Bill Text: MN HF1623 | 2011-2012 | 87th Legislature | Introduced
Bill Title: State Lottery authorized to offer games involving sports wagering and sports wagering pools, sports bookmaking under licenses issued by the director of the State Lottery authorized, and tax on licensed sports bookmaking imposed.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Introduced - Dead) 2011-05-04 - Author added Lillie [HF1623 Detail]
Download: Minnesota-2011-HF1623-Introduced.html
1.2relating to gambling; authorizing the State Lottery to offer games involving
1.3sports wagering and sports wagering pools; authorizing sports bookmaking under
1.4licenses issued by the director of the State Lottery; imposing a tax on licensed
1.5sports bookmaking;amending Minnesota Statutes 2010, sections 349A.01, by
1.6adding a subdivision; 349A.02, subdivision 3; 349A.04; 349A.06, subdivisions 1,
1.75, 6, 7, 8, 11; 349A.08; 349A.09; 349A.10, subdivision 4; 349A.11, subdivision
1.81; 349A.12; 349A.13; 609.75, subdivision 7; proposing coding for new law
1.9in Minnesota Statutes, chapter 349A.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 349A.01, is amended by adding a
1.12subdivision to read:
1.13 Subd. 14. Sports games. "Sports games" are wagering pools and sports wagering
1.14systems in which winning chances or wagers are determined by the outcome of
1.15professional sports events.
1.16 Sec. 2. Minnesota Statutes 2010, section 349A.02, subdivision 3, is amended to read:
1.17 Subd. 3. Powers and duties. In operating the lottery the director shall exercise
1.18the following powers and duties:
1.19(1) adopt rules and game procedures, including game procedures for sports games;
1.20(2) issue lottery retailer contracts and rule on appeals of decisions relating to those
1.21contracts;
1.22(3) enter into lottery procurement contracts for the provision of goods and services
1.23to the lottery;
1.24(4) employ personnel as are required to operate the lottery;
2.1(5) enter into written agreements with one or more government-authorized lotteries,
2.2or with an organization created and controlled by those lotteries, for the operation,
2.3marketing, and promotion of a joint lottery;
2.4(6) adopt and publish advertising and promotional materials consistent with section
2.5349A.09
; and
2.6(7) take all necessary steps to ensure the integrity of, and public confidence in, the
2.7State Lottery.
2.8 Sec. 3. Minnesota Statutes 2010, section 349A.04, is amended to read:
2.9349A.04 LOTTERY GAME PROCEDURES.
2.10The director may adopt game procedures governing the following elements of the
2.11lottery:
2.12(1) lottery games, including sports games;
2.13(2) ticket prices;
2.14(3) number and size of prizes;
2.15(4) methods of selecting winning tickets and determining winners of sports games;
2.16and
2.17(5) frequency and method of drawings.
2.18The adoption of lottery game procedures is not subject to chapter 14.
2.19 Sec. 4. Minnesota Statutes 2010, section 349A.06, subdivision 1, is amended to read:
2.20 Subdivision 1. Contracts. The director shall sell tickets for the lottery through
2.21lottery retailers with whom the director contracts. Contracts under this section are not
2.22subject to the provisions of sections16C.03 ,
16C.05 ,
16C.06 ,
16C.08 ,
16C.09 , and
2.2316C.10
, and are valid for a period of one year. The director may permit a retailer to sell
2.24tickets and participate in the conduct of sports games at more than one business location
2.25under a contract entered into under this section.
2.26 Sec. 5. Minnesota Statutes 2010, section 349A.06, subdivision 5, is amended to read:
2.27 Subd. 5. Restrictions on lottery retailers. (a) A lottery retailer may sell lottery
2.28tickets and participate in the conduct of sports games only on the premises described
2.29in the contract.
2.30(b) A lottery retailer must prominently display a certificate issued by the director on
2.31the premises where lottery tickets will be sold and sports games conducted.
2.32(c) A lottery retailer must keep a complete set of books of account, correspondence,
2.33and all other records necessary to show fully the retailer's lottery transactions, and make
3.1them available for inspection by employees of the lottery at all times during business
3.2hours. The director may require a lottery retailer to furnish information as the director
3.3deems necessary to carry out the purposes of this chapter, and may require an audit to be
3.4made of the books of account and records. The director may select an auditor to perform
3.5the audit and may require the retailer to pay the cost of the audit. The auditor has the same
3.6right of access to the books of account, correspondence, and other records as is given to
3.7employees of the lottery.
3.8(d) A contract issued under this section may not be transferred or assigned.
3.9(e) The director shall require that lottery tickets may be sold by retailers only for
3.10cash.
3.11(f) A lottery retailer must prominently post at the point of sale of lottery tickets and
3.12location where sports games are conducted, in a manner approved by the commissioner
3.13of human services, the toll-free telephone number established by the commissioner of
3.14human services in connection with the compulsive gambling program established under
3.15section245.98 .
3.16 Sec. 6. Minnesota Statutes 2010, section 349A.06, subdivision 6, is amended to read:
3.17 Subd. 6. Retention by retailers. The director may by rule provide for:
3.18(1) amounts which a lottery retailer may retain from gross receipts from the sale of
3.19lottery tickets and from sports games in order to pay prizes to holders of winning tickets
3.20and make payments on winning wagers; and
3.21(2) amounts which a lottery retailer may retain from gross receiptsfrom the sale of
3.22lottery tickets as a commission.
3.23 Sec. 7. Minnesota Statutes 2010, section 349A.06, subdivision 7, is amended to read:
3.24 Subd. 7. Retailer rental payments. If a lottery retailer's rental payments for the
3.25business premises are contractually computed, in whole or in part, on the basis of a
3.26percentage of retail sales, and the computation of retail sales is not explicitly defined to
3.27include the sale of lottery tickets and wagering in sports games, the compensation retained
3.28by the sales agent for the sale of lottery tickets and from participation in sports games shall
3.29be considered the amount of the retail sale for purposes of computing the rental payments.
3.30 Sec. 8. Minnesota Statutes 2010, section 349A.06, subdivision 8, is amended to read:
3.31 Subd. 8. Proceeds of sales. All proceeds from the sale of lottery tickets and from
3.32the participation in sports games received by a lottery retailer constitute a trust fund until
3.33paid to the director. The lottery retailer is personally liable for all proceeds.
