Local Units of Government

Minnesota Gambling Control Board
1711 West County Road B, Suite 300 South
Roseville, Minnesota 55113
651-639-4000

The five forms of lawful gambling are
raffles, bingo, pull-tabs, tipboards, and paddlewheels

Requirements and Restrictions
for Local Units of Government.

Authority      Investigation fee     Trade area

Gambling tax (LG500)    Ten percent fund (LG510)

Annual Report Summaries

To return to the Minnesota Gambling Control Board home page, click here.

Authority of city or county.

The extent that a city or county has authority over lawful gambling in its jurisdiction is addressed in Minnesota Statute 349.213.

A city or county has the authority to adopt more stringent regulations pertaining to lawful gambling within its jurisdiction. However, there are limitations on that authority. NOTE: A township does not have authority under Minnesota Statute 349.213 to impose lawful gambling regulations.

1. Contributions to city or county; prohibition - The city or county may not require an organization to make a contribution to the city or county as a condition to operate within that city or county, except for an investigation fee or local gambling tax, and contributions to a ten percent fund.

2. No license or fee may be required - The city or county may not require a license or fee for a license or permit to conduct gambling for licensed organizations, gambling managers, gambling employees, distributors, or linked bingo game providers. The state of Minnesota (Gambling Control Board) is the licensing authority.

Investigation fee.

A city or county (not a township) may assess an investigation fee on organizations applying for or renewing a premises permit issued by the Gambling Control Board. The investigation fee may not exceed the following limits:

$500 for cities of the first class,

$250 for cities of the second class,

$100 for all other cities, and

$375 for counties.

The investigation fee must be used for regulation of lawful gambling in that jurisdiction.

Local gambling tax - report required.

A city or county may impose a local gambling tax, only if they do not charge an investigation fee or other local taxes on lawful gambling. The tax, up to three percent per year, may be imposed only if the amount is necessary to cover the costs to regulate gambling in their jurisdiction. A township may not impose a local gambling tax.

A financial report must be submitted to the Gambling Control Board by March 15 of each year, using form   LG500 - City or County Annual Report, Lawful Gambling Regulatory Tax.
Local regulatory reports to state required, in addition to LG500 - Effective August 1, 2005, cities or counties that impose a local gambling tax on licensed organizations within its jurisdiction must share with the Minnesota Gambling Control Board all documents pertaining to site inspections, fines, penalties, or other corrective action involving local lawful gambling regulation. The documents must be provided to the Board within 30 days of filing at the city or county of jurisdiction.

Ten percent fund - report required.

As established by ordinance, a city or county may require an organization to contribute up to ten percent per year of net profits to a fund that the city or county administers. A township may not establish a ten percent fund or require an organization to contribute to the township.

The ten percent requirement may only be applied to net profits derived from lawful gambling conducted at premises within the city or county’s jurisdiction.

The funds may only be spent by the city or county for charitable contributions as defined in section 349.12, subdivision 7a, or for police, fire, and other emergency or public safety-related services, equipment, and training. However, the fund may not be used for the payment of pension obligations or general city functions.

A licensed organization that contributes to the ten percent fund may not be the beneficiary of that fund.

A report must be submitted to the Gambling Control Board by March 15 of each year, using form LG510 City or County Annual Report, 10% Lawful Gambling Contribution Fund.

Trade area.

By ordinance, a city or county may require that a licensed organization conducting lawful gambling within its jurisdiction spend all or a portion of its lawful purpose expenditures on lawful purposes conducted or located within the city’s or county’s trade area.   A township may not establish a trade area.

The ordinance is limited to the following:

lawful purpose expenditures are limited to gross profits derived from lawful gambling conducted at premises within the jurisdiction of the city or county;

the ordinance must define the city or county trade area. A trade area defined by a city must include each city and township contiguous to the defining city; and

the ordinance must specify the percentage of lawful purpose expenditures that must be expended within the trade area.

The city or county does not have authority on what specific lawful purpose expenditures must be made. That authority rests with the organization and its membership.

For additional information regarding local authority contained in Minnesota Statutes 349.213, click here.

Annual Reports Filed by Local Units of Government

Summary of annual reports required to be filed by cities and counties that administer a 10% contribution fund or impose a local gambling tax of up to 3 percent.
2011
2010

To return to the Minnesota Gambling Control Board home, click here.

