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State of Minnesota
S.F. No. 229 - Lawful Gambling (As Introduced)
Author: Senator Lyle Koenen
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Date: February 6, 2015



SF 229 is essentially the same bill as SF 2642 (Pappas) from 2014 that was passed by the legislature (Senate vote: 56-5; House vote: 126-2), but was vetoed by the Governor.  Sections 1-24 and 27 related to charitable gaming.  Sections 25 and 26 prohibit the lottery from selling tickets at gas pumps and ATM machines, and from selling instant win tickets online.  The bill is effective 130 days after enactment.

Section 1 [Continuation Raffle] defines a “continuation raffle” as a means of selecting winning entries from previously selected winning entries until a final selection of winning entries is determined, requiring no additional consideration.  A continuation raffle may be conducted over a period of time, up to 12 months.

Section 2 [Gambling Equipment] adds two items to the list of things that are disposable gambling equipment:  raffle boards and a disposable sealed placard that contains 75 randomly placed bingo letter and number combinations that, when opened, is used to select the bingo numbers in a single game of bingo.

Section 3 [Hot-Ball Bingo Prize] defines “hot-ball bingo prize” as an additional prize awarded to a winning bingo face for which the last bingo number called in a bingo game matches a previously designated bingo number. All players in a bingo game are eligible to win the hot-ball bingo prize without paying additional consideration.

Section 4 [Raffle Board] defines “raffle board” as a placard with up to 200 squares in which participants write their names to enter a contest.

Section 5 [Merged Organizations] provides that when a organization that has an active lawful gambling license joins another organization to form a new organization, the new organization will be treated as if it had been in existence for the most recent three years for purposes of qualifying for a gambling license.

Section 6 [Promotional Materials] permits manufacturers of gambling equipment to provide certain promotional materials, not exceeding $250 in value per year, to an organization for use at a premises where lawful gambling is conducted.

Section 7 [Disposable Sealed Placard Requirements] details requirements for a placard used to select bingo numbers, including a unique serial and form number and a state-specific designation.

Section 8 [Raffle Board Standards] specifies required features of a legal raffle board and precludes anyone other than a manufacturer, as defined in the chapter on charitable gambling, from manufacturing or modifying a raffle board.

Section 9 [Prohibition] permits a linked bingo provider to provide certain promotional materials, not exceeding $250 in value per year, to an organization for use where lawful gambling is conducted.

Section 10 [Bingo Cards and Sheets] permits bingo cards, sheets, and facsimiles, to include two numbers in each space.

Section 11 [Conduct of Bingo] limits acceptable bingo patterns.

Section 12 [Linked Bingo Games Played Exclusively on Electronic Bingo Devices] specifies that an organization does not have to retain player identification information, except for prize receipts as required elsewhere in statute for the winner of pull-tabs.

Section 13 [Sale of Tickets] raises the threshold from 32 to 100 tickets for tipboard placards that must be signed by players.  Permits more than one seal that conceals the winning numbers of symbols on a tipboard placard.

Section 14 [Determination of Winners] requires that a tipboard seal must be opened by an employee or volunteer of the organization.  If a tipboard has more than one seal, an eligible player may select which seal is opened.

Section 15 [Electronic Pull-Tab Device Requirement and Restrictions] eliminates a requirement that a player in an electronic pull-tab game register before playing.  Eliminates a requirement that the player’s identification card include the player’s address. Specifies that an organization does not have to retain player identification information, except for prize receipts as required elsewhere in statute for the winner of pull-tabs.

Section 16 [Conduct of Raffles] permits visual display of prizes as an alternative to publicly posting a list of prizes at a raffle event.

Section 17 [Organization and Lessor Employees and Volunteers] precludes a volunteer conducting a pull-tab, tipboard, or paddlewheel game from playing those same games at the same site on the same business day if the games have 32 or fewer chances per game.

Section 18 [Accounts] changes the deadline by which an organization must deposit into a gambling bank account its receipts from electronic gambling.  Receipts must be recorded daily and deposited when the total net receipts from all electronic games at the premises reach the sum of $2,000 or before the first of the month after the month in which the receipts were generated, whichever is first.  (Under current law, these receipts must be deposited within four business days.)

Section 19 [Pull-Tab Records] requires licensed organizations to require certain identification of a player cashing out an electronic pull-tab device with $600 or more in credits. Permits the board to determine what identification is required to allow identification and tracking of the winner.  The organization must keep the identification of the winner for three and a half years.

Section 20 [Information Made Part of Organization Minutes] requires that any audit or compliance report be placed in minutes of the organization, instead of only certain audits and compliance reports.

Section 21 [Bingo] exempts hot-ball bingo prizes from the prize limit of $200 for a single bingo game.  Defines a cover-none game as one in which a player does not cover any numbered spaces to win.  Makes conforming changes to treat cover-none games the same as cover-all games for purposes of limits on prizes for a game and for a bingo occasion.

Section 22 [Linked Bingo Prizes] makes the prize limits for linked bingo games the same for games played on electronic bingo devices as for those played on nonelectronic bingo devices.

Section 23 [Hot-Ball Bingo Prizes] sets a limit of $500 for a hot-ball bingo prize in a bingo occasion.

Section 24 [Progressive Bingo Games] clarifies that the prize for a progressive bingo game may start at an amount less than $500.

Section 25 [Restrictions] precludes the lottery from offering casino-style games.

Section 26 [State Lottery; Self-Service Device and Online Sales] This bill limits the manner in which lottery tickets can be distributed.  Paragraph (a) suspends sales of tickets at gas pumps and automated teller machines.  Paragraph (b) suspends online sales of instant win lottery tickets, unless the tickets are part of a joint lottery or they are part of a game that relies on a drawing to determine a winner.  This bill also suspends contracts related to the prohibited sales.

Section 27 [Repealer] repeals two sections:

Section 349.169 [Filing Of Prices]: required manufacturers, distributors, and linked bingo game providers to file prices for gambling equipment with the director of the Gambling Control Board. Required the director to give copies of the price filings to anyone who requested them and to allow examination.  Required manufacturers, distributors, and linked bingo game providers to sell equipment to organizations at the prices in the price filings.

Section 349.19, subdivision 9 [Accounts, Records, and Reports]: required licensed organizations to have an annual audit when required under the tax code (annually if gross receipts were over $500,000; or at the discretion of the commissioner of taxes when an organization has failed to take certain actions).





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