4.1 Sec. 9. Minnesota Statutes 2010, section 349A.06, subdivision 11, is amended to read:
4.2 Subd. 11. Cancellation, suspension, and refusal to renew contracts or locations.
4.3(a) The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer
4.4from selling lottery tickets or participating in the conduct of sports games at a business
4.5location who:
4.6(1) has been convicted of a felony or gross misdemeanor;
4.7(2) has committed fraud, misrepresentation, or deceit;
4.8(3) has provided false or misleading information to the lottery; or
4.9(4) has acted in a manner prejudicial to public confidence in the integrity of the
4.10lottery.
4.11(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
4.12retailer or prohibit a lottery retailer from selling lottery tickets or participating in the
4.13conduct of sports games at a business location who:
4.14(1) changes business location;
4.15(2) fails to account for lottery tickets receivedor, the proceeds from tickets sold, or
4.16the proceeds from sports games;
4.17(3) fails to remit funds to the director in accordance with the director's rules;
4.18(4) violates a law or a rule or order of the director;
4.19(5) fails to comply with any of the terms in the lottery retailer's contract;
4.20(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
4.21(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
4.22continuation as a lottery retailer; or
4.23(8) has violated section340A.503, subdivision 2 , clause (1), two or more times
4.24within a two-year period.
4.25(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's
4.26contract or prohibit a lottery retailer from selling lottery tickets or participating in the
4.27conduct of sports games at a business location if there is a material change in any of the
4.28factors considered by the director under subdivision 2.
4.29(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery
4.30retailer from selling lottery tickets or participating in the conduct of sports games at a
4.31business location under this subdivision is a contested case under sections14.57 to
14.69
4.32and is in addition to any criminal penalties provided for a violation of law or rule.
4.33(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
4.34retailer from selling lottery tickets at a business location without notice for any of the
4.35reasons specified in this subdivision provided that a hearing is conducted within seven days
4.36after a request for a hearing is made by a lottery retailer. Within 20 days after receiving the
5.1administrative law judge's report, the director shall issue an order vacating the temporary
5.2suspension or prohibition or making any other appropriate order. If no hearing is requested
5.3within 30 days of the temporary suspension or prohibition taking effect, the suspension or
5.4prohibition becomes permanent unless the director vacates or modifies the order.
5.5 Sec. 10. Minnesota Statutes 2010, section 349A.08, is amended to read:
5.6349A.08 LOTTERY PRIZES.
5.7 Subdivision 1. Agreement by players. A person who buys a lottery ticket or
5.8participates in a sports game agrees to be bound by the rules applicable to the particular
5.9lottery game for which the ticket is purchased or to the sports game entered. The player
5.10acknowledges that the determination of whether a ticket or wager is a valid winning
5.11ticket or wager is subject to the rules of the director, claims procedures established by
5.12the director for that game, and any confidential or public validation tests established by
5.13the director for that game.
5.14 Subd. 2. Prizes not assignable. A prize or sports game payout on a winning wager
5.15in the state lottery is not assignable except as provided in subdivision 3 and except that:
5.16(1) if a prize winner dies before the prize or payout is paid, the director shall pay the
5.17prize or payout to the prize winner's estate; and
5.18(2) the director may pay a prize or payout to a person other than the winner of that
5.19prize or payout under an appropriate court order.
5.20 Subd. 3. Prizes won by persons under age 18. The following provisions govern
5.21the payment of a lottery prize and sports game payout to a person under age 18:
5.22(1) if the prize or payout is less than $5,000, the director may give a draft, payable to
5.23the order of the person under age 18, to the person's parents, custodial parent if one parent
5.24has custody, guardian, or other adult member of the person's family; and
5.25(2) if the prize or payout is $5,000 or more, the director shall deposit the prize
5.26with the district court and section540.08 applies to the investment and distribution
5.27of the money.
5.28 Subd. 4. Discharge of liability. The payment of a prize or sports game payout by
5.29the director discharges the director and the state of all liability for the prize.
5.30 Subd. 5. Payment; unclaimed prizes. A prize in the state lottery and payout from a
5.31sports game must be claimed by the winner within one year of (1) the date of the drawing
5.32at which the prize was awarded or the last day sales were authorized for a game where
5.33a prize was determined in a manner other than by means of a drawing, or (2) the date
5.34on which the sports game was entered, whichever applies. If a valid claim is not made
5.35for a prize or payout payable directly by the lottery by the end of this period, the prize
6.1money or payout is considered unclaimed and the winner of the prize or payout shall have
6.2no further claim to the prize. A prize or payout won by a person who purchased the
6.3winning ticket or entered the sports game in violation of section349A.12, subdivision 1 ,
6.4or won by a person ineligible to be awarded a prize or payout under subdivision 7 must
6.5be treated as an unclaimed prize or payout under this section. The director must transfer
6.6all unclaimed prize and payout money at the end of each fiscal year from the lottery cash
6.7flow account to the general fund.
6.8 Subd. 6. Installment payments. If the director decides to pay all or part of a prize
6.9or sports game payout in the form of installments over a period of years, the director shall
6.10provide for the payment of all installments by:
6.11(1) entering into a contract with a financially responsible person or firm or by
6.12purchasing an annuity to provide for the payment of the installments; or
6.13(2) establishing and maintaining as a separate and independent fund outside the
6.14state treasury a reserve account with sufficient funds for the payment of the installments
6.15as they become due.
6.16 Subd. 7. Payments prohibited. (a) No prize or sports game payout may be paid to
6.17the director or an employee of the lottery, or a member of their families residing in the
6.18same household of the member, director, or employee. No prize or payout may be paid
6.19to an officer or employee of a vendor which at the time the game or drawing was being
6.20conducted was involved with providing goods or services to the lottery under a lottery
6.21procurement contract.
6.22(b) No prize may be paid for a stolen, altered, or fraudulent ticket.
6.23 Subd. 8. Withholding of delinquent state taxes or other debts. The director shall
6.24report the name, address, and Social Security number of each winner of a lottery prize or
6.25sports game payout of $600 or more to the Department of Revenue to determine whether
6.26the person who has won the prize is delinquent in payment of state taxes or owes a debt
6.27as defined in section270A.03, subdivision 5 . If the person is delinquent in payment of
6.28state taxes or owes a debt as defined in section270A.03, subdivision 5 , the director shall
6.29withhold the delinquent amount from the person's prize for remittance to the Department
6.30of Revenue for payment of the delinquent taxes or distribution to a claimant agency in
6.31accordance with chapter 270A. Section270A.10 applies to the priority of claims.