	Minnesota Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, Minnesota 55113 651-639-4000 The five forms of lawful gambling are raffles, bingo, pull-tabs, tipboards, and paddlewheels
Requirements and Restrictions for Local Units of Government. Authority Investigation fee Trade area Gambling tax (LG500) Ten percent fund (LG510) Annual Report Summaries To return to the Minnesota Gambling Control Board home page, click here.
Authority of city or county.
The extent that a city or county has authority over lawful gambling in its jurisdiction is addressed in Minnesota Statute 349.213. A city or county has the authority to adopt more stringent regulations pertaining to lawful gambling within its jurisdiction. However, there are limitations on that authority. NOTE: A township does not have authority under Minnesota Statute 349.213 to impose lawful gambling regulations. 1. Contributions to city or county; prohibition - The city or county may not require an organization to make a contribution to the city or county as a condition to operate within that city or county, except for an investigation fee or local gambling tax, and contributions to a ten percent fund. 2. No license or fee may be required - The city or county may not require a license or fee for a license or permit to conduct gambling for licensed organizations, gambling managers, gambling employees, distributors, or linked bingo game providers. The state of Minnesota (Gambling Control Board) is the licensing authority.
Investigation fee.
A city or county (not a township) may assess an investigation fee on organizations applying for or renewing a premises permit issued by the Gambling Control Board. The investigation fee may not exceed the following limits: $500 for cities of the first class, $250 for cities of the second class, $100 for all other cities, and $375 for counties. The investigation fee must be used for regulation of lawful gambling in that jurisdiction.
Local gambling tax - report required.
A city or county may impose a local gambling tax, only if they do not charge an investigation fee or other local taxes on lawful gambling. The tax, up to three percent per year, may be imposed only if the amount is necessary to cover the costs to regulate gambling in their jurisdiction. A township may not impose a local gambling tax. A financial report must be submitted to the Gambling Control Board by March 15 of each year, using form LG500 - City or County Annual Report, Lawful Gambling Regulatory Tax. Local regulatory reports to state required, in addition to LG500 - Effective August 1, 2005, cities or counties that impose a local gambling tax on licensed organizations within its jurisdiction must share with the Minnesota Gambling Control Board all documents pertaining to site inspections, fines, penalties, or other corrective action involving local lawful gambling regulation. The documents must be provided to the Board within 30 days of filing at the city or county of jurisdiction.
Ten percent fund - report required.
As established by ordinance, a city or county may require an organization to contribute up to ten percent per year of net profits to a fund that the city or county administers. A township may not establish a ten percent fund or require an organization to contribute to the township. The ten percent requirement may only be applied to net profits derived from lawful gambling conducted at premises within the city or county’s jurisdiction. The funds may only be spent by the city or county for charitable contributions as defined in section 349.12, subdivision 7a, or for police, fire, and other emergency or public safety-related services, equipment, and training. However, the fund may not be used for the payment of pension obligations or general city functions. A licensed organization that contributes to the ten percent fund may not be the beneficiary of that fund. A report must be submitted to the Gambling Control Board by March 15 of each year, using form LG510 City or County Annual Report, 10% Lawful Gambling Contribution Fund.
Trade area.
By ordinance, a city or county may require that a licensed organization conducting lawful gambling within its jurisdiction spend all or a portion of its lawful purpose expenditures on lawful purposes conducted or located within the city’s or county’s trade area. A township may not establish a trade area. The ordinance is limited to the following: lawful purpose expenditures are limited to gross profits derived from lawful gambling conducted at premises within the jurisdiction of the city or county; the ordinance must define the city or county trade area. A trade area defined by a city must include each city and township contiguous to the defining city; and the ordinance must specify the percentage of lawful purpose expenditures that must be expended within the trade area. The city or county does not have authority on what specific lawful purpose expenditures must be made. That authority rests with the organization and its membership.
For additional information regarding local authority contained in Minnesota Statutes 349.213, click here.
Annual Reports Filed by Local Units of Government
Summary of annual reports required to be filed by cities and counties that administer a 10% contribution fund or impose a local gambling tax of up to 3 percent. 2011 2010
To return to the Minnesota Gambling Control Board home, click here.