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349.18

Statute ID: 11350

Premises used for gambling.

In Effect

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Details are only available for Penalty and Charging Statutes.

Statute Number:

349.18

Enactment Date:

Jan 1, 1859

Effective Date:

May 31, 2003

Expiration Date:

Repealed?:

Summary Text:

Premises used for gambling.

Statute ID:

11350

Created:

Jun 1, 2007 by mnjis.legal.analyst@state.mn.us

Updated:

Jun 1, 2007 by mnjis.legal.analyst@state.mn.us

Last Update Action:

System

Legal Analyst Comment:

Summary Text:

Premises used for gambling.

Link to MN Statute Text:

https://www.revisor.leg.state.mn.us/stats/349/18.html

Legislative Session:

0 - NA

Session Law Text?:

Statute text last updated on:

Jun 1, 2007

Subdivision 1.  
(a) An organization may conduct lawful gambling only on premises it owns or leases. Leases must be on a form prescribed by the board.  The term of the lease may not begin before the effective date of the premises permit and must expire on the same day that the premises permit expires. Leases approved by the board must specify that the board may authorize an organization to withhold rent from a lessor for a period of up to 90 days if the board determines that illegal gambling occurred on the premises and that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. The lease must authorize the continued tenancy of the organization without the payment of rent during the time period determined by the board under this paragraph. Copies of all leases must be made available to employees of the board and the Division of Alcohol and Gambling Enforcement on request. The board may prescribe by rule limits on the amount of rent which an organization may pay to a lessor for premises leased for bingo. Any rule adopted by the board limiting the amount of rent to be paid may only be effective for leases entered into, or renewed, after the effective date of the rule.
(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, tipboards, and paddlewheels is subject to the following limits:
(1) for booth operations, including booth operations where a pull-tab dispensing device is located, booth operations where a bar operation is also conducted, and booth operations where both a pull-tab dispensing device is located and a bar operation is also conducted, the maximum rent is:
(i) in any month where the organization's gross profit at those premises does not exceed $4,000, up to $400; and
(ii) in any month where the organization's gross profit at those premises exceeds $4,000, up to $400 plus not more than ten percent of the gross profit for that month in excess of $4,000;
(2) for bar operations, including bar operations where a pull-tab dispensing device is located but not including bar operations subject to clause (1), and for locations where only a pull-tab dispensing device is located:
(i) in any month where the organization's gross profit at those premises does not exceed $1,000, up to $200; and
(ii) in any month where the organization's gross profit at those premises exceeds $1,000, up to $200 plus not more than 20 percent of the gross profit for that month in excess of $1,000;
(3) a lease not governed by clauses (1) and (2) must be approved by the board before becoming effective;
(4) total rent paid to a lessor from all organizations from leases governed by clause (1) may not exceed $1,750 per month. Total rent paid to a lessor from all organizations from leases governed by clause (2) may not exceed $2,500 per month.
(c) Rent paid by an organization for leased premises for the conduct of bingo is subject to either of the following limits at the option of the parties to the lease:
(1) not more than ten percent of the monthly gross profit from all lawful gambling activities held during bingo occasions excluding bar bingo or at a rate based on a cost per square foot not to exceed 110 percent of a comparable cost per square foot for leased space as approved by the director; and
(2) no rent may be paid for bar bingo.
(d) Amounts paid as rent under leases are all-inclusive. No other services or expenses provided or contracted by the lessor may be paid by the organization, including, but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn services, electricity, heat, security, security monitoring, storage, other utilities or services, and, in the case of bar operations, cash shortages, unless approved by the director. Any other expenditure made by an organization that is related to a leased premises must be approved by the director. An organization may not provide any compensation or thing of value to a lessor or the lessor's employees from any fund source other than its gambling account. Rent payments may not be made to an individual.
(e) Notwithstanding paragraph (b), an organization may pay a lessor for food or beverages or meeting room rental if the charge made is comparable to similar charges made to other individuals or groups.
(f)  No entity other than the licensed organization may conduct any activity within a booth operation on a leased premises.
 (g) Employees of a lessor not involved in the conduct of lawful gambling on the premises or nongambling employees of an organization conducting lawful gambling on the premises may participate in lawful gambling on the premises provided  if pull-tabs or tipboards are sold, the organization  posts the major prizes  awarded.
 (h) A gambling employee may purchase pull-tabs or tipboards at the site of the employee's place of employment provided:
(1) the organization  posts the major prizes for pull-tab or tipboard games; and
(2) the employee is not involved in the sale of pull-tabs or tipboards at that site.
 (i) At a leased site where an organization uses a paddlewheel consisting of 30 numbers or less or a tipboard consisting of 30 tickets or less, tickets may be sold throughout the permitted premises, but winning tickets must be redeemed, the paddlewheel must be located, and the tipboard seal must be opened within the leased premises.