6.32 Subd. 9. Privacy. (a) The phone number and street address of a winner of a lottery
6.33prize or sports game payout is private data on individuals under chapter 13.
6.34(b) Data on an individual, including name, physical and electronic address, and
6.35telephone number, that are given to the lottery for direct marketing purposes are private
7.1data on individuals as defined in section13.02 . For purposes of this subdivision, "direct
7.2marketing" means marketing conducted by the lottery directly with the consumer.
7.3 Sec. 11. Minnesota Statutes 2010, section 349A.09, is amended to read:
7.4349A.09 LOTTERY ADVERTISING.
7.5 Subdivision 1. Odds; required information. The director shall include on each
7.6brochure, pamphlet, booklet, or other similar material the director publishes to promote
7.7or explain any lottery game or sports game, a prominent and clear statement of the
7.8approximate odds of winning each prize offered in that lottery game or sports game.
7.9Each lottery retailer must post prominently at or near the point of ticket sale or point of
7.10entry into a sports game a notice or notices printed and provided by the director of the
7.11approximate odds of winning each prize in each game for which the lottery retailer sells
7.12tickets and each sports game which the retailer conducts on behalf of the director.
7.13 Subd. 2. Content of advertising. (a) Advertising and promotional materials for
7.14the lottery, including advertising and promotional materials for sports games, adopted or
7.15published by the director must be consistent with the dignity of the state and may only:
7.16(1) present information on how lottery games or sports games are played, prizes or
7.17payouts offered, where and how tickets may be purchased or sports games entered, when
7.18lottery game drawings are held, and odds on the games advertised;
7.19(2) identify state programs supported by lottery net revenues;
7.20(3) present the lottery or sports game as a form of entertainment; or
7.21(4) state the winning numbers or identity of winners of lottery prizes or sports game
7.22payouts.
7.23(b) The director may not adopt or publish any advertising for the lottery which:
7.24(1) presents directly or indirectly any lottery game or sports game as a potential
7.25means of relieving any person's financial difficulties;
7.26(2) is specifically targeted with the intent to exploit a person, a specific group or
7.27economic class of people, or a religious holiday by use of a religious theme or symbol;
7.28(3) presents the purchase of a lottery ticket or participation in a sports game as a
7.29financial investment or a way to achieve financial security;
7.30(4) uses the name or picture of a current elected state official to promote a lottery
7.31or sports game;
7.32(5) exhorts the public to bet by directly or indirectly misrepresenting a person's
7.33chance of winning a prize or a payout; or
7.34(6) denigrates a person who does not buy a lottery ticket or participate in a sports
7.35game, or unduly praises a person who does buy a ticket or participates in a sports game.
8.1 Subd. 3. Prizes; required information. The director must include, in any
8.2publication or print advertising which refers to a prize or payout which is or may be
8.3paid in installments, a statement to the effect that the prize or payout will be or may
8.4be paid in installments.
8.5 Sec. 12. Minnesota Statutes 2010, section 349A.10, subdivision 4, is amended to read:
8.6 Subd. 4. Deposit of receipts. (a) The director may require lottery retailers to:
8.7(1) deposit in a separate account to the credit of the lottery fund, in banks designated
8.8by the director, all money received by the lottery retailer from the sale of lottery tickets
8.9and participation in sports games, less money retained as the lottery retailer's commission
8.10and for payment of prizes and payouts;
8.11(2) file with the director reports of the lottery retailer's receipts and transactions in
8.12ticket sales and sports game wagers in a form that the director prescribes; and
8.13(3) allow money deposited by the lottery retailer from the sale of lottery tickets
8.14and participation in sports games to be transferred to the lottery through electronic fund
8.15transfer.
8.16(b) The director may make arrangements for any person, including a financial
8.17institution, to perform functions, activities, or services in connection with the receipt and
8.18distribution of lottery revenues.
8.19(c) A lottery retailer who fails to pay any money due to the director within the time
8.20prescribed by the director shall pay interest on the amount owed at the rate determined by
8.21rule.
8.22 Sec. 13. Minnesota Statutes 2010, section 349A.11, subdivision 1, is amended to read:
8.23 Subdivision 1. Lottery ticket; retailer. The director, an employee of the lottery,
8.24a member of the immediate family of the director or employee residing in the same
8.25household may not:
8.26(1) purchase a lottery ticket or participate in a sports game; or
8.27(2) have any personal pecuniary interest in any vendor holding a lottery procurement
8.28contract, or in any lottery retailer; or
8.29(3) receive any gift, gratuity, or other thing of value, excluding food or beverage,
8.30from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in
8.31excess of $100 in any calendar year.
8.32 Sec. 14. Minnesota Statutes 2010, section 349A.12, is amended to read:
8.33349A.12 PROHIBITED ACTS.
9.1 Subdivision 1. Purchase by minors. A person under the age of 18 years may not
9.2buy or redeem for a prize a ticket in the state lottery, or participate in a sports game.
9.3 Subd. 2. Sale to minors. A lottery retailer may not sell and a lottery retailer or other
9.4person may not (1) furnish or redeem for a prize a ticket in the state lottery to any person
9.5under the age of 18 years, (2) allow a person under the age of 18 years to participate in
9.6a sports game, or (3) make a sports game payout to a person under the age of 18 years.
9.7It is an affirmative defense to a charge under this subdivision for the lottery retailer or
9.8other person to prove by a preponderance of the evidence that the lottery retailer or other
9.9person reasonably and in good faith relied upon representation of proof of age described in
9.10section340A.503, subdivision 6 , in making the sale or furnishing or redeeming the ticket,
9.11or allowing participation in or making a payout for a sports game.
9.12 Subd. 3. Prohibited sales. (a) A person other than a lottery retailer may not sell a
9.13ticket in the state lottery or participate in the conduct of a sports game.
9.14(b) A lottery retailer may not sell a ticket for a price other than the price set by the
9.15director.
9.16 Subd. 4. Lottery retailers and vendors. A person who is a lottery retailer, or is
9.17applying to be a lottery retailer, a person applying for a contract with the director, or a
9.18person under contract with the director to supply goods or services to lottery may not pay,
9.19give, or make any economic opportunity, gift, loan, gratuity, special discount, favor,
9.20hospitality, or service, excluding food or beverage, having an aggregate value of over
9.21$100 in any calendar year to the director, employee of the lottery, or to a member of the
9.22immediate family residing in the same household as that person.
