agency-177•Minnesota Rules — Gambling Control Board
Minnesota Rules — Gambling Control Board
agency-177Minn. R. (Gambling Control Board)Regulation
Chapter 7860 LAWFUL GAMBLING
Minn. R. 7860.0010 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0020 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0030 [Repealed, L 1989 c 334 art 2 s 52]
[Repealed, L 1989 c 334 art 2 s 52]
Minn. R. 7860.0040 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0050 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0060 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0070 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0080 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0090 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0100 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0105 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0110 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0120 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0130 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0140 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0150 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0160 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0170 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0180 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0190 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0200 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0210 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0220 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0230 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0240 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0250 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0260 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0270 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0280 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0290 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0300 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0310 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0320 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0400 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0500 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0600 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Minn. R. 7860.0700 [Repealed, 16 SR 2116]
[Repealed, 16 SR 2116]
Chapter 7861 GAMBLING; GENERAL PROVISIONS
Minn. R. 7861.0010 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 1a.
[Repealed, 31 SR 1239]
Subp. 1b.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 29 SR 443]
Subp. 3.
[Repealed, 31 SR 1239]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 31 SR 1239]
Subp. 10.
[Repealed, 31 SR 1239]
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 31 SR 1239]
Subp. 13.
[Repealed, 31 SR 1239]
Subp. 13a.
[Repealed, 31 SR 1239]
Subp. 14.
[Repealed, 31 SR 1239]
Subp. 15.
[Repealed, 31 SR 1239]
Subp. 16.
[Repealed, 31 SR 1239]
Subp. 17.
[Repealed, 31 SR 1239]
Subp. 18.
[Repealed, 31 SR 1239]
Subp. 19.
[Repealed, 29 SR 443]
Subp. 20.
[Repealed, 31 SR 1239]
Subp. 20a.
[Repealed, 31 SR 1239]
Subp. 21.
[Repealed, 31 SR 1239]
Subp. 22.
[Repealed, 31 SR 1239]
Subp. 23.
[Repealed, 31 SR 1239]
Subp. 24.
[Repealed, 31 SR 1239]
Subp. 25.
[Repealed, 31 SR 1239]
Subp. 26.
[Repealed, 31 SR 1239]
Subp. 27.
[Repealed, 31 SR 1239]
Subp. 28.
[Repealed, 31 SR 1239]
Subp. 29.
[Repealed, 29 SR 443]
Subp. 30.
[Repealed, 31 SR 1239]
Subp. 31.
[Repealed, 31 SR 1239]
Subp. 32.
[Repealed, 31 SR 1239]
Subp. 33.
[Repealed, 31 SR 1239]
Subp. 34.
[Repealed, 31 SR 1239]
Subp. 35.
[Repealed, 31 SR 1239]
Subp. 35a.
[Repealed, 31 SR 1239]
Subp. 36.
[Repealed, 31 SR 1239]
Subp. 36a.
[Repealed, 31 SR 1239]
Subp. 37.
[Repealed, 29 SR 443]
Subp. 37a.
[Repealed, 31 SR 1239]
Subp. 38.
[Repealed, 31 SR 1239]
Subp. 39.
[Repealed, 31 SR 1239]
Subp. 40.
[Repealed, 29 SR 443]
Subp. 41.
[Repealed, 29 SR 443]
Subp. 42.
[Repealed, 29 SR 443]
Subp. 43.
[Repealed, 31 SR 1239]
Subp. 44.
[Repealed, 31 SR 1239]
Subp. 44a.
[Repealed, 31 SR 1239]
Subp. 45.
[Repealed, 29 SR 443]
Subp. 45a.
[Repealed, 31 SR 1239]
Subp. 45b.
[Repealed, 31 SR 1239]
Subp. 46.
[Repealed, 29 SR 443]
Subp. 47.
[Repealed, 29 SR 443]
Subp. 47a.
[Repealed, 31 SR 1239]
Subp. 48.
[Repealed, 31 SR 1239]
Subp. 48a.
[Repealed, 31 SR 1239]
Subp. 49.
[Repealed, 31 SR 1239]
Subp. 49a.
[Repealed, 31 SR 1239]
Subp. 50.
[Repealed, 31 SR 1239]
Subp. 51.
[Repealed, 31 SR 1239]
Minn. R. 7861.0020 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 31 SR 1239]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 29 SR 443]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 31 SR 1239]
Minn. R. 7861.0030 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 2a.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 20 SR 2625]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 29 SR 443]
Subp. 9.
[Repealed, 31 SR 1239]
Subp. 10.
[Repealed, 31 SR 1239]
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 31 SR 1239]
Subp. 13.
[Repealed, 31 SR 1239]
Minn. R. 7861.0040 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 31 SR 1239]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 29 SR 443]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 31 SR 1239]
Subp. 10.
[Repealed, 31 SR 1239]
Minn. R. 7861.0050 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0060 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0070 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 20 SR 2624]
Subp. 4.
[Repealed, 20 SR 2624]
Subp. 5.
[Repealed, 20 SR 2624]
Subp. 5a.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 20 SR 2624]
Subp. 6a.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 31 SR 1239]
Minn. R. 7861.0080 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0090 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0100 Repealed by subpart
Subpart 1.
[Repealed, 17 SR 2711]
Subp. 1a.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 17 SR 2711]
Subp. 5.
[Repealed, 17 SR 2711]
Subp. 6.
[Repealed, 29 SR 443]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 31 SR 1239]
Subp. 10.
[Repealed, 29 SR 443]
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 31 SR 1239]
Subp. 13.
[Repealed, 31 SR 1239]
Subp. 14.
[Repealed, 31 SR 1239]
Subp. 15.
[Repealed, 31 SR 1239]
Subp. 16.
[Repealed, 31 SR 1239]
Subp. 17.
[Repealed, 23 SR 831]
Minn. R. 7861.0110 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0120 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0130 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7861.0140 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 29 SR 443]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Minn. R. 7861.0150 [Repealed, 29 SR 443]
[Repealed, 29 SR 443]
Minn. R. 7861.0210 Definitions
Subpart 1. Scope.
For the purposes of chapters 7861, 7863, 7864, and 7865, the terms in this chapter have the meanings given them in this part or Minnesota Statutes, sections 349.11 to 349.23.
Subp. 2. Agent of the organization.
"Agent of the organization" means a person who, by mutual consent of both parties, acts on behalf of the organization.
Subp. 2a. Application software.
"Application software" means those computer programs that direct an electronic game system to perform those specific information-processing activities that permit the operation of electronic pull-tab games or electronic linked bingo games, permit the collection and recording of game information, and permit the reporting of that information to the Gambling Control Board and the Department of Revenue. The application software overlays the operating system software and is unable to function without the operating system software.
Subp. 2b. Bingo board.
"Bingo board" means a disposable sealed bingo placard that is used as a bingo number selection device, containing 75 randomly placed bingo letter and number combinations, using each of the numbers 1 through 75, under numbered seals.
Subp. 3. Bingo numbers.
"Bingo numbers" means the letter and number that correspond with one of the following letter and number combinations:
A. bingo numbers with the letter "B" may only contain numbers 1 through 15;
B. bingo numbers with the letter "I" may only contain numbers 16 through 30;
C. bingo numbers with the letter "N" may only contain numbers 31 through 45;
D. bingo numbers with the letter "G" may only contain numbers 46 through 60; and
E. bingo numbers with the letter "O" may only contain numbers 61 through 75.
Subp. 4. Bingo paper package.
"Bingo paper package" means a bingo paper sheet packet to which an organization has added individual bingo paper sheets, or means bingo paper sheets that an organization will sell as a single unit.
Subp. 5. Bingo paper sheet.
"Bingo paper sheet" means a bingo sheet containing a face or faces that is manufactured from paper with or without preprinted numbers. A sealed bingo paper sheet and a linked bingo paper sheet are considered a bingo paper sheet. The following also apply to bingo paper sheets.
A. "Face number" refers to the number appearing on each bingo paper sheet face in a series that allows for the verification of a winning bingo paper sheet face against a master record containing all of the faces in the series.
B. "Series" means a specific group of faces that has been assigned consecutive face numbers by a manufacturer. Series are typically identified by the first and last face number in the group of faces, such as "1 to 9,000 series."
C. "ON's" means the number of bingo faces contained on a bingo paper sheet. For example, the term "twelve on" in reference to a bingo paper sheet means that the bingo paper sheet contains 12 bingo faces.
Subp. 6. Bingo paper sheet packet.
"Bingo paper sheet packet" means a group of bingo paper sheets that is manufactured, collated, and sold by the manufacturer as a unit. Bingo paper sheet packets must not be sold as individual bingo paper sheets. When used in reference to a bingo paper sheet packet, the term "UP's" means the number of bingo paper sheets contained in a bingo paper sheet packet. For example, the term "twelve up" means that the bingo paper sheet packet contains 12 bingo paper sheets.
Subp. 7. Bingo pattern.
"Bingo pattern" means a predetermined and preannounced arrangement of spaces or numbers to be covered on a bingo hard card, bingo paper sheet face, or facsimile of a bingo paper sheet by a player to win a bingo game.
Subp. 7a. Board.
"Board" means the Gambling Control Board.
Subp. 7b. Bonus play.
"Bonus play" means a feature of an electronic pull-tab game in which certain tickets in the pull-tab deal give players the opportunity to make additional selections to reveal or determine the value of the prize won for the initially opened electronic pull-tab ticket.
Subp. 8. Breakopen bingo game.
"Breakopen bingo game" means a bingo game in which the organization randomly selects a predetermined quantity of bingo numbers and posts the selected bingo numbers. A breakopen bingo game must be conducted using sealed bingo paper sheets or bingo faces that are electronically generated only after the face has been purchased by the player.
Subp. 9. Case paper.
"Case paper" means uncollated bingo paper sheets sold by the manufacturer in case lots. Case paper may be provided in either single bingo paper sheets or in a tablet from which the organization removes single bingo paper sheets.
Subp. 9a. Cash out.
"Cash out" means redeeming credits on an electronic pull-tab or electronic linked bingo device to zero credits.
Subp. 9b. Central server.
"Central server" means the manufacturer's computer equipment that houses the operating system, supporting hardware, electronic gaming application software, communications network system, and databases required for electronic game operations, and stores and manages electronic gaming data between individual electronic gaming points of sale. Central servers must be located in Minnesota.
Subp. 10.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 10a. Chance ticket.
"Chance ticket" means one of a predetermined number of paper pull-tab tickets contained in a chance ticket display attached or adjacent to the game flare which corresponds to the number of qualifying winning tickets in a multiple chance game.
Subp. 10b. Chance ticket display.
"Chance ticket display" means the tamper-resistant sealed, perforated, or covered display containing the chance tickets in a multiple chance game.
Subp. 11. Civic celebration.
"Civic celebration" means an event conducted in Minnesota that is sponsored by a local unit of government having jurisdiction over the event.
Subp. 11a. Commingled pull-tab deal.
"Commingled pull-tab deal" means single pull-tab deals with the same game name and form number that have been combined and made available for sale as one unit.
Subp. 11b. Communications network.
"Communications network" means an Internet-based communications system used for the data transfer of all transactions associated with the conduct of electronic games. For lawful gambling purposes, communications network includes data transmission service and equipment required to provide the Internet signal at the lawful gambling premises up to the first piece of equipment required at the point of sale system maintained by the licensed organization as part of an approved electronic gaming system.
Subp. 12. Compensation.
"Compensation" means wages, salaries, and all other forms of payment for services provided by a person.
Subp. 13. Continuation bingo game.
"Continuation bingo game" means a bingo game where up to three games may be played concurrently on one bingo paper sheet face, bingo hard card, or facsimile of a bingo paper sheet; all completed winning patterns are verified independently; and no restrictions are placed on the order of completing the required patterns. Each portion of the continuation game is considered a complete game, even though the numbers selected for the previous game or games are not made available again for selection until all of the games have been completed.
Subp. 14. Control number.
"Control number" means a unique alphanumeric or numeral code assigned by the organization to identify a bingo paper sheet, bingo paper sheet packet, or bingo paper package. The control number of the bingo paper sheet may be the serial number printed on the bingo paper by the manufacturer.
Subp. 15. Cumulative pull-tab or tipboard game.
"Cumulative pull-tab or tipboard game" means a pull-tab or tipboard game that is played with two or more deals containing the same form number but unique serial number for each deal, has a portion of each deal's predetermined prize payout designated to a cumulative prize pool, and is packaged by the manufacturer as a cumulative game.
Subp. 15a. Designated time frame.
"Designated time frame" means a period of time such as a quarter, an inning, a half, a period, or other portion of a professional sporting event.
Subp. 15b. Determination of winner.
"Determination of winner" means an explanation of how the prize winner is determined based on the score at the end of a designated time frame of a professional sporting event. The final score of a professional sporting event is considered the last time frame.
Subp. 15c. Electronic bingo device.
"Electronic bingo device" has the meaning given under Minnesota Statutes, section 349.12, subdivision 12a, and includes:
A. a handheld, portable electronic device used as a nonlinked bingo card minder that:
B. a handheld and portable electronic device used as an electronic linked bingo game device that:
Subp. 15d. Electronic gambling equipment.
"Electronic gambling equipment" means:
A. electronic pull-tab devices;
B. electronic bingo devices;
C. programmable electronic devices;
D. electronic pull-tab systems;
E. electronic linked bingo game systems;
F. electronic paddlewheels;
G. upgrades or changes to previously approved and tested equipment;
H. other technical hardware devices used in conjunction with lawful gambling equipment; and
I. software applications and version upgrades used in conjunction with lawful gambling equipment.
Subp. 15e. Electronic game cash on hand.
"Electronic game cash on hand" means the total amount of cash and money orders in the point-of-sale system cash drawer used in conjunction with the conduct of electronic pull-tabs or electronic linked bingo.
Subp. 15f. Electronic game occasion.
"Electronic game occasion" means a consecutive period of time during which credits are sold for the purchase of electronic pull-tabs or electronic linked bingo or credits from the play of electronic pull-tabs or electronic linked bingo are redeemed.
Subp. 15g. Electronic game system.
"Electronic game system" means all components in electronic, computer, mechanical, or other technologic form that function together to support the play of one or more electronic pull-tab games and electronic linked bingo games, including all functions required by the standards in parts 7863.0270, 7864.0230, and 7864.0235.
Subp. 15h. Electronic linked bingo game.
"Electronic linked bingo game" means an electronic bingo game that is played on a handheld, portable electronic device that permits play against other bingo players at multiple permitted premises.
Subp. 15i. Electronic linked bingo gross receipts.
"Electronic linked bingo gross receipts" means the value of credits wagered on electronic linked bingo games.
Subp. 15j. Electronic linked bingo net proceeds at premises.
"Electronic linked bingo net proceeds at premises" means the difference between the electronic linked bingo gross receipts and the electronic linked bingo prizes awarded at the premises.
Subp. 15k. Electronic linked bingo net receipts.
"Electronic linked bingo net receipts" means the difference between the electronic linked bingo gross receipts and the electronic linked bingo prizes paid.
Subp. 15l. Electronic linked bingo prizes awarded at premises.
"Electronic linked bingo prizes awarded at premises" means the value of credits awarded at the premises for electronic linked bingo prizes.
Subp. 15m. Electronic linked bingo prizes paid.
"Electronic linked bingo prizes paid" means the portion of the linked bingo prize pool that is allocated to an organization's electronic linked bingo gross receipts at a premises.
Subp. 15n. Electronic net value of credits or electronic net.
"Electronic net value of credits" or "electronic net" means the dollar value difference between the credits purchased during an electronic game occasion and the credits redeemed at the premises during the electronic game occasion.
Subp. 15o. Electronic pull-tab gross receipts.
"Electronic pull-tab gross receipts" means the value of credits wagered on electronic pull-tab games.
Subp. 15p. Electronic pull-tab net receipts.
"Electronic pull-tab net receipts" means the difference between the electronic pull-tab gross receipts and the electronic pull-tab prizes awarded.
Subp. 15q. Electronic pull-tab prizes awarded at premises.
"Electronic pull-tab prizes awarded at premises" means the value of credits added to a device at the premises for electronic pull-tab game prizes.
Subp. 15r. Electronic pull-tab prizes paid.
"Electronic pull-tab prizes paid" means the total electronic pull-tab prizes paid in cash at a premises and any electronic pull-tab prizes paid by check.
Subp. 15s. Emergency expenditure.
"Emergency expenditure" means a financial obligation due and payable that, if not met, would require the organization to immediately stop gambling.
Subp. 16. Event game.
"Event game" means a single pull-tab game in which certain prizes are determined by the selection of a bingo number, the opening or uncovering of a seal or seals, the spin of a paddlewheel, or by another alternative method approved by the board.
Subp. 17. Facsimile of a bingo paper sheet.
"Facsimile of a bingo paper sheet" means an electronic representation of a bingo paper face with its face number displayed in an electronic bingo device used by a bingo player. The following also apply to a facsimile of a bingo paper sheet.
A. "Face number" refers to the number appearing on each facsimile of a bingo paper sheet in a series that allows for the verification of a winning facsimile of a bingo face against a master record containing all of the faces in the series.
B. "Series" means a specific group of faces that has been assigned consecutive face numbers by a manufacturer. Series are typically identified by the first and last face number in the group of faces.
Subp. 17a. Facsimile of a pull-tab ticket.
"Facsimile of a pull-tab ticket" means an electronic representation resembling a pull-tab ticket where symbols are revealed to the player in an automated format and the winning symbols are arranged in a straight-line method.
Subp. 18. Fair market value.
"Fair market value" is what a willing buyer would pay a willing seller when neither has to buy or sell and both are aware of the conditions of the sale. Fair market value for purposes of merchandise prizes must be related to the manufacturer's suggested retail price, list price, advertised price, or actual cost. The price or cost is determined when the merchandise prize is acquired by the organization.
Subp. 19. Family.
"Family" means a group of pull-tab or tipboard games with the same name.
Subp. 20. Family member.
"Family member" means a pull-tab or tipboard game with the same name as another family member but with a different form number.
Subp. 21. Flashboard.
"Flashboard" means an electronic device that displays the numbers and letters of called bingo numbers.
Subp. 22. Form number or part number.
"Form number" or "part number" means an alphanumeric code assigned by the manufacturer to uniquely identify a game as required by the commissioner of revenue.
Subp. 23.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 24. Fundraising costs.
"Fundraising costs" means the total general fund expenses incurred in soliciting gifts, grants, and other contributions and includes but is not limited to expenses for:
A. publicizing and conducting fundraising campaigns or special events;
B. soliciting contributions from foundations or other organizations or government grants;
C. preparing and distributing fundraising manuals, instructions, and other related materials;
D. conducting special events that generate contributions;
E. allocating a portion, if any, of expenses and salaries for the organization's chief officer and that officer's staff that pertain to fundraising activities; and
F. conducting fundraising meetings. For purposes of this definition, fundraising costs does not include lawful gambling allowable expenses.
Subp. 25. Gambling bank account.
"Gambling bank account" means all the accounts maintained by an organization at any banks, savings and loan institutions, or credit unions located within Minnesota in which the organization deposits all gambling receipts and over which the organization has any control, including checking and savings accounts, certificates of deposit, and trust and escrow accounts.
Subp. 26. Gambling volunteer.
"Gambling volunteer" means an individual not compensated by an organization but who performs activities in the conduct of that organization's lawful gambling.
Subp. 26a. Handheld, portable electronic device.
"Handheld, portable electronic device" means an electronic device used for the conduct of linked bingo or electronic pull-tab games, or both, that is powered by an integrated battery source without cable connection to a power source or any other device while in use by a player.
Subp. 27. Immediate family.
"Immediate family" means spouse, children, parents, and siblings.
Subp. 28. Jar ticket.
"Jar ticket" means a single pull-tab ticket that is folded and banded or is a grouping of folded and banded tickets.
Subp. 29. Lawful gambling.
A. "Lawful gambling" is the operation, conduct, or sale of bingo, raffles, paddlewheels, tipboards, and pull-tabs.
B. Lawful gambling does not include:
Subp. 30. Leased premises.
"Leased premises" means a building or place of business, or a portion of it, that is not owned by a licensed organization and is leased by the organization only for the conduct of lawful gambling.
Subp. 31. Leased bingo premises.
If bingo and other forms of lawful gambling are conducted during a bingo occasion on a leased premises and the rent amount is based on the square footage of the leased premises, the "leased bingo premises" includes:
A. sale areas;
B. lawful gambling receipts accounting areas;
C. participant playing areas;
D. prize display areas;
E. areas to draw, display, and post bingo numbers;
F. restrooms;
G. the organization's gambling equipment storage areas; and
H. entrance foyers used exclusively by bingo players or the organization's gambling employees. Other areas not used exclusively by bingo players or the organization's gambling employees are not included in leased bingo premises. Measurements of leased areas are taken from internal wall to internal wall.
Subp. 32. Limiting bingo number count.
"Limiting bingo number count" means a bingo game in which a bingo player must complete an announced bingo pattern within a predetermined quantity of called bingo numbers. All limiting bingo number counts must be prominently displayed before the start of the bingo occasion. If not completed within the count, the game continues until a consolation winner is determined and a consolation prize awarded.
Subp. 33. Linked bingo equipment.
"Linked bingo equipment" means the equipment used in the conduct of a linked bingo game, including linked bingo paper sheets, electronic bingo devices, and facsimiles of linked bingo paper sheets.
Subp. 33a.
[Repealed, 44 SR 25]
Subp. 34. Management and general costs.
"Management and general costs" means the total general fund expenses incurred for the function and management of the organization and includes but is not limited to expenses for:
A. salaries and expenses of the organization's chief officer and staff, excluding any portion that is allocated to fundraising or program services;
B. meetings of directors or similar groups, committees, and staff but does not include expenses for fundraising or specific program service meetings;
C. general legal services;
D. accounting and auditing;
E. general liability insurance;
F. office management and personnel;
G. preparation of annual reports; and
H. investment expenses. For purposes of this definition, management and general costs does not include general fund expenses for the direct conduct of fundraising activities or program services, and does not include lawful gambling allowable expenses.
Subp. 35. Manufacturer's seal.
"Manufacturer's seal" means the sticker placed by the manufacturer on the outside of the box or container of pull-tabs, tipboards, raffle boards, or bingo boards but inside the shrink-wrap, ensuring that the game has not been opened or tampered with before delivery to the organization.
Subp. 36. Merchandise prize.
"Merchandise prize" means a prize other than cash awarded to a winner or winners of a bingo game, pull-tab game, tipboard game, paddlewheel game conducted without a paddlewheel table, or raffle.
Subp. 36a. Multiple chance game.
"Multiple chance game" means a pull-tab game in which qualifying winning tickets provide an option to the player to forfeit the qualifying winning ticket in exchange for a chance ticket in the chance ticket display that provides a chance to win a prize of lesser, equal, or greater value than the originally purchased ticket.
Subp. 37. Multiple seal game.
"Multiple seal game" means a pull-tab or tipboard game in which select tickets are redeemed by players for a prize amount under a seal number matching the pull-tab ticket presented by the player or under a seal as determined by the player.
Subp. 38. Net receipts.
"Net receipts" are gross receipts less prizes awarded.
Subp. 38a. Operating system software.
"Operating system software" means nongambling software that communicates with the computer hardware to manage computer hardware resources and allows all applications, including gaming applications, to run.
Subp. 39. Other nonprofit organization.
"Other nonprofit organization" means one of the following:
A. an organization other than a fraternal, religious, or veterans organization, whose nonprofit status is evidenced by a current letter of exemption from the Internal Revenue Service recognizing it as a nonprofit organization exempt from payment of income taxes or which is incorporated as a nonprofit corporation and registered with the secretary of state under Minnesota Statutes, chapter 317A; or
B. an affiliate, subordinate, or chapter of a statewide parent organization that meets the criteria of item A. This type of other nonprofit organization is recognized only for purposes of conducting lawful gambling under Minnesota Statutes, section 349.166.
Subp. 40. Paddlewheel table.
"Paddlewheel table" is a table described in part 7864.0230 and used in the game of paddlewheels under part 7861.0300.
Subp. 40a. Paddlewheel; mechanical, electronic.
A. A mechanical paddlewheel is a manually operated vertical wheel that operates only with a free-spinning bearing system and the contact of the pointer with pegs. The vertical wheel is marked off into equally spaced sections, has protruding pegs on its face, and has a pointer positioned above the paddlewheel.
B. An electronic paddlewheel is an electronic representation of a paddlewheel that uses a random number generator to determine winning paddlewheel numbers.
Subp. 40b. Point of sale.
"Point of sale" is the place where customers purchase chances for participation in a lawful gambling game.
Subp. 40c. Point-of-sale system.
"Point-of-sale system" is a computerized checkout or cash register system that:
A. for paper pull-tab games, meets the standards in part 7861.0280, subpart 9;
B. for electronic pull-tab games, meets the standards in part 7864.0235, subpart 30a; and
C. for electronic linked bingo games, meets the standards in part 7863.0270, subpart 26a.
Subp. 40d. Professional sporting event.
"Professional sporting event" means an officially scheduled game between two teams that are members of the following leagues: National Football League (NFL), National Basketball Association (NBA), Women's National Basketball Association (WNBA), National Hockey League (NHL), Major League Soccer (MLS), and Major League Baseball (MLB).
Subp. 41. Progressive bingo game.
"Progressive bingo game" is a game in which the established prize levels increase from one game or occasion to the next up to a predetermined amount if the required pattern is not completed within the specified number of bingo numbers selected and called during the previous game or occasion.
Subp. 42. Progressive pull-tab or tipboard game.
"Progressive pull-tab or tipboard game" is a pull-tab or tipboard game that has a portion of its predetermined prize payout designated to one progressive jackpot prize. The jackpot prize increases from one deal to the next until the jackpot prize is won or the predetermined jackpot amount printed on the flare by the manufacturer is reached.
Subp. 43. Promotional pull-tab or tipboard ticket.
"Promotional pull-tab or tipboard ticket" means a pull-tab or tipboard ticket for which no purchase or consideration is required. The only prizes available to be won are discounts on goods and services available at the site where the game is played. Cash prizes are not permitted with promotional pull-tab or tipboard games.
Subp. 43a. Raffle board.
"Raffle board" means a board containing spaces, each of which serves as a certificate of participation for a player purchasing a chance in the raffle.
A. Raffle boards with stubs must contain uniform, detachable stubs that when removed are placed in a container for the random drawing of a raffle winner.
B. Raffle boards without stubs may only use a board-approved alternative method of selecting a raffle winner.
Subp. 44. Random number generator.
"Random number generator" means a device that has an automated method of selecting game symbols or producing game outcomes based on a preset number of chances available for random selection.
A. This subpart is only applicable to electronic game systems or devices that utilize a random number generator, which must:
B. The random number generator and random selection process must be impervious to electromagnetic interference, electrostatic interference, radio frequency interference, and other influences from outside the system or device that may affect the game outcome. Recognized statistical tests used to determine whether or not the random values produced by the random number generator pass the desired confidence level of 99 percent include:
C. The random number generator must meet the standards under parts 7863.0270, subpart 1; 7864.0230, subparts 5, 6, 9a, and 10a; and 7864.0235.
Subp. 44a. Real time.
"Real time" means no more than a five-second span of time in which an electronic game transaction is initiated and when the data is sent to and received by the electronic game system's central server and accessible to the board and other authorized state representatives.
Subp. 45. Religious organization.
"Religious organization" means a nonprofit organization, church, body of communicants, or group gathered in common membership for mutual support and edification in piety, worship, and religious observances.
Subp. 45a. Reporting portal.
"Reporting portal" means a manufacturer-provided, web-based, read-only secure reporting system that maintains board-prescribed data for electronic games.
