of 18 years. It is an affirmative defense to a charge under
this paragraph for the licensee to prove by a preponderance of the evidence that the licensee,
reasonably and in good faith, relied upon representation of proof of age described in section
340A.503, subdivision 6, in accepting the bet or pari-mutuel ticket for payment.
    Subd. 9. Transmission to Indian lands; pooling of bets. A licensed racetrack may, with the
approval of the horsepersons' organization representing the majority of horsepersons racing the
breed involved, transmit telecasts of races the licensee conducts to sites on Indian lands of tribes
who are lawfully conducting pari-mutuel wagering authorized by a tribal-state compact entered
into pursuant to the Indian Gaming Regulatory Act, Public Law 100-497, or through litigation,
arbitration, or mediation relative to that act. Nothing in this subdivision shall be construed to
indicate that state policy or law permits or encourages the transmission of telecasts to sites on
Indian lands. With prior approval of the commission, a licensed racetrack transmitting telecasts of
races it conducts, to sites on Indian lands within or outside of Minnesota or to other locations
outside the state, may commingle the amounts bet at the receiving entity with the pools at the
sending licensed racetrack.
History: 1983 c 214 s 13; 1985 c 212 s 12,13; 1986 c 444; 1987 c 327 s 1; 1988 c 696 s
2-4; 1989 c 141 s 4-7; 1989 c 334 art 1 s 12; 1991 c 336 art 1 s 17-23; art 2 s 4; 1992 c 513 art
3 s 46,47; 1994 c 633 art 1 s 4-9
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.
History: 1999 c 206 s 6
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.
History: 1999 c 206 s 7
240.14 RACING DAYS.
    Subdivision 1. Assignment of racing days. The commission shall assign racing days to
each racetrack licensee authorized to conduct racing with pari-mutuel betting, and a licensee
may conduct racing with pari-mutuel betting only on a racing day assigned by the commission.
The assignment of racing days and times of racing to a facility licensed under section 240.06,
subdivision 5a
, may not prevent the commission from assigning to a racetrack in existence
on January 1, 1987, the same or overlapping days or times. The commission may not assign
non-standard-bred racing days for a racetrack licensed under section 240.06, subdivision 5a.
The commission may assign racing days for up to three years beyond the year in which the
assignment is made. Assignments of racing days in any year must be made by December 31 of
the previous year, except that days may be assigned after that date to a licensee whose license is
issued after that date.
    Subd. 1a.[Repealed, 1991 c 336 art 1 s 33]
    Subd. 2. Hearing. A public hearing is required before the commission may:
(a) make an assignment of racing days;
(b) revise the assignment during the year; or
(c) assign racing days to a licensee whose license is issued after the initial assignment.
The commission may without a hearing assign one additional racing day to a licensee for
each originally assigned racing day during the same racing meeting on which racing was not
conducted for reasons beyond the licensee's control.
    Subd. 3. County fair racing days. The commission may assign to a class D licensee the
following racing days:
(1) those racing days, not to exceed ten racing days, that coincide with the days on which the
licensee's county fair is running; and
(2) additional racing days.
    Subd. 4. Rescinding of racing days. The commission may, after a public hearing, rescind one
or more racing days assigned to a licensee if it determines that the licensee has not met or will not
meet the terms of the license. A day or days so rescinded may be reassigned to another licensee.
History: 1983 c 214 s 14; 1985 c 208 s 1; 1985 c 212 s 14; 1986 c 444; 1987 c 68 s 2;
1989 c 141 s 8; 1992 c 513 art 3 s 48
240.15 PAYMENTS TO STATE.
    Subdivision 1. Taxes imposed. (a) There is imposed a tax at the rate of six percent of the
amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by the licensee,
including breakage and amounts withheld under section 240.13, subdivision 4. For the purpose of
this subdivision, "annually" is the period from July 1 to June 30 of the next year.
In addition to the above tax, the licensee must designate and pay to the commission a tax of
one percent of the total amount bet on each racing day, for deposit in the Minnesota breeders fund.
The taxes imposed by this clause must be paid from the amounts permitted to be withheld by
a licensee under section 240.13, subdivision 4.
(b) The commission may impose an admissions tax of not more than ten cents on each paid
admission at a licensed racetrack on a racing day if:
(1) the tax is requested by a local unit of government within whose borders the track
is located;
(2) a public hearing is held on the request; and
(3) the commission finds that the local unit of government requesting the tax is in need of its
revenue to meet extraordinary expenses caused by the racetrack.
