Bill Text: MN HF2829 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Lawful gambling clarifying, conforming, and technical changes made; and games, prizes, and regulatory provisions modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-29 - HF indefinitely postponed [HF2829 Detail]
Download: Minnesota-2013-HF2829-Introduced.html
Bill Title: Lawful gambling clarifying, conforming, and technical changes made; and games, prizes, and regulatory provisions modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-29 - HF indefinitely postponed [HF2829 Detail]
Download: Minnesota-2013-HF2829-Introduced.html
1.2relating to gambling; making clarifying, conforming, and technical changes
1.3relating to lawful gambling; modifying games, prizes, and regulatory provisions;
1.4amending Minnesota Statutes 2012, sections 349.12, subdivision 18, by adding a
1.5subdivision; 349.16, by adding a subdivision; 349.163, subdivision 3, by adding
1.6subdivisions; 349.1635, subdivision 4; 349.17, subdivisions 5, 6, 9; 349.1711,
1.7subdivisions 1, 2; 349.1721, subdivision 4; 349.173; 349.181, subdivision 3;
1.8349.19, subdivision 11; 349.211, subdivisions 1, 1a, 2, by adding a subdivision;
1.9349.2127, subdivision 7, by adding a subdivision; Minnesota Statutes 2013
1.10Supplement, section 349.19, subdivision 2; repealing Minnesota Statutes 2012,
1.11sections 349.169; 349.19, subdivision 9.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2012, section 349.12, subdivision 18, is amended to read:
1.14 Subd. 18. Gambling equipment. "Gambling equipment" means gambling
1.15equipment that is either disposable or permanent gambling equipment.
1.16(a) Disposable gambling equipment includes the following:
1.17(1) bingo hard cards or paper sheets, including linked bingo paper sheets;
1.18(2) paper and electronic pull-tabs;
1.19(3) jar tickets;
1.20(4) paddle tickets and paddle ticket cards;
1.21(5) tipboards and tipboard tickets;and
1.22(6) promotional tickets that mimic a pull-tab or tipboard;
1.23(7) a disposable sealed placard, containing all 75 randomly placed bingo letter
1.24and number combinations, that, when opened, is used to select the bingo numbers in
1.25a single game of bingo.
1.26(b) Permanent gambling equipment includes the following:
1.27(1) devices for selecting bingo numbers;
2.1(2) electronic bingo devices;
2.2(3) electronic pull-tab devices;
2.3(4) pull-tab dispensing devices;
2.4(5) programmable electronic devices that have no effect on the outcome of a game
2.5and are used to provide a visual or auditory enhancement of a game;
2.6(6) paddle wheels; and
2.7(7) paddle wheel tables.
2.8 Sec. 2. Minnesota Statutes 2012, section 349.12, is amended by adding a subdivision
2.9to read:
2.10 Subd. 21a. Hot-ball bingo prize. "Hot-ball bingo prize" is an additional prize
2.11awarded to a winning bingo face for which the last bingo number called in the bingo game
2.12matches a previously designated bingo number announced to all players immediately prior
2.13to the beginning of the bingo game or the bingo occasion. All players participating in a
2.14bingo game that offers a hot-ball bingo prize must be eligible to win the hot-ball bingo
2.15prize at no additional cost to the player.
2.16 Sec. 3. Minnesota Statutes 2012, section 349.16, is amended by adding a subdivision
2.17to read:
2.18 Subd. 2a. Merged organizations. If two or more organizations merge or otherwise
2.19join together to form a new organization and at least one of the organizations has an active
2.20lawful gambling license, the board shall consider the new organization to have been in
2.21existence for the most recent three years if all other requirements of subdivision 2 are met.
2.22 Sec. 4. Minnesota Statutes 2012, section 349.163, subdivision 3, is amended to read:
2.23 Subd. 3. Prohibited sales. (a) A manufacturer may not:
2.24(1) sell gambling equipment for use or resale within the state to any person not
2.25licensed as a distributor, except that gambling equipment used exclusively in a linked
2.26bingo game may be sold to a licensed linked bingo provider; or
2.27(2) sell gambling equipment to a distributor in this state that has the same serial
2.28number as another item of gambling equipment of the same type that is sold by that
2.29manufacturer for use or resale in this state.
2.30(b) A manufacturer, affiliate of a manufacturer, or person acting as a representative
2.31or agent of a manufacturer may not provide a lessor of gambling premises or an appointed
2.32official any compensation, gift, gratuity, premium, contribution, or other thing of value.
3.1(c) A manufacturer may not sell or otherwise provide a pull-tab or tipboard deal
3.2with the symbol required by subdivision 5, paragraph (d), imprinted on the flare to any
3.3person other than a licensed distributor unless the manufacturer first renders the symbol
3.4permanently invisible.
3.5 Sec. 5. Minnesota Statutes 2012, section 349.163, is amended by adding a subdivision
3.6to read:
3.7 Subd. 3a. Promotional materials. A manufacturer may provide to an organization
3.8for use at a premises where lawful gambling is conducted by the licensed organization,
3.9marketing, promotional, or point-of-sale items or materials for the promotion of lawful
3.10gambling, provided the total value of the items or materials provided to the organization
3.11does not exceed $250 per year. Any marketing, promotional, or point-of-sale items and
3.12materials used for the promotion of lawful gambling may not include items normally
3.13purchased by the lessor of a premises in the lessor's business.
3.14 Sec. 6. Minnesota Statutes 2012, section 349.163, is amended by adding a subdivision
3.15to read:
3.16 Subd. 5a. Disposable sealed placard requirements. A disposable sealed placard
3.17used for the selection of bingo numbers in a bingo game in this state must have imprinted
3.18on it a unique serial and form number and a symbol that is at least one inch high and one
3.19inch wide consisting of an outline of the geographic boundaries of Minnesota with the
3.20letters "MN" inside the outline.