9.23 Subd. 5. Exceptions. Nothing in this chapter prohibits giving a state lottery ticket
9.24or a wager in a sports game as a gift, provided that a state lottery ticket or sports game
9.25wager may not be given to a person under the age of 18.
9.26 Subd. 6. Violations. A violation of subdivision 1 or 2 or a rule adopted by the
9.27director is a misdemeanor. A violation of subdivision 3 or 4 is a gross misdemeanor.
9.28 Sec. 15. Minnesota Statutes 2010, section 349A.13, is amended to read:
9.29349A.13 RESTRICTIONS.
9.30Nothing in this chapter:
9.31(1) authorizes the director to conduct a lottery game or contest, excluding sports
9.32games, the winner or winners of which are determined by the result of a sporting event
9.33other than a horse race conducted under chapter 240;
9.34(2) authorizes the director to install or operate a lottery device operated by coin or
9.35currency which when operated determines the winner of a game; and
10.1(3) authorizes the director to sell pull-tabs as defined under section349.12,
10.2subdivision 32 .
10.3 Sec. 16. [349A.19] SPORTS BOOKMAKING LICENSE.
10.4 Subdivision 1. License. Notwithstanding sections 609.755 and609.76 , a person
10.5may engage in sports bookmaking if the person holds a license from the director under
10.6this section. A license under this section authorizes the licensee to accept wagers on
10.7professional sports events.
10.8 Subd. 2. License application. An application for a license under this section
10.9must be made to the director on a form the director prescribes. The application must be
10.10accompanied by an affidavit of qualification that the applicant has not (1) been convicted
10.11within the previous five years of a felony or gross misdemeanor, a crime involving fraud
10.12or misrepresentation, or a gambling-related offense, or (2) been determined to have
10.13violated a rule of the director, the racing commission, or the gambling control board, or a
10.14gambling-related regulatory body in another state.
10.15 Subd. 3. Investigation. The director shall investigate each applicant for a license
10.16under this section to the extent the director deems necessary, and may request the assistance
10.17of and may reimburse the division of alcohol and gambling enforcement in investigating
10.18applicants. The director may require by rule that an applicant be fingerprinted or furnish
10.19the applicant's fingerprints. The director may charge an applicant an investigation fee to
10.20cover the cost of the investigation, and shall from this fee reimburse the division of alcohol
10.21and gambling enforcement for its share of the cost of the investigation. The director has
10.22access to all criminal history data compiled by the division of alcohol and gambling
10.23enforcement on licensees and applicants under this section. The director may cooperate
10.24with national and international organizations and agencies in conducting investigations.
10.25 Subd. 4. Issuance. If the director determines that an applicant is not disqualified
10.26under subdivision 3 and that licensing the applicant is consistent with the public health,
10.27welfare, and safety, the director shall issue a license to an applicant or renew a license
10.28already issued. Licenses issued under this subdivision are valid for one year from the
10.29date of issuance.
10.30 Subd. 5. Revocation; refusal to renew. (a) The director may revoke or refuse to
10.31renew a license under this section for (1) conduct, including a violation of a law or rule,
10.32that the director determines adversely affects the integrity of sports bookmaking, and (2)
10.33intentionally making a false statement in a license application. The director may suspend a
10.34license for a period of time the director determines for a violation of law or rule.
11.1 (b) A license revocation or suspension under this subdivision for more than 90 days
11.2is a contested case under sections14.57 to
14.69 of the Administrative Procedure Act and
11.3is in addition to criminal penalties imposed for a violation of law or rule. The director
11.4may summarily suspend a license for more than 90 days prior to a contested case hearing
11.5where it is necessary to ensure the integrity of sports bookmaking. A contested case
11.6hearing must be held within 20 days of the summary suspension and the administrative
11.7law judge's report must be issued within 20 days from the close of the hearing record. In
11.8all cases involving summary suspension the director must issue its final decision within 30
11.9days from receipt of the report of the administrative law judge and subsequent exceptions
11.10and argument under section14.61 .
11.11 Subd. 6. License fee. The director shall set the fee for a license under this section
11.12in an amount necessary to defray all expenses of the director in issuing and enforcing
11.13the terms of the license.
11.14 Subd. 7. Bond. The director may require that a licensee under this section post a
11.15bond, securities, or an irrevocable letter of credit, in an amount as the director deems
11.16necessary, to protect the integrity of sports bookmaking and the interests of persons
11.17making wagers with the licensee. If securities are deposited or an irrevocable letter of
11.18credit filed, the securities or letter of credit must be of a type or in the form provided under
11.19section349A.07, subdivision 5 , paragraphs (b) and (c).
11.20 Subd. 8. Nonapplicability. Sections541.20 ,
541.21 , 609.755,
609.76 , and
609.762
11.21do not apply to activities licensed under this section.
11.22 Sec. 17. [349A.20] LICENSED SPORTS BOOKMAKING TAX.
11.23 Subdivision 1. Imposition of tax. An excise tax is imposed on the gross revenues of
11.24persons licensed under section 349A.19. The rate of the tax is:
11.25 (1) For a person with gross revenues of $50,000 or less in the month being reported,
11.26three percent of gross revenues.
11.27 (2) For a person with gross revenues of more than $50,000 but less than $134,000 in
11.28the month being reported, four percent of gross revenues.
11.29 (3) For a person with gross revenues of $134,000 or more in the month being
11.30reported, 6.25 percent of gross revenues.
11.31 Subd. 2. Gross revenues defined. For purposes of this section, "gross revenues"
11.32means the total value of all wagers accepted by a person licensed under section349A.19 ,
11.33less amounts paid out by those persons as payouts on winning wagers. In determining
11.34the value or amount of any wager for purposes of this section, all charges incident to
11.35the placing of the wager must be included.
12.1 Subd. 3. Tax returns. A person licensed under section 349A.19 must file monthly
12.2tax returns with the commissioner of revenue, in the form required by the commissioner,
12.3of all bookmaking activity, and shall include information on all bets recorded, accepted,
12.4forwarded, and placed. The returns must be filed on or before the 20th day of the month
12.5following the month in which the bets reported were recorded, accepted, forwarded, or
12.6placed. The tax imposed by this section is due and payable at the time when the returns
12.7are filed.
12.8 Subd. 4. Deposit of revenue. Net proceeds from the tax imposed under this section
12.9must be deposited in the general fund.
