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.................... .... ... .......... ............ <br />EXPENDITURE F I U LI <br />1131ING PROCI I DS40� <br />I Iri I TA V9 <br />ffis from, lawful nambling, which, exceeed $1160 million ion <br />ross pron bi <br />19881, may be spent for allowable expenses, and for, certain, lawful pur- <br />poses. In, this chapter we examine the growth, of' lawful gambline in <br />41 1 flop <br />the state as well as how organizations are spending gambling proceeds. More <br />o <br />specifically, we, address the following questions. <br />10 How, are the proceeds from lawful gambling -tised? How much is <br />spent for ganibling expenses and how much <br />is spent on lawful <br />purposes, <br />0 What organizations and governm,ental units beneflt. from gambling, <br />To what extent are lawful purpose cointributions being used to replace <br />or supplement local government levies .9 <br />11b used a numbler of'meit,hodsil to answer these questioins. To examine cx- <br />ple,nsesi, we analyzed tax files, . at the Department of Revenue for calendar years <br />1987) 1988, and the first six months of 198i9, We also, examined selected, <br />organizations' gambling expenses in a sieries of'sitei Visits. <br />To examine lawful purpose contributions, we selected, a stratified sample of <br />1,80 organizations and categorized the approximately 19,000 contributions <br />which, they made, between June 1988 and, May 1989 intoi a vairictv ofclasses of <br />expenditure. We also contacted 100 randomly selected, recipient"s of lawful <br />purpose contributions to verify their reciel"pt of the funds. <br />GRONIU 0 LXWE'L GAMBLI'Li -T ArN <br />Ir eN <br />Mr.NNENOTA <br />