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484081v1 SJS NE136-14 <br /> <br />Kennedy Sarah J. Sonsalla <br />470 US Bank Plaza <br />200 South Sixth Street <br />Minneapolis MN 55402 <br />& <br />Graven (612) 337-9284 telephone <br />(612) 337-9310 fax <br />ssonsalla@kennedy-graven.com <br />C H A R T E R E D <br /> <br />MEMORANDUM <br /> <br />To: Dean Lotter, City Manager <br /> <br />From: Sarah Sonsalla, City Attorney <br /> <br />Re: Regulation of Lawful (Charitable) Gambling <br /> <br />Date: August 1, 2016 <br /> <br /> <br /> The purpose of this memo is to provide you with information concerning what the City <br />can and cannot regulate with respect to gambling. <br /> <br /> Most gambling is prohibited in Minnesota. Only five forms of gambling are legal under <br />state law: 1) pari-mutuel horse racing; 2) card club operations; 3) Native American gambling <br />conducted pursuant to a tribal-state compact; 4) private social bets; 5) social skill games; 6) <br />social dice games; 7) a state lottery; and 8) lawful gambling (also known as “charitable <br />gambling”). Of the five forms of legalized gambling, only lawful gambling, which is the <br />operation of bingo, raffles, paddlewheels, tipboards and pull-tabs is subject to regulation by the <br />City. <br /> <br /> Organizations must be licensed by the State Gambling Control Board (‘Board”) in order <br />to conduct most types of lawful gambling. Only certain qualified organizations can conduct <br />lawful gambling (fraternal, religious, veterans’ or other certain non-profit organizations). In <br />addition, an organization applying for a gambling license must also apply to the Board for a <br />premises permit to conduct lawful gambling at any specific location. The organization must also <br />enter into a lease with the premises owner in order to be able to conduct lawful gambling on the <br />owner’s premises. It is the decision of the premises owner as to whether or not it wants to enter <br />into a lease with a particular organization. Certain organizations may be willing to agree to more <br />favorable lease terms than others which may make them more appealing to certain premises <br />owners. <br /> <br />When an organization wishes to conduct lawful gambling in the City and has entered into <br />a lease with the premises owner, the Board will notify the City or will require the organization to <br />notify the City at the time of application. The Board will not issue or renew a premises permit <br />unless the organization submits with its application a resolution from the City Council approving