    Subd. 2. Payment. The licensee must remit the tax to the commission or its representative
within seven days of the day on which it was collected. The payments must be accompanied by a
detailed statement of the remittance on a form the commission prescribes. The commission may
by rule provide for the direct deposit of required payments in the commission's account in a
financial institution within the state and for determining the time of applicability of different tax
rates under subdivision 1.
    Subd. 3. Tax exclusive. The tax imposed by subdivision 1 is in lieu of any tax or license fee,
other than taxes on real property, imposed by a political subdivision and in lieu of any other sales
or excise tax imposed by the state on pari-mutuel pools or pari-mutuel ticket sales.
    Subd. 4. Reports. Within 100 days of the end of each calendar year a licensee subject
to the tax imposed by subdivision 1 must file with the commission a certified financial report
disclosing receipts from all sources during the racing meeting and expenses and disbursements.
The financial report must be prepared by an independent certified public accountant in accordance
with generally accepted auditing standards.
    Subd. 5. Unredeemed tickets. (a) Notwithstanding any provision to the contrary in chapter
345, unredeemed pari-mutuel tickets shall not be considered unclaimed funds and shall be
handled in accordance with the provisions of this subdivision.
(b) Any person claiming to be entitled to the proceeds of any unredeemed ticket may within
one year after the conclusion of each race meet file with the licensee a verified claim for such
proceeds on such form as the licensee prescribes along with the pari-mutuel ticket. Unless the
claimant satisfactorily establishes the right to the proceeds, the claim shall be rejected. If the claim
is allowed, the licensee shall pay the proceeds without interest to the claimant.
    Subd. 6. Disposition of proceeds; account. The commission shall distribute all money
received under this section, and all money received from license fees and fines it collects,
according to this subdivision. All money designated for deposit in the Minnesota breeders fund
must be paid into that fund for distribution under section 240.18 except that all money generated
by full racing card simulcasts must be distributed as provided in section 240.18, subdivisions 2,
paragraph (d)
, clauses (1), (2), and (3); and 3. Revenue from an admissions tax imposed under
subdivision 1 must be paid to the local unit of government at whose request it was imposed, at
times and in a manner the commission determines. Taxes received under this section and fines
collected under section 240.22 must be paid to the commissioner of finance for deposit in the
general fund. All revenues from licenses and other fees imposed by the commission must be
deposited in the state treasury and credited to a racing and card playing regulation account in the
special revenue fund. Receipts in this account are available for the operations of the commission
up to the amount authorized in biennial appropriations from the legislature.
History: 1983 c 214 s 15; 1985 c 212 s 15,16; 1988 c 696 s 5-9; 1991 c 336 art 1 s 24; 1992
c 513 art 3 s 49; 1994 c 633 art 1 s 10; 1996 c 467 s 1,2; 1998 c 389 art 13 s 1,2; 2003 c 112
art 2 s 50; 1Sp2003 c 1 art 2 s 71
240.155 REIMBURSEMENT ACCOUNTS AND PROCEDURES.
    Subdivision 1. Reimbursement account credit. Money received by the commission as
reimbursement for the costs of services provided by veterinarians, stewards, and medical testing
of horses must be deposited in the state treasury and credited to a racing reimbursement account,
except as provided under subdivision 2. Receipts are appropriated to the commission to pay
the costs of providing the services.
    Subd. 2. General fund credit. Money received by the commission as reimbursement for
the compensation of a steward who is an employee of the commission for which a general fund
appropriation has been made must be credited to the general fund.
History: 1Sp1985 c 10 s 84; 1991 c 233 s 92; 1995 c 254 art 1 s 73; 1Sp2003 c 1 art 2 s 72
240.16 STEWARDS.
    Subdivision 1. Powers and duties. All horse races run at a licensed racetrack must be
presided over by a board of three stewards, who must be appointees of the commission or persons
approved by it. The commission shall designate one steward as chair. At least two stewards for all
races either shall be employees of the commission who shall serve in the unclassified service, or
shall be under contract with the commission to serve as stewards. The commission may delegate
the following duties and powers to a board of stewards:
(a) to ensure that races are run in accordance with the commission's rules;
(b) to supervise the conduct of racing to ensure the integrity of the sport;
(c) to settle disputes arising from the running of horse races, and to certify official results;
(d) to impose on licensees, for violation of law or commission rules, fines not exceeding
$2,000 and license suspensions not exceeding 90 days;
(e) to recommend to the commission where warranted penalties in excess of those in clause
(d);
(f) to otherwise enforce the laws and rules of racing; and
(g) to perform other duties and have other powers assigned by the commission.