Subp. 46. Seal card.
"Seal card" means a board or placard used in conjunction with a deal of pull-tabs or tipboards and contains a seal or seals that when opened or uncovered reveal predesignated winning numbers, letters, or symbols.
Subp. 47. Sealed bingo paper sheet.
"Sealed bingo paper sheet" means a manufacturer-sealed bingo paper sheet constructed so that the bingo face is sealed in a manner that prevents revealing any part of the bingo face before the seal is opened by a bingo player. Sealed bingo paper sheet also includes facsimiles used with an electronic bingo device.
Subp. 47a. Secured data transmission.
"Secured data transmission" means a method of data transmission employing encryption conforming to Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST) to protect the data from unauthorized access or tampering.
Subp. 48. Shrink-wrap.
"Shrink-wrap" means a clear form-fitting plastic wrapping applied to a box or container of pull-tabs or tipboards by a licensed manufacturer.
Subp. 48a. Software.
"Software" means electronic game software and those computer programs provided by a licensed manufacturer or licensed linked bingo game provider in the production, play, and reporting of board-approved electronic pull-tab games or electronic bingo games.
Subp. 48b. Sports-themed tipboard grid or grid.
"Sports-themed tipboard grid" or "grid" means a table of grid squares on a sports-themed tipboard for printing a player's name, for placement of tickets, or for location of a ticket's square on the grid.
Subp. 48c. Sports-themed tipboard grid square or grid square.
"Sports-themed tipboard grid square" or "grid square" means a space for a player's printed name on a sports-themed tipboard grid that corresponds to a number or set of numbers on the vertical axis and a number or set of numbers on the horizontal axis.
Subp. 48d. Start of an event.
"Start of an event" means the first action taken to begin a professional sporting event such as a kickoff, first pitch, tip-off, or puck drop.
Subp. 49. State registration stamp.
"State registration stamp" means the stamp required by part 7863.0220, subpart 3, and Minnesota Statutes, section 349.162, subdivision 1, and attached to a bingo number selection device, pull-tab dispensing device, paddlewheel, or paddlewheel table.
Subp. 49a. Straight line.
"Straight line" means an unbroken line that does not change direction. A straight line connects two or more symbols to make up a winning symbol combination.
Subp. 49b. Total value of credits purchased.
"Total value of credits purchased" means the value of electronic game credits purchased by the player from the seller.
Subp. 49c. Total value of credits redeemed.
"Total value of credits redeemed" means the value of credits on an electronic game device when it is returned to the seller to cash out.
Subp. 49d. Unredeemed credits.
"Unredeemed credits" means the value of credits available for play on an electronic pull-tab or electronic linked bingo device.
Subp. 50. Veterans organization.
"Veterans organization" means any congressionally chartered organization within Minnesota, or any branch, lodge, or chapter of a nonprofit national or state organization within Minnesota, with a membership consisting of persons who were members of the armed services or forces of the United States.
Subp. 51. Winning symbol combination.
"Winning symbol combination" means a predefined set of consecutive symbols on a ticket that results in a prize or bonus play. A winning symbol combination must only be:
A. in a horizontal line;
B. in a vertical line; or
C. in a diagonal line.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0215 Incorporation by Reference
For the purposes of chapters 7861 to 7865, items A and B are incorporated by reference:
A. Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST), as amended, are incorporated by reference. The AES specifications are subject to change and are available to the public free of charge at the State Law Library and at http://csrc.nist.gov/publications.
B. The Institute of Electrical and Electronics Engineers (IEEE) Standards Association's IEEE 802.11 standards contained in the Wi-Fi Protected Access II (WPA2), as amended, are incorporated by reference. The IEEE 802.11 standards are subject to change and are available to the public free of charge at the State Law Library and at https://standards.ieee.org.
History
- Statutory Authority: MS s 349.151
- History: 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0220 Licensed Organization
Subpart 1. Organization license required.
An organization may not conduct lawful gambling unless it has received a license issued by the board. The license, when issued, is not transferable from one organization to another.
Subp. 2. Organization licensing qualifications.
In addition to the qualifications in Minnesota Statutes, sections 349.155, subdivision 3, and 349.16, subdivision 2, an organization does not qualify for a license if:
A. an organization that has not been licensed to conduct lawful gambling within the preceding 12 months and its current chief executive officer and a person who will be its gambling manager have not completed a gambling manager seminar within the last six months;
B. the organization has not established a permanent location in Minnesota where the gambling records required by this chapter will be kept and has not established a gambling bank account within Minnesota;
C. the organization's conduct of lawful gambling is or would be inconsistent with Minnesota Statutes, sections 349.11 to 349.23, as indicated by lack of financial responsibility, demonstrated lack of control of lawful gambling, or incomplete consent order or termination plan requirements;
D. the organization does not have a gambling manager who will be licensed by the board when the organization obtains its license; and
E. the organization will not obtain at least one premises permit when the organization obtains its license.
Subp. 3. Contents of organization license application.
The application must contain the following organization information:
A. legal name and any other names used;
B. business address and telephone number;
C. Minnesota tax identification number and federal employer identification number;
D. names, titles, dates of birth, and daytime telephone numbers of the chief executive officer and treasurer;
E. home address of the chief executive officer;
F. a designation of whether the organization is a fraternal, veterans, religious, or other nonprofit organization and the number of years the organization has existed;
G. number of active members;
H. day and time of regular meetings;
I. acknowledgment that the organization will file a license termination plan if the organization terminates lawful gambling;
J. for a 501(c)(3) organization or 501(c)(4) festival organization that chooses to make lawful purpose contributions to itself, an acknowledgment regarding the provisions of part 7861.0320, subpart 14; and
K. additional information that may be required by the board to properly identify the applicant and ensure compliance with Minnesota Statutes, sections 349.11 to 349.23.
Subp. 4. Attachments to organization license application.
The organization must attach the following to the application:
A. proof of Internal Revenue Service income tax exempt status or current certificate of nonprofit status from the Minnesota secretary of state. If the organization is a 501(c)(3) organization or 501(c)(4) festival organization, the organization must attach documentation from the Internal Revenue Service showing proof of its income tax exempt status;
B. a copy of a charter of the parent organization, if chartered;
C. a membership list, signed by the organization's chief executive officer, with the first and last names of at least 15 active members as defined in Minnesota Statutes, section 349.12, subdivision 2, and date of membership;
D. an affidavit of the chief executive officer and treasurer, in a format prescribed by the board;
E. for a 501(c)(3) organization or 501(c)(4) festival organization that chooses to make lawful purpose contributions to itself, a copy of the organization's annual report on income and expenses provided to the Internal Revenue Service, or in a format prescribed by the board; and
F. a copy of the organization's by-laws, signed by the organization's chief executive officer.
Subp. 5. Changes in organization license application information.
If any information submitted in the application changes, the organization must notify the board within ten days of the change.
Subp. 6. Issuing or denying an organization license.
The following items apply to an organization license issued or denied by the board.
A. The board must issue a license to an organization that:
B. The board must deny the application if an organization:
C. All fees submitted with a license application are considered earned and are not refundable.
Subp. 7. Effective date for organization license.
An organization license is effective on the first day of the month or as otherwise determined by the board.
Subp. 8. Termination of organization license.
If an organization voluntarily or involuntarily terminates all of its gambling activities, it must submit a license termination plan to the board for approval on a form prescribed by the board. The board must require the organization to revise the plan if it does not meet with board approval. The plan must include but is not limited to the following information upon which board approval must be based:
A. documentation that provides information on how the organization will expend all remaining funds in the gambling account for lawful expenditures;
B. documentation of the return or disposal of all unused gambling equipment in the possession of the organization; and
C. an acknowledgment by the organization that it will resolve any pending compliance issues as noted in the termination plan as approved by the board as a condition of license reapplication in the future.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 41 SR 137
Minn. R. 7861.0230 Gambling Manager and Assistant Gambling Manager
Subpart 1. Gambling manager license required.
A person may not act as a gambling manager unless the person has obtained a license issued by the board. The license, when issued, is not transferable from one person to another.
Subp. 2. Gambling manager licensing qualifications.
In addition to the qualifications in Minnesota Statutes, sections 349.155, subdivision 3, and 349.167, a person does not qualify for a new or continuing license if the person is any of the following:
A. the lessor, an employee of the lessor, a member of the lessor's immediate family, or a person residing in the same residence as the lessor, if the premises is leased;
B. a person who is not an active member of the organization;
C. a person who is the chief executive officer or the treasurer of the organization or to a person who was an officer of an organization at a time when an offense occurred that caused that organization's license to be revoked; or
D. a person who is the gambling manager or an assistant gambling manager for another organization.
Subp. 3. Education requirements.
A. To qualify for a continuing license the gambling manager must complete a continuing education class or complete the seminar required for initial gambling manager licensure by the end of each calendar year as required by Minnesota Statutes, section 349.167, subdivision 4.
B. Proof of identification is required for persons taking a gambling manager examination. Attendees at board-authorized seminars and continuing education classes must be prepared to present as proof of identification a valid driver's license or identification card issued by Minnesota, or a state or province of Canada contiguous to Minnesota, that contains the person's photograph and date of birth.
Subp. 4. Contents of gambling manager license application.
The application must contain the following information for the person who will be the gambling manager:
A. name, date of birth, and Social Security number;
B. home address and daytime telephone number;
C. date the person became a member of the organization;
D. organization's name, address, and telephone number and name of the chief executive officer;
E. dates of attendance at the board-authorized gambling manager's seminar;
F. name of the provider and contract number for the bond required by Minnesota Statutes, section 349.167, subdivision 1, paragraph (a);
G. statement that the applicant is in compliance with the licensing qualifications in subpart 2;
H. acknowledgment that suits and actions related to the gambling manager's license, or acts or omissions, may be commenced against the gambling manager;
I. acknowledgment authorizing the Departments of Public Safety and Revenue to conduct a criminal background and tax check or review;
J. acknowledgment regarding the education requirements of subpart 3; and
K. signature of the gambling manager and the chief executive officer of the organization.
Subp. 5. Changes in gambling manager license application information.
If any information submitted in the application changes, the gambling manager must notify the board no later than ten days after the change has taken effect.
Subp. 6. Issuing or denying a gambling manager license; license for an emergency gambling manager.
The following items apply to a gambling manager license issued or denied by the board:
A. The board must issue a license to a person who:
B. The board must deny the application if:
C. A gambling manager whose application was denied for failing to comply with this part may not apply for a license or for an emergency replacement gambling manager's license. The person may apply for a new gambling manager's license if the person attended the board-authorized gambling manager's seminar and passed the examination within the six months immediately preceding the effective date of the new license.
D. If a gambling manager quits, dies, or is unable to perform the duties, the organization, to continue its conduct of lawful gambling, must comply with Minnesota Statutes, section 349.167, subdivision 2, paragraph (d), for an emergency replacement gambling manager or otherwise discontinue its operation until the organization complies with Minnesota Statutes, section 349.167, subdivision 2, paragraph (e).
E. All fees submitted with a license application are considered earned and are not refundable.
Subp. 7. Effective date of gambling manager license.
A gambling manager license issued by the board is effective on the first day of a month or as otherwise determined by the board.
Subp. 8. Gambling manager duties.
A gambling manager's duties include but are not limited to:
A. determining the product to be purchased and put into play;
B. reviewing and monitoring the conduct of games;
C. supervising, hiring, firing, and disciplining all gambling employees;
D. ensuring that all receipts and disbursements have been properly accounted for in compliance with statute and rule requirements;
E. ensuring that all inventory records have been reconciled each month;
F. supervising all licensing and reporting requirements;
G. assuring that the licensed organization is in compliance with all laws and rules related to lawful gambling;
H. assuring that illegal gambling is not conducted at any premises where the organization is permitted to conduct lawful gambling; and
I. attending a majority of the regular meetings of the organization.
Subp. 9. Assistant gambling manager duties and restrictions.
The following items apply to assistant gambling managers.
A. An assistant gambling manager is a person who performs any of the following duties:
B. An organization may employ one or more assistant gambling managers if:
C. An assistant gambling manager may be employed by more than one organization if the organizations lease space for the conduct of bingo in the same permitted premises, and the assistant gambling manager is not compensated directly or indirectly by the owner or lessor of the premises.
D. A license is not required for an assistant gambling manager.
History
- 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
- History: 31 SR 1239; 35 SR 1276; L 2015 c 52 s 22; 41 SR 137
Minn. R. 7861.0240 Premises Permits
Subpart 1. Premises permit required.
An organization must obtain a premises permit issued by the board for each premises it owns or leases where it will conduct lawful gambling. The permit, when issued, is not transferable from one site to another.
Subp. 2. Contents of and attachment to premises permit application.
A premises permit application must contain the following information:
A. organization's legal name;
B. name and daytime telephone number of the organization's chief executive officer;
C. name and street address of the proposed gambling premises;
D. city and county or township and county where the proposed gambling premises is located;
E. address in Minnesota of any temporary or permanent storage space for gambling equipment and records, if different than the permitted premises;
F. bank name, address, and account number for each bank account in Minnesota into which gross receipts from gambling are deposited;
G. authorization permitting the board and agents of the board and the commissioners of revenue and public safety and their agents to inspect the bank records of the gambling account;
H. a statement giving consent to local law enforcement officers, the board or its agents, and the commissioners of revenue and public safety and their agents to enter and inspect the premises;
I. acknowledgment signed by the chief executive officer;
J. acknowledgment by the local unit of government that it has approved the application by resolution as authorized by Minnesota Statutes, section 349.213, subdivision 2; and
K. if the premises is leased, a copy of the lease as required by subpart 3.
Subp. 3. Lease required for leased premises.
For premises not owned by the organization, a lease must be on a form prescribed by the board and contain at a minimum the following information:
A. name, business address, and telephone number of the legal owner of the premises and the lessor;
B. organization's name, business address, license number, and daytime telephone number;
C. name, address, and telephone number of the leased premises;
D. type of gambling activity to be conducted;
E. monetary consideration, if any, that may not be directly or indirectly supplemented above the amounts in Minnesota Statutes, section 349.18;
F. an irrevocable consent from the lessor that:
G. clauses pertaining to illegal gambling stating that:
H. a clause stating that the lessor must not impose restrictions on the organization with respect to providers of gambling-related equipment and services or in the use of net profits for lawful purposes; and
I. all other agreements between the organization and the lessor.
Subp. 4. Changes in premises permit application and lease information.
The following items pertain to changes in application and lease information.
A. Except for items B and C, the organization must notify the board in writing when any information submitted in the application changes, no later than ten days after the change has taken effect.
B. For changes to a lease that do not include a change in the lessor, the organization must submit to the board a new lease at least ten days before the effective date of the change.
C. For a change in ownership of the site, the organization must submit to the board a new lease within ten days after the new lessor has assumed ownership.
Subp. 5. Issuing or denying a premises permit; violation of lease agreement.
The following items apply to a premises permit issued or denied by the board.
A. The board must issue a premises permit when an application is complete and contains:
B. The board must deny the application if:
C. All fees submitted with a permit application are considered earned and are not refundable.
Subp. 6. Permit effective date.
A premises permit issued by the board is effective on the first day of a month or as otherwise determined by the board.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 44 SR 25
Minn. R. 7861.0260 Conduct of Lawful Gambling
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. In addition to the restrictions in Minnesota Statutes, section 349.181, the following restrictions apply to persons involved in the conduct of lawful gambling:
D. At each permitted premises, the organization must have:
E. An organization must ensure that its compensated gambling employees are clearly identified by name to the public at all times when conducting lawful gambling.
F. An organization or organization employee must not engage in any act, practice, or course of operation that manipulates the outcome of any game.
G. An organization employee or volunteer may not share or allow others to use the employee's or volunteer's password or unique identifying code.
H. An organization must only conduct lawful gambling at times when the premises is open for the conduct of its regular business.
I. 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.
J. Illegal gambling may not be conducted at a premises for which a licensed organization has a premises permit to conduct lawful gambling.
K. 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.
A. 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.
B. Electronic linked bingo devices and electronic pull-tab devices may only contain advertising directly related to the organization's lawful gambling activity.
C. There may be no advertising on electronic devices during actual game play.
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:
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:
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:
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:
Subp. 5. Prize receipt or winner verification form required.
A. When a prize is awarded, the organization must complete a prize receipt in a format prescribed by the board for the following:
B. A prize receipt must include at a minimum the following, in a legible format and in ink:
C. For an electronic progressive pull-tab prize of $600 or more, the organization must:
D. For an electronic linked bingo prize of $600 or more, the organization must:
E. The player eligibility verification form must state:
F. The winner verification form required for electronic games with prizes of $600 or more must include the following, in a legible format and in ink:
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:
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.
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.
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. Electronic game occasion; records and reports.
A. If the cumulative net value of credits available for deposit at the close of an electronic game occasion reaches $2,000 or more, the electronic game cash on hand less the starting cash bank amount must be removed from the cash drawer and secured in a safe until taken for deposit.
B. After the close of business on the last day of each month, but before the start of business on the first day of the next month, the electronic game cash on hand less the starting cash bank amount must be separated from the starting cash and secured in a safe until taken for deposit.
C. At the end of each electronic game occasion, the point-of-sale system must produce:
D. If the lessor provides the starting cash bank, the lessor must transfer the electronic net value of credits from the electronic game occasion to the licensed organization upon demand.
E. If the organization provides the starting cash bank, the following information must be entered on a form or in a format prescribed by the board:
F. 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.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0270 Bingo
Subpart 1. Restrictions and definitions.
In addition to the restrictions and requirements in part 7861.0260, the following restrictions and definitions apply to the conduct of bingo.
A. The term "bingo paper" means bingo paper sheets, linked bingo paper sheets, bingo paper sheet packets, bingo paper sheet packages, or facsimile of a bingo paper sheet.
B. The term "packet" means bingo paper sheet packets.
C. The term "package" means bingo paper sheet packages.
D. The term "sealed paper" means a sealed bingo paper sheet.
Subp. 2. Posting of bingo information and house rules.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale, display on all active electronic linked bingo devices, or state in its bingo program the following information:
A. house rules which include, at a minimum:
B. a notice that includes:
Subp. 3. Bingo equipment to be used.
An organization must comply with the following for the conduct of bingo.
A. If bingo balls are used, the 75 bingo balls must be available for inspection and inspected by at least one player before a bingo occasion begins to determine that all are present and in operating condition. Each bingo ball may bear no more than one letter and one number. Each bingo ball in the set must be equal in size, weight, shape, balance, and all other characteristics that control their selection, and must be free from any defects. Except for continuation bingo games, each bingo ball must be present in the bingo ball selection device before each bingo game begins.
B. If a bingo board is used, the bingo board must be available for inspection and be inspected by at least one player before a bingo occasion begins to determine that the placard seals have not been altered or tampered with, and are free from defects.
C. Video cameras and monitors may be used.
D. An organization must maintain in sound working condition all equipment used in the conduct of a bingo game.
E. Linked bingo paper sheets or facsimiles of linked bingo paper sheets must not be included as part of a packet or package. All linked bingo paper sheets or facsimiles of linked bingo paper sheets must be sold as a separate item.
F. An organization must not reserve bingo cards, bingo paper, or an electronic bingo device for any person.
G. An organization must not use sets of bingo paper sheets or packets containing identical faces during a single bingo game, except that identical faces may occur on sealed bingo paper sheet faces during a breakopen bingo game. Identical faces may not occur on facsimiles of sealed bingo paper sheet faces used with an electronic bingo device during a breakopen bingo game.
H. Sealed paper sheets or facsimiles of sealed paper sheets must be used for any bingo game for which, prior to the selection of the first bingo number, a person could determine whether a particular bingo face is more likely to win the game than another bingo face or more likely to win a higher alternative prize.
I. An organization or its employees or agents must not:
J. An organization with gross bingo receipts exceeding $150,000 in its last fiscal year, after any coupon discounts have been applied by the organization, may not use bingo hard cards. This restriction does not apply to the use of Braille bingo hard cards.
K. An organization may permit a player who is legally blind to bring and use a Braille or large print hard card. A Braille hard card must contain the letters and numbers required by part 7861.0210, subpart 3, in a format that can be verified by sight by a person who is not able to read Braille. An organization may disallow the use of a Braille or large print hard card that does not comply with requirements for bingo hard cards or linked bingo paper. For the use of a personal Braille or large print hard card, an organization must charge a person who is visually impaired the same price charged for a bingo hard card or bingo paper sheet face. Large print hard cards may not be used to participate in electronic linked bingo games.
Subp. 3a. Use of electronic bingo devices.
An organization may offer electronic bingo devices, as defined by part 7861.0210, subpart 15c, and Minnesota Statutes, section 349.12, subdivision 12a, to be used by players if the following requirements are met.
A. The number of bingo faces that may be played per game must be limited to 36 for each device.
B. A player is limited to the use of not more than two electronic bingo devices so long as one is used exclusively for the play of electronic linked bingo.
C. The device may be used with a facsimile of a bingo paper sheet. If a facsimile is used, the organization must provide the player with a sales receipt at the point of sale. This item does not apply to electronic bingo devices used to conduct electronic linked bingo.
D. Once a bingo game has begun, no additional bingo faces may be sold for that game.
E. The device must be used as part of a bingo occasion and must not have any other games or interactive entertainment programs stored in or on the device according to part 7864.0230, subpart 6, except that an electronic bingo device that is used for electronic linked bingo games may be used as an electronic pull-tab device.
F. The organization must offer the use of an electronic bingo device for the same price options to all players.
G. The organization must record all voids before the start of the second bingo game in a bingo occasion. For a malfunction that occurs after the start of the second bingo game, the organization must record and document the reason for the void and report the voids to the board within three business days.
H. Only licensed manufacturers, linked bingo game providers, distributors, or authorized organization employees may perform service or maintenance on an electronic bingo device.
I. An organization must not modify the assembly or operational functions of an electronic bingo device or any of its components. If the electronic bingo device has an audio function, the organization may activate the audio function for all players or may limit the use of the audio function to players who are visually impaired.
J. If a player has the option of using credits on a device that may be used for both electronic linked bingo and electronic pull-tabs, the device counts as both an electronic pull-tab device and an electronic linked bingo device for the purposes of device count under Minnesota Statutes, sections 349.17, subdivision 9, paragraph (b), and 349.1721, subdivision 4, paragraph (b).
Subp. 4. Hard card and paper bingo programs made available.
Hard card and paper bingo programs must be made available to all players before the start of each bingo occasion and must include at a minimum the following information:
A. organization's name, name of the permitted premises, and license number;
B. for each game, a written description and illustration of the winning bingo pattern or bingo game requirement;
C. for bingo games played on bingo paper sheets, a description of the bingo paper to be used, including:
D. prizes to be offered by the organization and any factors used to determine the prize payout structure for each game;
E. date the program is implemented;
F. days and times the program will be used; and
G. explanation of limiting bingo number counts, if used. The organization must maintain a copy of the hard card or paper bingo program in use for each bingo occasion conducted and must make the program available to the board upon request.
Subp. 4a. Electronic linked bingo program information.
Electronic linked bingo program information must be made available to all players on each electronic device and must include at a minimum the following:
A. the name and license number of the linked bingo game provider;
B. for each game, a written description and an illustration of the winning bingo pattern or bingo game requirements;
C. prizes to be offered and any factors used to determine the prize payout structure for each game;
D. an explanation of winning bingo number counts, if used; and
E. player eligibility verification stating:
Subp. 5. Sales to bingo players; use of coupons.
An organization must comply with the following for sales made to bingo players.
A. Coupons may be used to reduce the selling price of bingo paper to the players from the price stated on the distributor invoice or to reduce the selling price of hard cards to the players if the following information is maintained for each redeemed coupon:
B. The sale of bingo hard cards or bingo paper and the rental of electronic bingo devices must comply with the following.
Subp. 6. Beginning a bingo game.
A bingo game begins with the first letter and number called.
A. Before the start of a bingo game, the bingo pattern or bingo game requirement must be described and verbally announced to the players. In games where players fill in the numbers on bingo paper sheet faces or facsimiles used with an electronic bingo device, the numbers must correspond to the appropriate columns on a bingo paper sheet face and the required pattern. Only the numbers 1 to 15 may be placed in the "B" column, 16 to 30 in the "I" column, 31 to 45 in the "N" column, 46 to 60 in the "G" column, and 61 to 75 in the "O" column. A bingo pattern or bingo game requirement may not be completed with fewer than three bingo numbers having been drawn.
B. Before the start of a bingo game, the prize amount must be verbally announced to players. For games with alternative prize levels, the factors determining the prize amount must be verbally announced to players before the start of the game.
C. All numbers and letters announced must be clearly and audibly called.
D. Immediately following the selection of each bingo number:
E. If a bingo board is used, the caller must do the following:
F. For bingo conducted with a bingo board, the caller must make sure that at least two players are able to see the selected letter and number during the game.
G. If the bingo caller discovers a wrong number has been called, the caller must:
H. The letter and number selected must be called before the next bingo number is selected, except when conducting a bingo game where the selected letter and number do not pertain to the pattern being played.
I. In a bingo game with a pattern that does not require all available bingo numbers, the caller must verbally state before the game begins that selected bingo numbers not pertaining to the pattern will not be called.
Subp. 7. Closing a bingo game.
Except for linked bingo games, an organization must close each bingo game with the following procedure.
A. The game must be stopped after a player has declared a valid bingo.
B. The next bingo ball out of the device for selecting bingo numbers must be removed from the device before shutting the device off, and must be the next bingo ball called if the bingo is not valid.
C. Every winning bingo face must be verified by at least one neutral player who is not an immediate family member of the player declaring bingo plus an organization employee must read aloud the numbers in the winning bingo if an electronic verification device is not used.
D. After a bingo winner has been determined and verified, the bingo caller must ask the players at least twice if there are any other bingos. If no one answers, the caller must announce that the game is completed.
Subp. 8. Awarding bingo prizes.
When awarding bingo prizes, an organization must comply with the following.
A. An organization must award a prize if:
B. If there are multiple winners for a cash prize, the organization must divide the cash amount into equal amounts and award the divided amount for each verified winning bingo face. The organization may round fractional dollars to the nearest higher dollar.
C. If there are multiple winners for a merchandise prize that cannot be divided, the organization must award substitute prizes of equal value for each verified winning bingo. Cash may be awarded as a substitute prize.
Subp. 9. Breakopen bingo game.
In addition to other requirements contained in this part, a breakopen bingo game must also comply with the following.
A. At the start of the breakopen bingo game an organization must announce:
B. A breakopen bingo game begins when, in the presence of players, the organization calls and posts, either manually or by use of a flashboard, a predetermined quantity of bingo numbers.
C. For each breakopen game held during a bingo occasion, the organization must use a separate set of bingo balls and one of the following:
D. If using a bingo board, the board or placard must be in view of players and seals must be opened in numerical order or as indicated on the board or placard.
E. Sealed paper or facsimiles of sealed paper may be sold throughout the bingo occasion. However, no sealed paper or facsimiles of sealed paper for the game may be sold after the organization has resumed calling bingo numbers for the breakopen game.
F. After the predetermined quantity of bingo numbers has been called and posted and immediately before the selection of the next bingo number, the caller must ask if any player has completed the designated pattern or bingo game requirement.
G. Except for progressive breakopen bingo games, a breakopen bingo game must be played at a bingo occasion until the game is completed.
H. An organization may allow players to trade in sealed paper. The organization must account for the trade-in of sealed paper in the following manner.
I. An electronic bingo device as defined in part 7861.0210, subpart 15c, item A, may be used with facsimiles of sealed bingo paper for a breakopen bingo game. The organization may not allow trade-ins of facsimiles of sealed bingo paper for use with electronic bingo devices.
