7/27/2022

Minnesota Gambling Control Board

55

Minnesota Gambler is a charitable gambling management program designed to keep you in compliance with Minnesota State Gambling Control Board and Minnesota Department of Revenue rules and regulations. We are the only software company that has written software for all the facets of the industry including manufacturers, distributors,. Gambling Control Board; Gambling Control Board Resources Search Minnesota Rules. Minnesota Office of the Revisor of Statutes, 700 State Office Building, 100 Rev. June 1 Lawful Gambling Restart – Q & A, page 2 Minnesota Gambling Control Board June 1 Lawful Gambling Restart Q & A, Page 2 May 28, 2020 Q. Once lawful gambling sales resume inside the building, if pull-tab boxes were being sold outside, will those open boxes be allowed for continued sale inside or will those boxes need to be closed.

Members,

Below was posted on the GCB website this morning. Attached are the Frequently Asked Questions, Executive Order 20-63 and Form LG272.

BoardMinnesota Gambling Control Board

May 28, 2020

Minnesota

June 1 Restart – Frequently asked questions:

Executive Order to Assist Veterans and Fraternal Organizations: Governor Walz signed Executive Order 20-63 (see page 9, paragraph G) on May 27, 2020, allowing veterans or fraternal organizations to lend gambling funds to their general account to pay for expenses necessary to reopen such organizations’ permitted premises.

What does this executive order mean?

This executive order is a special allowance for veterans and fraternal organizations to make a loan from the organization’s gambling account to its general account to get their posts/clubs up and running. Prior authorization from the Gambling Control Board must be received first.

How does your post/club get prior authorization?

To get prior authorization fill out form LG272, Request for Lawful Gambling Account Loan to General Account, and submit it to the Gambling Control Board. Once the form is reviewed and approved, you will receive authorization to make the loan from your gambling account to the general account.

Are there any restrictions?

  • The loan proceeds may not be used as collateral for any other loan.
  • The loan proceeds may not be used for gambling-related expenses.
  • The loan must be repaid to the gambling account in full within one year or suspend its gambling operation.
  • If the organization terminates lawful gambling and the loan has not been repaid, the loan repayment will be included in the terms of the license termination plan.

Access form LG272, Request for Lawful Gambling Account Loan to General Account, here.

Control

Minnesota Gambling Control Board June 1 Lawful Gambling Restart –

Q & A Minnesota Gambling Control Board

June 1 Lawful Gambling Restart Q & A, Page 1, May 28, 2020

Q. Can a bar have a window that opens to the outside to sell paper pull-tabs and electronic pull-tabs to customers who come up to the window?
A. Yes.
Q. How many paper pull-tab deals need to be available to customers in order to also sell electronic pull-tabs?
A. One. The pull-tab game can have regular multi-ply window tickets or jar tickets.
Q. Can a seller bring paper pull-tab games on a cart or tray to sell directly to the player outside?
A. Yes, so long as the entire deal, flare, and house rules are visible to the player at the point of purchase.
Q. Can a seller collect money from a player outside who is able to see the flare, house rules, and pull-tab container that is located inside, and subsequently go inside to collect the pull-tab ticket or electronic device and return that ticket/device to the player outside?
A. Yes, so long as the same individual who collects the money from the player is the same seller who is authorized to go inside and conduct the lawful gambling.
Q. In full view of the player, will the waitstaff be able to collect money for paper pull-tabs or electronic devices and go inside to the bar to get the tickets/electronic device from the actual seller, and then deliver them back to the player outside?
A. No. The player must complete the purchase while outdoors without any intermediary.
Q. Will customers be allowed to go inside a bar/restaurant to purchase pull-tabs from a pull-tab dispensing device if they take the tickets back outside to open them?
A. No. Customers may not go inside to purchase any gambling equipment. Organizations would be allowed to bring the dispensing device outside if they’re able to do so (see last question below). The outdoor pull-tab dispensing device would need to be in a location where it’s visible by bar/restaurant staff.
Q. Can customers go inside to purchase electronic pull-tabs?
A. No. Customers are not allowed in the building. This is per the governor’s announcement allowing bars and restaurants to open for business outdoors only.
Q. If a bar has seating for 300 people and no executive order restrictions, it can have up to 12 electronic devices. However, in compliance with the Executive Order 20-63, if the number of seats is reduced to only 50 people outside, is that site’s limit now 6 devices?
A. No. The executive order limiting the number of customers would not reduce the 12 devices allowed.
Q. If an organization conducts gambling from midnight to 2:00 AM on June 1, is that activity reported as May or June receipts?
A. Normally for lawful gambling reporting purposes, receipts from midnight to 2:00 AM are considered as part of the previous business day’s receipts. However, given that bars and restaurants will not be open on May 31 (the last day of May), it will be acceptable to combine the June 1 midnight to 2:00 AM receipts with the receipts from the June 1 business day’s receipts.
Minnesota Gambling Control Board
June 1 Lawful Gambling Restart – Q & A, page 2
Minnesota Gambling Control Board
June 1 Lawful Gambling Restart Q & A, Page 2
May 28, 2020
Q. Once lawful gambling sales resume inside the building, if pull-tab boxes were being sold outside, will those open boxes be allowed for continued sale inside or will those boxes need to be closed and start only new boxes inside?
A. When organizations resume pull-tab sales inside, organizations will be allowed to move inside those pull-tab games that were in play outside but not yet closed.
Q. Are there any concerns with bringing a pull-tab dispensing device outside?
A. Yes. Although there are no specific restrictions on locating a pull-tab dispensing device outdoors, please consider the following:
• Devices can be 300 lbs. without tickets.
• Some devices can be moved with a two-wheel cart, while others would require a four-wheel flat cart. Dispensing devices are top heavy and cannot be left on a cart.
• Dispensing devices are not made for outdoor use and must be taken inside each night.
• Tickets may swell with humidity which may cause jamming.
• Moving a dispensing device can also cause jamming.
• Dispensing devices should be kept out of the direct sun; the screens are difficult to see in the sun, and buttons may melt.

