Minnesota Administrative Rules
Agency 177 - Gambling Control Board
Chapter 7861 - GAMBLING; GENERAL PROVISIONS
Part 7861.0260 - CONDUCT OF LAWFUL GAMBLING
Universal Citation: MN Rules 7861.0260
Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1. General restrictions.
The following items are general restrictions on the conduct of lawful gambling.
A. The term
"employee" includes a "volunteer."
B. All playing of lawful gambling must be on
a cash basis, in advance of any play. "Cash" means currency, money orders,
cashier's checks, or traveler's checks. Cash does not include personal checks,
credit cards, or debit cards, except that raffle tickets and certificates of
participation may be purchased by personal check or debit card.
C. At each permitted premises, the
organization must have:
(1) an inventory list
of gambling equipment currently at the site;
(2) a clear, physical separation or a
tangible divider between the organization's disposable gambling equipment
stored at the premises and the lessor's business equipment; and
(3) the invoices or true and correct copies
of the invoices for the purchase of all gambling equipment at the premises
other than invoices for the purchase of electronic pull-tab games, and must
make the invoices available for inspection by the board and its agents and the
commissioners of revenue and public safety and their agents.
D. An organization must ensure
that its compensated gambling employees are clearly identified by name to the
public at all times when conducting lawful gambling.
E. An organization or organization employee
must not engage in any act, practice, or course of operation that manipulates
the outcome of any game.
F. An
organization must only conduct lawful gambling at times when the premises is
open for the conduct of its regular business.
G. An organization must not conduct any form
of lawful gambling in a manner that tends to deceive the public or affects the
chances of winning or losing.
H.
Illegal gambling may not be conducted at a premises for which a licensed
organization has a premises permit to conduct lawful gambling.
I. On leased bingo premises, food and
beverages may be dispensed within the permitted premises. Gambling employees of
the organization working during a bingo occasion may not provide this service.
The organization must not pay for the cost of the food and beverages from the
organization's gambling accounts.
Subp. 2. Posting of information and house rules.
A licensed organization must prominently post the following information at each permitted premises in an area visible to players before they purchase a chance to participate in lawful gambling:
A. organization name, license number, and
premises permit number;
B. notice
of problem gambling information that must at a minimum include the toll-free
telephone number established by the commissioner of human services;
C. statement that illegal gambling is
prohibited;
D. house rules that
include at a minimum the policies governing the conduct of lawful gambling at
the premises, including any restrictions in addition to those imposed by
Minnesota Statutes, section
349.181,
on who may not participate in the conduct of lawful gambling at the premises.
The house rules must be adequately lighted, legible, and at least 11 inches by
17 inches; and
E. for the conduct
of bingo, the information required by this subpart may be contained in the
bingo program as an alternative to posting the information.
Subp. 3. Advertising.
Any promotional material, sign, or advertising of lawful gambling must identify the licensed organization permitted to conduct gambling at the premises and its license number, if the cost is paid by a licensed organization from its gambling account.
Subp. 4. Prizes awarded; records required.
A. The value of prizes
awarded must not exceed the limits in this subpart or Minnesota Statutes,
section
349.211. "Value"
means the following:
(1) fair market value of
merchandise prizes, which must not be an amount less than the organization paid
for the prize. Merchandise prizes purchased by the organization at a discount
and donated prizes must be valued at their fair market value and included in
the determination of compliance with this subpart or Minnesota Statutes,
section
349.211;
(2) fair market value of certificates for
merchandise or service;
(3)
assessed tax value of real property;
(4) dollar amount of the cash prize. For
raffles, cash includes currency, coins, and negotiable instruments;
and
(5) actual amount paid for a
savings bond.
B. The
maximum value of a prize for two or more winning pull-tab combinations
including the last sale prize on a single pull-tab must not exceed the limits
in Minnesota Statutes, section
349.211, subdivision
2a.
C. A prize must consist of
cash, merchandise, certificates for merchandise, certificates for services,
gift certificates, or gift cards with the following exceptions and
restrictions:
(1) prizes must not consist of
lawful gambling equipment;
(2) cash
must not be substituted for merchandise prizes, certificates for services, gift
certificates, or gift cards which have been won. This does not apply to
multiple bingo winners for a merchandise prize that cannot be
divided;
(3) coupons redeemable for
bingo hard cards, bingo paper sheets, bingo paper sheet packets, bingo paper
packages, and the use of an electronic bingo device may be awarded for
bingo;
(4) a certificate for
merchandise or services must contain:
(a) a
complete description, including the value of the merchandise or services to be
redeemed by the certificate;
(b)
the vendor's name from whom the certificate must be redeemed; and
(c) a statement expressly prohibiting the
substitution of cash or another type of merchandise or services for the
merchandise or services described on the certificate;
(5) for a paddlewheel game played with a
table, only cash prizes may be awarded and must be awarded and redeemed through
the use of chips; and
(6) for a
paddlewheel game played without a table, a cash prize amount may not be a
variable multiple of the standard price of a paddlewheel ticket.