    Subd. 1a. Simulcast. All simulcasts are subject to the regulation of the commission. The
commission may assign an official to preside over these activities and, if so assigned, the official
has the powers and duties provided by rule.
    Subd. 2. Appeals; hearings. A ruling of a board of stewards may be appealed to the
commission or be reviewed by it on its own initiative. The commission may provide for appeals
to be heard by less than a quorum of the commission. A hearing on a penalty imposed by a
board of stewards must be granted on request.
    Subd. 3. Procedural powers. A board of stewards has the authority to administer oaths,
issue subpoenas, order the production of documents and other evidence, and regulate the course
of hearings before it, according to the commission's rules. Hearings held by a board of stewards
are not subject to the provisions of the Administrative Procedure Act except those provisions
which the commission by rule makes applicable.
    Subd. 4. Rules. In addition to rules under subdivision 3, the commission may promulgate
rules governing the qualifications, appointment, approval, authority, removal, and compensation
of stewards.
    Subd. 5. Costs. The commission may require that a licensee reimburse it for the costs of
providing a state-paid steward or stewards to supervise racing at the licensee's racetrack.
    Subd. 6. Compensation. The total compensation of stewards who are employees of the
commission must be commensurate with the compensation of stewards who are not commission
employees.
History: 1983 c 214 s 16; 1985 c 212 s 17,18; 1985 c 248 s 39; 1986 c 444; 1987 c 69 s 2;
1989 c 141 s 9; 1991 c 336 art 1 s 25; 1994 c 633 art 1 s 11
240.17 LOCAL OPTION.
    Subdivision 1. Cities. An issuance of a class A license for a location in a city is not effective
until it has been approved by a majority vote of the city council. Failure to act on a license within
30 days of its referral to a city council by the commission constitutes approval.
    Subd. 2. Towns. An issuance of a class A license for a location in a town is not effective
until it has been approved by a majority vote of the town board. Failure to act on a license within
30 days of its referral to the town board by the commission constitutes approval.
    Subd. 3. Unorganized territory. An issuance of a class A license for a location in
unorganized territory is not effective until it has been approved by a majority vote of the county
board. Failure to act on a license within 30 days of its referral to the county board by the
commission constitutes approval.
History: 1983 c 214 s 17
240.18 BREEDERS' FUND.
    Subdivision 1. Establishment; apportionment. The commission shall establish a Minnesota
breeders' fund with the money paid to it under section 240.15, subdivision 1. The commission,
after paying the current costs of administering the fund, shall apportion the remaining net proceeds
into categories corresponding with the various breeds of horses which are racing at licensed
Minnesota racetracks in proportion to each category's contribution to the fund and distribute the
available net proceeds in each category as provided in this section.
    Subd. 2. Thoroughbred and quarterhorse categories. (a) With respect to available money
apportioned in the thoroughbred and quarterhorse categories, 20 percent must be expended as
follows:
(1) at least one-half in the form of grants, contracts, or expenditures for equine research and
related education at the University of Minnesota School of Veterinary Medicine; and
(2) the balance in the form of grants, contracts, or expenditures for one or more of the
following:
(i) additional equine research and related education;
(ii) substance abuse programs for licensed personnel at racetracks in this state; and
(iii) promotion and public information regarding industry and commission activities;
racehorse breeding, ownership, and management; and development and expansion of economic
benefits from racing.
(b) As a condition of a grant, contract, or expenditure under paragraph (a), the commission
shall require an annual report from the recipient on the use of the funds to the commission, the
chair of the house of representatives Committee on General Legislation, Veterans affairS, and
Gaming, and the chair of the senate committee on Gaming Regulation.
(c) The commission shall include in its annual report a summary of each grant, contract,
or expenditure under paragraph (a), clause (2), and a description of how the commission has
coordinated activities among recipients to ensure the most efficient and effective use of funds.