3.21 Sec. 7. Minnesota Statutes 2012, section 349.1635, subdivision 4, is amended to read:
3.22 Subd. 4. Prohibition. (a) Except for services associated exclusively with a linked
3.23bingo game, a linked bingo game provider may not participate or assist in the conduct
3.24of lawful gambling by an organization. No linked bingo game provider or employee,
3.25representative, agent, affiliate, or other employee of a linked bingo game provider may:
3.26(1) hold any financial or managerial interest in a premises leased for the conduct
3.27of bingo;
3.28(2) also be licensed as a distributor or hold any financial or managerial interest
3.29in a distributor;
3.30(3) sell or lease linked bingo game equipment to any person not licensed as an
3.31organization;
3.32(4) purchase gambling equipment to be used exclusively in a linked bingo game
3.33from any person not licensed as a manufacturer under section349.163 ;
4.1(5) provide a lessor of gambling premises or an appointed official any compensation,
4.2gift, gratuity, premium, or contribution; and
4.3(6) provide an employee or agent of the organization any compensation, gift, gratuity,
4.4premium, or other thing of value greater than $25 per organization in a calendar year.
4.5(b) A linked bingo provider may provide to an organization for use at a premises
4.6where lawful gambling is conducted by the licensed organization, marketing, promotional,
4.7or point-of-sale items or materials for the promotion of lawful gambling, provided the
4.8total value of the items or materials provided to the organization does not exceed $250
4.9per year. Any marketing, promotional, or point-of-sale items and materials used for the
4.10promotion of lawful gambling may not include items normally purchased by the lessor of
4.11a premises in the lessor's business.
4.12(b) (c) Employees of the board and the Division of Alcohol and Gambling
4.13Enforcement may inspect the books, records, inventory, and business premises of a
4.14licensed linked bingo game provider without notice during the normal business hours of the
4.15linked bingo game provider. The board may charge a linked bingo game provider for the
4.16actual cost of conducting scheduled or unscheduled inspections of the licensee's facilities.
4.17 Sec. 8. Minnesota Statutes 2012, section 349.17, subdivision 5, is amended to read:
4.18 Subd. 5. Bingo cards and sheets. (a) The board shall by rule require that all
4.19licensed organizations: (1) conduct bingo only using a bingo paper sheet or facsimile of a
4.20bingo face that bears an individual number recorded by the distributor or linked bingo
4.21game provider; and (2) use each bingo paper sheet for no more than one bingo occasion.
4.22In lieu of the requirements of clause (2), a licensed organization may electronically record
4.23the sale of each bingo hard card or paper sheet at each bingo occasion using an electronic
4.24recording system approved by the board.
4.25(b) The requirements of paragraph (a) shall only apply to a licensed organization
4.26that received gross receipts from bingo in excess of $150,000 in the organization's last
4.27fiscal year.
4.28(c) Each bingo hard card, bingo paper sheet, or a facsimile of a bingo paper sheet
4.29must have five horizontal rows of spaces with each row except one havingfive not more
4.30than two numbers in each space. The center row must have four spaces with not more
4.31than two numbers in each space and the center space marked "free." Each column must
4.32have one of the letters B-I-N-G-O in order at the top. Bingo paper sheets mayalso have
4.33numbers that are not preprinted but are filled in by players.
4.34 Sec. 9. Minnesota Statutes 2012, section 349.17, subdivision 6, is amended to read:
5.1 Subd. 6. Conduct of bingo. The price of a face played on an electronic bingo device
5.2may not be less than the price of a face on a bingo paper sheet sold for the same game at the
5.3same occasion. A game of bingo begins with the first letter and number called or displayed.
5.4Each player must cover, mark, or activate the numbers when bingo numbers are randomly
5.5selected and announced or displayed to the players. The game is won when a player, using
5.6bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as
5.7described in the bingo program, a previously designated pattern or previously determined
5.8requirements of the game and declared bingo. A bingo pattern or bingo game requirement
5.9may not be completed with fewer than three bingo numbers having been drawn, unless the
5.10game being played is a cover-none game. The game is completed when a winning card,
5.11sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
5.12 Sec. 10. Minnesota Statutes 2012, section 349.17, subdivision 9, is amended to read:
5.13 Subd. 9. Linked bingo games played exclusively on electronic bingo devices. In
5.14addition to the requirements of subdivision 8, the following requirements and restrictions
5.15apply when linked bingo games are played exclusively on electronic bingo devices.
5.16(a) The permitted premises must be:
5.17(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
5.18malt beverages, except for a general food store or drug store permitted to sell alcoholic
5.19beverages under section340A.405, subdivision 1 ; or
5.20(2) a premises where bingo is conducted as the primary business and has a seating
5.21capacity of at least 100.
5.22(b) The number of electronic bingo devices is limited to:
5.23(1) no more than six devices in play for permitted premises with 200 seats or less;
5.24(2) no more than 12 devices in play for permitted premises with 201 seats or more; and
5.25(3) no more than 50 devices in play for permitted premises where bingo is the
5.26primary business.
5.27Seating capacity is determined as specified under the local fire code.
5.28(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
5.29participating organizations, must provide to the board a bingo program in a format
5.30prescribed by the board.
5.31(d) Before participating in the play of a linked bingo game, a player must present
5.32and register a valid picture identification card that includes the player's address and date
5.33of birth. The board may not require by rule that an organization register or retain any
5.34information contained on the player's picture identification card.
6.1(e) An organization may remove from play a device that a player has not maintained
6.2in an activated mode for a specified period of time determined by the organization. The
6.3organization must provide the notice in its house rules.
6.4 Sec. 11. Minnesota Statutes 2012, section 349.1711, subdivision 1, is amended to read:
6.5 Subdivision 1. Sale of tickets. (a) Tipboard games must be played using only
6.6tipboard tickets that are either (1) attached to a placard and arranged in columns or rows,
6.7or (2) separate from the placard and contained in a receptacle while the game is in play.
6.8The placard serves as the game flare.
6.9(b) Except for a sports-themed tipboard, the placard must contain a seal or seals that
6.10conceals conceal the winning number numbers or symbol symbols. When a tipboard ticket
6.11is purchased and opened from a game containing more than32 100 tickets, each player
6.12having a tipboard ticket with one or more predesignated numbers or symbols must sign the
6.13placard at the line indicated by the number or symbol on the tipboard ticket.
