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    Lawful Purpose Rating

    For each 12-month period (July to June) a licensed organization will be evaluated by the Gambling Control Board to determine a rating based on the percentage of annual net receipts (gross receipts less prizes paid) spent on lawful purpose expenditures.

    Organization's lawful purpose ratings ("Star Rating") for the most recently available fiscal year are located here. Note that only organizations whe were active for the entire fiscal year are included.

    Determining the Star Rating

    Organizations will be evaluated according to the following criteria:

    % Spent on
    Lawful Purpose      Rating 
    more than 50%.......5 star     ★★★★★
    more than 40%........4 star     ★★★★
    more than 30%........3 star     ★★★                                    
    more than 20%........2 star     ★★    One year automatic probation 
    Less than 20%.........1 star     ★        One year automatic probation

    EXCEPTION: For an organization that conducts lawful gambling exclusively in a location where the primary business is bingo, the minimum rating is 20%.

    Automatic Probation for 1 and 2 Star Ratings

    • An organization that fails to expend a minimum of 30% of annual net receipts on lawful purposes is automatically on probation for the following fiscal year starting on July 1. 
    • By the end of the one-year probationary period, the organization must increase their rating to a minimum of 30% or be subject to sanctions by the Gambling Control Board. 
    • If an organization fails to meet the minimum after a one-year probation, the Board may suspend the organization’s license or impose a civil penalty of up to $10,000.

    Suspension or Civil Penalty Criteria

    Before imposing a suspension or civil penalty, the Board will take into consideration the following factors that may have caused an organization to not meet the minimum rate of profitability: 

    1. the purchase of capital assets necessary to conduct lawful gambling; 
    2. road or other construction causing impaired access to the lawful gambling premises; 
    3. flood, tornado, or other catastrophe that had a direct impact on the continuing lawful gambling operation; and 
    4. any other unique factors or circumstances that the organization presents to the Board for consideration. 

    Monitoring by Organization Encouraged 

    Organizations are encouraged to monitor their lawful purpose rating using the LG1012 Worksheet—Lawful Purpose Rating. 

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