Subp. 10. Linked bingo game.
In addition to other requirements in this part and in conjunction with a licensed linked bingo game provider under parts 7863.0250 and 7863.0260, an organization must also comply with the following for the conduct of a linked bingo game.
A. An organization must only sell approved linked bingo paper sheets or facsimiles of linked bingo paper sheets for a linked bingo game. Duplicate linked bingo paper sheet faces or duplicate facsimiles of linked bingo paper sheet faces are not allowed in the same linked bingo game.
B. All bingo numbers must be selected at a location approved by the board.
C. The bingo numbers must be recorded in the order in which they were selected.
D. An organization must be registered and approved by the linked bingo game provider before participating in any linked bingo game.
E. The organization must report the sales to the linked bingo game provider before the first bingo number is selected.
F. A linked bingo game may be stopped once a winning bingo pattern has been completed.
G. A winning pattern or bingo game requirement must be verified in the following manner:
H. After a winner has been declared and verified for a linked bingo game conducted with paper bingo sheets, the participating organization at the permitted premises where the win occurred must notify the linked bingo game provider of the winner's name, address, and all information required for federal and Minnesota tax requirements before any payment is issued. If applicable, any participating organization other than the organization at the winning location may continue play of the game at the permitted premises and award a consolation prize.
I. After a winner has been declared and verified for a linked bingo game conducted on an electronic bingo device, the participating organization at the permitted premises where the win occurred must notify the linked bingo game provider of the winner's name, address, and all information required for federal and Minnesota tax requirements before any payment is issued to a winner of a prize of $600 or greater. For any prize won of less than $600, the prize amount must be credited to the player's account on the electronic device.
Subp. 11. Bingo records and reports.
Bingo records and reports must be completed in ink by the organization, and kept for 3-1/2 years following the end of the month in which the occasion was conducted and reported on the tax return. Each organization using bingo paper must maintain inventory records in a format prescribed by the board. Any changes or amendments made to bingo records and reports must contain the initials, in ink, of the person making the changes or amendments. With the exception of completed prize receipt forms, coupons, and unplayed bingo boards, records and reports may be maintained or converted and stored in an electronic format. Upon request, records and reports must be made available in paper format to the board, the commissioner of revenue, the commissioner of public safety, or their agents.
Subp. 12. Perpetual inventory records required for case paper.
For each case of bingo paper sheets, the organization must include in its inventory records, at a minimum, the following information:
A. organization name and premises permit number;
B. serial number;
C. control number assigned by the organization;
D. color;
E. series;
F. number of faces per sheet (ON's);
G. description of face patterns, if any;
H. distributor name, invoice number, and date of invoice;
I. distributor's invoiced bingo paper price, and number of bingo paper sheets being invoiced;
J. retail selling price for each bingo paper sheet; and
K. perpetual inventory information for each case of bingo paper sheets (case paper).
Subp. 13. Perpetual inventory records required for linked bingo paper.
For linked bingo paper sheets, the organization must include in its inventory records, at a minimum, the following information:
A. organization name and premises permit number;
B. serial number;
C. control number assigned by the organization;
D. color;
E. linked bingo game provider name, invoice number, and date of invoice;
F. linked bingo game provider's invoiced bingo price and number of bingo paper sheets being invoiced;
G. retail selling price for each linked bingo paper sheet; and
H. perpetual inventory information for linked bingo paper sheets.
Subp. 14. Perpetual inventory records required for packets.
For each set of packets, the organization must include in its inventory records, at a minimum, the following information:
A. organization name and premises permit number;
B. serial number;
C. control number assigned by the organization to the packet. The control number may be the serial number of each bingo sheet in the packet, or the serial number from the top sheet in each packet if the invoice shows that only the serial number from the top sheet is provided;
D. distributor name, invoice number, and date of invoice;
E. distributor's invoiced bingo paper price, and number of packets being invoiced;
F. number of sheets per packet (UP's);
G. number of faces per sheet (ON's);
H. description of face patterns, if any;
I. color of each sheet in the packet, in the order of collation;
J. retail selling price for each packet; and
K. perpetual inventory information for each set of packets.
Subp. 15. Perpetual inventory records required for packages.
For each package, the organization must assign a control number and account for all components of the package. The organization must include in its inventory records, at a minimum, the following information:
A. organization name and premises permit number;
B. serial number;
C. control numbers of the paper used to build the package;
D. for each component of the package, the color, series number, number of faces per sheet (ON's), number of sheets per packet (UP's), and distributor invoiced cost;
E. retail selling price for the package;
F. control number assigned to the package; and
G. perpetual inventory information for each type of package.
Subp. 16. Physical inventory records and discrepancy report required for all bingo paper.
For bingo paper, the organization must include in its monthly physical inventory summary, at a minimum, the following information:
A. organization name and premises permit number;
B. by type, the quantity of bingo paper sheets, packets, and packages;
C. control numbers;
D. distributor's invoiced cost for bingo paper sheets and packets; and
E. date and signature, in ink, of the person completing the form. The organization must reconcile the monthly physical inventory to the perpetual inventory. Any discrepancies of more than $50 in the selling price of inventory must be reported to the board, in a format prescribed by the board, by the 20th of the month following the completion of month-end physical inventory records.
Subp. 17. Bingo occasion records required for hard cards.
For bingo hard cards, the organization must maintain the following information for each bingo occasion:
A. copy of the caller verification form prescribed by the board;
B. total number of bingo hard cards sold for each game and the selling price of each card;
C. total amount of cash collected for all sales of bingo hard cards, and the total dollar amount of all redeemed coupons and all gift certificates sold and redeemed;
D. dollar amount of the cash prize, or the actual cost of the merchandise prize awarded for each bingo game and the face number of each winning card;
E. cash on hand at the beginning and end of the occasion;
F. completed prize receipts, redeemed coupons, and redeemed gift certificates;
G. copy of the checker's record that includes the number of cards played in each game, the face number of each winning card, and prize awarded to the winning card, with the date and signature, in ink, of the checker; and
H. name of each volunteer or employee working at the occasion.
Subp. 18. Bingo occasion records required for all bingo paper and facsimiles of bingo paper sheets.
For bingo paper, including facsimiles of bingo paper sheets, the organization must maintain the following information for each bingo occasion and include:
A. the total amount by control number of packages, packets, or sheets available for sale at the occasion and returned to inventory at the end of the occasion. Each seller working at the bingo occasion must complete a separate form;
B. a summary of total admission sales, including total cash on hand at the beginning of the occasion, total cash receipts from admission sales, quantity by dollar value of all coupons redeemed and gift certificates sold and redeemed, and net admission sales;
C. for each bingo game conducted, the number of bingo paper sheets and selling price of each bingo paper sheet sold by each floor seller;
D. a summary of income from the rental of electronic bingo devices, including quantity rented and amount charged per unit;
E. the total value of prizes awarded for each game and the serial number and face number of each winning bingo paper sheet face, and for linked bingo games the amount contributed to the jackpot prize;
F. a copy of the caller verification form prescribed by the board;
G. a bingo occasion summary, including total gross and net sales and any cash discrepancies; and
H. completed prize receipts, redeemed coupons, and redeemed gift certificates.
Subp. 19. Gross receipt and discrepancy report required for bingo hard cards and bingo paper.
An organization must prepare a gross receipt and discrepancy report for each bingo occasion in a format prescribed by the board.
A. For bingo hard cards, an organization employee must compare the gross receipts to the checker's records. The gambling manager must verify the records. If a discrepancy of more than $50 is found, the organization must submit a discrepancy report to the board within five days of the bingo occasion.
B. For bingo paper, an organization employee must reconcile the gross receipts of each bingo occasion to the occasion records. The gambling manager must verify the records. If a discrepancy of more than $50 is found, the organization must submit a discrepancy report to the board within five days of the bingo occasion.
Subp. 20. Records required for electronic bingo devices.
For electronic bingo devices, the following information, at a minimum, must be maintained:
A. the quantity of devices in inventory;
B. the quantity of devices rented for each occasion, amount charged for each device, number of voids, and total amount collected which must be reported as prescribed by the commissioner of revenue; and
C. the distributor or linked bingo game provider name, invoice date, and invoice number for the lease of electronic bingo devices.
Subp. 21. Disposal of bingo records.
The following items apply to the disposal and destruction of records.
A. An organization is required to keep records for 3-1/2 years following the end of the month in which the occasion was conducted and reported on the tax return.
B. The organization may destroy bingo records after the retention period in item A expires, except as required in item C.
C. An organization must keep the records after the retention period in item A expires if they are notified by the board, commissioner of revenue, commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0280 Paper Pull-Tabs
Subpart 1. Paper pull-tab restrictions.
In addition to the restrictions and requirements in part 7861.0260, the following apply to the conduct of paper pull-tabs.
A. The pull-tab seller must not assist players in the selecting or opening of purchased paper pull-tabs or in the selection of a chance ticket in a multiple chance game.
B. For multiple seal and multiple chance games, the seller must not allow a player to physically touch the flare or chance ticket display. Once the player has indicated a selected seal or selected a chance ticket, only the pull-tab seller may open that seal or section of the chance ticket display containing the chance ticket and hand the chance ticket to the player.
C. An organization must not award a prize for paper pull-tab tickets that were sold by another organization.
D. An organization must not transfer games in play from one permitted premises to another.
E. At a leased permitted premises, an organization must not transfer paper pull-tab games in play between a booth and bar operation.
F. If an organization owns the permitted premises, the organization may transfer paper pull-tab games in play between its booth and bar operation.
Subp. 1a. Paper pull-tab sales at premises offering electronic pull-tab sales.
For purposes of Minnesota Statutes, section 349.1721, subdivision 4, paragraph (a), clause (3), the following apply to paper pull-tab sales at premises offering electronic pull-tab sales:
A. At a bar operation premises, paper pull-tabs must be offered for sale during all times electronic pull-tabs are offered for sale.
B. Electronic pull-tab games may be conducted at a booth operation premises only if paper pull-tabs are offered for sale during all times the booth is open.
Subp. 2. Posting of information and paper pull-tab flare.
In addition to the information required by part 7861.0260, subpart 2, an organization must post the flare for each deal of paper pull-tabs in play.
A. The flare must be attached to the receptacle or pull-tab dispensing device containing the deal of pull-tabs or prominently posted at the point of sale.
B. The entire flare must be visible to players.
C. An organization may not change the flare except:
D. An organization may not use a flare that it receives in an altered or defaced condition except for flares that contain a last sale sticker added by the distributor.
E. If a progressive paper pull-tab game is played, the organization must also post the flare containing the current progressive jackpot amount while the game is in play.
F. If a cumulative paper pull-tab game is played, the organization must also post the prize pool board while the game is in play.
G. If a multiple chance game is played, the chance ticket display must be prominently visible when the game is in play.
Subp. 3. Operation of paper pull-tab or event game.
Paper pull-tab games must be conducted in the following manner.
A. A deal of paper pull-tabs may not be placed out for play in the original container in which it was received. When a deal of paper pull-tabs is put into play, all of the paper pull-tabs must be placed out for play at the same time. All of the paper pull-tabs must be randomly removed from the original containers and thoroughly mixed before a deal of paper pull-tabs is offered for sale. Tiered containers may not be used for the sale of paper pull-tabs.
B. An organization may not put into play any paper pull-tab or pull-tab flare that has been marked, defaced, altered, or tampered with, or operate a paper pull-tab game in a manner that tends to deceive the public or affects the chances of winning or losing.
C. Separate cash banks must be maintained for each deal unless a point of sale system that meets the standards in this part is used or the deal is played through a paper pull-tab dispensing device.
D. Each paper pull-tab must be sold for the price on the flare. A paper pull-tab may not be given to a player free of charge or for any other consideration.
E. An organization may not award a prize to a player unless the player redeems a winning paper pull-tab. A prize payout must not be made to any player for a lost, marked, defaced, or altered paper pull-tab, or for any winning paper pull-tab that left the permitted premises where the deal is in play.
F. The pull-tab seller must immediately deface each winning paper pull-tab when it is redeemed by the player.
G. For paper pull-tab event games where a winning ticket is determined by a method other than an instant win the following apply:
Subp. 3a. Operation of a multiple chance paper pull-tab game.
In addition to the requirements of subpart 3, the following pertains to the conduct of multiple chance paper pull-tab games.
A. The chance ticket display containing the chance tickets must be prominently visible when the game is in play.
B. For multiple chance games, forfeiting a qualifying winning ticket for a chance ticket is not a consideration.
C. When a qualifying winning ticket is presented to the pull-tab seller:
D. When the seller is away from the point of sale or the site is closed for business, the chance ticket display must be secured.
E. The organization must immediately close a deal when there is compromised security of the multiple chance game, tickets, flare, or chance ticket display.
F. Any chance tickets remaining in the chance ticket display at the close of the game must remain sealed in the chance ticket display and be maintained with the game's records for 3-1/2 years.
Subp. 4. Operation of cumulative paper pull-tab game.
In addition to the requirements of subpart 3 the following items pertain to the conduct of a cumulative paper pull-tab game.
A. Cumulative paper pull-tab games may only be played with deals having the same form number from the same family and manufacturer.
B. An organization may have more than one deal in a cumulative paper pull-tab game in play at the same time but may not commingle deals.
C. The organization must post the prize pool board until the cumulative game is completed or is discontinued by the organization.
D. When a seal winner is determined for a deal, the seller must open or uncover the seal on the prize pool board and award the prize.
E. When closing or discontinuing a deal within a cumulative paper pull-tab game, the organization must immediately open or uncover the seal for that deal to determine a winner, if any.
Subp. 5. Operation of multiple seal paper pull-tab game.
In addition to the requirements of subpart 3, the following items pertain to the conduct of a paper pull-tab game with multiple seals.
A. When a ticket with a seal number is presented to a seller, the seller must open or uncover the seal as designated on the ticket and award the prize.
B. When the game is closed, all unclaimed and unsold seals must remain sealed or covered.
Subp. 6. Operation of progressive paper pull-tab game.
In addition to the requirements of subpart 3, the following items pertain to the conduct of a progressive paper pull-tab game.
A. A progressive paper pull-tab game may only be played with deals having the same form number from the same family and manufacturer.
B. Each deal in a progressive paper pull-tab game must contribute the same amount towards the progressive jackpot. When the progressive jackpot reaches the jackpot amount listed on the flare, no additional contribution may be made to the progressive jackpot.
C. The holder of a paper pull-tab ticket that allows the player to be a potential jackpot winner must also complete a contact information form that includes the organization and game information, holder's name, address, telephone number, and the selected progressive jackpot window or windows to be opened or uncovered if the player is the seal prize winner.
D. If the seal prize winner is present, the winner must select a progressive jackpot window or windows to be opened or uncovered by the seller. If the winner is not present, the seller opens or uncovers the window or windows the player has selected and recorded on the contact information form.
E. If there is no seal prize winner or the progressive jackpot is not won, the next deal may be put in play or the progressive paper pull-tab game may be closed.
F. When a progressive jackpot of $100 or more is won, the organization must:
Subp. 7. Use of a paper pull-tab dispensing device.
If a paper pull-tab dispensing device is used, the organization must comply with the following.
A. No more than three paper pull-tab dispensing devices in total may be installed or operated at a permitted premises by all organizations at the premises.
B. An organization may not install or operate a paper pull-tab dispensing device at a permitted premises that does not have a valid license for on-premises sales of intoxicating liquor or 3.2 percent malt beverages, except as allowed by Minnesota Statutes, section 349.151, subdivision 4b.
C. An organization may not install or operate a paper pull-tab dispensing device at a permitted premises where persons under age 18 are allowed to participate as players in bingo occasions conducted by exempt or excluded organizations.
D. The paper pull-tab dispensing device must be located within view of a gambling employee or volunteer.
E. An organization may not use in a paper pull-tab dispensing device any paper pull-tab game that has a last sale prize.
F. An organization must assign a unique identification code to every person authorized to access a paper pull-tab dispensing device. An organization must maintain an access log, in a format prescribed by the board, for each paper pull-tab dispensing device that it operates. The active access log must be kept in an interior compartment and when completed must be removed and kept with the organization's records.
G. An organization must identify for players the paper pull-tab games that are placed in the individual columns of each pull-tab dispensing device.
H. When adding games to a paper pull-tab dispensing device, an organization must randomly put the entire deal into one or more columns. When tickets remain in only one column, the tickets may continue to be sold without further splitting into multiple columns.
I. An organization must maintain complete control of its paper pull-tab dispensing devices. The gambling manager is responsible for all keys to each paper pull-tab dispensing device with the following requirements.
J. If there is a catastrophic failure of a paper pull-tab dispensing device, the organization must notify the board and receive its approval before clearing, erasing, or replacing the access and accounting indicators.
K. An organization employee opening the cash compartment must remove all the cash and record the currency meter readings in the access log.
L. Only licensed manufacturers, distributors, or authorized organization employees may perform service or maintenance on paper pull-tab dispensing devices. An organization must not modify the assembly or operational functions of a pull-tab dispensing device or any of its components.
Subp. 8. Commingled deals in a paper pull-tab dispensing device.
The following items apply to commingled deals of paper pull-tabs.
A. An organization may commingle two or more single deals of paper pull-tabs in a paper pull-tab dispensing device if:
B. An organization must remove commingled deals from play at the end of each month for the purpose of reporting the sales from the deals on that month's tax return as prescribed by the commissioner of revenue. The organization must report on the tax return the deals for which all tickets have been sold or the deals that the organization chooses not to return to play. The organization may return commingled deals to play when the required information has been determined.
C. The board may prohibit an organization from commingling deals of paper pull-tabs if it determines that the organization cannot account for the amount of actual cash profit from each commingled deal of paper pull-tabs.
Subp. 9. Standards for point of sale systems for paper pull-tab games.
If an organization uses a point of sale system in the conduct of paper pull-tabs, the point of sale system must:
A. be protected by a surge protector and an uninterruptible power supply so that all existing data is preserved if electrical power to the point of sale system is interrupted;
B. have at least one keyed lock with a multiple function position capable of restricting access to accounting and auditing functions;
C. have an operating switch or lock that will allow the point of sale system to operate only when a unique identification code has been entered;
D. create a paper or magnetic media duplicate transaction journal following each transaction;
E. be capable of accepting a game's serial number and ticket price before that game is put into play;
F. have a screen that will display the value of currency given by the player and the amount of currency, if any, to be returned to the player;
G. be capable of recording the following information for each sale of a paper pull-tab:
H. be capable of recording the following information for each redeemed winning paper pull-tab:
I. be capable of recording and maintaining the information required for each game of paper pull-tabs in play, and be capable of producing a printout for any or all of the games in play at any time; and
J. be capable of printing out the final game record and deleting the game from its transaction records after a paper pull-tab game is closed.
Subp. 10. Use of point of sale system; monthly audit and reconciliation report for paper pull-tabs.
If an organization uses a point of sale system in the conduct of paper pull-tabs, the organization must:
A. use the point of sale system exclusively for the conduct of lawful gambling;
B. be able to identify, by transaction, each employee or volunteer who uses a point of sale system to sell and redeem paper pull-tabs;
C. have sole responsibility for all keys used to operate the point of sale system;
D. enter the following information into the point of sale system before placing a paper pull-tab deal into play:
E. ensure that the gambling employee or volunteer:
F. ensure that when redeeming a winning paper pull-tab the gambling employee or volunteer:
G. record as a paper pull-tab sale and as a redeemed paper pull-tab a transaction in which a player chooses to receive a paper pull-tab instead of a cash prize payout;
H. count cash at the end of each work period and record it in a format prescribed by the board. If the cash amount does not reconcile to the point of sale system totals for each game in play, the organization must prepare a point of sale system discrepancy report in a format prescribed by the board; and
I. on the last day of the month, perform an audit of all paper pull-tab games in play and reconcile the results to the cash register bank on a form prescribed by the board.
Subp. 11. Paper pull-tab records and reports.
A. An organization must keep all records, reports, and prize receipts relating to a paper pull-tab game for 3-1/2 years following the end of the month in which the game was removed from play.
B. An organization must complete records, reports, and prize receipts for paper pull-tab games in ink.
C. With the exception of completed prize receipt forms, unsold and winning tickets, chance tickets, and chance ticket displays containing any unopened chance tickets, an organization may maintain or convert and store records and reports in an electronic format.
D. The 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.
E. While a paper pull-tab deal is in play, an organization must keep all records, reports, and prize receipts for the deal at the permitted premises.
F. For each deal of paper pull-tabs the organization must keep the flare, with the bar code attached, and all redeemed and unsold pull-tabs separated by game serial number. Commingled deals of paper pull-tabs that were commingled while in play must be separated by game serial number after being removed from play. The organization must not open any unsold or defective paper pull-tabs or chance tickets or chance ticket displays.
G. For each deal of paper pull-tabs removed from play during that month, an organization must complete a monthly report in a format prescribed by the commissioner of revenue, as required by Minnesota Statutes, section 297E.06.
H. When using point of sale systems for paper pull-tab games, an organization must keep all cash count, discrepancy, and reconciliation reports, along with all other records for the game.
I. When using a paper pull-tab dispensing device, an organization must keep all access logs along with all other records for each paper pull-tab game dispensed from the device.
J. When separate cash drawers are used for each deal of paper pull-tabs in play, the organization must record the following information for each paper pull-tab deal on a form or in a format prescribed by the board:
Subp. 12. Disposal of paper pull-tab games and records.
The following items apply to the disposal and destruction of paper games and records.
A. The organization must keep played paper pull-tab games, flares, prize pool boards that contain unopened seals, chance tickets and the corresponding chance ticket displays containing any unopened chance tickets, and all records for any such game for 3-1/2 years following the end of the month in which the game was played and reported as a played game on the tax return.
B. The organization may destroy a played paper pull-tab game and the records for that game when the retention period in item A expires, except as required by item C. The game must be completely destroyed using a method such as shredding or burning.
C. An organization must keep paper pull-tab games and records after the retention period in item A expires if the organization is notified by the board, commissioner of revenue, commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0285 Electronic Pull-Tabs
Subpart 1. Operation of electronic pull-tab games.
In addition to the restrictions and requirements in part 7861.0260, the following apply to the conduct of electronic pull-tabs.
A. While an electronic pull-tab game is in play, an organization's employee, agent, or volunteer may not provide any information on the game's actual gross receipts, prizes paid, net receipts, or value of unsold tickets to anyone other than the person or persons with authority to remove the game from play or to complete reports required by the Department of Revenue.
B. Once an electronic deal of pull-tabs is made available for play, the deal may not be paused or taken out of play for any reason and then reinstated for play. If the deal is paused or taken out of play, the game must be permanently closed from play.
C. If a player has the option of using credits on an electronic game device for both electronic pull-tabs and electronic linked bingo, the device counts as both an electronic pull-tab device and an electronic bingo device for the purposes of device count under Minnesota Statutes, sections 349.17, subdivision 9, paragraph (b), and 349.1721, subdivision 4, paragraph (b).
D. All credits maintained on the electronic pull-tab device when removed from play may be redeemed by the player or used for play upon reactivation.
E. When a deal of electronic pull-tabs is put into play, all of the pull-tabs must be randomly dispensed.
F. An organization may not put into play any electronic pull-tab game that has been altered or tampered with, or operate an electronic pull-tab game in a manner that tends to deceive the public or affects the chances of winning or losing.
G. An organization may not commingle more than two electronic pull-tab games.
H. A single cash bank is allowed for all electronic pull-tab deals in play for each site.
I. Each electronic pull-tab must be sold for the price on the flare. An electronic pull-tab may not be given to a player free of charge or for any other consideration.
J. Except for progressive electronic pull-tab game progressive jackpot prizes of $600 or more, the value of winning electronic pull-tabs must be credited to the electronic device and allow for the continuation of play or redemption by the player at any time. A prize payout must not be made to any player for a lost or an altered electronic pull-tab device or an electronic pull-tab device that left the permitted premises where the deal is in play.
K. The pull-tab seller must record all payments to the player in the point of sale system.
L. An electronic game occasion must end any time that the sale and redemption of credits switches from a booth operation to a bar operation or from a bar operation to a booth operation.
M. Any unclaimed credits left in the electronic pull-tab device will be retained by the organization.
N. At the end of each month, an organization must report in a format prescribed by the commissioner of revenue the value of total sales, prizes paid, and net receipts from electronic pull-tab activity during the month.
Subp. 1a. Operation of multiple chance electronic pull-tab game.
In addition to the requirements of subpart 1, when a predetermined qualifying winning electronic ticket, not to exceed the prize value in Minnesota Statutes, section 349.1721, subdivision 5, provides an option to the player to forfeit the ticket for a chance of a prize greater than, equal to, or less than the qualifying winning ticket, the player must choose to redeem or forfeit the qualifying winning ticket.
A. If the qualifying winning ticket is redeemed, the player is awarded the winning amount in the form of credits.
B. If the qualifying winning ticket is forfeited, the value of the initial winning credits is also forfeited, and the player must select from the available chances to reveal the award. The player is awarded the winning amount of the chance, if any, in the form of credits.
Subp. 2. Operation of multiple seal electronic pull-tab game.
In addition to the requirements of subpart 1, when a ticket with one or more seal (bonus win) indicators is presented to a player, the player must open or uncover the seal or seals in the manner designated on the ticket to reveal the prize.
Subp. 3. Operation of progressive electronic pull-tab game.
In addition to the requirements of subpart 1, the following items pertain to the conduct of a progressive electronic pull-tab game.
A. A progressive electronic pull-tab game may only be played with deals having the same form number from the same family and manufacturer.
B. Each ticket or deal in a progressive electronic pull-tab game must contribute the same amount toward the progressive jackpot. When the progressive jackpot reaches the jackpot amount listed on the flare, no additional contribution may be made to the progressive jackpot.
C. The player with a pull-tab ticket that allows the player to be a potential jackpot winner must select a progressive jackpot window or windows to be opened or uncovered.
D. If there is no seal prize winner or the progressive jackpot is not won, the next deal may be put in play or the progressive electronic pull-tab game may be closed.
E. When a progressive jackpot of $600 or more is won, the organization must:
F. If the jackpot prize is less than $600, the amount may be added as credits on the device.
Subp. 4. Commingled deals in an electronic pull-tab device.
A. An organization may commingle up to two single deals of pull-tabs in an electronic pull-tab device if:
B. An electronic pull-tab automatic close feature may be used with commingled electronic pull-tab deals.
Subp. 5. Electronic pull-tab records and reports.
A. For each deal of electronic pull-tabs, the organization must keep the game summary report identifying the serial number of the game, tickets sold, prizes redeemed, net receipts, and dates the game was in play. The organization must keep game summary records for 3-1/2 years following the month in which the game was removed from play.
B. For electronic pull-tabs, the organization must complete a monthly report identifying the total sales, prizes paid, and net receipts in a format prescribed by the commissioner of revenue, as required by Minnesota Statutes, section 297E.06.
C. The organization must keep records and reports relating to electronic pull-tab games 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.
D. The organization may maintain or convert and store records and reports in an electronic format. The 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. 6. Disposal of electronic pull-tab games and records.
An organization must keep electronic pull-tab game records and reports after the retention period in subpart 5 expires if the organization is notified by the board, the commissioner of revenue, the commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- Statutory Authority: MS s 349.151
- History: 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0290 Tipboards
Subpart 1. Restrictions.
In addition to the restrictions and requirements in part 7861.0260, the following apply to conduct of tipboards.
A. An organization must not redeem tickets that were sold by another organization.
B. An organization must not transfer games in play from one permitted premises to another.
C. At a leased permitted premises, an organization must not transfer games in play between a booth and bar operation.
D. If an organization owns the permitted premises, the organization may transfer games in play between its booth and bar operations.