6.14 Sec. 12. Minnesota Statutes 2012, section 349.1711, subdivision 2, is amended to read:
6.15 Subd. 2. Determination of winners. When the predesignated numbers or symbols
6.16have all been purchased, or all of the tipboard tickets for that game have been sold,the
6.17 a seal must be removed to reveal a number or symbol that determines which of the
6.18predesignated numbers or symbols is the winning number or symbol. The seal must be
6.19opened by an employee or volunteer of the organization, but if there is more than one seal
6.20on the placard, the eligible player may select which seal is opened. A tipboard may also
6.21contain consolation winners, or winning chances that are determined in whole or in part
6.22by the numerical outcome of one or more professional sporting events, that need not be
6.23determined by the use of the seal.
6.24 Sec. 13. Minnesota Statutes 2012, section 349.1721, subdivision 4, is amended to read:
6.25 Subd. 4. Electronic pull-tab device requirements and restrictions. The following
6.26pertain to the use of electronic pull-tab devices as defined under section349.12 ,
6.27subdivision 12b.
6.28(a) The use of any electronic pull-tab device may only be at a permitted premises
6.29that is:
6.30(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
6.31malt beverages, except for a general food store or drug store permitted to sell alcoholic
6.32beverages under section340A.405, subdivision 1 ; or
7.1(2) a premises where bingo is conducted as the primary business and has a seating
7.2capacity of at least 100; and
7.3(3) where the licensed organization sells paper pull-tabs.
7.4(b) The number of electronic pull-tab devices is limited to:
7.5(1) no more than six devices in play at any permitted premises with 200 seats or less;
7.6(2) no more than 12 devices in play at any permitted premises with 201 seats
7.7or more; and
7.8(3) no more than 50 devices in play at any permitted premises where the primary
7.9business is bingo.
7.10Seating capacity is determined as specified under the local fire code.
7.11(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
7.12(d) All electronic pull-tab games must be sold and played on the permitted premises
7.13and may not be linked to other permitted premises.
7.14(e) Electronic pull-tab games may not be transferred electronically or otherwise to
7.15any other location by the licensed organization.
7.16(f) Electronic pull-tab games may be commingled if the games are from the same
7.17family of games and manufacturer and contain the same game name, form number, type
7.18of game, ticket count, prize amounts, and prize denominations. Each commingled game
7.19must have a unique serial number.
7.20(g) An organization may remove from play a device that a player has not maintained
7.21in an activated mode for a specified period of time determined by the organization. The
7.22organization must provide the notice in its house rules.
7.23(h) Before participating in the play of an electronic pull-tab game, a player must
7.24presentand register a valid picture identification card that includes the player's address
7.25and date of birth. The board may not require by rule that an organization register or retain
7.26any information contained on the player's picture identification card.
7.27(i) Each player is limited to the use of one device at a time.
7.28 Sec. 14. Minnesota Statutes 2012, section 349.173, is amended to read:
7.29349.173 CONDUCT OF RAFFLES.
7.30(a) Raffle tickets or certificates of participation at a minimum must list the three
7.31most expensive prizes to be awarded and include the location, date, and time of the
7.32selection of the winning entries. If additional prizes will be awarded, a complete list of
7.33additional prizes must be publicly posted or the additional prizes must be prominently
7.34displayed at the eventand. Copies of the complete prize list must be made available upon
7.35request. Raffles conducted under the exemptions in section349.166 may use tickets that
8.1contain only the sequential number of the raffle ticket and no other information if the
8.2organization makes a list of prizes and a statement of other relevant information required
8.3by rule available to persons purchasing tickets and if tickets are only sold at the event
8.4and on the date when the tickets are drawn.
8.5(b) Raffles must be conducted in a manner that ensures:
8.6(1) all entries in the raffle have an equal chance of selection;
8.7(2) entry in the raffle is not conditioned upon any other purchase, except that a
8.8certificate of participation may be a button with a nominal value of less than $5;
8.9(3) the method of selection is conducted in a public forum;
8.10(4) the method of selection cannot be manipulated or based on the outcome of an
8.11event not under the control of the organization;
8.12(5) physical presence at the raffle is not a requirement to win; and
8.13(6) all sold and unsold tickets or certificates of participation are accounted for.
8.14(c) Methods of selecting winning entries from a raffle other than prescribed in rule
8.15may be used with the prior written approval of the board.
8.16 Sec. 15. Minnesota Statutes 2012, section 349.181, subdivision 3, is amended to read:
8.17 Subd. 3. Organization and lessor employees and volunteers. (a) For purposes of
8.18this section, "volunteer" means a person who is not compensated by an organization but
8.19who performs activities in the conduct of lawful gambling for that organization.
8.20(b) For purposes of this section, "conduct of pull-tabs, tipboards, and paddlewheels"
8.21includes selling tickets, redeeming tickets, auditing games, making deposits, spinning the
8.22paddlewheel, and conducting inventory.
8.23(c) For purposes of this section, "conduct of bingo" includes selling bingo hard cards,
8.24bingo paper sheets, or facsimiles of bingo paper sheets; completing bingo occasion records;
8.25selecting or announcing bingo numbers; making deposits; and conducting inventory.
8.26(d) An employeeor volunteer who is involved in the conduct of pull-tabs, tipboards,
8.27or paddlewheels at a permitted premises may not participate directly or indirectly as a
8.28player in a pull-tab, tipboard, or paddlewheel game at that same premises. This restriction
8.29is in effect until six weeks after the employeeor volunteer is no longer involved in the
8.30conduct of pull-tab, tipboard, or paddlewheel games at that same premises.
8.31(e) A volunteer involved in the conduct of a pull-tab, tipboard, or paddlewheel
8.32game limited to 32 chances or less per game may not participate as a player in a pull-tab,
8.33tipboard, or paddlewheel game at the same premises on the same business day that the
8.34volunteer was involved in the conduct of the game.