12.10 Sec. 18. Minnesota Statutes 2010, section 609.75, subdivision 7, is amended to read:
12.11 Subd. 7. Sports bookmaking. Sports bookmaking is the activity of intentionally
12.12receiving, recording or forwarding within any 30-day period more than five bets, or offers
12.13to bet, that total more than $2,500 on any one or more sporting events. For purposes of
12.14this chapter and chapter 297E, "sports bookmaking" does not include activities licensed
12.15under section 349A.19.
12.16 Sec. 19. REPORT.
12.17The director of the State Lottery shall report to the legislature by January 1, 2013,
12.18on the present status and future prospects of legal and illegal sports bookmaking in
12.19Minnesota, and recommended changes in this act.
12.20 Sec. 20. EFFECTIVE DATE.
12.21Sections 1 to 19 are effective July 1, 2011.
1.3sports wagering and sports wagering pools; authorizing sports bookmaking under
1.4licenses issued by the director of the State Lottery; imposing a tax on licensed
1.5sports bookmaking;amending Minnesota Statutes 2010, sections 349A.01, by
1.6adding a subdivision; 349A.02, subdivision 3; 349A.04; 349A.06, subdivisions 1,
1.75, 6, 7, 8, 11; 349A.08; 349A.09; 349A.10, subdivision 4; 349A.11, subdivision
1.81; 349A.12; 349A.13; 609.75, subdivision 7; proposing coding for new law
1.9in Minnesota Statutes, chapter 349A.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 349A.01, is amended by adding a
1.12subdivision to read:
1.13 Subd. 14. Sports games. "Sports games" are wagering pools and sports wagering
1.14systems in which winning chances or wagers are determined by the outcome of
1.15professional sports events.
1.16 Sec. 2. Minnesota Statutes 2010, section 349A.02, subdivision 3, is amended to read:
1.17 Subd. 3. Powers and duties. In operating the lottery the director shall exercise
1.18the following powers and duties:
1.19(1) adopt rules and game procedures, including game procedures for sports games;
1.20(2) issue lottery retailer contracts and rule on appeals of decisions relating to those
1.21contracts;
1.22(3) enter into lottery procurement contracts for the provision of goods and services
1.23to the lottery;
1.24(4) employ personnel as are required to operate the lottery;
2.1(5) enter into written agreements with one or more government-authorized lotteries,
2.2or with an organization created and controlled by those lotteries, for the operation,
2.3marketing, and promotion of a joint lottery;
2.4(6) adopt and publish advertising and promotional materials consistent with section
2.6(7) take all necessary steps to ensure the integrity of, and public confidence in, the
2.7State Lottery.
2.8 Sec. 3. Minnesota Statutes 2010, section 349A.04, is amended to read:
2.9349A.04 LOTTERY GAME PROCEDURES.
2.10The director may adopt game procedures governing the following elements of the
2.11lottery:
2.12(1) lottery games, including sports games;
2.13(2) ticket prices;
2.14(3) number and size of prizes;
2.15(4) methods of selecting winning tickets and determining winners of sports games;
2.16and
2.17(5) frequency and method of drawings.
2.18The adoption of lottery game procedures is not subject to chapter 14.
2.19 Sec. 4. Minnesota Statutes 2010, section 349A.06, subdivision 1, is amended to read:
2.20 Subdivision 1. Contracts. The director shall sell tickets for the lottery through
2.21lottery retailers with whom the director contracts. Contracts under this section are not
2.22subject to the provisions of sections
2.24tickets and participate in the conduct of sports games at more than one business location
2.25under a contract entered into under this section.
2.26 Sec. 5. Minnesota Statutes 2010, section 349A.06, subdivision 5, is amended to read:
2.27 Subd. 5. Restrictions on lottery retailers. (a) A lottery retailer may sell lottery
2.28tickets and participate in the conduct of sports games only on the premises described
2.29in the contract.
2.30(b) A lottery retailer must prominently display a certificate issued by the director on
2.31the premises where lottery tickets will be sold and sports games conducted.
2.32(c) A lottery retailer must keep a complete set of books of account, correspondence,
2.33and all other records necessary to show fully the retailer's lottery transactions, and make
3.1them available for inspection by employees of the lottery at all times during business
3.2hours. The director may require a lottery retailer to furnish information as the director
3.3deems necessary to carry out the purposes of this chapter, and may require an audit to be
3.4made of the books of account and records. The director may select an auditor to perform
3.5the audit and may require the retailer to pay the cost of the audit. The auditor has the same
3.6right of access to the books of account, correspondence, and other records as is given to
3.7employees of the lottery.
3.8(d) A contract issued under this section may not be transferred or assigned.
3.9(e) The director shall require that lottery tickets may be sold by retailers only for
3.10cash.
3.11(f) A lottery retailer must prominently post at the point of sale of lottery tickets and
3.12location where sports games are conducted, in a manner approved by the commissioner
3.13of human services, the toll-free telephone number established by the commissioner of
3.14human services in connection with the compulsive gambling program established under
3.15section
3.16 Sec. 6. Minnesota Statutes 2010, section 349A.06, subdivision 6, is amended to read:
3.17 Subd. 6. Retention by retailers. The director may by rule provide for:
3.18(1) amounts which a lottery retailer may retain from gross receipts from the sale of
3.19lottery tickets and from sports games in order to pay prizes to holders of winning tickets
3.20and make payments on winning wagers; and
3.21(2) amounts which a lottery retailer may retain from gross receipts
3.22
3.23 Sec. 7. Minnesota Statutes 2010, section 349A.06, subdivision 7, is amended to read:
3.24 Subd. 7. Retailer rental payments. If a lottery retailer's rental payments for the
3.25business premises are contractually computed, in whole or in part, on the basis of a
3.26percentage of retail sales, and the computation of retail sales is not explicitly defined to
3.27include the sale of lottery tickets and wagering in sports games, the compensation retained
3.28by the sales agent for the sale of lottery tickets and from participation in sports games shall
3.29be considered the amount of the retail sale for purposes of computing the rental payments.
3.30 Sec. 8. Minnesota Statutes 2010, section 349A.06, subdivision 8, is amended to read:
3.31 Subd. 8. Proceeds of sales. All proceeds from the sale of lottery tickets and from
3.32the participation in sports games received by a lottery retailer constitute a trust fund until
3.33paid to the director. The lottery retailer is personally liable for all proceeds.
