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7. The lease shall contain a provision permitting the licensee to terminate the lease if the charitable organization is found guilty of any violation of state or local gambling statutes, ordinances or rules and regulations. 3. Only one charitable organization shall be permitted to operate or sell lawful gambling devices on the licensee's premises. 4. The licensee may not be reimbursed by the charitable organization for any license or permit fees, and the only compensation which the licensee may obtain from the charitable organization is the rent fixed in the lease agreement. 5. The licensee and the charitable organization must commit to a minimum of twenty (20) hours per week of operation or sale of lawful gambling devices. 6. The licensee shall be responsible for the charitable organization's conduct of operating and/or selling lawful gambling devices. The City Council may suspend the licensee's permission to allow gambling on the premises for a period of up to sixty (60) days for any violation of state or local gambling laws or regulations that occur on the premises. A second violation within a sixty (60) day suspension, and any additional violations within a twelve (12) month period, shall result in the revocation of the gambling permission, and may also be considered by the City Council as grounds for suspension or revocation of the "on -sale" liquor license. Section 6. One Time Events. Notwithstanding other provisions of this ordinance to the contrary, the City Council may permit an "on-sale" licensee to permit the holding of a single event, such as a banquet, that includes the sale of raffle tickets as part of the event activity, provi ded that such events are separate from the public areas of the licensed establishment, not open to the general public, and the raffle is conducted by a charitable organization licensed by the State of Minnesota. Section 7. Other Gambling Devices. No licensee shall keep, possess, or operate, or permit the keeping, possession, or operation of any slot machine, dice, or any gambling device or apparatus, on the licensed premises or in any room adjoining the licensed premises and shall not permit any g ambling therein, except that lawful gambling devices may be operated or sold on licensed premises when such activity is licensed by the state pursuant to Minnesota Statutes, Chapter 349, and conducted pursuant to the regul ations contained in this ordinance. Section 8. Raffles and Gambling Devices: License Required, Application. 1. No person shall directly operate a gambling device or conduct a raffle, except as authorized by statute and this ordinance and unless a license from the State of Minnesota to do so has first been obtained. Licenses for the conduct of operation of raffles o r gambling devices shall be issued only to a qualified charitable organization. Section 9. Records and Reports: Charitable Organizations. All qualified charitable organizations selling or operating gambling devices in the City of Gem Lake shall keep monthly financial records as required by Minnesota Statutes, Chapter 349, and shall submit certified copies of said records to the City no later than January 30, April 30, and October 30 for the three (3) prior calendar months. Additionally, the qualified charitable organization shall report on or before the dates above the exact purpose an d location of contributions made from the gambling proceeds. Section 10. Profits From Gambling Devices. Profits from the operation of gambling devices or the conduct of raffles shall be used solely for lawful purposes as defined in this ordinance and as authorized at a regular meeting of the organization. Not less than fifty percent (50%) of the profits fro m the operation of gambling or conduct of