E. The score of a professional sporting event may not be used to determine the winner or eligible winners of a progressive or cumulative tipboard game.
Subp. 1a. Sports-themed tipboard prize limits.
The maximum prize that may be awarded for a sports-themed tipboard chance or ticket is:
A. $599 for $2 and under sports-themed tipboard chances or tickets;
B. $899 for $3 sports-themed tipboard chances or tickets;
C. $1,199 for $4 sports-themed tipboard chances or tickets;
D. $1,499 for $5 sports-themed tipboard chances or tickets;
E. $1,799 for $6 sports-themed tipboard chances or tickets;
F. $2,099 for $7 sports-themed tipboard chances or tickets;
G. $2,399 for $8 sports-themed tipboard chances or tickets;
H. $2,699 for $9 sports-themed tipboard chances or tickets; and
I. $2,999 for $10 sports-themed tipboard chances or tickets.
Subp. 2. Posting of information and flare.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale the flare of a tipboard deal.
A. If a progressive tipboard game is played, the organization must also post the flare containing the current progressive jackpot amount while the game is in play.
B. An organization may not change the prizes printed on the tipboard by the manufacturer except to post a progressive jackpot amount.
C. The organization may not use a tipboard that it receives in an altered or defaced condition except for flares that contain a last sale sticker added by the distributor.
Subp. 3. Operation of tipboard game.
The following items apply to the game of tipboards.
A. All tipboard tickets or chances for a tipboard deal must be placed out for play at the same time.
B. An organization must sell the tipboard tickets or group of banded tickets for the price printed on the flare. A tipboard ticket may not be given to a player free of charge or for any other consideration.
C. An organization may not pay a player unless the player redeems a winning tipboard ticket or, for a sports-themed tipboard game without tickets, the winner's name is printed in ink on the winning grid square.
D. A prize may not be awarded to any player for a lost, marked, defaced, or altered ticket, or for any winning tipboard ticket, other than a winning sports-themed tipboard ticket, that left the permitted premises where the game is in play.
E. The seller must immediately deface a winning tipboard ticket when it is redeemed by the player.
F. After the sale of tickets or chances for a tipboard game has concluded, an organization must immediately open the seal either to determine the seal winner, if any, or, for a sports-themed tipboard, to reveal the potential winning numbers associated with the tipboard game's designated professional sporting event.
Subp. 4. Operation of progressive tipboard game.
In addition to the requirements of subpart 3, the following items pertain to the conduct of a progressive tipboard game.
A. A progressive tipboard game may only be played with deals having the same form number from the same family and manufacturer.
B. Each deal in a progressive tipboard game must contribute the same amount towards the progressive jackpot. When the progressive jackpot reaches the jackpot amount listed on the flare, no additional contribution may be made to the progressive jackpot.
C. The holder of a tipboard ticket that allows the player to sign a predesignated line on the tipboard flare must also complete a contact information form that includes the organization and game information, holder's name, address, telephone number, and the progressive jackpot window selected to be opened or uncovered if the player is the seal prize winner.
D. If the seal prize winner is present, the winner must select a progressive jackpot window or windows to be opened or uncovered by the seller. If the winner is not present, the seller opens or uncovers the window or windows the player has selected and recorded on the contact information form.
E. If there is no seal prize winner or the progressive jackpot is not won, the next deal may be put in play or the progressive tipboard game may be closed.
F. When a progressive jackpot of $100 or more is won, the organization must:
Subp. 5. Operation of tipboard game with multiple seals.
In addition to the requirements of subpart 3, the following items pertain to the conduct of a tipboard game with multiple seals.
A. An organization may not commingle deals of tipboard games with multiple seals.
B. When a player presents a winning ticket for a predesignated seal, the seller must immediately open or uncover the predesignated seal on the flare and award the prize.
C. An organization may discontinue the play of a tipboard game with multiple seals before all tickets are sold in a deal.
Subp. 6. Operation of cumulative tipboard game.
In addition to the requirements of subpart 3 the following items pertain to the conduct of a cumulative tipboard game.
A. Cumulative tipboard games may only be played with deals having the same form number from the same family and manufacturer.
B. An organization may have more than one deal in a cumulative tipboard game in play at the same time but may not commingle deals.
C. The organization must post the prize pool board until the cumulative game is completed or is discontinued by the organization.
D. When a seal winner is determined for a deal, the seller must open or uncover the seal on the prize pool board and award the prize.
E. When closing or discontinuing a deal within a cumulative tipboard game, the organization must open or uncover the seal for that deal to determine a winner, if any.
Subp. 7. Tipboard records and reports.
A. An organization must keep all records, reports, and prize receipts for a tipboard game for 3-1/2 years following the end of the month in which the lawful gambling occasion was conducted and reported on the tax return.
B. An organization must complete records, reports, and prize receipts for tipboard games in ink.
C. With the exception of completed prize receipt forms, unsold and winning tickets and stubs, and sports-themed tipboard flares, an organization may maintain or convert and store records and reports in an electronic format.
D. 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.
E. While a tipboard deal is in play, an organization must keep all records, reports, and prize receipts for the deal at the permitted premises.
F. For each tipboard game an organization must keep the flare, with bar code attached, and all redeemed and unsold tipboard tickets separated by game serial number. The organization must not open any unsold or defective tipboard tickets.
G. For each progressive tipboard game, an organization must record at a minimum the following information in a format prescribed by the board:
H. For each tipboard game completed during that month, an organization must complete a monthly report in a format prescribed by the commissioner of revenue, as required by Minnesota Statutes, section 297E.06.
Subp. 8. Disposal of played tipboards and records.
The following items apply to the disposal and destruction of games and records.
A. An organization must keep a played tipboard game, flare, and all records for that game for 3-1/2 years following the end of the month in which the tipboard was played and reported as a played game on the tax return.
B. An organization may destroy a played tipboard game and the records for that game when the retention period in item A expires, except as required by item C. The game must be completely destroyed using a method such as shredding or burning.
C. An organization must keep the tipboard game and records after the retention period in item A expires if the organization is notified by the board, commissioner of revenue, commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 44 SR 25
Minn. R. 7861.0295 Sports-Themed Tipboards
Subpart 1. Restrictions.
A. In addition to the restrictions and requirements in part 7861.0260, the restrictions in this subpart apply to sports-themed tipboards.
B. The board may approve professional sporting events other than those defined in part 7861.0210, subpart 40d. The board may remove a league or an event if the board deems the league or event lacks sufficient integrity to ensure the fair play of sports-themed tipboards based on the event outcomes.
C. Each sports-themed tipboard may be used for only one professional sporting event.
D. An organization must not transfer sports-themed tipboard games in play from one permitted premises to another.
E. An organization or its employees or agents must not open or reveal any part of a sports-themed tipboard seal until all chances have been sold, all unsold tickets, if any, have been secured, and all unused squares on the grid, if any, have been marked "VOID."
F. At a leased permitted premises, an organization must not transfer sports-themed tipboard games in play between a booth and bar operation. If an organization owns the permitted premises, the organization may transfer sports-themed tipboard games in play between its booth and bar operations.
G. The organization may not use a tipboard that it receives in an altered or a defaced condition. Completing the flare in permanent ink as required in subpart 3, item A, is not considered altering.
H. An organization must sell the sports-themed tipboard tickets, group of banded tickets, or grid squares for the price preprinted on the flare.
I. An organization must not redeem tipboard tickets that were sold by another organization.
J. Progressive or cumulative sports-themed tipboards are not allowed.
K. A game with seals that are compromised before completion of all sales of tickets or chances or the start of the professional sporting event constitutes a voided game, and the organization must:
Subp. 2. Posting flare and house rules.
A. In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale the flare of a sports-themed tipboard game.
B. Once the organization employee or volunteer completes the information required in subpart 3, item A, on the flare, the flare may not be altered except to record the winning score or enter information in permanent ink on the sports-themed tipboard.
C. The organization may not use a sports-themed tipboard that it receives in an altered or a damaged or defaced condition.
D. House rules for sports-themed tipboard games must include the following information:
Subp. 3. Operation of sports-themed tipboard games.
The following apply to sports-themed tipboards:
A. before a sports-themed tipboard game is put into play:
B. all tipboard tickets and chances for a sports-themed tipboard game must be placed out for play at the same time;
C. the grid must be in a prominent location and visible to players at all times;
D. all tickets and grid squares must be sold for the price preprinted on the flare and not allowed for resale. A tipboard ticket or grid square may not be given to a player free of charge or for any other consideration;
E. before opening seals, all unsold tickets must be secured and made unavailable for sale. All unsold or unused squares on a grid must be marked "VOID." All flares and unsold tickets must be retained in the organization's records for 3-1/2 years as required by Minnesota Statutes, section 349.19, subdivision 6;
F. game scores posted by the applicable professional league are considered official and will be used to determine the winning numbers on a sports-themed tipboard game;
G. posting results of the professional sporting event to the flare or grid in permanent ink as required in item A is not considered altering the flare;
H. a prize may not be awarded to any player for a lost, marked, defaced, altered, or resold ticket;
I. prize receipts for winning sports-themed tipboard prizes of $100 or more are required according to part 7861.0260, subpart 5;
J. the organization employee or volunteer must immediately deface a winning sports-themed tipboard ticket or mark the winning player's grid square as paid when redeemed by the player;
K. players must claim winning sports-themed tipboard tickets or chances within seven days after the last designated time frame of the professional sporting event;
L. the player is responsible for redeeming a winning tipboard ticket or chance;
M. a sports-themed tipboard game is considered closed when all chances have been sold or when the seals are opened, whichever occurs first. No sports-themed tipboard chances may be sold after the game has closed;
N. a sports-themed tipboard game is considered complete seven days after the last time frame of the professional sporting event or all prizes are claimed, whichever occurs first; and
O. sports-themed tipboard game receipts must be deposited into the gambling bank account within four business days of the completion of the game.
Subp. 4. Operation of sports-themed tipboard games with tickets, without seals.
A. Sports-themed tipboard games without seals must be conducted with tipboard tickets.
B. A sports-themed tipboard game with tickets and without seals may not be put into play after the start of the professional sporting event.
C. No tickets may be sold after the professional sporting event has ended. All remaining unsold tickets must be immediately secured and made unavailable for sale.
D. An organization may not pay a player unless the player redeems a winning tipboard ticket.
Subp. 5. Operation of sports-themed tipboard games with tickets, with seals.
A. The organization employee or volunteer must print a player's name, in permanent ink, in an area designated by a ticket or by the player on a sports-themed tipboard grid. A player's printed name must be able to be verified when claiming a prize.
B. A sports-themed tipboard game with tickets and with seals may not be put into play after the start of the professional sporting event.
C. The organization employee or volunteer must not allow a player to touch the sports-themed tipboard flare.
D. No tickets or chances may be sold after the seals have been opened or after the professional sporting event has ended, whichever comes first.
E. Seals may only be opened by an organization employee or volunteer:
F. An organization may not pay a player unless the player redeems a winning tipboard ticket or the player's name, printed in ink on the winning grid square, is verified.
Subp. 6. Operation of sports-themed tipboard games without tickets, with seals.
A. Sports-themed tipboard games conducted without tickets, but with a sealed number grid, must be conducted with a grid that allows for a player's name to be printed on a grid square.
B. The organization employee or volunteer must print a player's name, in permanent ink, in an area designated by the player on a sports-themed tipboard grid in lieu of purchasing tickets. A player's printed name must be able to be verified when claiming a prize.
C. Only one name may be printed in each grid square.
D. The organization employee or volunteer must not allow a player to touch the sports-themed tipboard flare.
E. No chances may be sold after the professional sporting event has ended.
F. Seals may only be opened by an organization employee or volunteer:
G. An organization may not pay a player unless the player's name, printed in ink on the winning grid square, is verified.
History
- Statutory Authority: MS s 349.151
- History: 44 SR 25
Minn. R. 7861.0300 Paddlewheels
Subpart 1. Restrictions.
In addition to the restrictions and requirements in part 7861.0260, the following apply to the conduct of paddlewheels.
A. Paddlewheels must be played using paddletickets, paddleticket cards, and a paddlewheel. A game of paddlewheels may be conducted with or without a paddlewheel table.
B. Each paddleticket card must have a paddleticket card number preprinted on the stub and on each attached paddleticket. Each paddleticket card must have a different paddleticket card number. An organization must not have two paddleticket cards with the same number in its possession.
C. An organization must use paddletickets that are attached to a paddleticket card.
D. All paddletickets on a paddleticket card must be sold before the paddlewheel is spun. If all the paddletickets on the card cannot be sold, the organization must refund the cost of the paddletickets to the players. The unplayed paddletickets must be returned to and defaced by the organization.
E. The mechanical paddlewheel must be spun by the paddlewheel operator and make at least four complete revolutions before stopping. If four complete revolutions are not made, the spin is not valid and the paddlewheel must be spun again. An organization may not have multiple spins of the paddlewheel to award multiple prizes for one paddleticket card.
F. The winning number is determined by the position of the pointer when the paddlewheel stops spinning. If the pointer stops on top of a peg, the number preceding the peg is the winning number.
G. Prizes may only be awarded to a holder of a winning paddleticket.
H. An organization must not transfer paddlewheel games in play to another permitted premises.
Subp. 2. Balancing, opening, closing, maintenance, and inspection of mechanical paddlewheels.
The following requirements for the balancing, opening, closing, maintenance, and inspection of paddlewheels apply to all paddlewheel games.
A. To open a paddlewheel, the paddlewheel operator must inspect each peg and the pointer for uneven wear and replace any worn peg or worn pointer.
B. The paddlewheel operator must check the balance of the paddlewheel by:
C. To close a paddlewheel, the paddlewheel operator must place a cover over the paddlewheel or otherwise make it inoperable.
Subp. 2a. Testing and maintenance of an electronic paddlewheel.
The following requirements for the testing and maintenance of an electronic paddlewheel apply to all paddlewheel games.
A. Prior to initial operation, the organization must register the electronic paddlewheel with the board and receive board approval of the electronic paddlewheel.
B. The organization must secure the electronic paddlewheel when not in use to prevent any tampering or unauthorized use.
C. The organization must restrict log-in access to the operation of the electronic paddlewheel to the operator of the game, the gambling manager, and the distributor.
D. Prior to the acceptance of any wager, the operator of the game shall run a test game to verify the electronic paddlewheel is operating according to the manufacturing standards for the device.
E. The organization must maintain a log-in report identifying the time and date of each instance the electronic paddlewheel was accessed for testing purposes or for actual play. The log-in report must include start and end times of access.
Subp. 3. Posting of information for paddlewheels without a paddlewheel table.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale:
A. clear and legible house rules that include, at a minimum, the following information:
B. the master flare for the paddlewheel game, which the organization may not change; and
C. a clear and legible sign stating the amount of any cash prize and the fair market value of all merchandise prizes to be awarded for each spin.
Subp. 4. Conduct of paddlewheels without a paddlewheel table.
The following items apply to the conduct of paddlewheels without a paddlewheel table.
A. The sale of paddletickets must comply with the following:
B. The redemption of a winning paddleticket and the awarding of a prize must comply with the following.
Subp. 5. Posting of information for paddlewheels with a paddlewheel table.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale clear and legible information including, at a minimum, the following:
A. information required by subpart 3, item A, subitems (1) and (2);
B. the master flare for the paddlewheel game, which the organization may not change;
C. cash denominations at which paddlewheel chips issued by the organization are sold and redeemed;
D. a player must first purchase paddlewheel chips from the paddlewheel operator;
E. chips must be safeguarded. A chip dropped into a table betting slot must be retrieved by authorized organization employees;
F. a player must purchase with chips only as many paddletickets as the player desires to bet on the immediate next spin of the paddlewheel;
G. a player is assigned a unique identification number that the player must write on the back of purchased paddletickets;
H. the player places a bet by inserting a paddleticket in a selected betting slot on the paddlewheel table. Jammed tickets are void;
I. a player may not touch a paddleticket after the paddlewheel operator announces "bets closed" and until the operator announces "place bets";
J. a winning "odd" or "even" bet is determined by a winning number of only the designated colored circle. However, a player loses all "odd" and "even" bets if the pointer stops on a specially designated "house number." This rule must be posted only if an "odd" or "even" bet is accepted;
K. a prize payout is made in chips that must be redeemed through the cashier; and
L. a player must be present to win.
Subp. 6. Conduct of paddlewheels with a paddlewheel table.
The following items pertain to the conduct of paddlewheels with a paddlewheel table.
A. Before conducting a paddlewheel game with a paddlewheel table, the organization's gambling manager must attend a board-authorized class on the conduct of paddlewheels with a paddlewheel table. Thereafter a replacement gambling manager must attend a board-authorized class on the conduct of paddlewheels with a paddlewheel table within 60 days of the effective date of the new gambling manager's license. If a gambling manager fails to meet board-authorized class requirements, the organization must discontinue the conduct of paddlewheels with a paddlewheel table until the replacement gambling manager has attended the board-authorized class.
B. No more than two paddlewheel tables may be at a permitted premises. If there are two paddlewheel tables at a permitted premises, each table and its drop boxes must have a separate and unique paddlewheel table identification number.
C. To open a paddlewheel for use, a gambling employee or volunteer must inspect the cavity of the table for any paddleticket, paddlewheel chip, or foreign object that may have fallen through the slots, and must attach a paddlewheel chip tray and lock a paddlewheel drop box to the table.
D. For the sale of paddlewheel chips and paddletickets the organization must comply with the following.
E. Upon receiving currency from a player for the purchase of paddlewheel chips or paddletickets, the operator must:
F. The placement of bets must comply with the following.
G. The paddlewheel operator must record each spin in the following manner.
H. When redeeming a winning paddleticket and awarding a prize, the organization must comply with the following.
I. To close a paddlewheel, a paddlewheel operator must tell the players that their paddlewheel chips must be redeemed through the cash bank cashier. A paddlewheel operator must collect all identification cards from the players.
Subp. 7. Use of digital video recorder (DVR) system for paddlewheels with a paddlewheel table; real-time access.
Items A to K apply to the conduct of paddlewheels with a paddlewheel table.
A. Within 14 calendar days of the initial operation of a paddlewheel table or within 14 calendar days of switching to a DVR system, the organization must send to the board a video recording of at least one day's activity. The board must review the video recording to verify that the organization is complying with rule requirements. If the board does not receive a video recording or if the board determines the video recording does not meet rule requirements, the organization must make corrections before resuming paddlewheel activity.
B. An organization conducting a paddlewheel with a table must allow real-time remote access by the board to the operation of a paddlewheel with a table. Real-time remote access by the board is limited to read-only access of occasion recordings and the system's status.
C. An organization must use a DVR system capable of real-time remote access that meets, at a minimum, the following requirements:
D. When using a DVR system, the paddlewheel table and paddlewheel must be in plain view and not be blocked.
E. Security of the DVR system must meet the following:
F. The organization must maintain the DVR equipment to ensure the quality of the recording of activity at the paddlewheel table. The organization must close the paddlewheel table if the DVR system is not properly operating or fails to comply with this subpart.
G. Only a gambling manager or an authorized organization member or organization employee may start and stop the DVR system from the time a paddlewheel table is open for the day to the closing of the paddlewheel table or access an organization's DVR system and recordings. A paddlewheel table operator or cashier, lessor, lessor's immediate family, and lessor's employees are specifically excluded from the activities in this item. The system may be preprogrammed to start and stop at set times. The system must be locked and inaccessible to the paddlewheel table operator.
H. Each week the gambling manager or an authorized organization member or organization employee, excluding the paddlewheel table operator or cashier, lessor, lessor's immediate family, or lessor's employees, must review at a minimum one day's activity per table. A log must be kept showing who conducted the review and when it was conducted.
I. The organization must keep the recordings of each day's paddlewheel with a paddlewheel table activity in a safe and secure storage place for 90 days. The recordings may not be accessible to the paddlewheel table operator.
J. The organization must submit the recordings to the board upon request in a format approved by the board. The recordings must be viewable frame by frame and at high speed.
K. DVR systems for paddlewheels with a paddlewheel table approved before July 15, 2019, must come into compliance within two years of July 15, 2019.
Subp. 8. Operating procedures and internal controls for paddlewheels with a paddlewheel table.
The following operating procedures and internal controls apply to the conduct of paddlewheels with a paddlewheel table.
A. An organization is responsible for the safeguarding and secure storage of paddleticket cards and paddlewheel chips.
B. An organization must redeem paddlewheel chips for cash at the value for which they were sold. The chips must be redeemed only through the paddlewheel chip and cash bank cashier. The organization must keep the cash bank used to redeem paddlewheel chips separate from all other organization cash. Until the organization completes the records for the time period during which the chips were redeemed, the organization must keep redeemed chips separate and apart from the chip bank.
C. All tips must be made only with paddlewheel chips. A paddlewheel operator must redeem paddlewheel chips received as tips through the paddlewheel chip and cash bank cashier and may not exchange those chips for other chips from any chip tray.
D. An organization may not transfer or make change of chips directly from one table to another table.
E. When paddlewheel chips are distributed to a paddlewheel table from the chip bank, the paddlewheel chip and cash bank cashier must prepare a fill slip. The fill slip must be at least a two-part carbonless form and include at a minimum the following information:
F. When paddlewheel chips are returned from the paddlewheel table to the chip bank, the paddlewheel operator must prepare a credit slip which must be at least a two-part carbonless form. The same information must be recorded on the original and duplicate credit slip as on a fill slip. The paddlewheel operator must deposit the original copy of the credit slip in the paddlewheel table drop box, and the cashier must keep the duplicate copy of the credit slip.
G. After play has started, the paddlewheel operator must keep the money plunger in the paddlewheel table drop box slot while the drop box is attached to the table. The paddlewheel operator must remove the money plunger when coin, currency, or forms are being inserted into the drop box.
H. The paddlewheel operator must immediately place all cash received for paddlewheel chips into the drop box. The contents of the drop box may not be accessed by any person before the drop box cash count.
I. An organization employee or volunteer, who is not the paddlewheel operator or paddlewheel chip and cash bank cashier, must keep and control the key to at least one lock securing the contents of the paddlewheel drop box during the time a paddlewheel is in play.
J. At the end of the activity, the paddlewheel operator must remove and secure the unopened drop box.
K. The drop box must be opened and the cash counted by two organization employees or volunteers, only one of which may be the paddlewheel operator or the chip and cash bank cashier.
Subp. 9. Standards for paddlewheel chips for paddlewheels with a paddlewheel table.
The following standards apply to paddlewheel chips used with a paddlewheel table.
A. Paddlewheel chips must not be made of plastic, wood, or paper.
B. An organization must issue paddlewheel chips in denominations of $1, $2, $5, or $25. $1 chips must be white, $2 chips must be yellow, $5 chips must be red, and $25 chips must be green.
C. Each chip must have permanent edge spots that are different in color than the rest of the chip.
D. Each paddlewheel chip must be clearly and permanently impressed, engraved, or imprinted with the organization's license number and the dollar value of the chip.
Subp. 10. Bet and prize payout restrictions for paddlewheels with a paddlewheel table.
The following bet and prize payout restrictions apply to the conduct of paddlewheels with a paddlewheel table.
A. A player must not place a bet that exceeds one or more of the following limits:
B. The prize payout must be a predetermined variable multiple of the amount wagered, must be made in paddlewheel chips, and must not exceed the following ratios:
Subp. 11. Paddlewheel records and reports.
A. An organization must keep all records, reports, and prize receipts for a paddlewheel game for 3-1/2 years following the end of the month in which the lawful gambling occasion was conducted and reported on the tax return.
B. An organization must complete records, reports, and prize receipts for paddlewheel games in ink.
C. With the exception of completed prize receipt forms and unsold tickets and stubs, 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.
D. For each paddlewheel game, an organization must keep the master flare, all redeemed and unsold paddletickets, and all paddlecard stubs.
E. When using a paddlewheel with a table, an organization must complete forms prescribed by the board that account for cash banks, chips, receipts, operator sales, prize receipts, and operator percent of hold. An organization must keep records to account for the paddletickets, paddleticket cards, paddlewheel chips, gross receipts, actual net receipts, actual cash profit, and cash long or short for each separate time period on each day that a paddlewheel table is open for play.
F. For each separate time period that a paddlewheel table is in use, an organization must keep a record of the following information:
G. The organization must deface all unsold paddleticket cards when closing a grouping of paddleticket cards.
H. At the end of the month, the organization must close from play all partially played groupings of paddleticket cards and report as unsold any unplayed paddleticket cards.
I. For each sealed grouping of 100 or fewer sequentially numbered paddleticket cards from which paddletickets were sold that month and closed from play, an organization must complete a monthly report in a format prescribed by the commissioner of revenue, as required by Minnesota Statutes, section 297E.06.
Subp. 12. Disposal of played paddlewheel tickets and records.
The following items apply to the disposal and destruction of tickets and records.
A. An organization must keep redeemed paddlewheel tickets, unsold tickets, and master flares for 3-1/2 years following the end of the month in which the game was played and reported as a played game on the tax return.
B. An organization may destroy paddlewheel records, redeemed paddletickets, unsold tickets, and master flares when the retention period in item A expires, except as required by item C. The game must be completely destroyed using a method such as shredding or burning.
C. An organization must keep the game and records after the retention period in item A expires if they are notified by the board, commissioner of revenue, commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0310 Raffles
Subpart 1. Raffle ticket requirements.
Raffle ticket requirements are as follows.
A. Raffle tickets must have a detachable section and both parts must be sequentially numbered, starting with the number "1" and continuing through the maximum number of tickets to be sold. This does not pertain to raffle tickets that may be used only by exempt or excluded organizations under Minnesota Statutes, section 349.173, paragraph (a).
B. Organizations may purchase sequentially numbered raffle tickets in a quantity to be used for more than one raffle of the same type that occur only during the same month. Raffle tickets must have a detachable section and both parts must be sequentially numbered starting with the number "1" and continuing through the entire quantity of tickets purchased. Tickets purchased under this subpart must be tracked using an inventory format prescribed by the board.
C. Except for raffle board stubs, the detachable section must contain spaces for the purchaser's name, address, and telephone number.
D. The following information must be printed on each ticket:
E. Raffle tickets must not contain the words "suggested donation" or any other implied request for money, other than the price printed on the raffle ticket.
F. The invoice or documentation for the printing of the tickets must show who printed the tickets, the quantity of tickets printed for each price level, the range of the sequential numbers, and the selling price printed on the tickets.
G. All raffle tickets must be the same size, shape, and thickness.
Subp. 2. Multiple pricing levels of raffle tickets.
A raffle may consist of multiple sets of tickets sold at different prices if the tickets comply with the following requirements.
A. Each price level of tickets must have a separate set of sequentially numbered tickets starting with number "1" through the maximum number of tickets to be sold at that price level.
B. Each set of tickets must be clearly identifiable from other tickets for the same raffle sold at a different price level.
C. All raffle tickets must be the same size, shape, and thickness.
D. The invoice for the printing of the tickets must show the quantity of tickets printed for each price level, the range of the sequential numbers, and the selling price printed on the tickets.
E. The organization must keep a separate raffle log for each set of tickets.
Subp. 3. Posting of information and house rules.
In addition to the information required by part 7861.0260, subpart 2, items A and B, an organization must prominently post clear and legible house rules at the point where winners are determined. The house rules must include, at a minimum, the following:
A. method and policy of selecting or determining winners;
B. statement that the winner need not be present;
C. policy on accepting checks and debit card payments;
D. statement that the purchase of only one ticket or certificate of participation is required to enter the raffle;
E. explanation of multiple pricing levels, if any;
F. persons under age 18 may not purchase a raffle ticket or certificate of participation or win a prize; and
G. if wine, beer, or intoxicating liquors are awarded as a raffle prize, persons must be age 21 and older to win, as required by Minnesota Statutes, section 340A.707.
