Ordinance No. 12 – Gambling Ordinance

Posted on Posted in Ordinance

An ordinance licensing and regulating the conduct of gambling, and providing a penalty for violation.

The City Council of the City of Bellechester ordains:

SECTION 1. Purpose. The purpose of this ordinance is to regulate and control the conduct of gambling.

SECTION 2. Provisions of State Law adopted. The provisions of Minnesota Statutes, Chapter 349, and Laws of Minnesota, 1978, Chapter 507 {M.S. 349.26}, relating to the definition of terms, licensing, and restrictions on gambling are hereby adopted and made a part of this ordinance as if set out in full, excepting as such provisions are modified and changed by subsequent sections herein.

SECTION 3. License requirement. No person shall directly or indirectly operate a gambling device or conduct a raffle without a license to do so provided in this ordinance; said license to be issued by the Bellechester City Council.

SECTION 4. Persons eligible for a license. A license shall be issued only to fraternal, religious, and veterans’ organizations, or any non-profit corporation, trust, or association organized for exclusively scientific, literary, charitable, educational, or artistic purposes, or any non-profit club which is organized and operated exclusively for pleasure or recreation. Such organization must have been in existence for at least three years and shall have at least 30 active members.

SECTION 5. License fees.

Subdivision 1. Fees. The annual fee for gambling by using a paddle wheel shall be $5.00, and the annual fee for a raffle or raffles shall be $5.00. The license shall expire December 31st of each calendar year.

Subdivision 2. Application procedure. Application for a license shall be made upon a form prescribed by the City Council. No person shall make a false representation in an application. The City Council shall act upon said application within 180 days from the date of application but shall not issue a license until at least 30 days after the date of application.

SECTION 6. Profits. Profits from the operation of gambling devices or the conduct of raffles shall be used for lawful purposes. Lawful purposes are defined as:

  1. One or more of the following:
    1. Benefiting persons by enhancing their opportunity for religious or educational advancement, by relieving or protecting them from disease, suffering, or distress, by contributing to their physical well-being or, by assisting them in establishing themselves in life as worthy and useful citizens, or by increasing their comprehension and devotion to the principles upon which this nation was founded.
    2. Initiating, performing, or fostering worthy public works or enabling or furthering the erection or maintenance of public structures.
    3. Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people.
    4. The improving, expanding, maintaining or repairing real property owned or leased by an organization; or
    5. The erection or acquisition of any real property as specifically authorized by the City Council that said real property will be used exclusively for one or more of the purposes above-mentioned.

SECTION 7. Conduct of gambling

Subdivision 1. Gambling Manager. All operation of gambling devices and the conduct of raffles shall be under the supervision of a single gambling manager to be designated by the organization. The gambling manager shall be responsible for gross receipts and profits from gambling devices and raffles and for their operation. The gambling manager shall be responsible for using the profits for a lawful purpose.

Subdivision 2. Bond The gambling manager shall provide a fidelity bond in the sum of $10,000.00 in favor of the organization conditioned on the faithful performance of his duties, except the City Council may, by unanimous vote, waive the bond requirement by including a bond waiver in the gambling license.

Subdivision 3. Qualifications of a gambling manager. The gambling manager shall be an active member of the organization and shall qualify under state law.

SECTION 8. Compensation.

No compensation shall be paid to any person in connection with the operation of a gambling device or the conduct of a raffle by a licensed organization. No person who is not a member may participate in the organization’s operation of a gambling device or conduct of a raffle.

SECTION 9. Reporting requirements.

Subdivision 1. Gross Receipts. Each organization licensed to operate gambling devices shall keep records of its gross receipts, expenses and profits for each single gathering or occasion at which gambling devices or a raffle is conducted, All deductions from gross receipts for each single gathering or occasion shall be documented with receipts or other records indicating the amount, a description of the purchased item or service or other reason for the deduction and the recipient. The distribution of profits shall be itemized as to payee, purpose, amount, and date of payment.

Subdivision 2. Separation of Funds. Gross receipts from the operation of gambling devices and the conduct of raffles shall be segregated from other revenues of the organization and placed in a separate account. The person who accounts for gross receipts, expenses, and profits from the operation of gambling devices or the conduct of raffles shall not be the same person who accounts for other revenues of the organization.

Subdivision 3. Monthly reports. Each organization licensed to operate gambling devices or to conduct raffles shall report monthly to its membership and to the City Clerk, its gross receipts, expenses, and profits from gambling devices or raffles and the distribution of profits. The licensee shall preserve such records for three years.

SECTION 10. Eligible Premises. Gambling devises shall be operated and raffles conducted by a licensed organization only upon premises which it owns or leases, except that tickets for raffles may be sold off the premises. Leases of premises wherein the organization has its normal operations shall be in writing and shall be for a term of at least twelve (12) months. Leases authorized in another location need not be in writing nor for a minimum period of time. No lease shall provide that rental payments be based on a percentage of receipts. A copy of the lease, when required, shall be filed with the City Clerk.

SECTION 11. Prizes.

Total prizes from the operation of paddle wheels and tip boards awarded on any single day in which they are operated shall not exceed $500.00. Total prizes resulting from any single spin of a paddle wheel or from any single tip board shall not exceed $100.00. Total prizes from the operation of a raffle shall not exceed $15,000.00. Total prizes awarded in any calendar year by any organization shall not exceed $15,000.00

SECTION. 12. Bingo

Nothing in this ordinance shall be construed to authorize the conduct of bingo without acquiring a separate bingo license.

SECTION. 13. Penalties.

Subdivision 1. Criminal Penalty. Violation of any provision of this ordinance shall be a misdemeanor. A person convicted of violating any provision of this ordinance shall be subject to a fine of not more than $500.00 or imprisonment for a term not to exceed 90 days or both plus, in either case, the costs of prosecution.

Subdivision 2. Suspension and Revocation. Any license may be suspended or revoked for any violation of this ordinance. A license shall not be suspended or revoked until the procedural requirements of subdivision 3 have been complied with, provided that in cases where probable cause exists as to an ordinance violation, the City may temporarily suspend upon service of notice of the hearing provided for in Subdivision 3, below. Such temporary suspension shall not extend for more than 4 weeks.

Subdivision 3. Procedure. A license shall not be revoked under subdivision 2 until notice and an opportunity for a hearing have first been given to the licensee. The notice shall be personally served and shall state that the licensee may demand a hearing on the matter. If the licensee requests a hearing, one shall be held on the matter by the City Council at least three weeks after the date on which the request is made. If, as a result of the hearing, the City Council finds that an ordinance violation exists, then the City Council may suspend or terminate the license.

SECTION 14. Effective date.

This ordinance becomes effective upon its passage according to law.

Passed by the City Council this 18th day of April 1979.

ATTEST: Barbara Heppelmann, City Clerk Quentin J. Majerus, Mayor