9.1(e) (f) An employee or volunteer who is involved in the conduct of any lawful
9.2gambling during a bingo occasion may not participate directly or indirectly as a player in
9.3any lawful gambling during that bingo occasion.
9.4 Sec. 16. Minnesota Statutes 2013 Supplement, section 349.19, subdivision 2, is
9.5amended to read:
9.6 Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
9.7must be segregated from all other revenues of the conducting organization and placed in a
9.8separate gambling bank account.
9.9(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
9.10made from the separate account except (1) in the case of expenditures previously approved
9.11by the organization's membership for emergencies as defined by board rule, (2) as provided
9.12in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
9.13of taxes for the organization as a whole, the organization may transfer the amount of taxes
9.14related to the conduct of gambling to the general account at the time when due and payable.
9.15(c) The name and address of the bank, the account number for the separate account,
9.16and the names of organization members authorized as signatories on the separate account
9.17must be provided to the board when the application is submitted. Changes in the
9.18information must be submitted to the board at least ten days before the change is made.
9.19(d) Except as provided in paragraph (e), gambling receipts must be deposited into
9.20the gambling bank account within four business days of completion of the bingo occasion,
9.21deal, or game from which they are received.
9.22(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
9.23the deal is sold or the organization does not continue the play of the deal during the next
9.24scheduled period of time in which the organization will conduct pull-tabs.
9.25(2) A tipboard game is considered complete when the seal on the game flare is
9.26uncovered or the organization does not continue the play of the deal during the next
9.27scheduled period of time in which the organization will conduct tipboards.
9.28(e) Gambling receipts fromall electronic pull-tab games and all linked electronic
9.29bingo games gambling must be recorded on a daily basis and deposited into the gambling
9.30bank accountwithin four business days when the total net receipts from all electronic
9.31games at the premises reach the sum of $2,000 or on or before the first day of the month
9.32immediately following the month during which the receipts were generated, whichever
9.33occurs first.
9.34(f) Deposit records must be sufficient to allow determination of deposits made from
9.35each bingo occasion, deal, or game at each permitted premises.
10.1(g) The person who accounts for gambling gross receipts and profits may not be the
10.2same person who accounts for other revenues of the organization.
10.3 Sec. 17. Minnesota Statutes 2012, section 349.19, subdivision 11, is amended to read:
10.4 Subd. 11. Information made part of organization minutes. A licensed
10.5organization which receives a copy ofa written audit under subdivision 9, or an audit
10.6or compliance reportprepared by an agency of the state, must place the audit report or
10.7compliance report in the minutes of the next meeting of the organization following
10.8receipt of the report. Copies of such minutes must be made available to all members
10.9of the organization upon request.
10.10 Sec. 18. Minnesota Statutes 2012, section 349.211, subdivision 1, is amended to read:
10.11 Subdivision 1. Bingo. Except as provided in subdivisions 1a, 1b, and 2, prizes for a
10.12single bingo game may not exceed $200 except prizes for a cover-all or cover-none game,
10.13which may exceed $200 if the aggregate value of all cover-all or cover-none prizes in a
10.14bingo occasion does not exceed $1,000. Total prizes awarded at a bingo occasion may not
10.15exceed $2,800, unless a cover-all and cover-none game is played in which case the limit is
10.16$3,800 $4,800. A prize may be determined based on the value of the bingo packet sold to
10.17the player. For purposes of this subdivision, a cover-all game is one in which a player must
10.18cover all spaces except a single free space to win and includes a game in which all odd or all
10.19even numbers are designated by the organization as covered prior to the start of the game.
10.20 Sec. 19. Minnesota Statutes 2012, section 349.211, subdivision 1a, is amended to read:
10.21 Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
10.22as follows:
10.23(1)for linked bingo games played without electronic bingo devices, an organization
10.24may not contribute to a linked bingo game prize pool more than $300 per linked bingo
10.25game per site;
10.26(2) for linked bingo games played exclusively with electronic bingo devices, an
10.27organization may not contribute more than 85 percent of the gross receipts per permitted
10.28premises to a linked bingo game prize pool;
10.29(3) (2) no organization may award more than $200 for a linked bingo game
10.30consolation prize. For purposes of this subdivision, a linked bingo game consolation
10.31prize is a prize awarded by an organization after a prize from the linked bingo prize pool
10.32has been won;
11.1(4) (3) for a progressive linked bingo game, if no player declares a valid bingo for
11.2a progressive prize or prizes based on a predetermined and posted win determination, a
11.3portion of the gross receipts may be carried over to another game until the accumulated
11.4progressive prize is won. The portion of the prize that is not carried over must be awarded
11.5to the first player or players who declares a valid bingo as additional numbers are called. If
11.6a valid bingo is declared, the entire prize pool for that game is awarded to the winner; and
11.7(5) (4) for linked bingo games played exclusively with electronic bingo devices,
11.8linked bingo prizes in excess of $599 shall be paid by the linked bingo game provider to
11.9the player within three business days. Winners of linked bingo prizes in excess of $599
11.10will be given a receipt or claim voucher as proof of a win.
11.11 Sec. 20. Minnesota Statutes 2012, section 349.211, is amended by adding a subdivision
11.12to read:
11.13 Subd. 1b. Hot-ball bingo prizes. An organization may award up to $500 for a
11.14hot-ball bingo prize in a bingo occasion.
11.15 Sec. 21. Minnesota Statutes 2012, section 349.211, subdivision 2, is amended to read:
11.16 Subd. 2. Progressive bingo games. Except as provided in subdivision 1a, a prize of
11.17up to $2,000 may be awarded for a progressive bingo game, including a cover-all game.
11.18The prize for a progressive bingo game may start at up to $500 and be increased by up to
11.19$100 for each occasion during which the progressive bingo game is played. A consolation
11.20prize of up to $200 for a progressive bingo game may be awarded in each occasion during
11.21which the progressive bingo game is played and the accumulated prize is not won.
