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S.F. No. 1006 - Lawful Gambling Provisions Modifications
Author: Senator Sandra L. Pappas
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Date: March 13, 2013


Section 1 [Annual Audit, Certified Inventory, and Cash Count] increases the threshold for requiring an annual financial audit for an organization licensed to conduct charitable gaming.  Under current law, licensed organizations with gross receipts of more than $500,000 must have an annual financial audit of its lawful gambling activities and funds; organizations with less than $500,000 in gross receipts are only required to conduct a financial audit when the Commissioner of Revenue requires it.  This section changes the threshold for required annual audits to $750,000.

Section 2 [Paddle Ticket] changes the definition of "paddle ticket" to include a ticket printed by an approved point of sale system at the site that records each wager made for each spin of a paddle wheel at the site. 

Section 3 [Paddle Ticket Card] changes the definition of "paddle ticket card."  Under current law, a paddle ticket card is a card to which detachable paddle tickets are attached. This section states that paddle tickets printed at the site by the approved point of sale system are not required to be used with or be attached to a paddle ticket card.

Section 4 [Paddle Wheel] amends the definition of "paddle wheel."  Under current law, a paddle wheel may be an electronic device that simulates a paddle wheel.  This amendment specifies that this includes a server that links a paddle wheel to other permitted premises, controls the random outcome graphically displayed, and records the wager selections for all tickets sold and all wins payable at each and all linked premises.

Section 5 [Attachments to Application] changes an amount certain to a minimum amount for a bond required for a linked bingo game provider to obtain a license. The bond secures payment of all linked bingo prizes.  Under current law, an applicant for a linked bingo game provider license must provide evidence of a bond of $100,000.  As modified in this section, the bond must be for "not less than" $100,000.

Section 6 [Off-Site Permits] increases from four to 12 the number of events in a calendar year that a licensed organization may conduct on a premises that is not its permitted premise in conjunction with a county fair, the State Fair, a church festival, or a civic celebration.

Section 7 [Accounts] increases from two days to four days the time limit for depositing gambling receipts for electronic pull-tab gamed and linked electronic bingo games into the gambling bank account for the licensed organization. 

Section 8 [Pull-Tab Records] increases the threshold from $50 to $100 for the prize above which the licensed organization must require identification of the winner.  This section also eliminates a requirement that the organization retain winning pull-tabs less than $100 for 3 1/2 years. 

Section 9 [Paddle Wheel Prizes] eliminates a limit on the maximum cash prize ($70) for a paddle ticket. This section also changes a restriction on wagers for paddle wheels.  Under current law, an organization may not sell a paddle ticket for more than $2; this section eliminates that restriction and instead prevents an organization from selling an individual wager on a paddle wheel for more than $2 and prevents a person from wagering more than $50 on any one spin of a paddle wheel.


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