Minnesota Statutes, Section 349.213, addresses the extent that a city or county has authority over lawful gambling in its jurisdiction.
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.
The Gambling Control Board may not issue a premises permit unless the city council or county board has signed the premises permit application acknowledging approval by resolution of the premises permit within 90 days of the date of application for the new premises permit.
Investigation fee
A city or county may charge an annual local investigation fee on organizations applying for an initial premises permit or conducting lawful gambling at a site within their jurisdiction (Minn. Stat. § 349.16, subd. 8). The local investigation fee may not exceed these limits, based on the class of city that is determined by population (Minnesota Statutes, Section 410.01):
The local investigation fee must be used for regulation of lawful gambling in that jurisdiction.
Report
The city or county is not required to report to the Gambling Control Board the amounts collected for a local investigation fee. The local investigation fee is an allowable expense reported by the organization on the LG100A, line 13.
Local gambling tax, up to 3%
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 3% of gross profit, may be imposed only if the amount is necessary to cover costs incurred regulating gambling in their jurisdiction. If a city does not use the tax collected each year, it means that it did not incur costs to regulate lawful gambling, and the tax should be returned to your organization.
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.
Tax report by city or county
The city or county is required to report by March 15 each year to the Gambling Control Board the amount collected, amount spent, and how the tax was spent. Download reporting form LG500.
As established by ordinance, a city or county (not a township) may require an organization to contribute up to 10% per year of net profits less taxes on lawful gambling receipts to a fund that the city or county administers.
Any city or county requiring a 10% fund contribution is required to report by March 15 each year to the Minnesota Gambling Control Board how much money was collected, the amount spent, and on what lawful purposes the money was spent. Download reporting form LG510.
By ordinance, a city or county may require that a licensed organization conducting lawful gambling within its jurisdiction spend all (up to 100%) or a portion of its lawful purpose donations on lawful purposes conducted or located within the city’s or county’s trade area.
The ordinance is limited to the following:
The city or county does not have authority to specify lawful purpose expenditures that must be made by the organization. That authority rests with the organization and its membership.