11.22 Sec. 22. Minnesota Statutes 2012, section 349.2127, subdivision 7, is amended to read:
11.23 Subd. 7. Checks for gambling purchases. An organization may not accept checks
11.24or debit cards in payment for the purchase of any gambling equipment or for the chance to
11.25participate in any form of lawful gambling except a raffle. If an organization accepts a
11.26check or debit card, the payment of which is subsequently dishonored, the organization
11.27shall reimburse its gambling account for the amount of the dishonored payment within
11.2830 days of receiving notice of the dishonor. This subdivision does not apply to gaming
11.29activities conducted pursuant to the Indian Gaming Regulatory Act, United States Code,
11.30title 25, section 2701 et seq.
11.31 Sec. 23. Minnesota Statutes 2012, section 349.2127, is amended by adding a
11.32subdivision to read:
12.1 Subd. 8a. Debit cards permitted. An organization may accept a debit card in
12.2payment for the purchase of any gambling equipment or for the chance to participate
12.3in any form of lawful gambling.
12.4 Sec. 24. REPEALER.
12.5Minnesota Statutes 2012, sections 349.169; and 349.19, subdivision 9, are repealed.
1.3relating to lawful gambling; modifying games, prizes, and regulatory provisions;
1.4amending Minnesota Statutes 2012, sections 349.12, subdivision 18, by adding a
1.5subdivision; 349.16, by adding a subdivision; 349.163, subdivision 3, by adding
1.6subdivisions; 349.1635, subdivision 4; 349.17, subdivisions 5, 6, 9; 349.1711,
1.7subdivisions 1, 2; 349.1721, subdivision 4; 349.173; 349.181, subdivision 3;
1.8349.19, subdivision 11; 349.211, subdivisions 1, 1a, 2, by adding a subdivision;
1.9349.2127, subdivision 7, by adding a subdivision; Minnesota Statutes 2013
1.10Supplement, section 349.19, subdivision 2; repealing Minnesota Statutes 2012,
1.11sections 349.169; 349.19, subdivision 9.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2012, section 349.12, subdivision 18, is amended to read:
1.14 Subd. 18. Gambling equipment. "Gambling equipment" means gambling
1.15equipment that is either disposable or permanent gambling equipment.
1.16(a) Disposable gambling equipment includes the following:
1.17(1) bingo hard cards or paper sheets, including linked bingo paper sheets;
1.18(2) paper and electronic pull-tabs;
1.19(3) jar tickets;
1.20(4) paddle tickets and paddle ticket cards;
1.21(5) tipboards and tipboard tickets;
1.22(6) promotional tickets that mimic a pull-tab or tipboard;
1.23(7) a disposable sealed placard, containing all 75 randomly placed bingo letter
1.24and number combinations, that, when opened, is used to select the bingo numbers in
1.25a single game of bingo.
1.26(b) Permanent gambling equipment includes the following:
1.27(1) devices for selecting bingo numbers;
2.1(2) electronic bingo devices;
2.2(3) electronic pull-tab devices;
2.3(4) pull-tab dispensing devices;
2.4(5) programmable electronic devices that have no effect on the outcome of a game
2.5and are used to provide a visual or auditory enhancement of a game;
2.6(6) paddle wheels; and
2.7(7) paddle wheel tables.
2.8 Sec. 2. Minnesota Statutes 2012, section 349.12, is amended by adding a subdivision
2.9to read:
2.10 Subd. 21a. Hot-ball bingo prize. "Hot-ball bingo prize" is an additional prize
2.11awarded to a winning bingo face for which the last bingo number called in the bingo game
2.12matches a previously designated bingo number announced to all players immediately prior
2.13to the beginning of the bingo game or the bingo occasion. All players participating in a
2.14bingo game that offers a hot-ball bingo prize must be eligible to win the hot-ball bingo
2.15prize at no additional cost to the player.
2.16 Sec. 3. Minnesota Statutes 2012, section 349.16, is amended by adding a subdivision
2.17to read:
2.18 Subd. 2a. Merged organizations. If two or more organizations merge or otherwise
2.19join together to form a new organization and at least one of the organizations has an active
2.20lawful gambling license, the board shall consider the new organization to have been in
2.21existence for the most recent three years if all other requirements of subdivision 2 are met.
2.22 Sec. 4. Minnesota Statutes 2012, section 349.163, subdivision 3, is amended to read:
2.23 Subd. 3. Prohibited sales. (a) A manufacturer may not:
2.24(1) sell gambling equipment for use or resale within the state to any person not
2.25licensed as a distributor, except that gambling equipment used exclusively in a linked
2.26bingo game may be sold to a licensed linked bingo provider; or
2.27(2) sell gambling equipment to a distributor in this state that has the same serial
2.28number as another item of gambling equipment of the same type that is sold by that
2.29manufacturer for use or resale in this state.
2.30(b) A manufacturer, affiliate of a manufacturer, or person acting as a representative
2.31or agent of a manufacturer may not provide a lessor of gambling premises or an appointed
2.32official any compensation, gift, gratuity, premium, contribution, or other thing of value.
3.1(c) A manufacturer may not sell or otherwise provide a pull-tab or tipboard deal
3.2with the symbol required by subdivision 5, paragraph (d), imprinted on the flare to any
3.3person other than a licensed distributor unless the manufacturer first renders the symbol
3.4permanently invisible.
3.5 Sec. 5. Minnesota Statutes 2012, section 349.163, is amended by adding a subdivision
3.6to read:
3.7 Subd. 3a. Promotional materials. A manufacturer may provide to an organization
3.8for use at a premises where lawful gambling is conducted by the licensed organization,
3.9marketing, promotional, or point-of-sale items or materials for the promotion of lawful
3.10gambling, provided the total value of the items or materials provided to the organization
3.11does not exceed $250 per year. Any marketing, promotional, or point-of-sale items and
3.12materials used for the promotion of lawful gambling may not include items normally
3.13purchased by the lessor of a premises in the lessor's business.