(d) After deducting the amount for paragraph (a), the balance of the available proceeds in
each category may be expended by the commission to:
(1) supplement purses for races held exclusively for Minnesota-bred or Minnesota-foaled
horses, and supplement purses for Minnesota-bred or Minnesota-foaled horses racing in
nonrestricted races in that category;
(2) pay breeders' or owners' awards to the breeders or owners of Minnesota-bred horses in
that category which win money at licensed racetracks in the state; and
(3) provide other financial incentives to encourage the horse breeding industry in Minnesota.
    Subd. 3. Standardbred category. (a) With respect to the available money apportioned in the
standardbred category, 20 percent must be expended as follows:
(1) one-half of that amount to supplement purses for standardbreds at non-pari-mutuel
racetracks in the state;
(2) one-fourth of that amount for the development of non-pari-mutuel standardbred tracks
in the state; and
(3) one-fourth of that amount as grants for equine research and related education at public
institutions of postsecondary learning in the state.
(b) After deducting the amount for paragraph (a), the balance of the available proceeds in the
standardbred category must be expended by the commission to:
(1) supplement purses for races held exclusively for Minnesota-bred and Minnesota-foaled
standardbreds;
(2) pay breeders or owners awards to the breeders or owners of Minnesota-bred standardbreds
which win money at licensed racetracks in the state; and
(3) provide other financial incentives to encourage the horse breeding industry in Minnesota.
    Subd. 3a. Other categories. Available money apportioned to breeds other than breeds
contained in subdivisions 2 and 3 must be distributed as financial incentives to encourage horse
racing and horse breeding for such breeds. Available money apportioned for the Arabian breed
may be distributed to owners who are Minnesota residents racing at licensed Minnesota racetracks
or at racetracks of border states.
    Subd. 4. Rules; advisory committees. The commission shall adopt rules governing the
distribution of the fund. The commission may establish advisory committees to advise it on the
distribution of money under this section, provided that the members of an advisory committee
shall serve without compensation.
History: 1983 c 214 s 18; 1984 c 502 art 14 s 2; 1985 c 212 s 19; 1988 c 696 s 10; 1991 c
336 art 2 s 5; 1992 c 513 art 3 s 50; 2006 c 205 s 1
240.19 CONTRACTS.
The commission shall by rule require that all contracts entered into by a class A, class B, or
class D licensee for the provision of goods or services, including concessions contracts, be subject
to commission approval. The rules must require that the contract include an affirmative action
plan establishing goals and timetables consistent with the Minnesota Human Rights Act, chapter
363A. The rules may also establish goals to provide economic opportunity for disadvantaged and
emerging small businesses, racial minorities, women, and disabled individuals. The commission
may require a contract holder to submit to it documents and records the commission deems
necessary to evaluate the contract.
History: 1983 c 214 s 19; 1991 c 330 s 3; 1991 c 336 art 1 s 26; 1995 c 261 s 4
240.20 APPEALS.
Appeals from a decision of the commission must be made in the manner prescribed by
sections 14.63 to 14.68.
History: 1983 c 214 s 20
240.21 RIGHT OF INSPECTION.
The commission and its representatives, including representatives of the Division of Alcohol
and Gambling Enforcement, have the right to inspect the licensed premises of a licensee and to
examine the licensee's books and other records at any time without a search warrant.
History: 1983 c 214 s 21; 1986 c 444; 1989 c 334 art 1 s 13; 1997 c 129 art 2 s 15
240.22 FINES.
The commission shall by rule establish a graduated schedule of civil fines for violations of
laws related to horse racing or of the commission's rules. The schedule must include minimum
and maximum fines for each violation and be based on and reflect the culpability, frequency and
severity of the violator's actions. The commission may impose a fine from this schedule on a
licensee for a violation of those rules or laws relating to horse racing. The fine is in addition to
any criminal penalty imposed for the same violation. Fines imposed by the commission must be
paid to the commission and forwarded to the commissioner of finance for deposit in the general
fund. A fine in excess of $2,000 is a contested case under the Administrative Procedure Act.