D. An organization must pay for in
full or otherwise become the owner, without lien or interest of others, of
merchandise prizes before winners of the prizes are determined, except as
allowed by Minnesota Statutes, section
349.211, subdivision
4, paragraph (b), or for raffles with gross receipts of $60 or less.
E. When an organization awards a prize that
will require registration or licensure by a government agency as a condition of
ownership, the organization must use a certificate for merchandise. The winner
will be responsible for securing the required registrations or licenses and
will be required to give proof of eligibility to receive the prize. An
organization is responsible for ensuring that the prize is received by the
winner.
F. Cash prizes must be
awarded when they are won. This item does not pertain to a progressive bingo
prize, linked bingo jackpots, a progressive pull-tab or tipboard jackpot prize,
and raffles.
G. Merchandise prizes
must be displayed in full view of the players in the immediate vicinity of the
game and must not be redeemed for cash or converted into cash. When the winner
of a merchandise prize is determined, the organization must immediately remove
the prize from the display and award it to the winner. This requirement does
not apply to raffles.
H. All prizes
must be awarded consistent with current federal and state laws.
I. All merchandise prizes must be accounted
for in a format prescribed by the board that includes at a minimum the
following information:
(1) date the
organization acquired the merchandise;
(2) fair market value of the
merchandise;
(3) complete inventory
of prize merchandise; and
(4)
documentation on how the fair market value was determined.
J. For leased permitted premises, an
organization may not purchase merchandise prizes from the lessor, except that
an organization may purchase from the lessor a certificate for merchandise or
gift card to be redeemed for food or beverages at the premises if:
(1) the certificate or card value has a
redeemable monetary cash value;
(2)
the certificate or card does not contain restrictions on its redemption, such
as requiring a purchase of food or beverage of equal or greater value or
redeemable for a specific item;
(3)
the certificate or card may be redeemed at any time during the regular business
hours of the permitted premises; and
(4) the cost to the organization is 50
percent or less of the redeemable cash value of the certificate or
card.
K. When a player
presents a valid driver's license, a U.S. military identification card, or
another form of government-issued picture identification to participate in
electronic gaming, the organization must register the following information:
(1) the player's name as shown on the
identification card;
(2) the
identification card number;
(3) the
date and time when issuing the device to the player;
(4) the serial number or other unique
identifier of the device issued; and
(5) the time when the device was returned.
The organization must keep the registration information for a minimum of five days.
Subp. 5. Prize receipts required.
A. When a prize is awarded,
the organization must complete a prize receipt in a format prescribed by the
board for the following:
(1) a bingo prize
valued at $100 or more;
(2) a bingo
game where the value of the prize cannot be determined and verbally announced
to players prior to the beginning of the game;
(3) a winning paper pull-tab or tipboard
ticket valued at $100 or more, or for any prize for redeeming the last ticket
sold in a paper pull-tab or tipboard game for which the distributor has
modified the flare to contain a last sale prize of $20 or more. The winning
ticket, and winning seal tab if any, must be stapled to the prize
receipt;
(4) cashing out an
electronic linked bingo device with $600 or more in credits;
(5) cashing out an electronic pull-tab device
with $600 or more in credits; and
(6) a paddlewheel prize valued at $100 or
more, and the winning ticket must be stapled to the prize receipt.
B. A prize receipt must include at
a minimum the following, in a legible format and in ink:
(1) the organization's name;
(2) the name of the gambling
premises;
(3) the game serial
number of the game from which the prize was won;
(4) the name of the game;
(5) the date and time the prize was won or,
for electronic pull-tabs and electronic linked bingo, the date and time credits
of $600 or more were cashed out;
(6) the dollar amount of the cash prize or
the fair market value for a merchandise prize;
(7) the winner's complete name and address,
and driver's license number, including state of license registration:
(a) if the winner does not have a driver's
license, the winner's complete name and identification number must be obtained
from another form of government-issued picture identification belonging to the
winner; or
(b) if a bingo winner
does not have a driver's license or other form of government-issued picture
identification, the prize receipt must contain the name and address of the
winner, and a driver's license or other government-issued picture
identification, including the complete name, identification number, and the
signature in ink, of another person playing bingo during that occasion;
and
(8) signatures, in
ink, of the winner and the gambling employee or volunteer paying the
winner.
Subp. 6. Storing and securing equipment.
Gambling equipment may be stored on the leased permitted premises. Gambling equipment must be secured in an area that is under the organization's control.
Subp. 7. Return of defective paper pull-tab or tipboard game and raffle boards to distributor or revenue.
A. If, before being put into play, a paper
pull-tab or tipboard game or raffle board is determined not to be manufactured
according to the standards in part
7864.0230, the organization must
return the game to the distributor. The game or raffle board must be returned
within seven business days of determining that the standards, including the
following, were not met:
(1) serial number or
form number of the tickets or raffle board does not match the serial number or
form number on the flare or raffle board stubs;
(2) all tickets in a deal or raffle board
stubs do not have the same serial number in a deal;
(3) a pull-tab or tipboard game has the same
serial number and form number as another pull-tab or tipboard game manufactured
by that manufacturer, or a raffle board has the same serial number and form
number as another raffle board manufactured by that manufacturer, in the
organizations inventory;
(4)
geographic outline of the state of Minnesota as required by Minnesota Statutes,
section
349.163,
subdivision 5, does not appear on the raffle board or on the flare for that
game;
(5) bar code required by
Minnesota Statutes, section
349.163,
subdivision 5, does not appear on the raffle board or flare for that
game;
(6) prize amount on a
pull-tab or tipboard ticket does not correspond to the prize amount listed on
the flare;
(7) pull-tab or tipboard
ticket price does not correspond to the price listed on the flare; or
(8) a game or raffle board was received from
a distributor with the manufacturers seal broken.
