Ordinance No. 060 Charitable Gambling

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2. Gambling endorsements on "on -sale" licenses shall be subject to the following regulations which shall be deemed a part of the license, and failure of compliance may constitute grounds for revocation. 1. Application for gambling endorsements must be made by the liquor licensee and must state the name of the qualified charitable organization. The application must show evidence that the qualified charitable organization is licensed by the State of Minnesota pursuant to Minnesota Statutes Chapter 349 and any appropriate rules of the State of Minnesota. 2. Use of the licensed premises shall be by means of a written lease agreement between the licensee and the charitable organization. The lease shall be for a term of at least one year, a copy shall be filed with the City Council, and a copy must also be kept on the premises and available for public inspection upon request. Leases shall be governed by the following: 1. The maximum rental fee for leased premises shall not exceed the maximum amount established by Minnesota state statutes related to charitable gambling and amended from time to time. Rental fees shall be established on an annual calendar year basis for a period of not less than twelve (12) months and shall be approved by the City Council. 2. Rental payments may not be based on a percentage of profits from gambling. 3. The charitable organization may not reimburse the licensee for any license fees or other gambling related expenses incurred by the licensee. 4. The only form of gambling that shall be permitted on the licensed premises shall be lawful gambling devices approved by the City Council. 5. Lawful gambling devices shall only be operated or sold from a booth used solely by the charitable organization and shall neither be sold from the bar area nor sold by employees of the licensee unless said employees are (1) duly licensed by the State of Minnesota, and (2) not simultaneously employed by the licensee at the time of sale. Licensed premises with a seating capacity of 50 or less may elect to have a "bar operation" in which the licensee's employees may sell and redeem approved games from the bar area. Any licensed premises electing to use a "bar operation" must notify the City of the change within 10 days of switching mode of operation, and thereafter apply for renewal as a "bar operation." 6. The construction and maintenance of the booth used by the charitable organization shall be the sole responsibility of the charitable organization. 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 Ordinance No. 60 Gambling and Operation of Gambling Devices by Charitable Organizations in'On-Sale' Liquor Establishments Page 2 of 5