History: 1983 c 214 s 22; 1985 c 212 s 20; 1987 c 69 s 3; 2003 c 112 art 2 s 50
240.23 RULEMAKING AUTHORITY.
The commission has the authority, in addition to all other rulemaking authority granted
elsewhere in this chapter to promulgate rules governing:
(a) the conduct of horse races held at licensed racetracks in Minnesota, including but not
limited to the rules of racing, standards of entry, operation of claiming races, filing and handling
of objections, carrying of weights, and declaration of official results;
(b) wire communications between the premises of a licensed racetrack and any place
outside the premises;
(c) information on horse races which is sold on the premises of a licensed racetrack;
(d) liability insurance which it may require of all class A, class B, and class D licensees;
(e) the auditing of the books and records of a licensee by an auditor employed or appointed
by the commission;
(f) emergency action plans maintained by licensed racetracks and their periodic review;
(g) safety, security, and sanitation of stabling facilities at licensed racetracks;
(h) entry fees and other funds received by a licensee in the course of conducting racing which
the commission determines must be placed in escrow accounts;
(i) affirmative action in employment and contracting by class A, class B, and class D
licensees; and
(j) any other aspect of horse racing or pari-mutuel betting which in its opinion affects the
integrity of racing or the public health, welfare, or safety.
Rules of the commission are subject to chapter 14, the Administrative Procedure Act.
History: 1983 c 214 s 23; 1991 c 330 s 4; 1991 c 336 art 1 s 27; 1995 c 261 s 5
240.24 MEDICATION.
    Subdivision 1. Rules. The commission shall make and enforce rules governing medication
and medical testing for horses running at licensed racetracks. The rules must provide that
no medication, as the commission defines that term by rule, may be administered to a horse
within 48 hours of a race it runs at a licensed racetrack. The rules must also provide that no
horse participating in a race shall carry in its body any substance foreign to the natural horse.
The commission shall by rule establish the qualifications for laboratories used by it as testing
laboratories to enforce its rules under this section.
    Subd. 2. Exception. Notwithstanding subdivision 1, the commission by rule shall allow
the use of: (1) topical external applications that do not contain anesthetics or steroids; (2) food
additives; (3) Furosemide or other pulmonary hemostatic agents if the agents are administered
under the visual supervision of the veterinarian or a designee of the veterinarian employed by the
commission; and (4) nonsteroidal anti-inflammatory drugs, provided that the test sample does
not contain more than five micrograms of the substance or metabolites thereof per milliliter of
blood plasma. For purposes of this clause, "test sample" means any bodily substance including
blood, urine, saliva, or other substance as directed by the commission, taken from a horse
under the supervision of the commission veterinarian and in such manner as prescribed by the
commission for the purpose of analysis.
    Subd. 3. Fees. The commission shall establish by rule a fee or schedule of fees to recover the
costs of medical testing of horses running at racetracks licensed by the commission. Fees charged
for the testing of horses shall cover the cost of the medical testing laboratory. Fee receipts shall be
deposited in the state treasury and credited to the racing reimbursement account.
History: 1983 c 214 s 24; 1985 c 211 s 2; 1985 c 212 s 21; 1Sp1985 c 10 s 85; 1987 c 69 s
4,5; 1991 c 336 art 2 s 6; 1995 c 254 art 1 s 74; 1996 c 305 art 2 s 43; 2001 c 59 s 2
240.25 PROHIBITED ACTS.
    Subdivision 1. Illegal bets. No person may place or accept a bet as defined in section
609.75 on or off the premises of a licensed racetrack other than a bet made with an approved
pari-mutuel system.
    Subd. 2. Off-track bets. No person shall:
(1) for a fee, directly or indirectly, accept anything of value from another to be transmitted or
delivered for wager in any licensed pari-mutuel system of wagering on horse races, or for a fee
deliver anything of value which has been received outside of the enclosure of a licensed racetrack
holding a race meet licensed under this chapter, to be placed as wagers in the pari-mutuel system
of wagering on horse racing within the enclosure or facility; or
(2) give anything of value to be transmitted or delivered for wager in any licensed
pari-mutuel system of wagering on horse races to another who charges a fee, directly or indirectly,
for the transmission or delivery.
    Subd. 3. Influencing races. No person may influence or attempt to influence a horse race by:
(a) making threats;
(b) offering anything of value to a person involved in the conduct of a race in return for that
person's committing an illegal act or failing to perform a duty; or
(c) conniving with or seeking or having an understanding or agreement with a person
involved in the conduct of a race to commit an illegal act or to fail to perform a duty.