3.14 Sec. 6. Minnesota Statutes 2012, section 349.163, is amended by adding a subdivision
3.15to read:
3.16 Subd. 5a. Disposable sealed placard requirements. A disposable sealed placard
3.17used for the selection of bingo numbers in a bingo game in this state must have imprinted
3.18on it a unique serial and form number and a symbol that is at least one inch high and one
3.19inch wide consisting of an outline of the geographic boundaries of Minnesota with the
3.20letters "MN" inside the outline.
3.21 Sec. 7. Minnesota Statutes 2012, section 349.1635, subdivision 4, is amended to read:
3.22 Subd. 4. Prohibition. (a) Except for services associated exclusively with a linked
3.23bingo game, a linked bingo game provider may not participate or assist in the conduct
3.24of lawful gambling by an organization. No linked bingo game provider or employee,
3.25representative, agent, affiliate, or other employee of a linked bingo game provider may:
3.26(1) hold any financial or managerial interest in a premises leased for the conduct
3.27of bingo;
3.28(2) also be licensed as a distributor or hold any financial or managerial interest
3.29in a distributor;
3.30(3) sell or lease linked bingo game equipment to any person not licensed as an
3.31organization;
3.32(4) purchase gambling equipment to be used exclusively in a linked bingo game
3.33from any person not licensed as a manufacturer under section
4.1(5) provide a lessor of gambling premises or an appointed official any compensation,
4.2gift, gratuity, premium, or contribution; and
4.3(6) provide an employee or agent of the organization any compensation, gift, gratuity,
4.4premium, or other thing of value greater than $25 per organization in a calendar year.
4.5(b) A linked bingo provider may provide to an organization for use at a premises
4.6where lawful gambling is conducted by the licensed organization, marketing, promotional,
4.7or point-of-sale items or materials for the promotion of lawful gambling, provided the
4.8total value of the items or materials provided to the organization does not exceed $250
4.9per year. Any marketing, promotional, or point-of-sale items and materials used for the
4.10promotion of lawful gambling may not include items normally purchased by the lessor of
4.11a premises in the lessor's business.
4.12
4.13Enforcement may inspect the books, records, inventory, and business premises of a
4.14licensed linked bingo game provider without notice during the normal business hours of the
4.15linked bingo game provider. The board may charge a linked bingo game provider for the
4.16actual cost of conducting scheduled or unscheduled inspections of the licensee's facilities.
4.17 Sec. 8. Minnesota Statutes 2012, section 349.17, subdivision 5, is amended to read:
4.18 Subd. 5. Bingo cards and sheets. (a) The board shall by rule require that all
4.19licensed organizations: (1) conduct bingo only using a bingo paper sheet or facsimile of a
4.20bingo face that bears an individual number recorded by the distributor or linked bingo
4.21game provider; and (2) use each bingo paper sheet for no more than one bingo occasion.
4.22In lieu of the requirements of clause (2), a licensed organization may electronically record
4.23the sale of each bingo hard card or paper sheet at each bingo occasion using an electronic
4.24recording system approved by the board.
4.25(b) The requirements of paragraph (a) shall only apply to a licensed organization
4.26that received gross receipts from bingo in excess of $150,000 in the organization's last
4.27fiscal year.
4.28(c) Each bingo hard card, bingo paper sheet, or a facsimile of a bingo paper sheet
4.29must have five horizontal rows of spaces with each row except one having
4.30than two numbers in each space. The center row must have four spaces with not more
4.31than two numbers in each space and the center space marked "free." Each column must
4.32have one of the letters B-I-N-G-O in order at the top. Bingo paper sheets may
4.33numbers that are not preprinted but are filled in by players.
4.34 Sec. 9. Minnesota Statutes 2012, section 349.17, subdivision 6, is amended to read:
5.1 Subd. 6. Conduct of bingo. The price of a face played on an electronic bingo device
5.2may not be less than the price of a face on a bingo paper sheet sold for the same game at the
5.3same occasion. A game of bingo begins with the first letter and number called or displayed.
5.4Each player must cover, mark, or activate the numbers when bingo numbers are randomly
5.5selected and announced or displayed to the players. The game is won when a player, using
5.6bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as
5.7described in the bingo program, a previously designated pattern or previously determined
5.8requirements of the game and declared bingo. A bingo pattern or bingo game requirement
5.9may not be completed with fewer than three bingo numbers having been drawn, unless the
5.10game being played is a cover-none game. The game is completed when a winning card,
5.11sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
5.12 Sec. 10. Minnesota Statutes 2012, section 349.17, subdivision 9, is amended to read:
5.13 Subd. 9. Linked bingo games played exclusively on electronic bingo devices. In
5.14addition to the requirements of subdivision 8, the following requirements and restrictions
5.15apply when linked bingo games are played exclusively on electronic bingo devices.
5.16(a) The permitted premises must be:
5.17(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
5.18malt beverages, except for a general food store or drug store permitted to sell alcoholic
5.19beverages under section
5.20(2) a premises where bingo is conducted as the primary business and has a seating
5.21capacity of at least 100.
5.22(b) The number of electronic bingo devices is limited to:
5.23(1) no more than six devices in play for permitted premises with 200 seats or less;
5.24(2) no more than 12 devices in play for permitted premises with 201 seats or more; and
5.25(3) no more than 50 devices in play for permitted premises where bingo is the
5.26primary business.
5.27Seating capacity is determined as specified under the local fire code.
5.28(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
5.29participating organizations, must provide to the board a bingo program in a format
5.30prescribed by the board.
5.31(d) Before participating in the play of a linked bingo game, a player must present
5.32
5.33of birth. The board may not require by rule that an organization register or retain any
5.34information contained on the player's picture identification card.
6.1(e) An organization may remove from play a device that a player has not maintained
6.2in an activated mode for a specified period of time determined by the organization. The
6.3organization must provide the notice in its house rules.
6.4 Sec. 11. Minnesota Statutes 2012, section 349.1711, subdivision 1, is amended to read:
6.5 Subdivision 1. Sale of tickets. (a) Tipboard games must be played using only
6.6tipboard tickets that are either (1) attached to a placard and arranged in columns or rows,
6.7or (2) separate from the placard and contained in a receptacle while the game is in play.