Subp. 4. Conducting a raffle.
The following items apply to the conduct of raffles as allowed under Minnesota Statutes, section 349.173.
A. Each entry in a raffle must have an equal chance to win in the raffle.
B. The organization may not require a person to purchase more than one ticket or certificate of participation, or to pay for anything else to enter a raffle.
C. An organization must sell each ticket for the price printed on the ticket. The organization must not give a player any ticket free of charge or for any other consideration.
D. The organization may not require a person to be present at a raffle to be eligible to win a prize.
E. Each seller must return to the organization all unsold tickets and the stubs or other detachable section of all tickets sold before the drawing.
F. Tickets or certificates of participation must not be sold after the organization has started the prize selection process.
G. When tickets are used, the following apply:
H. The organization must account for all proceeds and unsold tickets.
Subp. 4a. Conducting a raffle using a raffle board.
A. Organizations excluded from raffle licensing requirements under Minnesota Statutes, section 349.166, subdivision 1, paragraph (c), may not conduct raffles using a raffle board.
B. Raffles using raffle boards are subject to the conduct requirements in subpart 4.
C. All chances for a raffle conducted with a raffle board must be available on one raffle board and be sold for the same price.
D. Raffles conducted with a raffle board may only be sold at the permitted premises where the winner of the raffle will be determined.
E. The following information must be written, in ink or permanent marker, by the organization on the raffle board prior to the sale of the first raffle board entry:
F. Raffle boards must not contain the words "suggested donation" or any other implied request for money, other than the entry price printed on the raffle board.
G. Each square on a raffle board must have a unique number. If the board includes stubs, each detachable stub must have an identical number matching its square for determining a winning selection.
H. A participant's proper name and contact information must be recorded on the selected square as entry into the raffle.
I. Detachable stubs must be uniform in size and attached to each raffle board square that, when sold and removed, are placed in a container for a random drawing of a raffle winner.
J. The drawing of the winning raffle stub must not occur earlier than the time printed on the raffle board or more than 30 minutes after the time printed on the raffle board.
K. Unsold stubs attached to a raffle board may not be removed from the raffle board.
L. Raffle boards may not leave the permitted premises once the first raffle entry is sold until after the winner has been determined.
M. Entries on a raffle board may not be sold after the prize selection process has begun.
N. The person conducting the raffle board must date and sign the raffle board upon conclusion of the raffle.
O. The organization must retain raffle boards for 3-1/2 years.
Subp. 5. Conducting a calendar raffle.
An organization may conduct a calendar raffle in which the raffle ticket is a calendar containing a detachable stub.
A. A licensed organization may conduct drawings for a calendar raffle on more than one date.
B. An exempt organization must conduct drawings for a calendar raffle on the date or dates authorized by the board in compliance with Minnesota Statutes, section 349.166.
Subp. 6. Conducting an alternative raffle.
If an organization uses an alternative method of selecting winners other than as prescribed in subpart 4, item G, the organization must obtain prior approval of the board. The request must include at a minimum:
A. organization's name and license or exemption number;
B. premises name and address where the raffle will be conducted;
C. type of random selection process to be used for determining winners;
D. details of the operation and conduct of the raffle, including method for selling certificates of participation;
E. record-keeping and accounting procedures for the raffle;
F. date organization membership approved the raffle and alternative method of selecting winners; and
G. signature of chief executive officer. In considering the request, the board must ensure that the raffle and the alternative method of selecting winners comply with statutory and rule requirements for raffles. If approved, the alternative method may be used for future raffles by all organizations without additional board approval. The approval or denial must be made available upon request and must be posted on the board's website.
Subp. 7. Conducting a button raffle.
An organization may conduct a "button raffle" allowed under Minnesota Statutes, section 349.173, paragraph (b), clause (2).
A. When a button is used as a certificate of participation, the button:
B. When a button is provided with a certificate of participation:
Subp. 7a. Conducting a 50/50 raffle.
An organization may conduct a raffle in which the prize amount is 50 percent or any other percentage of the raffle's gross receipts.
A. The percentage of the gross receipts to be awarded as a prize must be clearly printed on the raffle tickets.
B. Prior to the drawing, the gross receipts must be tallied and the prize amount must be announced.
Subp. 8. Raffle date.
An organization must select all raffle winners at the date, time, and location printed on the raffle tickets or certificates of participation.
A. An organization may request that the board's director allow the organization to change the raffle date if:
B. If a raffle date change is approved by the board's director, the organization must publicize that fact to purchasers of the tickets and document the approved date change in its monthly meeting minutes.
Subp. 9. Canceling a raffle; issuing refunds.
To cancel a raffle an organization must comply with the following.
A. A raffle may only be canceled with approval of the board's director.
B. After receiving approval, the organization must return all money to persons who purchased a chance to participate in the raffle. If the organization is unable to locate a person within 30 days after reasonable attempts via mail and telephone, the organization must deposit the receipts and report them on the monthly tax return.
C. The organization must keep documentation with the raffle records showing the attempts made to reach all persons who purchased a chance to participate in the raffle.
D. A person is entitled to claim a refund for up to one year from the date of the canceled raffle.
Subp. 10. Raffle log required.
An organization must maintain a raffle log including, at a minimum:
A. organization name;
B. total quantity of tickets printed or the sequential numbers of the tickets used in each raffle;
C. price per ticket;
D. date of the raffle; and
E. information for each person given tickets to sell, including:
F. A raffle conducted using a raffle board is exempt from the raffle log requirement.
Subp. 11. Raffle records and reports.
For each raffle conducted, an organization must keep the following records for 3-1/2 years from the end of the month on which the raffle was reported as played on the tax return:
A. total amount of gross receipts;
B. total value of all prizes awarded in each raffle;
C. when tickets are used, the winning ticket stubs;
D. raffle log;
E. copy of the raffle ticket for each price level;
F. all unsold tickets;
G. raffle board, and if a raffle board is used, items D and E are not applicable;
H. for licensed organizations, if tickets are used, a copy of the invoice or documentation for the printing of the tickets showing who printed the tickets, the quantity of tickets printed, the range of the sequential numbers used, and selling price printed on the tickets; and
I. if certificates of participation were used, records that comply with the information required in this subpart. With the exception of unsold and winning raffle ticket stubs and raffle boards, an organization may maintain or convert and store raffle 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. 12. Disposal of raffle tickets and records.
The following items apply to the disposal and destruction of tickets and records.
A. A licensed organization may dispose of raffle tickets or certificates of participation and records after 3-1/2 years from the date the raffle was reported on the tax return.
B. An exempt organization authorized to conduct a raffle under Minnesota Statutes, section 349.166, subdivision 2, may dispose of raffle tickets or certificates of participation and records after 3-1/2 years from the date the financial information for the raffle was reported to the board.
C. An organization must keep the tickets or certificates of participation and records after the retention period in item A expires if they are notified by the board, commissioner of revenue, commissioner of public safety, or their agents that an audit, compliance review, or investigation is being conducted.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 41 SR 137
Minn. R. 7861.0320 Organization Operations, Accounts, Reports, and Records
Subpart 1. Internal accounting and administrative controls required.
A. An organization must establish and implement a written system of internal accounting and administrative controls for its lawful gambling operations, on a form prescribed by the board, in addition to any other documented procedures the organization has approved and implemented to meet the following objectives:
B. The organization's members, gambling employees, or gambling volunteers must perform, at a minimum, the following duties:
C. The organization is responsible for verifying the accuracy of records and reports, including but not limited to:
D. The organization must use the board-prescribed form to document the segregation of functional responsibilities for the organization's gambling operations, including the names or titles of persons who are responsible for:
E. If the organization does not meet the requirements in this subpart, the board must require that the organization revise its internal accounting and administrative control systems. Failure to respond to the board's notice that the organization must revise its internal accounting and administrative control systems must result in the board taking disciplinary action.
Subp. 2. Method of accounting.
An organization must use the cash basis method to report gross receipts and allowable expenses on the tax return except that the accrual basis method must be used to report the tax required by Minnesota Statutes, section 297E.02, and the monthly regulatory fee required by Minnesota Statutes, section 349.16, subdivision 6a.
Subp. 3. Gambling bank accounts; expenditures of gambling funds; emergency expenditures.
Each organization must maintain a separate gambling bank account at banks, savings and loans institutions, or credit unions located within Minnesota and comply with the following.
A. The organization must maintain a gambling checking account that complies with the requirements of Minnesota Statutes, section 297E.06, subdivision 2, as prescribed by the commissioner of revenue.
B. For all expenditures from the gambling checking account, two signatures of active organization members are required on all checks and for the authorization for electronic transactions. The treasurer of the organization may not sign the checks or the authorization for electronic transactions from the gambling bank account.
C. The organization may make expenditures from the gambling checking account by electronic transfer or by debit card. Each month, two active organization members must review a listing of the electronic transfers and debit card transactions for the previous month to verify that the expenditures were made with the authorization of the organization's membership. The active organization members conducting this review must sign and date the list.
D. The organization must make all expenditures or contributions of gambling funds from the gambling checking accounts. This item does not pertain to emergency expenditures which may be made from a source other than the organization's gambling account if the organization's membership has approved the expenditure or to an electronic fund transaction for the payment of taxes for the organization as a whole according to Minnesota Statutes, section 349.19, subdivision 2, paragraph (b).
Subp. 4. Deposits and transfers of gambling receipts.
The following items pertain to the deposit and transfer of gambling receipts.
A. Each organization must deposit into the organization's gambling bank account all income derived from or related to lawful gambling, including:
B. An organization may transfer gambling funds to a nonchecking gambling bank account.
C. For deposits of gambling receipts, the organization must record on the deposit slip the date of deposit, premises permit number, and the following:
D. Funds from a nongambling source must not be deposited in the gambling bank account except as required by subpart 5 and subpart 16, item B.
E. Gambling funds must not be transferred to the organization's general bank accounts for any expenditures or contributions without prior board approval. This item does not pertain to transfers allowed under subpart 15, item B, or to an electronic fund transaction for the payment of taxes for the organization as a whole according to Minnesota Statutes, section 349.19, subdivision 2, paragraph (b).
Subp. 5. Reimbursements to gambling bank account.
An organization may not deposit funds from a nongambling source into the gambling bank account unless the organization is required by the board or as otherwise required by statute or rule to reimburse its gambling account for the following reasons, including but not limited to:
A. unlawful expenditure or expense;
B. cash shortage;
C. fund loss;
D. gambling receipts that the organization failed to deposit into the account;
E. bring the organization into compliance with Minnesota Statutes, chapter 297E, as required by the commissioner of revenue; or
F. bring the organization into compliance as required by the terms of a license termination plan approved by the board.
Subp. 6. Report to membership and approval of expenditures by membership required.
A. Before gambling funds are spent, the organization must obtain the approval of its members at a regular organization meeting and record the approval in the meeting minutes.
B. The gambling manager or designee must present a monthly report to the organization's members. The organization must include the report with the meeting minutes. The report must contain the following information:
C. On an annual basis the organization must report to its membership the financial summary report required by Minnesota Statutes, section 349.19, subdivision 5, in a format prescribed by the board.
Subp. 7. Report of lawful purpose expenditures to board required.
An organization must file with the board a report of lawful purpose expenditures as required by Minnesota Statutes, section 349.19, subdivision 3, in a format prescribed by the board by the 20th day of the next month.
Subp. 8. Monthly report to revenue required.
The organization must file information each month with the Department of Revenue as prescribed by the commissioner of revenue in Minnesota Statutes, section 297E.06.
Subp. 9. Fund loss report or request for a profit carryover adjustment due to fund loss.
When an organization has a fund loss by questionable means of its inventory or cash, including prizes paid from a game not conducted in compliance with statute and rule, the organization must use the following procedures.
A. The organization must file a report with local law enforcement authorities within:
B. The organization must submit one of the following to the board within 60 days of discovering the loss:
C. An organization that submits a request to the board for a profit carryover adjustment due to a fund loss must use a form prescribed by the board. The request must contain, at a minimum:
D. The board must consider the following items when approving or denying a request for a profit carryover adjustment due to a fund loss:
E. If the board denies a request for a profit carryover adjustment due to a fund loss, the organization must reimburse its gambling account for the amount of the fund loss. The organization must submit proof of reimbursement to the board within 90 days of the board's final determination.
F. The board must reconsider a request for a profit carryover adjustment due to a fund loss when an organization presents new information that the organization could not have discovered before the board's initial consideration of the request.
Subp. 10.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 11.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 12.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 13.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 14. Standards for 501(c)(3) organizations and 501(c)(4) festival organizations.
A. To be eligible to make lawful purpose contributions to itself under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (1), a licensed 501(c)(3) organization or 501(c)(4) festival organization must comply with the following:
B. If the board determines that the organization does not meet the standards under item A, then any expenditure made by the organization under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (1), must be:
C. Nothing in this subpart prohibits an organization from making other lawful purpose expenditures as allowed under Minnesota Statutes, section 349.12, subdivision 25.
Subp. 15. Lawful purpose expenditures allowed.
In addition to lawful purpose as defined in Minnesota Statutes, section 349.12, subdivision 25, an organization may make a lawful purpose expenditure for the following.
A. A contribution may be made to a 501(c)(3) organization or 501(c)(4) festival organization if the organization does not:
B. A contribution may be made by a 501(c)(3) organization or 501(c)(4) festival organization to itself for its primary purpose if the board has determined that the organization has complied with subpart 14, item A.
C. A contribution may be made to a person or family suffering from poverty, homelessness, or disability if the contribution is reasonably calculated to relieve the effects of that poverty, homelessness, or disability. A contribution may be made to a nonprofit corporation that exists exclusively for these relief purposes if the entire contribution is used to relieve one or more of these effects. Disability includes, but is not limited to, physical or mental difficulties in doing daily tasks and activities such as personal care, meal preparation, cleaning, transportation, or athletic activities.
D. A contribution or expenditure may be made to or on behalf of a public or private nonprofit educational institution registered with or accredited in Minnesota or any other state. If a contribution or expenditure is made to or on behalf of a public educational institution the organization must document the contribution or expenditure on a form prescribed by the board showing the request from or acknowledgment of the institution. The organization must keep the completed form in its records.
E. A contribution may be made for scholarships according to Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (5), if:
F. A contribution or an expenditure may be made for the cost of activities recognizing military service to the United States, the state of Minnesota, or a community if the following criteria is met.
G. A contribution may be made for recreational, community, and athletic facilities and activities intended primarily for persons under age 21 if the facilities and activities are available to both boys and girls and the opportunity to participate shows their interest in the activity. "Primarily" is demonstrated by written documentation showing that programs for persons under age 21 are given priority scheduling consideration. Equal opportunity must be given for:
H. A contribution may be made to or on behalf of any unit of government as authorized by Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (10). The organization must document the contribution or expenditure on a form prescribed by the board showing the request from or acknowledgment of the unit of government and keep the completed form in its records.
I. A contribution for activities recognizing humanitarian service includes expenditures for transportation, food, and beverages given to persons making blood donations.
J. Expenditures may be made for grooming and maintaining snowmobile and all-terrain vehicle trails that are open to public use or are designated as grant-in-aid trails by the commissioner of natural resources under Minnesota Statutes, sections 84.83 and 84.927. Expenditures may be made for supplies and materials for safety training and educational programs coordinated by the Department of Natural Resources. This item includes the repair of equipment used exclusively for the grooming and maintenance of public use snowmobile or all-terrain vehicle trails that are not in the Department of Natural Resources grant-in-aid program or other reimbursement program. Lawful purpose expenditures made under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clauses (13), (23), and (24), are not eligible for reimbursement under the grant-in-aid program. Before an expenditure is made, the organization must obtain approval of the project or activity from the commissioner of natural resources or its agents. The organization must document the approval on a form prescribed by the board and keep the completed form in its records.
K. Expenditures may be made for citizen monitoring of surface water quality as allowed under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (12). Before an expenditure is made, the organization must obtain approval of the project from the Minnesota Pollution Control Agency. The organization must document the approval on a form prescribed by the board and keep the completed form in its records.
Subp. 16. Lawful purpose expenditures requiring board approval.
This subpart governs lawful purpose expenditures that require board approval before an expenditure may be made as allowed under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a). The organization must submit a request for board consideration in a format prescribed by the board.
A. For a replacement building as allowed under Minnesota Statutes, section 349.12, subdivision 25, paragraph (a), clause (25), the replacement structure must be used for the same or similar purposes as the building being replaced and must have essentially the same square footage as the building being replaced. Additional costs for landscaping, building code, or parking lot requirements required by the local unit of government after the original building was built may be included.
B. An organization that received board approval to make an expenditure for a mortgage payment or other debt service must obtain prior board approval for any increase in the expenditure, including refinancing or other debt restructuring that increases the debt balance. Closing costs are not included. Any equity withdrawn from real property or a capital asset as part of the refinancing or other debt restructuring is considered gambling gross profits and must be deposited in the organization's gambling bank account.
C. With prior approval of the board, a contribution may be made to a parent organization at the Minnesota state level if the parent organization has submitted to the board a list of the charitable contributions, as defined under Minnesota Statutes, section 349.12, subdivision 7a, for which the parent organization will use the contributions.
Subp. 17. Lawful purpose expenditures not allowed.
In addition to Minnesota Statutes, section 349.12, subdivision 25, paragraph (c), lawful purpose does not include any of the following:
A. interest on taxes, tax penalties, or interest on tax penalties;
B. any expenditure, contribution, or other distribution of gambling gross profits for which the organization keeps any control over the funds, except as allowed in subpart 15, item B;
C. any contribution or expenditure that results in any monetary, economic, financial, or material benefit to the organization making the contribution or expenditure;
D. any contribution or expenditure that is not allowed under the conflict of interest provisions of the Minnesota Nonprofit Corporation Act, Minnesota Statutes, section 317A.255;
E. the purchase of any intoxicating liquor, wine, or malt beverages; and
F. fundraising costs, except as allowed by subpart 15, item B.
Subp. 18. Organization records and reports.
A. An organization must maintain documentation showing that expenditures of gambling gross profits are either an allowable expense or a lawful purpose.
B. Each organization must maintain complete, accurate, and legible records with documentation to support all gambling transactions.
C. The organization must record all inventory records, including perpetual, physical, site, and merchandise prize records, in a format prescribed or approved by the board.
D. All records must show the gross receipts, prizes, net receipts, expenses, and all other accounting transactions.
E. The organization must keep all records and reports for 3-1/2 years.
F. The organization may maintain or convert and store records and reports in an electronic format. The 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.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7861.0330 Excluded Bingo
Subpart 1. Registration required.
An organization conducting bingo as allowed by Minnesota Statutes, section 349.166, subdivision 1, paragraph (a), clause (1) or (2), must register with the board and obtain prior approval of the local unit of government of the city or county in which the bingo will be conducted. The registration must be on a form prescribed by the board and include:
A. organization's name, address, and county;
B. name and telephone number of the person in charge of the bingo occasion;
C. type of organization which is fraternal, veterans, religious, or other nonprofit and a copy of the proof of nonprofit status;
D. dates on which bingo has been conducted in the present calendar year;
E. date that the organization proposes to conduct bingo;
F. name and address, including city or township, and county of the premises where the gambling will be conducted;
G. telephone number and signature of the chief executive officer;
H. local unit of government approval; and
I. Minnesota tax identification number and federal employer identification number, if any.
Subp. 2. Denial of excluded bingo application.
The board must deny an excluded bingo application when the premises permit for the site of the proposed excluded bingo is subject to suspension or revocation under part 7865.0220, subpart 3.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 41 SR 137
Minn. R. 7861.0340 Exempted Lawful Gambling
Subpart 1. Registration required.
An organization that conducts exempted lawful gambling as allowed by Minnesota Statutes, section 349.166, subdivision 2, must submit an application to the board as required by Minnesota Statutes, section 349.166, subdivision 2, paragraph (a), clause (3). The application must be on a form prescribed by the board and include:
A. the organization's name, address, and county;
B. a current or previous license number or exempt number, if any;
C. the name and telephone number of the chief executive officer;
D. the type of organization which is fraternal, veterans, religious, or other nonprofit and a copy of the proof of nonprofit status;
E. the dates of activity;
F. the types of lawful gambling to be conducted;
G. the name and address, including city or township, and county of the premises where the activity will be conducted;
H. local unit of government approval;
I. an acknowledgment that within 30 days of its lawful gambling activity the organization will complete and file with the board an accurate and complete financial report in a format prescribed by the board;
J. the fee required by Minnesota Statutes, section 349.166, subdivision 2, paragraph (a), clause (3). The application fee is considered earned and is not refundable; and
K. Minnesota tax identification number and federal employer identification number, if any.
Subp. 2. Denial of exempt permit application.
The board must deny an exempt permit application if:
A. the organization is currently licensed; or
B. the premises permit for the site is subject to suspension or revocation under part 7865.0220, subpart 3.
History
- 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
- History: 31 SR 1239; 35 SR 1276
Chapter 7862 BINGO HALL LICENSES
Minn. R. 7862.0010 Repealed by subpart
Subpart 1.
[Repealed, 29 SR 443]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 20 SR 2624]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 29 SR 443]
Subp. 10.
[Repealed, 29 SR 443]
Subp. 10a.
[Repealed, 31 SR 1239]
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 11a.
[Repealed, 29 SR 443]
Subp. 11b.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 31 SR 1239]
Subp. 13.
[Repealed, 31 SR 1239]
Chapter 7863 GAMBLING EQUIPMENT DISTRIBUTORS
Minn. R. 7863.0010 Repealed by subpart
Subpart 1.
[Repealed, 29 SR 443]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 19 SR 1854]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 29 SR 443]
Subp. 9.
[Repealed, 31 SR 1239]
Subp. 10.
[Repealed, 29 SR 443]
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 31 SR 1239]
Subp. 13.
[Repealed, 29 SR 443]
Subp. 14.
[Repealed, 31 SR 1239]
Subp. 15.
[Repealed, 31 SR 1239]
Subp. 16.
[Repealed, 31 SR 1239]
Subp. 17.
[Repealed, 31 SR 1239]
Minn. R. 7863.0020 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7863.0050 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7863.0060 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7863.0210 Distributors; Distributor Salespersons Licenses
Subpart 1. Distributor or distributor salesperson license required.
A person may not sell, offer for sale, or furnish gambling equipment for use in Minnesota to any organization that conducts lawful gambling unless the person has obtained a distributor's or distributor salesperson's license or license renewal issued by the board.
Subp. 2. Distributor or distributor salesperson licensing qualifications.
A distributor or distributor salesperson is not eligible for a license unless they have met the requirements of Minnesota Statutes, sections 349.155, subdivision 3, and 349.161, subdivision 5. For purposes of compliance with Minnesota Statutes, section 349.155, subdivision 3, the following definitions apply.
A. "Director" means a member of the distributor's board of directors.
B. "Officer" means any person elected, appointed, or designated as an officer by the distributor's board of directors.
C. "Other person in a supervisory or management position" means any person employed to direct or control the personnel and activities of a distributor's department or division.
Subp. 3. Distributor restrictions.
In addition to the prohibitions in Minnesota Statutes, section 349.161, subdivisions 1 and 5, the following restrictions apply when conducting business with organizations authorized to conduct lawful gambling in Minnesota. A distributor, distributor salesperson, or any representative, agent, affiliate, or employee of a distributor may not:
A. contribute more than $250 in any calendar year to an organization or participate in a fundraising event if the contribution or fundraising event is related to the organization's conduct of lawful gambling;
B. lease premises to an organization for the conduct of lawful gambling;
C. be an officer, director, paid employee, gambling volunteer, or gambling manager of an organization involved in the conduct of lawful gambling;
D. participate directly in the determination and purchase of gambling equipment for an organization;
E. provide or permit an affiliate or person acting on behalf of the distributor to provide any compensation, gift, gratuity, premium, contribution, or thing of value to a board employee or board member;
F. enter into any agreement with any other distributor that restricts either of them in the sale of gambling equipment; or
G. enter into any agreement with any other distributor to establish the price at which any gambling equipment may be sold.
Subp. 4. Contents of distributor license application.
The distributor license application must contain the following information:
A. distributor's legal name, any other names used, the legal nature of the business (corporation, partnership, limited liability company, or sole proprietorship), Minnesota tax identification number, and federal employer identification number;
B. principal business address and telephone number;
C. mailing address, if different than the business address;
D. names and titles of the owners, partners, officers, directors, managers, supervisors, sales employees, and persons or entities with a direct or indirect financial interest of five percent or more in the distributorship;
E. address and telephone number of all facilities where gambling equipment and supplies are unloaded in Minnesota prior to sale;
F. acknowledgment regarding the licensing qualifications and restrictions contained in subparts 2 and 3;
G. names, addresses, and account numbers of all business bank accounts;
H. an acknowledgment that if the license is terminated or suspended the distributor will file the certified physical inventory required in subpart 10 or 11;
I. date and signature, in ink, of the chief executive officer; and
J. additional information that may be required by the board to properly identify the distributor and ensure compliance with Minnesota Statutes, sections 349.11 to 349.23.
Subp. 5. Attachments to distributor license application.
The distributor must attach a distributor personnel form to the application for persons identified in item A.
A. A distributor personnel form must be completed by each:
B. For persons identified in item A, subitems (1) to (7), the distributor personnel form must include:
C. For nonsales employees as identified in item A, subitem (8), the distributor personnel form must include:
Subp. 6. Contents of distributor salesperson license application.
For a person who will be employed by a distributor to conduct sales, as identified in subpart 5, item A, subitems (3) to (6), a distributor salesperson license application must contain the following:
A. information required in subpart 5, item B;
B. recent photograph of the person measuring one inch by 1-1/4 inches; and
C. acknowledgment regarding the licensing qualifications in subpart 2 and restrictions in subpart 3. A person who is an independent contractor is not eligible for a license. A distributor salesperson license is not required for the owner or partner of a distributorship licensed by the board.
Subp. 7. Changes in distributor or distributor salesperson license application information.
If any information submitted in the application changes during the license term, the distributor or distributor salesperson must notify the board within ten days of the change.
Subp. 8. Issuing or denying a new or renewal distributor or distributor salesperson license.
This subpart governs a new or renewal distributor or distributor salesperson license issued or denied by the board.
A. Before issuing a new or renewal distributor license, the board must conduct or request the director of alcohol and gambling enforcement to conduct a background investigation, which may include a review of the distributor's sources of financing, ownership, and organizational structure. Actual costs in addition to the new or renewal application fee must be paid by the distributor.
B. The board must issue a license to a distributor or distributor salesperson who:
C. The board must deny a new or renewal application if a distributor or distributor salesperson:
D. All fees submitted with a new or renewal license application are considered earned and are not refundable.
Subp. 9. Distributor license effective date.
A distributor license issued by the board is effective on the first day of the month after board approval or as otherwise determined by the board.
Subp. 10. Distributor license termination.
Before terminating its license, the distributor must submit to the board and commissioner of revenue a certified physical inventory in a format prescribed by the board. Termination of a license may occur due to revocation or denial of the license by the board, or the distributor voluntarily quitting its business. The certified physical inventory must include the following information:
A. an inventory of all gambling equipment when the form is prepared, including name, form number, bar code information, and quantity of all gambling equipment in the distributor's inventory; and
B. plans for disposal of all gambling equipment by the date of termination. After the date on which a license is terminated, it is illegal for a distributor to have gambling equipment in its possession. The distributor or designated agent must keep all invoices and other required documentation related to the sale of gambling equipment for 3-1/2 years after the license has been terminated.
Subp. 11. License suspension.