    Subd. 4. Tampering with horses. No person may:
(a) on the premises of a licensed racetrack use, possess, or knowingly assist another person
in using a battery or buzzer, electrical or mechanical, or other device or appliance, which can be
used to affect a horse's racing condition or performance, other than an ordinary whip;
(b) affect or attempt to affect the racing condition or performance of a horse at a race or
workout through the use of a drug or medication in violation of the commission's rules; or
(c) use any method, injurious or otherwise, to affect a horse's racing condition or performance
at a race or workout in violation of the commission's rules.
    Subd. 5. Reporting of information. A person licensed by the commission who has
information regarding a violation of any provision of this section must report that information
promptly to the commission or an agent of the commission.
    Subd. 6. False statement. No person may knowingly make a false statement in a document
or application required to be submitted to the commission or in a sworn statement to or testimony
before the commission.
    Subd. 7. Altered tickets. No person may knowingly offer for payment any pari-mutuel ticket
which has been altered or any counterfeit or forged pari-mutuel ticket.
    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.
History: 1983 c 214 s 25; 1983 c 216 art 2 s 17 subd 2; 1985 c 212 s 22,23; 1986 c 444;
1986 c 467 s 1; 1991 c 336 art 1 s 28; 1994 c 633 art 1 s 12,13; 1999 c 206 s 8
240.26 PENALTIES.
    Subdivision 1. Felonies. A violation of the prohibition against accepting a bet in section
240.25, subdivision 1, a violation of section 240.25, subdivision 2, clause (1), and a violation of
section 240.25, subdivisions 3, 4, and 7 is a felony.
    Subd. 2. Gross misdemeanors. A violation of the prohibition against placing a bet in section
240.25, subdivision 1, a violation of section 240.25, subdivision 2, clause (2), and a violation of
section 240.25, subdivisions 5 and 6, is a gross misdemeanor.
    Subd. 3. Misdemeanors. A violation of any other provision of this chapter or of a rule or
order of the commission for which another penalty is not provided is a misdemeanor.
    Subd. 4. Prosecution by attorney general. Notwithstanding section 388.051, subdivision
1
, paragraph (c), the attorney general has primary jurisdiction to prosecute felony violations of
section 240.25, subdivisions 2, 3, 4, and 7, and felony violations of section 240.25, subdivision 1,
when the bet was allegedly accepted on the premises of a licensed racetrack.
History: 1983 c 214 s 26; 1985 c 211 s 3; 1986 c 467 s 2,3; 1994 c 633 art 1 s 14
240.27 EXCLUSION OF CERTAIN PERSONS.
    Subdivision 1. Persons excluded. The commission may exclude from any and all licensed
racetracks in the state a person who:
(a) has been convicted of a felony under the laws of any state or the United States;
(b) has had a license suspended, revoked, or denied by the commission or by the racing
authority of any other jurisdiction; or
(c) is determined by the commission, on the basis of evidence presented to it, to be a threat to
the integrity of racing in Minnesota.
    Subd. 2. Hearing; appeal. An order to exclude a person from any or all licensed racetracks
in the state must be made by the commission at a public hearing of which the person to be
excluded must have at least five days' notice. If present at the hearing, the person must be
permitted to show cause why the exclusion should not be ordered. An appeal of the order may be
made in the same manner as other appeals under section 240.20.
    Subd. 3. Notice to racetracks. Upon issuing an order excluding a person from any or all
licensed racetracks, the commission shall send a copy of the order to the excluded person and
to all racetracks or teleracing facilities named in it, along with other information as it deems
necessary to permit compliance with the order.
    Subd. 4. Prohibitions. It is a gross misdemeanor for a person named in an exclusion order
to enter, attempt to enter, or be on the premises of a racetrack named in the order while it is in
effect, and for a person licensed to conduct racing or operate a racetrack knowingly to permit an
excluded person to enter or be on the premises.
    Subd. 5. Exclusions by racetrack. The holder of a license to conduct racing may eject and
exclude from its premises any licensee or any other person who is in violation of any state law
or commission rule or order or who is a threat to racing integrity or the public safety. A person
so excluded from racetrack premises may appeal the exclusion to the commission and must be
given a public hearing on the appeal upon request. At the hearing the person must be given the
opportunity to show cause why the exclusion should not have been ordered. If the commission
after the hearing finds that the integrity of racing and the public safety do not justify the exclusion,
it shall order the racetrack making the exclusion to reinstate or readmit the person. An appeal of a
commission order upholding the exclusion is governed by section 240.20.