Al Lund

Executive Director

Allied Charities Of Minnesota (ACM)
3250 Rice St
Saint Paul, MN 55126-3080
Office #: 651-224-4533

Minnesota Gambling Control Board Lg220a

Fax #: 866-240-6160

Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations.

These activities are subject to the state’s Lawful Gambling Tax (but not sales tax).

For more information:

  • See Gambling Taxes
  • Visit the Gambling Control Board website
  • Call the Gambling Control Board at 651-539-1900

Minnesota Gambling Control Board News

A retail sale is:

Minnesota Gambling Control Board

  • The sale, lease, or rental of tangible personal property
  • The sale of tangible personal property used in conducting lawful gambling under chapter 349 or State Lottery under chapter 349A and is not considered a sale of property for resale
Minnesota

The table below explains when sales tax applies to the sale of gambling devices and equipment.

Minnesota Gambling Control Board Raffles

QuestionIs the Item Taxable?References
Is the rental of electronic gaming devices taxable?Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment. It does not matter if there is a revenue sharing agreement.
  • Minnesota Statutes 297A.61, subds. 4(k), 4(l), and 7
Are monthly equipment charges taxable?Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment.
  • Minnesota Statutes 297A.61, subds. 4(k), 4(l), and 7
Are revenue sharing agreements taxable?Yes. The lessee is responsible for the sales tax on the total sales price of the rental or lease of an electronic gaming device – even when the sales price is separated into various components.
  • Minnesota Statutes 297A.61, subds. 4(k), 4(l), and 7
Are bingo cards and pull-tabs taxable?Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products.
  • Minnesota Statutes 297A.61, subds. 3(i) and 7
Are electronic pull-tabs taxable?Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products.
  • Minnesota Statutes 297A.61, subds. 3(i) and 7
Are apps for electronic gaming devices taxable?Yes, they are taxable when sold to the distributor.
  • Minnesota Statutes 297A.61, subds. 3(i) and 7
Is the sale of the software taxable?Yes, they are taxable when sold to the distributor.
  • Minnesota Statutes 297A.61, subd. 17
Does local sales and use tax apply when the city also has a local gambling tax?No. However, Minnesota sales tax (6.875%) still applies.
  • Minnesota Statutes 349.213, subd. 3
Are purchases of gambling equipment by a 501(c)3 organization with a gambling license taxable?

Yes. These organizations must pay sales tax when they purchase, lease, or rent gambling devices and equipment.

  • Minnesota Statutes 297A.70, subd. 4
  • Minnesota Rule 8130.6200, subp. 8

If you have any questions, email us at salesuse.tech@state.mn.us.