When a distributor's license is suspended under part 7865.0220, the licensee must provide to the commissioner of revenue a certified physical inventory of gambling equipment in inventory on the day the suspension begins. The certified physical inventory must include the name, form number, bar code information, and quantity of all gambling equipment in the distributor's inventory on the day the suspension begins.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613
Minn. R. 7863.0220 Distributor Operations, Accounts, Reports, and Records
Subpart 1. Purchase or lease of gambling equipment.
When purchasing, leasing, or obtaining gambling equipment, the distributor must comply with Minnesota Statutes, sections 349.161 and 349.162.
A. A distributor may only purchase, lease, or obtain gambling equipment that has been approved by the board and meets the requirements in parts 7864.0230 and 7864.0235.
B. Within ten days of being notified by the board that a manufacturer has terminated its license, the license has expired, or the license was revoked by the board, a licensed distributor must submit a certified physical inventory to the board. The certified inventory must include the name, form number, and quantity of all gambling equipment in inventory or gambling equipment owned or leased that was manufactured by that manufacturer.
Subp. 2. Sale or lease of gambling equipment.
This subpart applies to the sale or lease of gambling equipment.
A. A distributor may not sell, lease, or furnish gambling equipment to an organization unless the organization has a license, exempt permit, or exclusion authorization issued by the board, or meets the requirements of Minnesota Statutes, section 349.166, subdivision 1, paragraph (b).
B. A distributor may not sell, lease, or furnish gambling equipment to an organization before the effective date of the organization's license. This item does not pertain to exempt or excluded organizations if the distributor has a copy of the organization's exempt permit or exclusion authorization.
C. Gambling equipment sold or leased for use in Minnesota must be delivered only to the licensed, exempt, or excluded organization that ordered the equipment.
D. A distributor may not provide any merchandise prize, as part of the sale of any game or as a gift or sale, to a licensed, exempt, or excluded organization or its employees.
E. A distributor must include a packing list that lists all items for each shipment of gambling equipment to an organization.
F. A distributor must not sell or provide a partial series of bingo paper sheets or bingo paper sheet packets to a licensed organization. A distributor may sell a partial series to an exempt or excluded organization.
G. A distributor may sell a game abandoned under part 7864.0230, subpart 1, item D, that the distributor had in possession before the date of abandonment.
H. A distributor must document the terms of a lease or sale of permanent gambling equipment and comply with the following.
I. Gambling equipment designated for sale to an Indian tribe must be stored in a separate area of the distributor's warehouse and cannot contain the Minnesota geographic symbol required by Minnesota Statutes, section 349.163, subdivision 5, paragraph (d).
J. The following apply to the lease of electronic bingo devices used for nonlinked bingo games:
K. Electronic pull-tab system and device leases must contain:
L. The lease price of an electronic pull-tab system and devices:
M. The distributor must submit a copy of the electronic pull-tab system and device lease agreement to the board within ten days of signing or amending a lease agreement.
N. The following pertain to gambling equipment that is sold or leased on an exclusive basis.
Subp. 3. Registration of permanent gambling equipment.
A distributor must not sell, lease, transfer, furnish, or provide any permanent gambling equipment to an organization unless the equipment has been registered in the following manner.
A. A distributor must place a state registration stamp, obtained from the board, on permanent equipment sold or leased to an organization. The distributor must place the stamp on the front of each paddlewheel, paddlewheel table, and pull-tab dispensing device, and on each bingo number selection device. This item does not pertain to a programmable electronic device as defined under Minnesota Statutes, section 349.12, subdivision 18, paragraph (b), clauses (2), (3), and (5).
B. The distributor must keep a record of permanent gambling equipment leased to a licensed organization. The record must include the organization's name, address, and license number, and the date the equipment was leased to the organization, and if returned, the date the equipment was returned by the organization to the distributor.
C. To register permanent gambling equipment with the board, the distributor must submit a report to the board, on a form prescribed by the board, that includes the information required by items A and B.
D. A distributor must not transfer or give state registration stamps to any person, distributor, linked bingo game provider, or manufacturer.
Subp. 4. Return of defective paper pull-tab and tipboard game; return of electronic pull-tab deals; issuing credit invoices.
This subpart pertains to the return of a paper pull-tab or tipboard game that was not manufactured in compliance with the standards in part 7864.0230 and was returned to the distributor according to this subpart and part 7861.0260, subpart 7.
A. For a game that is returned from an organization before being put into play, the following apply.
B. For a game returned to a distributor from an organization during play or after being removed from play, the following apply.
C. A distributor must accept the return of unplayed electronic pull-tab deals.
Subp. 4a. Defective electronic pull-tab game.
A. If an electronic pull-tab game is found to be defective, the distributor must immediately:
B. For an electronic pull-tab game that is returned from an organization before being put into play, the following apply:
C. For an electronic pull-tab game found to be defective during play or after being removed from play, the following apply:
Subp. 4b. Defective, altered, lost, or stolen electronic pull-tab device.
A. If an organization notifies a distributor of a defective or an altered electronic pull-tab device, the distributor must immediately notify the manufacturer, or the linked bingo game provider, if applicable, and the board. If the organization has not removed the device from play, the distributor or the linked bingo game provider must immediately ensure the device is removed from play.
B. If an organization notifies a distributor of a lost or stolen electronic pull-tab device, the distributor must immediately notify the manufacturer, or the linked bingo game provider if applicable, and the board.
C. The distributor or linked bingo game provider must report to the board any removal of a defective or an altered electronic pull-tab device at a site, or any lost or stolen device, within one business day.
Subp. 5. Recall of gambling equipment; issuing credit invoices.
A distributor must participate in a gambling equipment recall mandated by the board or initiated by the manufacturer.
A. Within three business days of receiving notification from the manufacturer or the board director, the distributor must initiate the recall from organizations to which it sold the gambling equipment.
B. The distributor must complete the recall within 15 business days of initiation and notify the board and the commissioner of revenue in writing that it has completed the recall. The recall does not pertain to games already in play which must be kept by the organization as played games. The notification must include the following:
C. Within seven business days of receiving a credit invoice from the manufacturer, the distributor must issue credit invoices to all organizations returning gambling equipment under the recall. Credit invoices must include the cost of freight paid by the organization and any valid and documented losses incurred over which the organization had no control or ability to prevent. Copies of the credit invoices must be filed electronically as required by the commissioner of revenue.
Subp. 6. Sales invoices.
A distributor who sells, leases, or provides gambling equipment must record the transaction on a sales invoice which must contain the following information:
A. distributor's name, address, telephone number, and license number;
B. organization's name, address, license number or excluded or exempt authorization, and premises permit number of the site where the gambling equipment was delivered, and for a licensed organization the name and address of an entity as allowed under Minnesota Statutes, section 349.166, subdivision 1, paragraph (b);
C. invoice number;
D. name of the person who ordered the gambling equipment, and name of the distributor's licensed salesperson who sold the gambling equipment;
E. date of shipment and shipping charges, if any;
F. any applicable sales tax;
G. unit price or lease cost of each item and total amount being invoiced; and
H. any value for discount, rebate, or other incentive affecting the unit price which must be separately stated. Invoices must also contain information required for the type of gambling equipment sold, as required by subparts 7 to 12.
Subp. 7. Sales invoice for pull-tabs and tipboards.
In addition to the requirements of subpart 6, invoices for pull-tabs and tipboards must contain the following information:
A. number of deals;
B. description of each deal, including the game name, manufacturer identification, part number, and serial number;
C. last sale amount, if any;
D. total ideal gross receipts; and
E. total applicable gambling tax.
Subp. 7a. Sales invoice for promotional pull-tab and tipboard tickets.
A distributor who sells promotional pull-tab and tipboard tickets, as defined in part 7861.0210, subpart 43, and Minnesota Statutes, section 349.12, subdivisions 18 and 31, must record the transaction on a sales invoice which must contain the following information:
A. distributor's name, address, telephone number, and license number;
B. name of the business entity to whom the tickets are sold and the address of the site where the tickets were delivered. If the tickets are sold to an individual, the sales invoice must contain the individual's name and address and the address of the site where the tickets were delivered;
C. invoice number;
D. name of the person who ordered the tickets, and name of the distributor's licensed salesperson who sold the tickets;
E. description of the tickets, including name, manufacturer identification, form number, part number, and serial number;
F. date of shipment and shipping charges, if any;
G. any applicable sales tax; and
H. unit price and total amount being invoiced.
Subp. 8. Sales invoice for paddleticket cards.
In addition to the requirements of subpart 6, invoices for paddleticket cards must contain the following information:
A. number of sealed groupings;
B. ideal gross receipts for each sealed grouping; and
C. for each sealed grouping, a complete description including the game name, manufacturer identification, part number, and serial number.
Subp. 9. Sales invoice for sealed breakopen bingo paper.
In addition to the requirements of subpart 6, invoices for sealed breakopen bingo paper sheets must contain the following information:
A. serial number and color of each set of sealed breakopen bingo paper sheets;
B. whether each set is an original or trade-in set; and
C. price for which the sealed breakopen bingo paper sheet must be sold by the organization.
Subp. 10. Sales invoice for sets of bingo paper sheet packets.
In addition to the requirements of subpart 6, invoices for sets of bingo paper sheet packets must contain the following information:
A. color of each sheet in the packet in the order of collation;
B. number of sheets per packet (UP's);
C. number of faces per sheet (ON's);
D. series;
E. price for which the packet must be sold by the organization; and
F. serial number from each sheet in the packet if the serial numbers are not uniform throughout the packet, or the serial number from the top sheet in each packet if the serial numbers are uniform throughout the packet. The serial numbers may be recorded on a separate document if the invoice states that the document is attached.
Subp. 11. Sales invoice for bingo paper sheets (case paper).
In addition to the requirements of subpart 6, invoices for bingo paper sheets (case paper) must contain the following:
A. color;
B. number of sheets per case;
C. number of faces per sheet (ON's);
D. series;
E. price for which the bingo paper sheets must be sold by the organization; and
F. serial number from the top sheet in the case.
Subp. 11a. Sales invoice for raffle boards.
In addition to the requirements of subpart 6, invoices for raffle boards must contain the following:
A. the number of raffle boards;
B. the price for which the raffle board entries must be sold by the organization;
C. a description of each board, including the game name, manufacturer identification, part number, and serial number; and
D. total ideal gross receipts.
Subp. 12. Sales invoice for permanent gambling equipment.
In addition to the requirements of subpart 6, invoices for permanent gambling equipment must contain the following information:
A. a description of the equipment being sold or leased, including the manufacturer name and the make, model number, and serial number; and
B. the state registration stamp number attached to the gambling equipment, as required by subpart 3.
Subp. 13. Monthly sales report to board required for permanent gambling equipment.
After the sale or lease of permanent gambling equipment, the distributor must provide the following information to the board by the 20th of the next month:
A. distributor's name, address, and license number;
B. manufacturer's name, address, and license number from which the distributor purchased or leased the gambling equipment;
C. organization's name, address, and license number, exempt permit number, or exclusion authorization, or the name and address of the entity as allowed by Minnesota Statutes, section 349.166, subdivision 1, paragraph (b);
D. make, model number, and serial number of the gambling equipment; and
E. state registration stamp number attached to the gambling equipment, as required by subpart 3.
Subp. 14. Monthly sales report to revenue required.
A distributor who sells, leases, or provides gambling equipment must electronically report the transactions made each month to the commissioner of revenue as required under Minnesota Statutes, section 297E.05. The report is due by the 20th of the next month.
Subp. 15. Pricing report to director required.
A. A distributor must submit a pricing report to the director on a monthly basis, in a format approved by the director, listing sales prices for which all gambling equipment was sold.
B. A distributor must submit a pricing report to the director on an annual basis in a format approved by the director and must include:
C. Adjustments for transportation, discounts, and rebates must be reported separately on the annual pricing report, and are subject to review and approval by the director.
D. Changes or additions to the previously filed reports must be reported ten days before the change or addition.
Subp. 16. Delinquent organization notice to board required.
This subpart pertains to the notice to the board that an organization is delinquent in payment of an invoice or lease agreement.
A. If a distributor has not received payment from an organization within 30 days of the day immediately following the date of the invoice or lease agreement, the distributor must report the delinquency to the board in writing in an electronic format authorized by the board. The distributor must ensure that the board will receive the notice by the 31st day, or the next business day, after the invoice date for the sale or lease of the gambling equipment. The notice must include:
B. If a distributor has not received payment in full within 60 days of its initial notice to the board, the distributor must notify the board of the continued delinquency. The distributor must ensure that the board will receive the notice on the 61st day, or the next business day, after the distributor's initial report to the board.
C. When the delinquency is paid, the distributor must notify the board immediately.
D. Upon receipt of the initial notice under item A, the board must:
E. Upon receipt of the second notice under item B, the board must notify:
F. When the board has been notified that the delinquency is paid in full, the board must notify all distributors and linked bingo game providers that the delinquency has been paid and that the sale or lease of gambling equipment to the organization is authorized.
G. Until authorized by the board, a distributor or linked bingo game provider may not extend credit or sell or lease gambling equipment to an organization in violation of an order under items D and E.
Subp. 17. Records and reports maintained.
A distributor must maintain reports and records of the purchase, sale, and lease of gambling equipment as required by this part and by Minnesota Statutes, section 297E.05, for 3-1/2 years. A distributor must maintain a record of the registration of permanent gambling equipment.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7863.0250 Linked Bingo Game Provider Licenses
Subpart 1. Linked bingo game provider license required.
A person may not provide linked bingo paper, linked bingo game system equipment, or services to any licensed organization unless the person has obtained a linked bingo game provider license or license renewal issued by the board.
Subp. 2. Linked bingo game provider licensing qualifications.
A person is not eligible for a license unless the requirements of Minnesota Statutes, sections 349.155, subdivision 3, and 349.1635, have been met. For purposes of compliance with Minnesota Statutes, section 349.155, subdivision 3, the following definitions apply.
A. "Director" means a member of the linked bingo game provider's board of directors.
B. "Officer" means any person elected, appointed, or designated as an officer by the linked bingo game provider's board of directors.
C. "Other person in a supervisory or management position" means any person employed to direct or control the personnel and activities of a linked bingo game provider's department or division.
Subp. 3. Linked bingo game provider restrictions.
In addition to the prohibitions in Minnesota Statutes, sections 349.155, subdivision 3, and 349.1635, subdivision 4, the following restrictions apply when conducting business with licensed organizations authorized to conduct lawful gambling in Minnesota. A linked bingo game provider licensee; person holding a financial or managerial interest in a linked bingo game provider; or any agent, affiliate, or employee of a linked bingo game provider may not:
A. be an officer, director, paid employee, gambling volunteer, or gambling manager of an organization involved in the conduct of lawful gambling;
B. recruit a person to become a gambling manager or an assistant gambling manager, or identify to an organization a person as a candidate to become a gambling manager or assistant gambling manager;
C. be involved in or influence the purchase of gambling equipment for an organization, except for equipment necessary to conduct linked bingo games;
D. provide or permit an affiliate or person acting on behalf of the linked bingo game provider to provide any compensation, gift, gratuity, premium, contribution, or thing of value to a board employee or board member; or
E. contribute more than $250 in any calendar year to an organization or participate in a fundraising event if the contribution or fundraising event is related to the organization's conduct of lawful gambling.
Subp. 4. Contents of linked bingo game provider license application.
The linked bingo game provider license application must contain the following:
A. the linked bingo game provider's legal name, any other names used, the legal nature of the business (corporation, partnership, limited liability company, or sole proprietorship), the Minnesota tax identification number, and the federal employer identification number;
B. business address and telephone number;
C. mailing address, if different than the business address;
D. address where the selection of bingo numbers for a linked bingo game will be conducted, if different than the business address;
E. names and titles of the owners, partners, officers, directors, managers, supervisors, sales employees, persons involved with the services provided by the linked bingo game provider, and persons or entities with a direct or indirect financial interest of five percent or more in the linked bingo game provider;
F. identification of any person who or entity that develops or provides application software to the manufacturer;
G. copies of licensing agreements with other entities for all software, except for operating system software, and hardware developed specifically for the purpose of conducting gambling on an electronic device. Operating system software agreements must be maintained by the linked bingo game provider, be current, and be available to the board upon request;
H. acknowledgment regarding the licensing qualifications in subpart 2 and restrictions in subpart 3;
I. acknowledgment that any linked bingo game agreement will identify any goods or services, including all costs, that the organization is required to buy or lease;
J. acknowledgment that the linked bingo game provider will provide all necessary game monitoring equipment and monitoring systems to the board at no cost;
K. date and signature, in ink, of the chief executive officer; and
L. additional information that may be required by the board to properly identify the linked bingo game provider and ensure compliance with Minnesota Statutes, sections 349.11 to 349.23.
Subp. 5. Attachments to linked bingo game provider license application.
The linked bingo game provider must attach the following items to the application.
A. A linked bingo game provider personnel form, in a format prescribed by the board, must be completed by each:
B. The linked bingo game provider personnel form must include:
C. An organization chart illustrating the management structure of the linked bingo game provider and the personnel involved in the conduct and administration of linked bingo games.
D. A detailed description of the management plan for operation of the linked bingo game system and linked bingo game, including:
E. Evidence of the bond required by Minnesota Statutes, section 349.1635, subdivision 3.
F. A certificate from a board-approved independent testing laboratory certifying that the linked bingo game system meets the requirements contained in parts 7863.0260, subparts 1 and 1a, and 7863.0270.
G. Additional information that may be required by the board to ensure compliance with Minnesota Statutes, sections 349.11 to 349.23.
Subp. 6. Changes in linked bingo game provider license application information.
If any information submitted in the application changes during the license term, the linked bingo game provider must notify the board within ten days of the change.
Subp. 7. Issuing or denying a new or renewal linked bingo game provider license.
This subpart applies to a new or renewal linked bingo game provider license issued or denied by the board.
A. Before issuing a new or renewal linked bingo game provider license, the board must conduct or request the director of alcohol and gambling enforcement to conduct a background investigation which may include a review of the linked bingo game provider's sources of financing, ownership, and organizational structure. Actual costs in addition to the new or renewal application fee must be paid by the linked bingo game provider.
B. All employees, contract employees, and independent contractors working on behalf of the linked bingo game provider are subject to a background investigation as determined by the board.
C. Any entity providing application software not developed internally by the licensee is subject to a background investigation as determined by the board.
D. Any independent contractor providing application software is subject to the requirements of Minnesota Statutes, sections 349.1635; and 349.155, subdivisions 3 and 4.
E. The board must issue a new or renewal license to a linked bingo game provider who:
F. The board must deny the application if a linked bingo game provider:
G. Fees submitted with a new or renewal license application are considered earned and are not refundable.
Subp. 8. Linked bingo game provider license effective date.
A linked bingo game provider license issued by the board is effective on the first day of the month after board approval or as otherwise determined by the board.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613; 44 SR 25
Minn. R. 7863.0260 Linked Bingo Game Provider Operations, Accounts, Reports, and Records
Subpart 1. Board approval; purchase or lease of gambling equipment and linked bingo services.
A. To obtain board approval for linked bingo games, a linked bingo game provider must provide the linked bingo game on its system to the director, at no charge, to be used to determine compliance with subparts 1 and 1a and part 7863.0270.
B. Previously approved electronic linked bingo games and systems approved before July 15, 2019, must come into compliance within 180 days of July 15, 2019.
C. A linked bingo game provider may not purchase or obtain gambling equipment or linked bingo services from any other linked bingo game provider.
D. Electronic linked bingo system and device leases must contain:
E. The lease price of an electronic linked bingo system and devices:
F. The linked bingo game provider must submit a copy of the lease agreement to the board within ten days of signing or amending a lease agreement.
G. Within ten days of being notified by the board that a linked bingo game provider has terminated its license, the license has expired, or the license was revoked by the board, a licensed linked bingo game provider must submit to the board a certified physical inventory. The certified inventory must include the name, form number, and quantity of all gambling equipment currently in inventory or owned or leased by the linked bingo game provider.
Subp. 1a. Linked bingo game system requirements.
The linked bingo game system must meet the following requirements:
A. be capable of recording and printing detailed sales and accounting reports, including the price per face and the number of linked bingo paper sheets or facsimiles of linked bingo sheets sold at each permitted premises;
B. have an automatic or manual backup system to save all sales, financial, and game data;
C. be capable of recording and printing all financial transaction reports, in addition to maintaining, and printing on demand by the board, a log of significant events or exceptions relating to accounting and sales;
D. have secure access, limited to authorized persons only;
E. allow for sales data corrections, if necessary, by authorized personnel through a password-controlled audit menu, and maintain and print on demand by the board, a log of all accounting changes including the name of the person who made the changes, date and time of the change, and the items adjusted;
F. have the capability of supporting remote sales units that must immediately communicate all sales directly to the main linked bingo game system computer;
G. have either a bingo ball blower system or an electronic random number generator to select bingo numbers, have the means to enter the selected numbers into the linked bingo game system for validation purposes, and have the means to correct any input errors up to the time a valid linked bingo game winner is determined;
H. contain a means by which all bingo sheet perm numbers or electronic serial and face numbers are contained within the database for winning face identification. The linked bingo game system must be able to verify winning serial and face numbers, determine if there is more than one bingo, verify that each called bingo is valid, and print a record of all selected numbers and each winning bingo face;
I. possess a database of all bingo perms used in conjunction with the linked bingo game. The linked bingo game system must not allow changes or modifications to the bingo faces. Access to the database must be controlled by password authorization or another secure method;
J. maintain an internal clock with current synchronized time for all components in 24-hour format and date. The clock must be able to provide:
K. be capable of producing general accounting reports, including the information prescribed by the board; and
L. be tested by a board-approved independent testing laboratory certifying that the system meets the requirements in this subpart, with all costs associated with testing paid by the linked bingo game provider. Before being implemented, any subsequent changes in the game system must be submitted to the director for review and approval. The linked bingo game provider must modify the system as required by the director to ensure compliance with these requirements.
Subp. 2. Sales of linked bingo paper; sale and lease of linked bingo game system equipment and services.
This subpart applies to the sale of linked bingo paper and the sale or lease of linked bingo game system equipment and services.
A. A linked bingo game provider may not provide any linked bingo paper or linked bingo game system equipment or services to a licensed distributor or a licensed organization before the effective date of the linked bingo game provider's license.
B. The terms and conditions of an agreement to provide linked bingo game system equipment or services to a licensed organization must be in a form approved by the board. The agreement must include details on the operation of the linked bingo game and distribution of costs and proceeds. A copy of the agreement must be submitted to the board or director before the first linked bingo game is conducted by the organization. Before being implemented, any subsequent changes to an agreement must be submitted to the director for review and approval.
C. If an organization's license is revoked, lapsed, or terminated, or if the premises permit is revoked, the linked bingo game agreement is canceled without further obligations on the part of the organization, except that all linked bingo equipment must be returned by the organization to the linked bingo game provider.
D. Linked bingo paper sold for use in Minnesota must be delivered only to the licensed distributor that ordered the linked bingo paper.
E. A linked bingo game provider may not provide a merchandise prize to a licensed organization conducting linked bingo.
F. The following apply to the lease of electronic bingo devices used for linked bingo games:
Subp. 2a. Conduct of linked bingo game.
When conducting a linked bingo game in conjunction with the requirements of part 7861.0270, subpart 10, a linked bingo game provider must:
A. comply with the management plan required by part 7863.0250, subpart 5, item D, and approved by the board, with any subsequent changes to be reviewed, modified if necessary, and approved by the director;
B. ensure that the linked bingo system operates as required by subparts 1 and 1a and part 7863.0270;
C. establish and maintain audio, video, and secured data transmission as necessary. Before the first bingo number is selected, the linked bingo game provider must verify the link status between all participating organizations and the location where the bingo numbers are being selected. Before the first bingo number is selected, the linked bingo game provider must announce or display to the players the jackpot amount;
D. if the primary transmission of audio, video, or data fails, the linked bingo game provider must have procedures in place for game reconciliation;
E. record and keep for a minimum of 60 days all activity related to the transmission of a linked bingo game;
F. report winner verification to the board, which contains a jackpot winner's name, address, and phone number, within one business day of jackpot prize win. The winner verification form must include an eligibility acknowledgment by the jackpot winner;
G. award linked bingo prizes of $600 or more within three business days of verification of the winning bingo. Linked bingo prizes of less than $600 may be awarded as determined by the linked bingo game provider and approved by the board. Linked bingo prizes are considered awarded when mailed payment is postmarked. If payment is transmitted in any other manner, linked bingo prizes are considered awarded upon receipt by the player. If there are multiple winners, the jackpot amount must be equally divided and awarded for each verified winning bingo face. Fractional dollars may be rounded to the nearest higher dollar; and
H. prepare and submit to the appropriate state and federal agencies all relevant tax information pertaining to winners of linked bingo game jackpots.
Subp. 2b. Seeding of progressive prize jackpots.
A. All prize money from a progressive series of games must be awarded to players once the jackpot prize is won.
B. If a progressive jackpot prize amount to be awarded exceeds the amount players have contributed toward that jackpot prize, the linked bingo game provider must fund the difference between the amount contributed by players and the amount awarded. Amounts paid by the linked bingo game provider for this purpose may not be recovered from proceeds of another current or subsequent series of progressive games.
Subp. 3. Return of defective linked bingo paper; issuing credit invoice.
This subpart pertains to the return of linked bingo paper that was not manufactured in compliance with the standards in part 7864.0230 and was returned to the linked bingo game provider according to part 7861.0260, subpart 8.
A. Within 14 business days of accepting the return of linked bingo paper and making a determination that the linked bingo paper was not manufactured according to part 7864.0230, subpart 4, the linked bingo game provider must issue a credit invoice to the organization. A copy of the credit invoice must be filed electronically, as required by the commissioner of revenue.
B. If the linked bingo game provider ships replacement linked bingo paper to the organization, the linked bingo game provider must prepare a sales invoice as required in subpart 5.
Subp. 3a. Defective electronic linked bingo game.
A. If an electronic linked bingo game is found to be defective, the linked bingo game provider must immediately:
B. The linked bingo game provider may resolve the defect and, if determined by the board to be a change affecting the outcome of an electronic linked bingo game, must assign the game a new form number and resubmit the game for recertification by an independent testing laboratory and board approval.
C. If the defect does not have an effect on the outcome of an electronic linked bingo game, the director must first approve the resolution of the defect.
D. If the resolution of the defect does not have an effect on the outcome of an electronic linked bingo game, the director may approve the amended game as defined in subpart 1a and part 7863.0270, subpart 36.
Subp. 3b. Defective, altered, lost, or stolen electronic linked bingo device.
A. If an organization notifies an electronic bingo game provider of a defective or an altered electronic linked bingo device, the linked bingo game provider must immediately notify the board. If the organization has not removed the device from play, the linked bingo game provider must immediately ensure the device is removed from play.
B. If an organization notifies a linked bingo game provider of a lost or stolen electronic linked bingo device, the linked bingo game provider must immediately disable the device and notify the board.
C. The linked bingo game provider must report to the board any removal of a defective or an altered electronic linked bingo device at a site, or any lost or stolen device, within one business day.
Subp. 4. Recall of gambling equipment; issuing credit invoice.
A linked bingo game provider must participate in a gambling equipment recall mandated by the board or initiated by the manufacturer, or initiate a recall when it has determined that linked bingo paper does not meet the standards of part 7864.0230, subpart 4, and comply with the following requirements.
A. Within three business days of receiving notification from the manufacturer or board director, the linked bingo game provider must initiate the recall from licensed organizations to which it sold the linked bingo paper.