History: 1983 c 214 s 27; 1986 c 444; 1991 c 336 art 1 s 29; 1994 c 633 art 1 s 15; 1995 c
261 s 6-9
240.28 CONFLICT OF INTEREST.
    Subdivision 1. Financial interest. No person may serve on or be employed by the
commission who has an interest in any corporation, association, or partnership which holds a
license from the commission or which holds a contract to supply goods or services to a licensee
or at a licensed racetrack, including concessions contracts. No member or employee of the
commission may own, wholly or in part, or have an interest in a horse which races at a licensed
racetrack in Minnesota. No member or employee of the commission may have a financial interest
in or be employed in a profession or business which conflicts with the performance of duties
as a member or employee.
    Subd. 2. Betting. No member or employee of the commission may bet or cause a bet to be
made on a race at a licensed racetrack while serving on or being employed by the commission.
No person appointed or approved by the director as a steward may bet or cause a bet to be made
at a licensed racetrack during a racing meeting at which the person is serving as a steward. The
commission shall by rule prescribe such restrictions on betting by its licensees as it deems
necessary to protect the integrity of racing.
    Subd. 3. Violation. A violation of subdivisions 1 and 2 is grounds for removal from the
commission or termination of employment. A bet made directly or indirectly by a licensee in
violation of a rule made by the commission under subdivision 2 is grounds for suspension or
revocation of the license.
History: 1983 c 214 s 28; 1986 c 444; 1989 c 334 art 1 s 14; 1991 c 233 s 93; 1991 c
336 art 1 s 30; 1994 c 633 art 1 s 16
240.29 REQUIRED RACES.
Each holder of a class B or D license must declare and schedule, on each racing
day it conducts, at least one race which is limited to horses which are Minnesota-bred or
Minnesota-foaled.
If there is not a sufficient number of such horses entered in the declared race to make up an
adequate slate of entries, another similarly restricted race may be substituted.
The commission shall by rule define "Minnesota-bred," "Minnesota-foaled," and
"Minnesota-owned."
History: 1983 c 214 s 29; 1985 c 212 s 24; 1989 c 141 s 10; 1991 c 336 art 1 s 31
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,
other than tables used for instruction, demonstrations, or tournament play, may not exceed 50.
The table limit exception for tournament play is allowed for only one tournament per year that
lasts for no longer than 14 days;
(2) except as provided in clause (3), no wager may exceed $60;
(3) for games in which each player is allowed to make only one wager or has a limited
opportunity to change that wager, no wager may exceed $300.
    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
.
    Subd. 10. Reporting. The class B licensee shall report all income generated by the card club
in an annual report to the Racing Commission. The report shall also account for all costs of
operation, taxes paid, amounts paid to the breeder's fund, and net profits to the class B licensee.
History: 1999 c 206 s 9; 2001 c 96 s 3,4
240.35 DETENTION OF SUSPECTS.
    Subdivision 1. Generally. A licensee of the commission may detain a person if the licensee
has probable cause to believe that the person detained has violated section 609.76 while at a card
club authorized by section 240.30. For purposes of this section, "licensee" means the commission's
director of racing security or a security officer licensed under Minnesota Rules, chapter 7878.
    Subd. 2. Circumstances justifying detention. (a) A licensee may detain a person to:
(1) require the person to provide identification or to verify identification;
(2) inquire as to whether the person possesses any contraband as provided by section
609.762, subdivision 1;
(3) notify a peace officer of the alleged violation; or
(4) institute criminal proceedings against the person.
(b) The person detained must be promptly informed of the purpose of the detention and may
not be subjected to unnecessary or unreasonable force, nor to interrogation against the person's
will. If at any time the person detained requests the licensee to summon a peace officer, the licensee
must notify a peace officer immediately. A licensee of the Minnesota Racing Commission must
not detain a person for more than one hour unless a peace officer requests detention, in which case
the person may be detained until the peace officer has accepted custody of or released the person.
    Subd. 3. Arrest. Upon a charge being made by a licensee, a peace officer may arrest a person
without a warrant if the officer has probable cause to believe that the person has committed or
attempted to commit an offense described in section 609.76.
    Subd. 4. Immunity. No licensee or peace officer is criminally or civilly liable for any
detention authorized by this section if probable cause exists for the detention, and the detention
was not conducted with unreasonable force or in bad faith.
History: 2001 c 92 s 1