6.8The placard serves as the game flare.
6.9(b) Except for a sports-themed tipboard, the placard must contain a seal or seals that
6.10
6.11is purchased and opened from a game containing more than
6.12having a tipboard ticket with one or more predesignated numbers or symbols must sign the
6.13placard at the line indicated by the number or symbol on the tipboard ticket.
6.14 Sec. 12. Minnesota Statutes 2012, section 349.1711, subdivision 2, is amended to read:
6.15 Subd. 2. Determination of winners. When the predesignated numbers or symbols
6.16have all been purchased, or all of the tipboard tickets for that game have been sold,
6.17 a seal must be removed to reveal a number or symbol that determines which of the
6.18predesignated numbers or symbols is the winning number or symbol. The seal must be
6.19opened by an employee or volunteer of the organization, but if there is more than one seal
6.20on the placard, the eligible player may select which seal is opened. A tipboard may also
6.21contain consolation winners, or winning chances that are determined in whole or in part
6.22by the numerical outcome of one or more professional sporting events, that need not be
6.23determined by the use of the seal.
6.24 Sec. 13. Minnesota Statutes 2012, section 349.1721, subdivision 4, is amended to read:
6.25 Subd. 4. Electronic pull-tab device requirements and restrictions. The following
6.26pertain to the use of electronic pull-tab devices as defined under section
6.27subdivision 12b.
6.28(a) The use of any electronic pull-tab device may only be at a permitted premises
6.29that is:
6.30(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
6.31malt beverages, except for a general food store or drug store permitted to sell alcoholic
6.32beverages under section
7.1(2) a premises where bingo is conducted as the primary business and has a seating
7.2capacity of at least 100; and
7.3(3) where the licensed organization sells paper pull-tabs.
7.4(b) The number of electronic pull-tab devices is limited to:
7.5(1) no more than six devices in play at any permitted premises with 200 seats or less;
7.6(2) no more than 12 devices in play at any permitted premises with 201 seats
7.7or more; and
7.8(3) no more than 50 devices in play at any permitted premises where the primary
7.9business is bingo.
7.10Seating capacity is determined as specified under the local fire code.
7.11(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
7.12(d) All electronic pull-tab games must be sold and played on the permitted premises
7.13and may not be linked to other permitted premises.
7.14(e) Electronic pull-tab games may not be transferred electronically or otherwise to
7.15any other location by the licensed organization.
7.16(f) Electronic pull-tab games may be commingled if the games are from the same
7.17family of games and manufacturer and contain the same game name, form number, type
7.18of game, ticket count, prize amounts, and prize denominations. Each commingled game
7.19must have a unique serial number.
7.20(g) An organization may remove from play a device that a player has not maintained
7.21in an activated mode for a specified period of time determined by the organization. The
7.22organization must provide the notice in its house rules.
7.23(h) Before participating in the play of an electronic pull-tab game, a player must
7.24present
7.25
7.26any information contained on the player's picture identification card.
7.27(i) Each player is limited to the use of one device at a time.
7.28 Sec. 14. Minnesota Statutes 2012, section 349.173, is amended to read:
7.29349.173 CONDUCT OF RAFFLES.
7.30(a) Raffle tickets or certificates of participation at a minimum must list the three
7.31most expensive prizes to be awarded and include the location, date, and time of the
7.32selection of the winning entries. If additional prizes will be awarded, a complete list of
7.33additional prizes must be publicly posted or the additional prizes must be prominently
7.34displayed at the event
7.35request. Raffles conducted under the exemptions in section
8.1contain only the sequential number of the raffle ticket and no other information if the
8.2organization makes a list of prizes and a statement of other relevant information required
8.3by rule available to persons purchasing tickets and if tickets are only sold at the event
8.4and on the date when the tickets are drawn.
8.5(b) Raffles must be conducted in a manner that ensures:
8.6(1) all entries in the raffle have an equal chance of selection;
8.7(2) entry in the raffle is not conditioned upon any other purchase, except that a
8.8certificate of participation may be a button with a nominal value of less than $5;
8.9(3) the method of selection is conducted in a public forum;
8.10(4) the method of selection cannot be manipulated or based on the outcome of an
8.11event not under the control of the organization;
8.12(5) physical presence at the raffle is not a requirement to win; and
8.13(6) all sold and unsold tickets or certificates of participation are accounted for.
8.14(c) Methods of selecting winning entries from a raffle other than prescribed in rule
8.15may be used with the prior written approval of the board.
8.16 Sec. 15. Minnesota Statutes 2012, section 349.181, subdivision 3, is amended to read:
8.17 Subd. 3. Organization and lessor employees and volunteers. (a) For purposes of
8.18this section, "volunteer" means a person who is not compensated by an organization but
8.19who performs activities in the conduct of lawful gambling for that organization.
8.20(b) For purposes of this section, "conduct of pull-tabs, tipboards, and paddlewheels"
8.21includes selling tickets, redeeming tickets, auditing games, making deposits, spinning the
8.22paddlewheel, and conducting inventory.
8.23(c) For purposes of this section, "conduct of bingo" includes selling bingo hard cards,
8.24bingo paper sheets, or facsimiles of bingo paper sheets; completing bingo occasion records;
8.25selecting or announcing bingo numbers; making deposits; and conducting inventory.
8.26(d) An employee
8.27or paddlewheels at a permitted premises may not participate directly or indirectly as a
8.28player in a pull-tab, tipboard, or paddlewheel game at that same premises. This restriction
8.29is in effect until six weeks after the employee
8.30conduct of pull-tab, tipboard, or paddlewheel games at that same premises.
8.31(e) A volunteer involved in the conduct of a pull-tab, tipboard, or paddlewheel
8.32game limited to 32 chances or less per game may not participate as a player in a pull-tab,
8.33tipboard, or paddlewheel game at the same premises on the same business day that the
8.34volunteer was involved in the conduct of the game.
9.1
9.2gambling during a bingo occasion may not participate directly or indirectly as a player in
9.3any lawful gambling during that bingo occasion.