B. The linked bingo game provider must complete the recall within 15 business days of initiation and notify the board and the commissioner of revenue in writing that it has completed the recall. The notification must include the following:
C. Within seven business days of receiving a credit invoice from the manufacturer, the linked bingo game provider must issue credit invoices to all organizations returning linked bingo paper under the recall. Credit invoices must include the cost of freight paid by the organization and any valid and documented losses incurred over which the organization had no control or ability to prevent. Copies of the credit invoices must be filed electronically as required by the commissioner of revenue.
Subp. 5. Sales invoice; linked bingo game provider of other than electronic linked bingo equipment.
A linked bingo game provider who sells, leases, or provides linked bingo equipment must record the transaction on a sales invoice that contains the following:
A. linked bingo game provider's name, address, telephone number, and license number;
B. name, address, and license number of the organization or distributor to whom the sale was made, and premises permit number of the site;
C. invoice number;
D. name of the person who ordered the linked bingo paper, and name of the linked bingo game provider's salesperson who sold the linked bingo paper;
E. date of shipment and shipping charges, if any;
F. any applicable sales tax;
G. color and serial number, unit price, and total amount being invoiced;
H. unit price or lease cost of each item and total amount being invoiced;
I. any value for discount, rebate, or other incentive affecting the unit price which must be separately stated; and
J. price for which the linked bingo paper must be sold by the organization.
Subp. 5a. Sales invoice; linked bingo game provider of electronic linked bingo equipment.
A linked bingo game provider who sells, leases, or provides electronic linked bingo equipment must record the transaction on a sales invoice that contains the following:
A. the linked bingo game provider's name, address, telephone number, and license number;
B. the name, address, and license number of the organization or distributor to whom the sale was made, and premises permit number of the site;
C. an invoice number;
D. the date of shipment and shipping charges, if any;
E. any applicable sales tax;
F. the serial number, unit price, and total amount being invoiced;
G. the unit price or lease cost of each item and total amount being invoiced; and
H. any value for discount, rebate, or other incentive affecting the unit price which must be separately stated.
Subp. 6. Monthly sales report to revenue required.
A linked bingo game provider who sells, leases, or provides gambling equipment must electronically report the transactions made each month to the commissioner of revenue as required under Minnesota Statutes, section 297E.05. The report is due by the 20th of the next month.
Subp. 7. Delinquent organization notice to board required.
This subpart pertains to the notice to the board that an organization is delinquent in payment of an invoice.
A. If a linked bingo game provider has not received payment from an organization within 30 days of the day immediately following the invoice date or lease agreement, the linked bingo game provider must report the delinquency to the board in writing in an electronic format authorized by the board. The linked bingo game provider must ensure that the board will receive the notice by the 31st day, or the next business day, after the invoice date for the sale or lease of the gambling equipment. The notice must include:
B. If a linked bingo game provider has not received payment in full within 60 days of its initial notice to the board, the linked bingo game provider must notify the board of the continued delinquency. The linked bingo game provider must ensure that the board will receive the notice on the 61st day, or the next business day, after the linked bingo game provider's initial report to the board.
C. When the delinquency is paid, the linked bingo game provider must notify the board immediately.
D. Upon receipt of the initial notice under item A, the board must:
E. Upon receipt of the second notice under item B, the board must notify:
F. When the board has been notified that the delinquency is paid in full, the board must notify all linked bingo game providers and distributors that the delinquency has been paid and that the sale or lease of gambling equipment to the organization is authorized.
G. Until authorized by the board, a linked bingo game provider or distributor may not extend credit or sell or lease gambling equipment to an organization in violation of an order under items D and E.
Subp. 7a. Game records and reporting required for electronic linked bingo.
The linked bingo game provider must keep a record of each electronic linked bingo game that includes at a minimum the following information:
A. names and license numbers of all organizations participating, the date the linked bingo game was conducted, and a list of all participating permitted premises, including name and city;
B. gross receipts and prizes paid for each game;
C. cumulative contributions to the jackpot or jackpots from each site;
D. current jackpot totals;
E. the number of bingo numbers called for each bingo game;
F. any progressive jackpot prize winnings;
G. the name and city of each permitted premises where each winning bingo was won;
H. the amount of money collected from each licensed organization for each jackpot;
I. winner information, which must be reported to the board within one business day of the jackpot prize win, including the winner's name, address, and phone number, and the amount of the jackpot won;
J. the date the check was mailed to the jackpot winner; and
K. a copy of the check, along with all correspondence related to any returned, unclaimed, or voided checks. With the exception of this item and items I and J, all electronic linked bingo game information, including game sales, must be searchable by the board and recorded in a manner that allows the information to be electronically transmitted to the board's computer system upon demand by the board, and at the expense of the linked bingo game provider.
Subp. 8. Game records required for linked bingo conducted with linked bingo paper sheets.
The linked bingo game provider must keep a record of each linked bingo game conducted with linked bingo paper sheets. The record must include, at a minimum, the following information for each linked bingo game:
A. names and license numbers of all organizations participating, the date the linked bingo game was conducted, and a list of all permitted premises, including name and city;
B. price per face for linked bingo paper sheets and the quantity of linked bingo paper sheets sold at each permitted premises, including serial numbers and face numbers;
C. bingo pattern played; a list of all selected letters and numbers, in order selected, and the letter and number called that produced the winning bingo; and a copy of each winning face;
D. jackpot amount and any progressive jackpot prize winnings;
E. winner's information, including:
F. name and city of each permitted premises where each winning bingo was won;
G. amount of money collected from each licensed organization for each jackpot; and
H. amount of fees collected for each linked bingo game. All linked bingo game information, including game sales, must be recorded in a manner that allows it to be electronically transmitted to the board's computer system upon demand by the board, and at the expense of the linked bingo game provider.
Subp. 9. Records and reports maintained.
The linked bingo game provider must maintain reports and records of the sale of linked bingo paper, the sale or lease of linked bingo game system equipment, the conduct of each linked bingo game, and linked bingo game agreements as required by this part and by Minnesota Statutes, section 297E.05, for 3-1/2 years.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7863.0270 Electronic Linked Bingo Game System Standards and Requirements
Subpart 1. Scope.
In addition to the provisions of parts 7861.0270 and 7863.0260, subparts 1 and 1a, and Minnesota Statutes, sections 349.12, subdivisions 12a, 25a, and 25c; 349.17, subdivisions 6, 8, and 9; and 349.211, subdivision 1a, an electronic linked bingo game system must meet the requirements contained in this part.
Subp. 2. Activating play.
Coded entry to activate play may include manual entry or the use of a magnetic strip card or bar-coded receipt provided at the point of sale.
Subp. 3. Initial screen.
An initial screen must appear displaying a main menu containing:
A. the linked bingo game provider's logo;
B. the compulsive gambling hotline telephone number; and
C. electronic linked bingo games available for play.
Subp. 3a. No simultaneous play.
An electronic game device may be used to play an electronic linked bingo game or an electronic pull-tab game. The electronic game device must not allow for the purchase of an electronic pull-tab from any screen of an electronic linked bingo game.
Subp. 4. Electronic monitoring by board.
Electronic monitoring of the operation of the electronic linked bingo device by the board will be limited to read-only access of transaction logs and status of devices. The board is not allowed to alter any data or game play.
Subp. 5. Secured data transmission.
An electronic linked bingo game system must provide secured data transmission to all participating locations. Separate computing communications methods are required for each linked bingo game provider and each manufacturer. All data for each linked bingo game provider and manufacturer must be secure, separate from, and inaccessible to other linked bingo game providers and manufacturers.
Subp. 6. Changes in software or hardware.
If there is any change in software or hardware by a linked bingo game provider, the linked bingo game provider must assign a new version or code build number and must submit the new software version or code build number to the director for review, and, if required by the director, the game or equipment must be submitted for review and approval by the board. The new version or code build number must be approved by a certified independent testing laboratory.
Subp. 6a. Same version or updates.
An electronic linked bingo provider's devices must operate on the same version of all installed software.
Subp. 7. Changes in version of system or game.
A. If there is a change in the version or code build number of a system or game, the linked bingo game provider must assign a new version or code build number for any changes or upgrades to the electronic linked bingo system or game to indicate a change of the version or code build number of the system or game.
B. Any changes to the electronic linked bingo game or system must be approved by the director before the game or system is placed into operation.
C. Any changes in a version or code build number that have an effect on the outcome of a previously approved game must be retested by a certified independent testing laboratory.
Subp. 7a. Daily system close for update.
All electronic linked bingo game systems must automatically close and update all site activity from the previous day to the central server by 2:30 a.m. central standard time.
Subp. 8. Application software.
All application software must be owned by the linked bingo game provider. Software developed by the linked bingo game provider must also meet the requirements of this subpart.
A. For purposes of this subpart, application software is developed by the linked bingo game provider if the linked bingo game provider designs the central system, database, user interface, the program architecture, and programs the source code.
B. Application software must be designed to accommodate assistive technology. Assistive technology is any item, piece of equipment, software program, or product system that is used to increase, maintain, or improve the functional capabilities of persons with disabilities.
C. A licensed linked bingo game provider may jointly develop application software for an electronic linked bingo system and an electronic pull-tab system with a licensed electronic pull-tab manufacturer if the jointly developed application software permits the operation of electronic linked bingo games and electronic pull-tab games on the same electronic linked bingo device or electronic pull-tab device.
D. Any application software to be used by the linked bingo game provider must be wholly owned free and clear and without any obligation or condition by any entity other than the licensed linked bingo game provider.
E. The linked bingo game provider must provide the board with documentation establishing ownership of the intellectual property rights to the entire game application software and system.
Subp. 9. Secure communication.
Connections between all components and access points of the electronic linked bingo game system must only be through the use of secure communication protocols that are designed to prevent unauthorized access or tampering, employing:
A. Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST); and
B. IEEE 802.11 standards contained in the Wi-Fi Protected Access II (WPA2) authentication protocols.
Subp. 10. Independent verification check.
The electronic linked bingo game system and all devices that communicate with the electronic linked bingo game system must have the ability to allow for an independent verification check of the system's software from an authorized source approved by the board. The independent verification check ability is required for all application software that the board determines may affect the integrity of the game. The verification check must provide a means for on-site and off-site field verification of the software and applicable devices to identify and validate the program. All Minnesota board-approved games must be identical to the games presented to a certified independent testing laboratory, including user-acceptance testing and quality assurance required under subpart 36.
Subp. 11. Electronic accounting data.
Electronic accounting data must be at least ten digits in length and must be maintained in dollars and cents.
Subp. 12. Cash and inventory verification.
The system must record the value of bingo faces purchased and played, and prizes won.
Subp. 13. Restricted use.
A. Individual components of an electronic linked bingo game system must not be capable of being used as stand-alone units for the purposes of engaging in any function or use not permitted by these standards at any time.
B. External ports on the device, if any, must be secured or disabled from unauthorized use.
C. No component of an electronic linked bingo system may retain any personal player information after the player has returned the device to the game operator, other than winner information required on a winner verification form.
Subp. 14. Memory backup.
Central servers must have nonvolatile backup memory or its equivalent that must be maintained in a secure compartment on the central server for the purpose of storing and preserving a redundant set of critical data that include:
A. error corrections that may have occurred on electronic linked bingo devices or central server, such as an invalid PIN or a game interrupt;
B. program error check and verification and authentication of any mismatch;
C. recall of all wagers and other play information, such as electronic linked bingo face number, serial number, and permutation number of game, associated with all games in play and prior to closeout of daily activity;
D. electronic accounting data capturing the record of transactions for electronic linked bingo devices in use for the central server including:
E. comprehensive checks of critical memory for each device in operation following game initiation including each specific bingo face in play, bingo numbers selected, and winner verification. An unrecoverable corruption of critical memory must result in an error notification and cause all electronic linked bingo devices in play to cease further function. An unrecoverable critical memory error report must be immediately generated to the board and must include the name of the authorized person who performs any recapture or memory clear of the central server; and
F. the ability to immediately, accurately, and securely cash out all players who have funds in the system in the event of power or communications network loss or other time of game or play interruption.
Subp. 15. Randomization.
An electronic linked bingo game system must use randomizing procedures in the creation of games for electronic linked bingo faces that have been created using a method previously approved by the board. As used in this subpart, unless the context requires a different meaning, "face position" means the first bingo face dealt, second bingo face dealt, in sequential order, and "number position" means the first number drawn in sequential order. Any random number generation, shuffling, or randomization of outcomes used in connection with an electronic linked bingo system must be by use of a random number generation application that has successfully passed standard tests for randomness and unpredictability as defined in part 7861.0210, subpart 44.
Subp. 16. Game information on system.
Prior to the commencement of an electronic linked bingo game, the following data must be maintained and be viewable electronically on the electronic linked bingo game system:
A. a unique serial number identifying each game or session ID and each bingo face ID;
B. a description of the game sufficient to categorize the game or session relative to other games or sessions;
C. the jackpot prize for the game or session based on the number of electronic linked bingo faces in play for each game and the cost for each face; and
D. the purchase price per electronic linked bingo face assigned to the game or session.
Subp. 17. Game information on device.
The following data must be maintained and be viewable electronically on the electronic linked bingo device:
A. the pattern;
B. the cost;
C. confirmation that a game is active;
D. the estimated prize amount;
E. the number on the ball selected;
F. the number of balls called; and
G. the site of the winner.
Subp. 18. Electronic linked bingo face generation.
Upon purchase initiation request from an electronic linked bingo device, the electronic linked bingo system must dispense an electronic facsimile of a bingo face. Once dispensed, such face or outcome must not be reused until the bingo permutation is exhausted.
Subp. 18a. Animated win determination.
Electronic linked bingo games may contain animated win determinations, but displays may not simulate spinning reels or nonstraight win line graphic representations.
Subp. 19. Game auditing.
A. Only upon the game termination shall the details of that game be revealed.
B. If an audit or other game determination is conducted while a game is in play, termination of the entire game must immediately occur.
C. Access to the reporting portal must be secure and limited only to the gambling manager, the authorized organization members who are not sellers, the organization's accountant, and the licensed distributor that leased the electronic game system to the organization. Access to the portal requires a unique identifying code and password for each individual user. Sellers may not have reporting portal access.
D. Any individual with access to the reporting portal may not play electronic bingo games.
Subp. 20. Game definition.
All games and sessions must contain the following information:
A. game ID;
B. game pattern type;
C. game version;
D. linked bingo game provider;
E. game name;
F. purchase price per electronic linked bingo face; and
G. prize payout for jackpot.
Subp. 21. System security and access.
A. The electronic linked bingo game system must be located in Minnesota in a secure location with limited, authorized access.
B. Any system elements that hold game data, other than the electronic linked bingo devices, must be in a locked area or in a locked case or compartment with access limited to designated personnel.
C. The linked bingo game provider must register employees having authorized system access with the board.
D. The system must be in a secure location and provide electronic security for the games against alteration, tampering, or unauthorized access.
E. The system must allow the board and other authorized state representatives real-time access to data and equipment, including all accounting for sales, prizes, and credits per device, per site.
Subp. 22. Data alteration.
The electronic linked bingo system must not permit the alteration of any accounting or significant event log information that was communicated from the electronic linked bingo device without board-approved access controls. In the event financial data is changed, the electronic linked bingo system must be able to produce an automated audit log documenting the:
A. data element altered;
B. data element value prior to alteration;
C. data element value after alteration;
D. time and date of alteration; and
E. user log-in of personnel that performed alteration.
Subp. 23. Backup and recovery.
A. An electronic linked bingo system must have a separate physical medium for securely storing required data on the computer, which must be backed up in real time by a backup medium.
B. All data required to be available or reported by this subpart must be retained for a period of not less than 3-1/2 years.
C. All storage of critical data must use error checking and be stored on a nonvolatile physical medium.
D. The database must be stored on redundant media so that no single failure of any portion of the system would result in the loss or corruption of data.
E. In the event of a catastrophic failure when the electronic linked bingo system cannot be restarted in any other way, it must be possible to reload the electronic linked bingo system from the last viable backup point and fully recover the contents of that backup, to consist of at least the following information:
Subp. 24. System access; password requirements.
A. The linked bingo game provider must maintain password access for the linked bingo game provider; the distributor must maintain password access for the distributor; and the organization must maintain password access for the gambling manager and sellers.
B. The linked bingo game provider, the distributor, and the organization must register employees and volunteers with authorized system access with the board.
C. The operating system software and application software must have multiple security access levels to control and restrict different classes of access. The accounts for the access levels must be unique when assigned to the authorized personnel and only one user per account is allowed.
D. The operating system software and application software must provide comprehensive password security or other secure means of ensuring data integrity and enforcing user permission. It is required that:
Subp. 25. System log-in and log-out requirements.
Access to an electronic game system requires a password log-in with two-factor authentication (2FA) comprised of a personal identification code and a personal password. System log-in and log-out requirements apply to linked bingo game providers, distributors, gambling managers, assistant gambling managers, users authorized by the gambling manager, and sellers.
Subp. 26. Electronic accounting and reporting; record of daily system transactions.
A. One or more electronic accounting systems must perform reporting and other functions in support of the electronic linked bingo system. A linked bingo game provider may enhance its accounting system, with director approval, for innovation in lawful gambling reporting. The electronic accounting system must not interfere with the outcome of any gaming function.
B. A database containing a permanent record of daily transactions played on the electronic linked bingo game system must be maintained by the electronic linked bingo game system on the central server. The database and central server must be accessible to the board at all times.
Subp. 26a. Point-of-sale system requirements.
A. The point-of-sale system used for the conduct of electronic games must require entry of the seller's unique identifying code to open the point-of-sale system.
B. The point-of-sale system must record the unique identifying code of any person making any transaction at any time. The user list naming each seller with the seller's unique identifying code must be available on the linked bingo game provider's portal.
C. The point-of-sale system must be capable of immediately producing an electronic game occasion report, using the prescribed terminology, that includes the following information:
D. The point-of-sale system may only include game-related transactions.
Subp. 27. Reporting requirements of electronic accounting system.
The electronic linked bingo game system must provide the following reports to the Gambling Control Board and the Department of Revenue.
A. An electronic linked bingo game report must be available on demand for each game currently in play and prior to winner verification. The report must contain the following information:
B. An electronic linked bingo game report must be available on demand for each completed game. The report must contain the following information:
C. Other electronic linked bingo game reports that must be available on demand are:
D. By the tenth day of each month, the linked bingo game provider must provide an invoice to the organization that includes the following information, using the prescribed terminology, for the previous month's electronic linked bingo activity at each premises:
E. Other statistical and activity reports as required by the board and maintained by the linked bingo game provider must be provided in a format prescribed by the board upon request.
F. Historical data from all sites, both active and inactive, must be available to the board as follows:
Subp. 28. Electronic game system.
A. Each component of an electronic game system must function as indicated by the communication protocol implemented by the licensed linked bingo game provider of the electronic linked bingo game system.
B. All communication between the central server and the electronic linked bingo devices must use authentication and encryption protection employing Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST) and the IEEE 802.11 standards contained in the Wi-Fi Protected Access II (WPA2) authentication protocols to provide secure authentication of the device and the central server, ensure the integrity of the data communicated, and for confidentiality.
C. The communicated data must be encrypted. All systems must require virtual private network (VPN) or secure sockets layer (SSL) encrypted tunneling protocols unless otherwise approved by the board. The certified testing laboratory must examine each submitted electronic game system to ensure that the proposed field configuration will be secure. The certified testing laboratory may provide additional security recommendations to maintain the integrity of the configuration.
D. The electronic game system must be capable of being tested by the board to verify approved product.
Subp. 29. Electronic game system security.
A. The electronic game system security must be designed or programmed in such a way that it may only communicate with authorized electronic devices using a nonbroadcasting encrypted system.
B. The electronic game system security must include the ability to automatically disable an electronic linked bingo device if the device goes beyond a physical property restriction at a sales location. The device must remain disabled until reactivated at the point of sale.
C. The electronic game system must be secure from all other site communication systems and users at a gambling site.
Subp. 30. Firewall protection.
All communications must pass through at least one application-level firewall recognized by the certified testing laboratory. Redundant communications methods are allowed if equally protected by a firewall. Each linked bingo game provider and manufacturer shall implement and maintain communications methods, including any redundancy, separate from other linked bingo game providers and manufacturers. The firewall application must maintain an audit log of the following information and must disable all communications if unauthorized access is detected:
A. all changes to configuration of the firewall;
B. all successful and unsuccessful connection attempts through the firewall; and
C. the source and destination IP addresses and port numbers.
Subp. 31. Remote access.
Where permitted by the board, remote access must authenticate all computer systems based on the authorized settings or firewall application. The following are additional requirements:
A. no unauthorized remote user administration functionality;
B. no unauthorized access to any database other than information retrieval using existing functions;
C. no unauthorized access to the operating system and application software; and
D. maintenance of an activity log that includes:
Subp. 32. Data access by board.
The system must include on-demand remote access at all times by the board to all electronic reporting data without participation of the linked bingo game provider or the distributor.
Subp. 33. Test system and equipment.
Linked bingo game providers must provide a test system and equipment to the Gambling Control Board, at the linked bingo game provider's expense, to test pending and approved games.
Subp. 34. Test software.
A. Linked bingo game providers must provide identical software to the board as part of system approval by an independent testing laboratory and must disable the ability to write to the hard drive.
B. Linked bingo game providers must allow regulatory test software to be added to an electronic game system to verify approved product.
Subp. 35. Activation of daubing.
The system must acknowledge that a player has activated the daubing process.
Subp. 36. Prior board approval required for electronic gambling equipment; conformance with standards for previously approved electronic gambling equipment; independent laboratory testing required for certain electronic gambling equipment.
This subpart applies to board approval of electronic gambling equipment, conformance with standards for previously approved electronic gambling equipment, and independent laboratory testing required for certain electronic gambling equipment.
A. Before the sale, lease, or distribution of any electronic gambling equipment in Minnesota, a linked bingo game provider must obtain prior board approval for the electronic gambling equipment. The linked bingo game provider must provide to the director at no charge the following:
B. Electronic gambling equipment must be received by the board on or before the 15th day of the month to ensure consideration at the board's meeting the following month.
C. The board must notify the linked bingo game provider in writing no later than five days after a board meeting of the board's decision on whether the product is approved for sale in Minnesota.
D. For changes to the payout structure for any approved game, the linked bingo game provider must assign a new game identification and submit the game for review and approval by the board before being offered for sale in Minnesota.
E. For changes to approved electronic gambling equipment, the linked bingo game provider must submit the changes to the director for review, and, if required by the director, equipment must be submitted for review and approval by the board.
F. Within 14 days of receipt of an electronic linked bingo game, the director must notify the linked bingo game provider in writing of the director's decision to recommend approval or recommend denial.
G. Linked bingo game providers are in compliance if the electronic gambling equipment is approved by the board and is produced in compliance with the standards prescribed in this part. Once approved, a linked bingo game provider may not change the equipment without prior approval of the board, in compliance with this subpart and part 7863.0260, subpart 1a. The board shall withdraw its approval if it determines that the electronic gambling equipment:
H. Not later than December 31 of each calendar year, a linked bingo game provider must submit to the board, on a form prescribed by the board, a list of all board-approved games that it intends to sell in Minnesota. Any board-approved game not included on the linked bingo game provider's list, or any board-approved game that has not been played by a licensed organization in Minnesota in the previous two calendar years, will be considered abandoned by the linked bingo game provider and will be removed from the board's approved games database. Nothing in this subpart prohibits a linked bingo game provider from voluntarily informing the board at any time of an abandoned game. A voluntarily abandoned game may not be provided by a linked bingo game provider for play in Minnesota unless the game is reapproved by the director.
I. Independent testing requirements for electronic gambling equipment when required by the board shall include a certification from a board-approved testing laboratory that the electronic gambling equipment tested meets the electronic linked bingo standards and requirements as established in Minnesota Statutes and Minnesota Rules and in conformance with game procedures as provided by the linked bingo game provider. The certification must include:
J. Independent testing of electronic gambling equipment includes:
History
- Statutory Authority: MS s 349.151; 349.163
- History: 38 SR 1613; 41 SR 137; 44 SR 25
Chapter 7864 GAMBLING EQUIPMENT MANUFACTURERS
Minn. R. 7864.0010 Repealed by subpart
Subpart 1.
[Repealed, 29 SR 443]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 19 SR 1854]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Subp. 8.
[Repealed, 31 SR 1239]
Subp. 9.
[Repealed, 29 SR 443]
Subp. 10.
[Repealed, 31 SR 1239
Subp. 11.
[Repealed, 31 SR 1239]
Subp. 12.
[Repealed, 29 SR 443]
Subp. 13.
[Repealed, 31 SR 1239]
Subp. 14.
[Repealed, 31 SR 1239]
Minn. R. 7864.0020 [Repealed, 19 SR 1854]
[Repealed, 19 SR 1854]
Minn. R. 7864.0030 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 31 SR 1239]
Subp. 4.
[Repealed, 29 SR 443]
Subp. 5.
[Repealed, 31 SR 1239]
Subp. 6.
[Repealed, 31 SR 1239]
Subp. 7.
[Repealed, 31 SR 1239]
Minn. R. 7864.0210 Manufacturer Licenses
Subpart 1. Manufacturer license required.
A manufacturer of gambling equipment may not sell or furnish gambling equipment for use in Minnesota to any licensed distributor or linked bingo game provider unless the manufacturer has obtained a manufacturer's license or license renewal issued by the board.
Subp. 2. Manufacturer licensing qualifications.
A. A manufacturer is not eligible for a manufacturer's license unless they have met the requirements of Minnesota Statutes, sections 349.155, subdivision 3, and 349.163. For purposes of compliance with Minnesota Statutes, section 349.155, subdivision 3, the following definitions apply.
B. All employees, contract employees, and independent contractors working on behalf of the manufacturer involved in the installation or maintenance of an electronic game system are subject to a background investigation as determined by the board.
C. Any entity providing application software not developed internally by the licensee is subject to a background investigation as determined by the board.
D. Any independent contractor providing application software is subject to the requirements of Minnesota Statutes, section 349.155, subdivisions 3 and 4; and 349.1635.
Subp. 3. Manufacturer restrictions.
In addition to the prohibitions in Minnesota Statutes, sections 349.155, subdivision 3, and 349.163, the following restrictions apply when conducting business with distributors or linked bingo game providers authorized to sell lawful gambling equipment in Minnesota. A manufacturer, or any representative, agent, affiliate, or employee of a manufacturer may not:
A. be an officer, director, paid employee, gambling volunteer, or gambling manager of an organization involved in the conduct of lawful gambling;
B. be involved in or influence the purchase of gambling equipment for an organization;
C. be an owner, officer, director, or partner of a wholesale alcoholic beverage distributor;
D. lease or rent storage space in Minnesota from any other licensee or employee of a licensee of the board;
E. provide or permit an affiliate or person acting on behalf of the manufacturer to provide any compensation, gift, gratuity, premium, contribution, or thing of value to a board employee or board members;
F. lease premises to an organization for the conduct of lawful gambling;
G. directly or indirectly give gifts, trips, prizes, loans of money, premiums, or other gratuities to gambling organizations or their employees, other than nominal gifts not exceeding a value of $25 per organization in a calendar year. "Value" means actual market value or suggested market value, whichever is less. A manufacturer, or a representative, agent, affiliate, or employee of a manufacturer may not contribute more than $250 in any calendar year to an organization or participate in a fundraising event if the contribution or fundraising event is related to the organization's conduct of lawful gambling; or
H. provide any merchandise prize, as part of the sale of any game, either through a gift or sale, to an organization or employees of an organization conducting lawful gambling.
Subp. 4. Contents of manufacturer license application.