4.1 Sec. 9. Minnesota Statutes 2010, section 349A.06, subdivision 11, is amended to read:
4.2 Subd. 11. Cancellation, suspension, and refusal to renew contracts or locations.
4.3(a) The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer
4.4from selling lottery tickets or participating in the conduct of sports games at a business
4.5location who:
4.6(1) has been convicted of a felony or gross misdemeanor;
4.7(2) has committed fraud, misrepresentation, or deceit;
4.8(3) has provided false or misleading information to the lottery; or
4.9(4) has acted in a manner prejudicial to public confidence in the integrity of the
4.10lottery.
4.11(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
4.12retailer or prohibit a lottery retailer from selling lottery tickets or participating in the
4.13conduct of sports games at a business location who:
4.14(1) changes business location;
4.15(2) fails to account for lottery tickets received
4.16the proceeds from sports games;
4.17(3) fails to remit funds to the director in accordance with the director's rules;
4.18(4) violates a law or a rule or order of the director;
4.19(5) fails to comply with any of the terms in the lottery retailer's contract;
4.20(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
4.21(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
4.22continuation as a lottery retailer; or
4.23(8) has violated section
4.24within a two-year period.
4.25(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's
4.26contract or prohibit a lottery retailer from selling lottery tickets or participating in the
4.27conduct of sports games at a business location if there is a material change in any of the
4.28factors considered by the director under subdivision 2.
4.29(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery
4.30retailer from selling lottery tickets or participating in the conduct of sports games at a
4.31business location under this subdivision is a contested case under sections
4.32and is in addition to any criminal penalties provided for a violation of law or rule.
4.33(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
4.34retailer from selling lottery tickets at a business location without notice for any of the
4.35reasons specified in this subdivision provided that a hearing is conducted within seven days
4.36after a request for a hearing is made by a lottery retailer. Within 20 days after receiving the
5.1administrative law judge's report, the director shall issue an order vacating the temporary
5.2suspension or prohibition or making any other appropriate order. If no hearing is requested
5.3within 30 days of the temporary suspension or prohibition taking effect, the suspension or
5.4prohibition becomes permanent unless the director vacates or modifies the order.
5.5 Sec. 10. Minnesota Statutes 2010, section 349A.08, is amended to read:
5.6349A.08 LOTTERY PRIZES.
5.7 Subdivision 1. Agreement by players. A person who buys a lottery ticket or
5.8participates in a sports game agrees to be bound by the rules applicable to the particular
5.9lottery game for which the ticket is purchased or to the sports game entered. The player
5.10acknowledges that the determination of whether a ticket or wager is a valid winning
5.11ticket or wager is subject to the rules of the director, claims procedures established by
5.12the director for that game, and any confidential or public validation tests established by
5.13the director for that game.
5.14 Subd. 2. Prizes not assignable. A prize or sports game payout on a winning wager
5.15in the state lottery is not assignable except as provided in subdivision 3 and except that:
5.16(1) if a prize winner dies before the prize or payout is paid, the director shall pay the
5.17prize or payout to the prize winner's estate; and
5.18(2) the director may pay a prize or payout to a person other than the winner of that
5.19prize or payout under an appropriate court order.
5.20 Subd. 3. Prizes won by persons under age 18. The following provisions govern
5.21the payment of a lottery prize and sports game payout to a person under age 18:
5.22(1) if the prize or payout is less than $5,000, the director may give a draft, payable to
5.23the order of the person under age 18, to the person's parents, custodial parent if one parent
5.24has custody, guardian, or other adult member of the person's family; and
5.25(2) if the prize or payout is $5,000 or more, the director shall deposit the prize
5.26with the district court and section
5.27of the money.
5.28 Subd. 4. Discharge of liability. The payment of a prize or sports game payout by
5.29the director discharges the director and the state of all liability for the prize.
5.30 Subd. 5. Payment; unclaimed prizes. A prize in the state lottery and payout from a
5.31sports game must be claimed by the winner within one year of (1) the date of the drawing
5.32at which the prize was awarded or the last day sales were authorized for a game where
5.33a prize was determined in a manner other than by means of a drawing, or (2) the date
5.34on which the sports game was entered, whichever applies. If a valid claim is not made
5.35for a prize or payout payable directly by the lottery by the end of this period, the prize
6.1money or payout is considered unclaimed and the winner of the prize or payout shall have
6.2no further claim to the prize. A prize or payout won by a person who purchased the
6.3winning ticket or entered the sports game in violation of section
6.4or won by a person ineligible to be awarded a prize or payout under subdivision 7 must
6.5be treated as an unclaimed prize or payout under this section. The director must transfer
6.6all unclaimed prize and payout money at the end of each fiscal year from the lottery cash
6.7flow account to the general fund.
6.8 Subd. 6. Installment payments. If the director decides to pay all or part of a prize
6.9or sports game payout in the form of installments over a period of years, the director shall
6.10provide for the payment of all installments by:
6.11(1) entering into a contract with a financially responsible person or firm or by
6.12purchasing an annuity to provide for the payment of the installments; or
6.13(2) establishing and maintaining as a separate and independent fund outside the
6.14state treasury a reserve account with sufficient funds for the payment of the installments
6.15as they become due.
6.16 Subd. 7. Payments prohibited. (a) No prize or sports game payout may be paid to
6.17the director or an employee of the lottery, or a member of their families residing in the
6.18same household of the member, director, or employee. No prize or payout may be paid
6.19to an officer or employee of a vendor which at the time the game or drawing was being
6.20conducted was involved with providing goods or services to the lottery under a lottery
6.21procurement contract.
6.22(b) No prize may be paid for a stolen, altered, or fraudulent ticket.
6.23 Subd. 8. Withholding of delinquent state taxes or other debts. The director shall
6.24report the name, address, and Social Security number of each winner of a lottery prize or
6.25sports game payout of $600 or more to the Department of Revenue to determine whether
6.26the person who has won the prize is delinquent in payment of state taxes or owes a debt
6.27as defined in section
6.28state taxes or owes a debt as defined in section
6.29withhold the delinquent amount from the person's prize for remittance to the Department
6.30of Revenue for payment of the delinquent taxes or distribution to a claimant agency in
6.31accordance with chapter 270A. Section
6.32 Subd. 9. Privacy. (a) The phone number and street address of a winner of a lottery
6.33prize or sports game payout is private data on individuals under chapter 13.
6.34(b) Data on an individual, including name, physical and electronic address, and
6.35telephone number, that are given to the lottery for direct marketing purposes are private
7.1data on individuals as defined in section
7.2marketing" means marketing conducted by the lottery directly with the consumer.