9.4 Sec. 16. Minnesota Statutes 2013 Supplement, section 349.19, subdivision 2, is
9.5amended to read:
9.6 Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
9.7must be segregated from all other revenues of the conducting organization and placed in a
9.8separate gambling bank account.
9.9(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
9.10made from the separate account except (1) in the case of expenditures previously approved
9.11by the organization's membership for emergencies as defined by board rule, (2) as provided
9.12in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
9.13of taxes for the organization as a whole, the organization may transfer the amount of taxes
9.14related to the conduct of gambling to the general account at the time when due and payable.
9.15(c) The name and address of the bank, the account number for the separate account,
9.16and the names of organization members authorized as signatories on the separate account
9.17must be provided to the board when the application is submitted. Changes in the
9.18information must be submitted to the board at least ten days before the change is made.
9.19(d) Except as provided in paragraph (e), gambling receipts must be deposited into
9.20the gambling bank account within four business days of completion of the bingo occasion,
9.21deal, or game from which they are received.
9.22(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
9.23the deal is sold or the organization does not continue the play of the deal during the next
9.24scheduled period of time in which the organization will conduct pull-tabs.
9.25(2) A tipboard game is considered complete when the seal on the game flare is
9.26uncovered or the organization does not continue the play of the deal during the next
9.27scheduled period of time in which the organization will conduct tipboards.
9.28(e) Gambling receipts from
9.29
9.30bank account
9.31games at the premises reach the sum of $2,000 or on or before the first day of the month
9.32immediately following the month during which the receipts were generated, whichever
9.33occurs first.
9.34(f) Deposit records must be sufficient to allow determination of deposits made from
9.35each bingo occasion, deal, or game at each permitted premises.
10.1(g) The person who accounts for gambling gross receipts and profits may not be the
10.2same person who accounts for other revenues of the organization.
10.3 Sec. 17. Minnesota Statutes 2012, section 349.19, subdivision 11, is amended to read:
10.4 Subd. 11. Information made part of organization minutes. A licensed
10.5organization which receives a copy of
10.6or compliance report
10.7compliance report in the minutes of the next meeting of the organization following
10.8receipt of the report. Copies of such minutes must be made available to all members
10.9of the organization upon request.
10.10 Sec. 18. Minnesota Statutes 2012, section 349.211, subdivision 1, is amended to read:
10.11 Subdivision 1. Bingo. Except as provided in subdivisions 1a, 1b, and 2, prizes for a
10.12single bingo game may not exceed $200 except prizes for a cover-all or cover-none game,
10.13which may exceed $200 if the aggregate value of all cover-all or cover-none prizes in a
10.14bingo occasion does not exceed $1,000. Total prizes awarded at a bingo occasion may not
10.15exceed $2,800, unless a cover-all and cover-none game is played in which case the limit is
10.16
10.17the player. For purposes of this subdivision, a cover-all game is one in which a player must
10.18cover all spaces except a single free space to win and includes a game in which all odd or all
10.19even numbers are designated by the organization as covered prior to the start of the game.
10.20 Sec. 19. Minnesota Statutes 2012, section 349.211, subdivision 1a, is amended to read:
10.21 Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
10.22as follows:
10.23(1)
10.24
10.25
10.26
10.27organization may not contribute more than 85 percent of the gross receipts per permitted
10.28premises to a linked bingo game prize pool;
10.29
10.30consolation prize. For purposes of this subdivision, a linked bingo game consolation
10.31prize is a prize awarded by an organization after a prize from the linked bingo prize pool
10.32has been won;
11.1
11.2a progressive prize or prizes based on a predetermined and posted win determination, a
11.3portion of the gross receipts may be carried over to another game until the accumulated
11.4progressive prize is won. The portion of the prize that is not carried over must be awarded
11.5to the first player or players who declares a valid bingo as additional numbers are called. If
11.6a valid bingo is declared, the entire prize pool for that game is awarded to the winner; and
11.7
11.8linked bingo prizes in excess of $599 shall be paid by the linked bingo game provider to
11.9the player within three business days. Winners of linked bingo prizes in excess of $599
11.10will be given a receipt or claim voucher as proof of a win.
11.11 Sec. 20. Minnesota Statutes 2012, section 349.211, is amended by adding a subdivision
11.12to read:
11.13 Subd. 1b. Hot-ball bingo prizes. An organization may award up to $500 for a
11.14hot-ball bingo prize in a bingo occasion.
11.15 Sec. 21. Minnesota Statutes 2012, section 349.211, subdivision 2, is amended to read:
11.16 Subd. 2. Progressive bingo games. Except as provided in subdivision 1a, a prize of
11.17up to $2,000 may be awarded for a progressive bingo game, including a cover-all game.
11.18The prize for a progressive bingo game may start at up to $500 and be increased by up to
11.19$100 for each occasion during which the progressive bingo game is played. A consolation
11.20prize of up to $200 for a progressive bingo game may be awarded in each occasion during
11.21which the progressive bingo game is played and the accumulated prize is not won.
11.22 Sec. 22. Minnesota Statutes 2012, section 349.2127, subdivision 7, is amended to read:
11.23 Subd. 7. Checks for gambling purchases. An organization may not accept checks
11.24
11.25participate in any form of lawful gambling except a raffle. If an organization accepts a
11.26check or debit card, the payment of which is subsequently dishonored, the organization
11.27shall reimburse its gambling account for the amount of the dishonored payment within
11.2830 days of receiving notice of the dishonor. This subdivision does not apply to gaming
11.29activities conducted pursuant to the Indian Gaming Regulatory Act, United States Code,
11.30title 25, section 2701 et seq.
11.31 Sec. 23. Minnesota Statutes 2012, section 349.2127, is amended by adding a
11.32subdivision to read:
12.1 Subd. 8a. Debit cards permitted. An organization may accept a debit card in
12.2payment for the purchase of any gambling equipment or for the chance to participate
12.3in any form of lawful gambling.
12.4 Sec. 24. REPEALER.
12.5Minnesota Statutes 2012, sections 349.169; and 349.19, subdivision 9, are repealed.