B. If, during the play of a paper pull-tab or
tipboard game or raffle board, the game or board is determined not to be
manufactured according to the standards in part
7864.0230, the organization must
immediately remove the game or raffle board from play and report it as a played
game on the tax return.
(1) The organization
must return the game or raffle board to the distributor with documentation that
the game does not meet the standards, including but not limited to item A,
subitems (4) to (7).
(2) For a game
or raffle board not manufactured in compliance with item A, subitem (1), (2),
or (3), the organization must surrender the game or raffle board to the
commissioner of revenue.
C. If, after a paper pull-tab or tipboard
game or raffle board is removed from play, the game or raffle board is
determined not to be manufactured according to the standards in part
7864.0230, the organization must
report the game or raffle board as played on the tax return.
(1) The organization must return the game or
raffle board to the distributor with documentation that the game or raffle
board does not meet the standards, including but not limited to applicable
standards in item A, subitems (4) to (7).
(2) For a game or raffle board not
manufactured in compliance with item A, subitem (1), (2), or (3), the
organization must surrender the game or raffle board to the commissioner of
revenue.
D. The
organization must keep any game or raffle board that is returned by the
distributor as a played game.
Subp. 8. Return of defective linked bingo paper to linked bingo game provider.
Within seven business days of determining that linked bingo paper was not manufactured according to part 7864.0230, the organization must return the linked bingo paper to the linked bingo game provider with documentation that the paper does not meet the standards.
Subp. 8a. Return of defective bingo boards.
Within seven business days of determining that a bingo board was not manufactured according to part 7864.0230, the organization must return the bingo board to the distributor with documentation that the bingo board does not meet the standards.
Subp. 9. Closing an electronic game occasion; records and reports.
A. At the end of each
electronic game occasion, the point of sale system must produce:
(1) for devices that play both electronic
pull-tab games and electronic linked bingo games, a record of the total value
of credits purchased, the total value of credits redeemed, and the net value of
credit for the electronic game occasion;
(2) a record of the gross electronic pull-tab
receipts, the value of electronic pull-tab prizes awarded, and electronic
pull-tab net receipts for the electronic game occasion;
(3) a record of the electronic linked bingo
gross receipts, the value of electronic linked bingo prize contribution to be
paid to the linked bingo game provider, and the electronic linked bingo net
receipts for the electronic game occasion;
(4) a reconciliation of the cash in hand and
the total net receipts that calculates the cash long or short amounts for the
electronic game occasion; and
(5)
separate summaries for all bar operation and booth operation electronic game
activity conducted on the same day at the same premises.
B. If the lessor provides the starting cash
bank, the lessor must transfer the net cash value of credits from the
electronic game occasion to the licensed organization.
C. If the organization provides the starting
cash bank, the net value of credits must be compared to the cash in hand amount
to determine the cash long or short for the electronic game occasion.
D. An organization must keep electronic game
occasion records and reports for 3-1/2 years following the end of the month in
which the electronic game occasion was conducted and reported on the tax
return. An organization may maintain or convert and store records and reports
in an electronic format. An organization must make records and reports
available in paper format to the board, the commissioner of revenue, the
commissioner of public safety, or their agents upon request.
Subp. 10. Defective electronic pull-tab game or electronic linked bingo game.
If an electronic pull-tab game or an electronic linked bingo game is found to be defective, the organization must immediately:
A. suspend the electronic pull-tab game or
electronic linked bingo game from play;
B. close the game; and
C. notify the distributor or the linked bingo
game provider and the board of the defective electronic pull-tab game or
defective electronic linked bingo game within one business day.
Subp. 11. Defective, altered, lost, or stolen electronic pull-tab device or electronic linked bingo device.
A. If an electronic pull-tab
device or an electronic linked bingo device is found to be defective or
altered, the organization must immediately remove the device from play and
notify the distributor or the linked bingo game provider and the
board.
B. If an electronic pull-tab
device or an electronic linked bingo device is lost or stolen, the organization
must immediately notify the distributor or the linked bingo game provider and
the board.
C. The organization must
report to the board any removal of a defective or an altered electronic
pull-tab device or electronic linked bingo device, or any lost or stolen
device, at a site within one business day.
Statutory Authority: MS s 14.055; 349.12; 349.151; 349.154; 349.155; 349.16; 349.162; 349.163; 349.1635; 349.165; 349.166; 349.167; 349.169; 349.17; 349.1711; 349.1721; 349.173; 349.19; 349.191; 349.211
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