7.3 Sec. 11. Minnesota Statutes 2010, section 349A.09, is amended to read:
7.4349A.09 LOTTERY ADVERTISING.
7.5 Subdivision 1. Odds; required information. The director shall include on each
7.6brochure, pamphlet, booklet, or other similar material the director publishes to promote
7.7or explain any lottery game or sports game, a prominent and clear statement of the
7.8approximate odds of winning each prize offered in that lottery game or sports game.
7.9Each lottery retailer must post prominently at or near the point of ticket sale or point of
7.10entry into a sports game a notice or notices printed and provided by the director of the
7.11approximate odds of winning each prize in each game for which the lottery retailer sells
7.12tickets and each sports game which the retailer conducts on behalf of the director.
7.13 Subd. 2. Content of advertising. (a) Advertising and promotional materials for
7.14the lottery, including advertising and promotional materials for sports games, adopted or
7.15published by the director must be consistent with the dignity of the state and may only:
7.16(1) present information on how lottery games or sports games are played, prizes or
7.17payouts offered, where and how tickets may be purchased or sports games entered, when
7.18lottery game drawings are held, and odds on the games advertised;
7.19(2) identify state programs supported by lottery net revenues;
7.20(3) present the lottery or sports game as a form of entertainment; or
7.21(4) state the winning numbers or identity of winners of lottery prizes or sports game
7.22payouts.
7.23(b) The director may not adopt or publish any advertising for the lottery which:
7.24(1) presents directly or indirectly any lottery game or sports game as a potential
7.25means of relieving any person's financial difficulties;
7.26(2) is specifically targeted with the intent to exploit a person, a specific group or
7.27economic class of people, or a religious holiday by use of a religious theme or symbol;
7.28(3) presents the purchase of a lottery ticket or participation in a sports game as a
7.29financial investment or a way to achieve financial security;
7.30(4) uses the name or picture of a current elected state official to promote a lottery
7.31or sports game;
7.32(5) exhorts the public to bet by directly or indirectly misrepresenting a person's
7.33chance of winning a prize or a payout; or
7.34(6) denigrates a person who does not buy a lottery ticket or participate in a sports
7.35game, or unduly praises a person who does buy a ticket or participates in a sports game.
8.1 Subd. 3. Prizes; required information. The director must include, in any
8.2publication or print advertising which refers to a prize or payout which is or may be
8.3paid in installments, a statement to the effect that the prize or payout will be or may
8.4be paid in installments.
8.5 Sec. 12. Minnesota Statutes 2010, section 349A.10, subdivision 4, is amended to read:
8.6 Subd. 4. Deposit of receipts. (a) The director may require lottery retailers to:
8.7(1) deposit in a separate account to the credit of the lottery fund, in banks designated
8.8by the director, all money received by the lottery retailer from the sale of lottery tickets
8.9and participation in sports games, less money retained as the lottery retailer's commission
8.10and for payment of prizes and payouts;
8.11(2) file with the director reports of the lottery retailer's receipts and transactions in
8.12ticket sales and sports game wagers in a form that the director prescribes; and
8.13(3) allow money deposited by the lottery retailer from the sale of lottery tickets
8.14and participation in sports games to be transferred to the lottery through electronic fund
8.15transfer.
8.16(b) The director may make arrangements for any person, including a financial
8.17institution, to perform functions, activities, or services in connection with the receipt and
8.18distribution of lottery revenues.
8.19(c) A lottery retailer who fails to pay any money due to the director within the time
8.20prescribed by the director shall pay interest on the amount owed at the rate determined by
8.21rule.
8.22 Sec. 13. Minnesota Statutes 2010, section 349A.11, subdivision 1, is amended to read:
8.23 Subdivision 1. Lottery ticket; retailer. The director, an employee of the lottery,
8.24a member of the immediate family of the director or employee residing in the same
8.25household may not:
8.26(1) purchase a lottery ticket or participate in a sports game; or
8.27(2) have any personal pecuniary interest in any vendor holding a lottery procurement
8.28contract, or in any lottery retailer; or
8.29(3) receive any gift, gratuity, or other thing of value, excluding food or beverage,
8.30from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in
8.31excess of $100 in any calendar year.
8.32 Sec. 14. Minnesota Statutes 2010, section 349A.12, is amended to read:
8.33349A.12 PROHIBITED ACTS.
9.1 Subdivision 1. Purchase by minors. A person under the age of 18 years may not
9.2buy or redeem for a prize a ticket in the state lottery, or participate in a sports game.
9.3 Subd. 2. Sale to minors. A lottery retailer may not sell and a lottery retailer or other
9.4person may not (1) furnish or redeem for a prize a ticket in the state lottery to any person
9.5under the age of 18 years, (2) allow a person under the age of 18 years to participate in
9.6a sports game, or (3) make a sports game payout to a person under the age of 18 years.
9.7It is an affirmative defense to a charge under this subdivision for the lottery retailer or
9.8other person to prove by a preponderance of the evidence that the lottery retailer or other
9.9person reasonably and in good faith relied upon representation of proof of age described in
9.10section
9.11or allowing participation in or making a payout for a sports game.
9.12 Subd. 3. Prohibited sales. (a) A person other than a lottery retailer may not sell a
9.13ticket in the state lottery or participate in the conduct of a sports game.
9.14(b) A lottery retailer may not sell a ticket for a price other than the price set by the
9.15director.
9.16 Subd. 4. Lottery retailers and vendors. A person who is a lottery retailer, or is
9.17applying to be a lottery retailer, a person applying for a contract with the director, or a
9.18person under contract with the director to supply goods or services to lottery may not pay,
9.19give, or make any economic opportunity, gift, loan, gratuity, special discount, favor,
9.20hospitality, or service, excluding food or beverage, having an aggregate value of over
9.21$100 in any calendar year to the director, employee of the lottery, or to a member of the
9.22immediate family residing in the same household as that person.
9.23 Subd. 5. Exceptions. Nothing in this chapter prohibits giving a state lottery ticket
9.24or a wager in a sports game as a gift, provided that a state lottery ticket or sports game
9.25wager may not be given to a person under the age of 18.
9.26 Subd. 6. Violations. A violation of subdivision 1 or 2 or a rule adopted by the
9.27director is a misdemeanor. A violation of subdivision 3 or 4 is a gross misdemeanor.
9.28 Sec. 15. Minnesota Statutes 2010, section 349A.13, is amended to read:
9.29349A.13 RESTRICTIONS.
