349.168 GAMBLING EMPLOYEES.
Subdivision 1. Registration of employees.
A person may not receive compensation for
participating in the conduct of lawful gambling as an employee of a licensed organization unless
the person has first registered with the board on a form the board prescribes. The form must
require each registrant to provide the person's name, address, and date of birth, and the name,
address, and license number of the employing organization.
Subd. 2. Identification of employees.
Each person receiving compensation for the conduct
of lawful gambling must publicly display the person's name at all times while conducting the
Subd. 3.[Repealed, 1996 c 467 s 9
Subd. 4. Amounts paid.
The amounts of compensation that may be paid under this section
may be provided for in a schedule of compensation adopted by the board by rule. In adopting
a schedule, the board must consider the nature of the participation and the types of lawful
gambling participated in.
Subd. 5. Compensation records.
An organization paying compensation to persons who
participate in the conduct of lawful gambling must maintain a compensation record. The record
must itemize each payment made to each recipient of compensation and must include the amount
and the full name, address, and membership status of each recipient.
Subd. 6. Compensation paid by check or electronic transfer.
Compensation paid by
an organization in connection with lawful gambling must either be: (1) in the form of a check
drawn on the organization's gambling account, as specified in section
, and paid directly to
the person being compensated; (2) transferred electronically from the organization's gambling
account, as specified in section
349.19, subdivision 3
, directly to the employee's bank account; (3)
transferred electronically from the organization's gambling account to the account of a payroll
processing firm from which payment in the form of a check is paid directly to the person being
compensated; or (4) transferred electronically to and from the account of a payroll processing firm
for payment to the employee's account and for the payment of local, state, and federal withholding
taxes, provided that the payroll processing firm is (i) currently registered with and meets the
criteria of the Department of Revenue as a third-party bulk filer under section
, (ii) is able to provide proof of a third-party audit and an annual report and statement of
financial condition, (iii) is able to provide evidence of a fidelity bond, and (iv) can provide proof
of having been in business as a third-party bulk filer for the most recent three years.
Subd. 7. Penalty.
(a) An organization that makes payment of compensation, or causes
compensation to be made, that violates subdivision 4 must be assessed a civil penalty not to
exceed $1,000 for each violation of subdivision 4. A second violation within 12 months of
notification by the board to the organization of the first violation must result in suspension of the
organization's gambling license for a period of three months, in addition to any civil penalty
assessed. A third violation within 12 months of the board's notification to the organization of the
second violation must result in revocation of the organization's gambling license in addition to
any civil penalty assessed.
(b) Upon each violation, the director shall notify the organization in writing of its violation
and of the penalties under this subdivision for future violations. Notification is effective upon
(c) For purposes of this subdivision, a violation consists of a payroll period or compensation
date that includes payments made in violation of subdivision 4.
Subd. 8. Percentage of gross profit paid.
(a) A licensed organization may pay a percentage
of the gross profit from raffle ticket sales to a nonprofit organization that sells raffle tickets for
the licensed organization.
(b) A licensed organization may compensate an employee of the organization for the sale
of gambling equipment at a bar operation if the frequency of the activity is one day or less per
week and the games are limited to 32 chances or less per game. For purposes of this paragraph,
an employee must not be a lessor, employee of the lessor, or an immediate family member of
Subd. 9.[Repealed, 2003 c 110 s 44
Subd. 10. Employment of certain persons.
An organization that leases a premises may
not pay compensation to the lessor, a member of the lessor's immediate family, or the lessor's
employees, other than as a seller of pull-tabs and tipboards within a booth operation on the
premises. A member of the lessor's immediate family may be compensated by an organization for
the conduct of gambling at other sites not owned by the lessor.
History: 1990 c 590 art 1 s 26; 1994 c 633 art 5 s 64-66; 1998 c 322 s 3; 2001 c 96 s 10;
2002 c 386 art 1 s 7,8; 2003 c 110 s 26-29; 2005 c 166 art 1 s 25; 2006 c 205 s 18