9.30Nothing in this chapter:
9.31(1) authorizes the director to conduct a lottery game or contest, excluding sports
9.32games, the winner or winners of which are determined by the result of a sporting event
9.33other than a horse race conducted under chapter 240;
9.34(2) authorizes the director to install or operate a lottery device operated by coin or
9.35currency which when operated determines the winner of a game; and
10.1(3) authorizes the director to sell pull-tabs as defined under section
10.2subdivision 32
10.3 Sec. 16. [349A.19] SPORTS BOOKMAKING LICENSE.
10.4 Subdivision 1. License. Notwithstanding sections 609.755 and
10.5may engage in sports bookmaking if the person holds a license from the director under
10.6this section. A license under this section authorizes the licensee to accept wagers on
10.7professional sports events.
10.8 Subd. 2. License application. An application for a license under this section
10.9must be made to the director on a form the director prescribes. The application must be
10.10accompanied by an affidavit of qualification that the applicant has not (1) been convicted
10.11within the previous five years of a felony or gross misdemeanor, a crime involving fraud
10.12or misrepresentation, or a gambling-related offense, or (2) been determined to have
10.13violated a rule of the director, the racing commission, or the gambling control board, or a
10.14gambling-related regulatory body in another state.
10.15 Subd. 3. Investigation. The director shall investigate each applicant for a license
10.16under this section to the extent the director deems necessary, and may request the assistance
10.17of and may reimburse the division of alcohol and gambling enforcement in investigating
10.18applicants. The director may require by rule that an applicant be fingerprinted or furnish
10.19the applicant's fingerprints. The director may charge an applicant an investigation fee to
10.20cover the cost of the investigation, and shall from this fee reimburse the division of alcohol
10.21and gambling enforcement for its share of the cost of the investigation. The director has
10.22access to all criminal history data compiled by the division of alcohol and gambling
10.23enforcement on licensees and applicants under this section. The director may cooperate
10.24with national and international organizations and agencies in conducting investigations.
10.25 Subd. 4. Issuance. If the director determines that an applicant is not disqualified
10.26under subdivision 3 and that licensing the applicant is consistent with the public health,
10.27welfare, and safety, the director shall issue a license to an applicant or renew a license
10.28already issued. Licenses issued under this subdivision are valid for one year from the
10.29date of issuance.
10.30 Subd. 5. Revocation; refusal to renew. (a) The director may revoke or refuse to
10.31renew a license under this section for (1) conduct, including a violation of a law or rule,
10.32that the director determines adversely affects the integrity of sports bookmaking, and (2)
10.33intentionally making a false statement in a license application. The director may suspend a
10.34license for a period of time the director determines for a violation of law or rule.
11.1 (b) A license revocation or suspension under this subdivision for more than 90 days
11.2is a contested case under sections
11.3is in addition to criminal penalties imposed for a violation of law or rule. The director
11.4may summarily suspend a license for more than 90 days prior to a contested case hearing
11.5where it is necessary to ensure the integrity of sports bookmaking. A contested case
11.6hearing must be held within 20 days of the summary suspension and the administrative
11.7law judge's report must be issued within 20 days from the close of the hearing record. In
11.8all cases involving summary suspension the director must issue its final decision within 30
11.9days from receipt of the report of the administrative law judge and subsequent exceptions
11.10and argument under section
11.11 Subd. 6. License fee. The director shall set the fee for a license under this section
11.12in an amount necessary to defray all expenses of the director in issuing and enforcing
11.13the terms of the license.
11.14 Subd. 7. Bond. The director may require that a licensee under this section post a
11.15bond, securities, or an irrevocable letter of credit, in an amount as the director deems
11.16necessary, to protect the integrity of sports bookmaking and the interests of persons
11.17making wagers with the licensee. If securities are deposited or an irrevocable letter of
11.18credit filed, the securities or letter of credit must be of a type or in the form provided under
11.19section
11.20 Subd. 8. Nonapplicability. Sections
11.21do not apply to activities licensed under this section.
11.22 Sec. 17. [349A.20] LICENSED SPORTS BOOKMAKING TAX.
11.23 Subdivision 1. Imposition of tax. An excise tax is imposed on the gross revenues of
11.24persons licensed under section 349A.19. The rate of the tax is:
11.25 (1) For a person with gross revenues of $50,000 or less in the month being reported,
11.26three percent of gross revenues.
11.27 (2) For a person with gross revenues of more than $50,000 but less than $134,000 in
11.28the month being reported, four percent of gross revenues.
11.29 (3) For a person with gross revenues of $134,000 or more in the month being
11.30reported, 6.25 percent of gross revenues.
11.31 Subd. 2. Gross revenues defined. For purposes of this section, "gross revenues"
11.32means the total value of all wagers accepted by a person licensed under section
11.33less amounts paid out by those persons as payouts on winning wagers. In determining
11.34the value or amount of any wager for purposes of this section, all charges incident to
11.35the placing of the wager must be included.
12.1 Subd. 3. Tax returns. A person licensed under section 349A.19 must file monthly
12.2tax returns with the commissioner of revenue, in the form required by the commissioner,
12.3of all bookmaking activity, and shall include information on all bets recorded, accepted,
12.4forwarded, and placed. The returns must be filed on or before the 20th day of the month
12.5following the month in which the bets reported were recorded, accepted, forwarded, or
12.6placed. The tax imposed by this section is due and payable at the time when the returns
12.7are filed.
12.8 Subd. 4. Deposit of revenue. Net proceeds from the tax imposed under this section
12.9must be deposited in the general fund.
12.10 Sec. 18. Minnesota Statutes 2010, section 609.75, subdivision 7, is amended to read:
12.11 Subd. 7. Sports bookmaking. Sports bookmaking is the activity of intentionally
12.12receiving, recording or forwarding within any 30-day period more than five bets, or offers
12.13to bet, that total more than $2,500 on any one or more sporting events. For purposes of
12.14this chapter and chapter 297E, "sports bookmaking" does not include activities licensed
12.15under section 349A.19.
12.16 Sec. 19. REPORT.
12.17The director of the State Lottery shall report to the legislature by January 1, 2013,
12.18on the present status and future prospects of legal and illegal sports bookmaking in
12.19Minnesota, and recommended changes in this act.
12.20 Sec. 20. EFFECTIVE DATE.
12.21Sections 1 to 19 are effective July 1, 2011.