The manufacturer license application must contain the following information:
A. manufacturer's legal name, any other names used, the legal nature of the business (sole proprietorship, partnership, limited liability company, or corporation), Minnesota tax identification number, and federal employer identification number;
B. business address, telephone number, and mailing address, if different than the business address;
C. address and telephone number of each storage facility in Minnesota;
D. Minnesota tax identification number, if any;
E. names and titles of the owners, officers, directors, persons in a supervisory or management position, sales employees, and persons or entities with a direct or indirect financial interest of five percent or more in the manufacturer;
F. identification of any person who or entity that develops or provides application software to the manufacturer;
G. copies of licensing agreements with other entities for all software, except for operating system software, and hardware developed specifically for the purpose of conducting gambling on an electronic device. Operating system software agreements must be maintained by the manufacturer, be current, and be available to the board upon request;
H. type of gambling equipment to be sold in Minnesota;
I. address and telephone number of each facility where gambling equipment is manufactured;
J. name, address, and telephone number of the manufacturer's registered agent in Minnesota;
K. a list of all other states or jurisdictions where the manufacturer is currently licensed;
L. an acknowledgment regarding licensing qualifications in subpart 2 and restrictions in subpart 3;
M. date and signature, in ink, of the chief executive officer; and
N. additional information that may be required by the board to properly identify the manufacturer and ensure compliance with Minnesota Statutes, sections 349.11 to 349.23.
Subp. 5. Attachments to manufacturer license application.
The manufacturer must attach the following items to the application.
A. A manufacturer's personnel form, in a format prescribed by the board, must be completed by each:
B. The manufacturer personnel form must include:
C. The manufacturer must submit a copy of its logos which will be used to identify the manufacturer on all gambling equipment sold in Minnesota.
D. The manufacturer must submit an organizational chart illustrating its management structure.
Subp. 6. Changes in manufacturer license application information.
If any information submitted in the application changes during the license term, the manufacturer must notify the board within ten days of the change.
Subp. 7. Issuing or denying a new or renewal manufacturer license.
This subpart applies to a manufacturer license issued or denied by the board.
A. Before issuing or denying a new or renewal manufacturer license, the board must conduct or request the director of alcohol and gambling enforcement to conduct a background investigation that includes a review of the manufacturer's sources of financing, ownership, and organizational structure. Actual costs in addition to the new or renewal application fee must be paid by the manufacturer.
B. The board must issue a new or renewal license to a manufacturer who:
C. The board must deny the application if a manufacturer:
D. All fees submitted with a new or renewal license application are considered earned and are not refundable.
Subp. 8. Manufacturer license effective date.
A manufacturer license issued by the board is effective on the first day of the month after board approval or as otherwise determined by the board.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 38 SR 1613
Minn. R. 7864.0230 Manufacturer Standards for Lawful Gambling Equipment Other Than Electronic Pull-Tabs
Subpart 1. Prior board approval required for paper pull-tab games, tipboard games, promotional paper pull-tab or tipboard tickets, raffle boards, and bingo boards; conformance with standards for previously approved games.
The following pertain to prior board approval required for paper pull-tab games, tipboard games, promotional paper pull-tab tickets, tipboard tickets, raffle boards, and bingo boards manufactured for sale in Minnesota, and conformance with standards for previously approved games.
A. To obtain prior board approval for paper pull-tab and tipboard games, promotional paper pull-tab or tipboard tickets, raffle boards, and bingo boards, a manufacturer must submit to the director a deal of tickets; flare; prize pool board and chance ticket display, if any; raffle board; and bingo board that has been produced to comply with the manufacturing standards prescribed in this chapter.
B. Within 14 days of receipt of the gambling equipment, the director must notify the manufacturer in writing of the director's decision to recommend approval or recommend denial of the gambling equipment.
C. Manufacturers are in compliance if the gambling equipment is approved by the board, and all tickets, flares, any prize pool boards, chance ticket displays, raffle boards, and bingo boards, are produced in compliance with the manufacturing standards prescribed in this chapter. Once approved, a manufacturer may not change any gambling equipment without prior approval of the board, in compliance with subpart 11.
D. Not later than December 31 of each calendar year, a manufacturer must submit to the board, on a form prescribed by the board, a list of all board-approved games that it intends to sell in Minnesota. Any board-approved game not included on the manufacturer's list, or any board-approved game that the manufacturer has not shipped into Minnesota in the previous two calendar years, will be considered abandoned by the manufacturer and will be removed from the board's approved games database. Nothing in this subpart prohibits a manufacturer from voluntarily informing the board at any time of an abandoned game. A voluntarily abandoned game may not be shipped by a manufacturer into Minnesota unless the game is reapproved by the director. Abandoned games shipped into Minnesota by the manufacturer on or before December 31 may continue to be sold in Minnesota by licensed distributors and organizations.
E. The board may withdraw its approval if it determines that the paper tickets, including chance tickets and their chance ticket displays, flares, prize pool boards, if any, raffle boards, and bingo boards, were not manufactured in such a manner to be tamper-resistant. If the board decides that its approval should be withdrawn, the board will notify the manufacturer of its right to request a contested case hearing under Minnesota Statutes, chapter 14.
F. For changes to the payout structure or ticket count for any approved game or for any game within a family of games, the manufacturer must assign a new game form number and submit the game for review and approval by the board before being offered for sale in Minnesota. The version of gambling equipment containing changes approved by the director under subpart 11, item A, subitem (5), is the only version of the gambling equipment the manufacturer is allowed to ship into Minnesota for sale in Minnesota.
G. Previously approved games not in compliance with this part must come into compliance within 180 days of being notified by the board.
Subp. 1a. Manufacturing standards for paper pull-tab and tipboard ticket information.
A. Paper pull-tab, tipboard, and sports-themed tipboard tickets manufactured for sale in Minnesota must, at a minimum, include the following information printed on the front of a ticket and be the same for all tickets in a deal:
B. In addition to item A, multiple chance games must:
C. In addition to item A, requirements for qualifying winning tickets are as follows:
Subp. 1b. Manufacturing standards for design and manufacture of paper pull-tab and tipboard tickets.
The design and manufacture of paper pull-tab and tipboard tickets must comply with the following.
A. Except for folded and banded tickets, symbol blocks must be a minimum of 2.5/32 inch from the die-cut edge of the ticket.
B. To be tamper-resistant, tickets must be designed, constructed, glued, and assembled to prevent the determination of a winning or losing ticket before its sale to the public:
C. All winning tickets must have a primary and secondary form of identifying a winner. A secondary form of identifying a winner is not required for folded and banded tickets.
D. Winning tickets must comply with the following:
E. Dimensions must be the same for all tickets in the deal.
F. Tickets must not contain coupons or discounts.
G. The qualifying tickets for a multiple seal or cumulative game must specify the seal to be opened or uncovered by the seller, or indicate that the player may select the seal to be opened.
H. Pull-tab tickets for an event game must be designed in such a way to avoid duplicate winning hold tickets. This item pertains to event games allowed by Minnesota Statutes, section 349.1721, subdivision 2.
I. Each deal must have an ideal sales and prize payout structure designed to result in a profit for the game, not to exceed the limit under Minnesota Statutes, section 349.2113.
J. Chance tickets must be randomly placed by the manufacturer in a chance ticket display that conforms to the following:
K. Tickets used in sports-themed tipboard games must contain the statement "Not for resale."
Subp. 1c. Manufacturing standards for packaging of paper pull-tab and tipboard tickets.
The packaging of paper pull-tab and tipboard tickets for each deal must comply with items A to J.
A. Winning or qualifying tickets must be distributed and mixed among all other tickets in a deal to eliminate any pattern between deals or portions of deals from which the location or approximate location of any winning or qualifying tickets may be determined. The deal must be assembled so that placement of winning, qualifying, or losing tickets does not allow for the possibility of prize manipulation or selection of winning or qualifying tickets.
B. Subsets of a deal are not allowed.
C. A cumulative game may not contain more than 10,000 tickets in total for all deals in the game.
D. Progressive or cumulative sports-themed tipboards are not allowed.
E. Each deal's container must be sealed with a manufacturer's seal that includes a warning to the purchaser that the game may have been tampered with if the container was received by the purchaser with the manufacturer's seal broken.
F. The serial number must be clearly and legibly placed on the outside of the deal's container.
G. Except for deals packaged using a heat-sealed process with plastic with a minimum thickness of 2 mil, each pull-tab deal, including the flare and any other required information, must be sealed in shrink-wrap. Each case of individual tipboard games in which the tipboard tickets are affixed to the flare must be sealed in shrink-wrap. Chance ticket displays containing chance tickets must be packaged with the corresponding multiple chance game.
H. Chance ticket displays must have the game's name, form number, serial number, and prize tiers clearly printed on the display. A display constructed of transparent material where this information is visible on the chance tickets satisfies this provision.
I. The manufacturer must:
J. Each deal must contain the same number of tickets and winning combinations in the same denomination as listed on the flare.
Subp. 1d. Manufacturing standards for paper pull-tab flares, tipboard flares, and sports-themed tipboard flares.
A. The front of the paper pull-tab flare, tipboard flare, and sports-themed tipboard flare must include:
B. Flares must accurately reflect winning combinations. No disclaimers for variations of winning combinations are allowed.
C. In addition to items A and B, multiple chance game flares must contain the following:
D. The chance ticket display must be manufactured so that none of the information in the chance tickets can be determined in advance of opening the chance tickets in any manner or by any device including but not limited to any pattern in manufacture, assembly, packaging, markings, or by use of a light.
E. In addition to items A and B, sports-themed tipboard flares and grids must comply with the following:
Subp. 1e. Manufacturing standards for prize pool board for cumulative paper pull-tab or tipboard game.
The front of a prize pool board for a cumulative paper pull-tab or tipboard game must include, at a minimum:
A. manufacturer's name or board-registered logo;
B. game name;
C. form number, which must be identical to all deals related to the cumulative game;
D. prize structure, including the quantity of symbols or numbers for winning tickets by denomination, with their respective winning symbol or number combinations. The prize amounts may not exceed the limit under Minnesota Statutes, section 349.211;
E. cost per play, not to exceed the limit under Minnesota Statutes, section 349.211;
F. language contained in Minnesota Statutes, section 349.163, subdivision 5, paragraph (e);
G. Minnesota geographic boundary symbol printed on the bottom front of the flare, as required by Minnesota Statutes, section 349.163, subdivision 5, paragraph (d);
H. individually numbered seals that:
I. be manufactured so that none of the information under the seals can be determined in advance of opening or uncovering the seals in any manner or by any device including but not limited to any pattern in manufacture, assembly, packaging, markings, or by use of a light. A prize pool board that meets all of the requirements of this subpart may be used as the flare for the game.
Subp. 1f. Manufacturing standards for separate progressive paper pull-tab or tipboard jackpot flare.
For a separate progressive jackpot flare for a paper pull-tab game, the minimum information printed on the front of the flare must include:
A. manufacturer's name or board-registered logo;
B. game name and serial number, which must be identical to the same information printed on the tickets in the deal;
C. cost per play, which may not exceed the limit under Minnesota Statutes, section 349.211;
D. form number which must be identical to all games related to the specific progressive jackpot;
E. ticket count;
F. seals for the progressive jackpot round and consolation prize amounts, if any. The prize amounts may not exceed the limit under Minnesota Statutes, section 349.211;
G. section used by operators to record the current progressive jackpot amount; and
H. amount to be contributed to the progressive jackpot from each deal in the game. The flare must be manufactured so that none of the information under the seals can be determined in advance of opening or uncovering the seals in any manner or by any device including but not limited to any pattern in manufacture, assembly, packaging, markings, or by use of a light.
Subp. 1g. Manufacturing standards for promotional paper pull-tab or tipboard tickets.
Promotional tickets that mimic paper pull-tab and tipboard tickets, as defined by part 7861.0210, subpart 43, and Minnesota Statutes, section 349.12, subdivisions 18 and 31, must contain:
A. manufacturer's name or board-registered logo;
B. name of the promotional tickets;
C. unique form number;
D. unique serial number;
E. the following statements:
Subp. 1h. Manufacturing standards for promotional paper pull-tab and promotional tipboard flares.
The front of a promotional paper pull-tab flare and promotional tipboard flare must include:
A. the manufacturer's name or board-registered logo;
B. the game name and serial number, which must be identical to the same information printed on the tickets in the deal;
C. the unique form number for that game;
D. the ticket count;
E. the prize structure, showing the respective winning symbol or number combinations;
F. the words "no purchase necessary" and "for promotional use only";
G. a Minnesota geographic boundary symbol printed on the bottom front of the flare, as required by Minnesota Statutes, section 349.163, subdivision 5, paragraph (d);
H. the following statement printed in letters large enough to be clearly legible: "Pull-tab (or tipboard) players: This pull-tab (or tipboard) game is not legal in Minnesota unless: -- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and -- the serial number imprinted on the bar code at the bottom of this sheet is the same as the serial number on the pull-tab (or tipboard) ticket from this game.";
I. a bar code affixed or printed on the bottom front of the flare, as required by the commissioner of revenue under Minnesota Statutes, section 297E.04, subdivision 2. The serial number in the bar code must be printed in numbers and letters at least one-half inch high and must be the same as the serial number on the tickets for that deal and on the flare; and
J. for each deal sold to a licensed distributor for use by a Native American tribe, the flare must contain the bar code but must not contain the Minnesota geographic boundary symbol.
Subp. 2. Manufacturing standards for paper pull-tab dispensing devices.
Paper pull-tab dispensing devices used to dispense paper pull-tab tickets and manufactured to be sold or leased in Minnesota must have the manufacturer's name or board-registered logo, serial number, model number, and date of manufacture permanently attached to it, and conform to the following standards.
A. The electrical, electronic, and programming features of the paper pull-tab dispensing device must:
B. The column and dispensing features of a paper pull-tab dispensing device must comply with the following.
C. The accounting and access features must comply with the following.
D. The electronic currency validator must:
E. Each paper pull-tab dispensing device must be designed and constructed so that it can be securely attached to a floor, wall, or counter, and the appearance or design must not resemble a slot machine or other gambling device.
F. Any paper pull-tab dispensing device provided to a licensed distributor for demonstration purposes must be clearly and permanently marked for use as a demonstration device only.
Subp. 3.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 4. Manufacturing standards for bingo hard cards, bingo paper sheets, bingo paper sheet packets, and sealed bingo paper sheets.
Bingo hard cards, bingo paper sheets, bingo paper sheet packets, and sealed bingo paper sheets manufactured to be sold in Minnesota must include the manufacturer's name or board-registered logo and conform to the following standards.
A. Each bingo face, including bingo paper sheets not containing preprinted numbers, may contain color variations or predetermined patterns, and must have:
B. Numbers that are preprinted on the bingo hard card or bingo paper sheet face must not be repeated and must correspond with the following:
C. The serial number and face number must be printed on each bingo sheet face.
D. Each sealed bingo paper sheet must be constructed so that the bingo face or faces is sealed to prevent revealing any part of the bingo face before the seal is opened by a bingo player, and so that all of the bingo numbers on each face cannot be determined from the outside of the sheet by using a light or by the naked eye.
E. A "bingo permutation" or "perm" means a proprietary set of an arrangement of numbers on a bingo sheet face.
Subp. 5. Manufacturing standards for bingo number selection devices.
Bingo number selection devices manufactured to be sold in Minnesota must include the manufacturer's name or its board-registered logo and conform to the following standards.
A. Each device must ensure random selection of all 75 bingo numbers.
B. Each device must not be able to be manipulated by a person to alter the outcome of a bingo game.
C. Each device must be manufactured solely for the purpose of conducting lawful gambling.
D. Bingo board requirements are as follows.
Subp. 6. Manufacturing standards for electronic bingo devices.
In addition to the requirements of Minnesota Statutes, section 349.12, subdivision 12a, electronic bingo devices manufactured for sale or lease in Minnesota must include the manufacturer's name or board-registered logo and conform to the following standards:
A. the number of bingo faces that may be played using a single electronic bingo device is limited to 36 per bingo game;
B. must be designed to be used solely with facsimiles of bingo paper sheets, or with corresponding bingo paper sheets;
C. may be designed to be used with facsimiles of bingo paper sheets not containing predesignated numbers, for which a player will select bingo numbers for each required pattern, and the numbers are secured and printed on the receipt at the point of sale;
D. may be designed to be used with facsimiles of bingo paper sheets for a breakopen bingo game, for which duplicate facsimiles are not allowed in a single breakopen bingo game;
E. must ensure that any other bingo faces other than those purchased by a player are not available for play on the device;
F. must not have any other games or entertainment programs stored in or on the device, except for electronic pull-tabs;
G. may contain animated game win determinations, but must not simulate spinning reels or nonstraight win line graphic representations. Animated game win determinations approved before July 15, 2019, may remain available for play for 180 days after July 15, 2019;
H. may have an audio component, in addition to a visual component, that notifies a player when a winning face has been completed, with a feature to allow an organization to activate the component;
I. must have adequate security to ensure that the device is not capable of being accessed in any manner by unauthorized personnel to change or control the program and has not been marked, defaced, tampered with, or which is otherwise intended to deceive the public or affect a person's chances of winning;
J. must have, for a site used by an organization for the conduct of bingo, a central system that has at a minimum:
K. must not allow the use of tickets, tokens, coins, currency, or other cash equivalent to be inserted to activate play.
Subp. 6a. Manufacturing standards for raffle boards.
A. Raffle boards manufactured to be sold in Minnesota must have printed on the face of the board the following:
B. Raffle boards manufactured to be sold in Minnesota must contain:
C. Squares on a raffle board must be large enough to write a participant's name and contact information.
D. All entries in a raffle must be contained on one raffle board for each raffle.
E. Stubs on a raffle board must be identical in size.
F. Each stub must:
Subp. 7. Manufacturing standards for paddletickets.
Paddletickets manufactured to be sold in Minnesota must conform to the following standards.
A. The minimum information printed on a paddleticket must include:
B. Paddletickets must be preprinted, detachable from a paddleticket card, and correspond with the colored numbers on the paddlewheel and every available wager shown by a colored number or numbers on the paddlewheel.
C. A paddleticket may not have the same numbers as any other paddleticket on the same card.
D. The serial number on each paddleticket must be identical to the serial number on the paddleticket card.
E. An individual master flare with each sealed grouping of 100 or fewer sequentially numbered paddleticket cards must include the following information on the front of the flare:
F. An individual master flare for paddletickets that are used for paddlewheels with a paddlewheel table must contain the following information:
Subp. 8. Manufacturing standards for mechanical paddlewheels intended for use without a paddlewheel table.
Paddlewheels used without a paddlewheel table and manufactured to be sold in Minnesota must include the manufacturer's name or board-registered logo and conform to the following standards:
A. be a manually operated vertical wheel that operates only with a free-spinning bearing system and the contact of the pointer with pegs;
B. be marked off into equally spaced sections with each section containing a different number or number and symbol combination;
C. have protruding pegs located on the face of the paddlewheel within two inches of the outside edge and at each line which divides the paddlewheel into equally spaced sections:
D. have a pointer positioned above the paddlewheel. When the wheel is spun, the pointer must strike the pegs on the wheel to bring the wheel to a final stop.
Subp. 9. Manufacturing standards for mechanical paddlewheels intended for use with a paddlewheel table.
Mechanical paddlewheels used with paddlewheel tables and manufactured to be sold in Minnesota must include the manufacturer's name or its board-registered logo, and must conform to the following standards:
A. standards in subpart 8;
B. diameter must be at least 30 inches;
C. outer circle may contain up to 40 numbers or number and symbol combination;
D. numbers of each circle must be sequential, starting with the number one, but they may be placed randomly on that circle;
E. each circle must be divided into equally spaced sections and contain a sequential section number with the first section beginning with the number one. The section numbers may be randomly placed among the sections, but no number in the sequence may be missing or repeated. A section may also include a graphic symbol or symbols including stylized numbers. If stylized numbers are used, they must be clearly different from the type style used for the section number;
F. each circle must be of a different color to correspond with the colored numbers or number and symbol combinations of a paddlewheel table playing surface;
G. may have specially designated house numbers, or number and symbol combinations, for use with an optional odd or even bet; and
H. have colored numbers or number and symbol combinations on the paddlewheel that are at least five-eighths inch high.
Subp. 9a. Manufacturing standards for electronic paddlewheels.
Electronic paddlewheels must conform to the standards in items A to G.
A. The electronic paddlewheel game system and central server must have a password log-in with two level codes comprised of a personal identification code and a personal password.
B. The electronic paddlewheel operating system must provide comprehensive password security or other secure means of ensuring data integrity and enforcing user permission.
C. Log-in access to the operation of the electronic paddlewheel is restricted to the operator of the game, the gambling manager of the organization, and the system distributor.
D. The electronic paddlewheel must be secured when not in use to prevent any tampering or unauthorized use.
E. Prior to the acceptance of any wager, the operator of the game must conduct a test game to verify the electronic paddlewheel is operating according to the manufacturing standards of the device.
F. A log-in report must be maintained by the organization identifying the time and date the electronic paddlewheel was accessed for testing purposes or for actual play. The log-in report must include the start and end time of access.
G. Electronic paddlewheels must use a random number generator that conforms to part 7861.0210, subpart 44.
Subp. 10. Manufacturing standards for paddlewheel tables.
Paddlewheel tables used with a paddlewheel as described in subpart 9 must include the manufacturer's name or board-registered logo and conform to the following standards:
A. have a playing surface that is clearly and permanently printed with the colored numbers or number and symbol combinations that correspond to the same information of each concentric circle on the paddlewheel;
B. have a stop opening for each colored number or numbers and symbol combinations;
C. allow the placement of bets by players on the front and both sides of the table;
D. be no longer than nine feet and no wider than four feet, including the chip rail used to hold a player's paddlewheel chips;
E. be equipped with a double or triple locking removable metal drop box; and
F. have one lock that secures the drop box to the table, and at least one separate lock that secures the contents placed into the drop box. The key to each of the locks must be different from each of the other locks.
Subp. 10a. Manufacturing standards for programmable electronic devices.
Programmable electronic devices, as defined in Minnesota Statutes, section 349.12, subdivision 18, must include the manufacturer's name or board-registered logo and conform to the following standards.
A. Each device must have no effect on the outcome of a lawful gambling game.
B. Each device is solely used to provide a visual or auditory enhancement of a lawful gambling game.
C. Each device must not be able to be manipulated by a person to alter the outcome of a lawful gambling game.
Subp. 11. Prior board approval of all gambling equipment required; independent testing required for certain gambling equipment.
This subpart applies to board approval of gambling equipment.
A. Before the sale, lease, or distribution of any gambling equipment in Minnesota, the manufacturer must submit to the board a sample of the equipment.
B. Pull-tab deals submitted for approval of a new family of games proposed for production or already in production but not yet approved for sale in Minnesota or new members to a previously approved family of games must include:
C. Tipboards submitted for approval must consist of the following:
D. Bingo hard cards, bingo paper sheets, bingo paper sheet packets, and sealed bingo paper sheets submitted for approval must consist of the following:
E. A bingo board submitted for approval must consist of the disposable sealed bingo placard.
F. A raffle board submitted for approval must consist of the placard that contains squares that serve as certificates of participation used in a raffle.
G. Paddletickets submitted for approval must consist of the following:
H. Permanent gambling equipment, including bingo number selection devices, electronic bingo devices, paddlewheels, paddlewheel tables, pull-tab dispensing devices, and programmable electronic devices that are submitted for approval must consist of the following:
I. Independent testing requirements for gambling equipment when required by the board shall include a certification from a board-approved testing laboratory that the gambling equipment tested meets the manufacturing standards established in Minnesota Statutes and Minnesota Rules and is in conformance with the game procedures provided by the manufacturer. The certification must include:
J. Independent testing of electronic gambling equipment includes:
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7864.0235 Electronic Pull-Tab Game System Standards and Requirements
Subpart 1. Manufacturing standards for design and manufacture of electronic pull-tab tickets, games, electronic pull-tab devices, and electronic pull-tab game systems.
In addition to Minnesota Statutes, sections 349.12, subdivisions 12b, 12c, and 12d; 349.1721, subdivision 4; and 349.211, subdivision 2a, electronic pull-tab tickets, games, devices, and game systems must meet the requirements contained in this part.
Subp. 2. Initial screen required features.
An initial screen displaying a main menu must show:
A. the manufacturer's logo;
B. the compulsive gambling hotline telephone number;
C. all board-approved electronic pull-tab games available for play; and
D. electronic linked bingo games, if applicable.
Subp. 3. Electronic pull-tab flare required features.
The features in items A to E are required on an electronic pull-tab flare.
A. The base game flare must contain only the:
B. No information regarding the status of an electronic pull-tab game in play or on the criteria used to determine when a game will be closed may be provided to players on the game flare or in any other manner with the following exceptions:
C. The bonus game flare must contain the:
D. The summary flare must contain the:
E. If there is no bonus play, the base game flare information is sufficient.
Subp. 4. Electronic pull-tab ticket required features.
The following features are required on an electronic pull-tab ticket:
A. manufacturer's name or its board-registered logo;
B. game name, which must be identical to the game name on the flare for that deal;
C. game serial number, which must be a minimum of five and a maximum of eight characters, and must not be repeated on gambling equipment of the same form number for 3-1/2 years from the date of the manufacturer's invoice to the distributor. There must not be more than one serial number in a deal;
D. unique form number for that game;
E. cost per play, not to exceed the limit under Minnesota Statutes, section 349.211;
F. quantity of winners and bonus plays in each tier, and the respective winning numbers or symbols and prize amount;
G. ability to access the ticket and base flare;
H. player account balance;
I. primary and secondary win indicators;
J. a defined area on the face of the ticket for the windows or seals covering the numbers or symbols;
K. winning numbers or symbols in a straight, consecutive pattern under the windows or seals; and
L. a bonus symbol must be connected to a straight-line win in order to trigger bonus play. For winning tickets, the symbol combination for each denomination must be identical in the base game for all deals within that form number. Qualifying bonus and free play symbols are considered winning symbols on a ticket regardless of the outcome of the bonus or free play. A winning ticket that includes a bonus prize must not exceed statutory prize limits under Minnesota Statutes, section 349.211.
Subp. 5. Bonus screen required features.
The following features are required on a bonus screen:
A. manufacturer's name or board-registered logo;
B. game name;
C. form number;
D. seal or animation;
E. number of seals to select;
F. winning prize amounts; and
G. total win amount from bonus prizes.
Subp. 5a. Electronic multiple chance game features.
A. Electronic multiple chance games must include a feature where the player must accept the prize or forfeit the prize for a chance of a prize greater than, equal to, or less than the qualifying winning ticket being forfeited.
B. Electronic multiple chance games must indicate how a player makes a selection on the screen showing the chance and that the chance may contain a prize greater than, equal to, or less than the qualifying winning ticket. The chance screen must provide for random selection of the chance.
C. Potential chance prizes must be available as shown on the flare, which must state that chances may contain a prize greater than, equal to, or less than the qualifying winning ticket.
Subp. 5b. No simultaneous play.
An electronic game device may be used to play an electronic pull-tab game or an electronic linked bingo game. The electronic game device must not allow for the purchase of an electronic linked bingo face from any screen of an electronic pull-tab game.
Subp. 5c. Electronic progressive pull-tab game features.
The following features are required for an electronic progressive pull-tab game:
A. progressive pull-tab games must contain the same game name and form number, but different serial numbers for each deal. Each deal in a progressive pull-tab game must be designated as such;
B. all tickets must be randomly distributed throughout all deals;
C. each ticket or each deal in an electronic progressive pull-tab game must contribute to the progressive jackpot. The contribution from ticket to ticket and from deal to deal toward the progressive jackpot must be the same. When the progressive jackpot reaches the jackpot amount listed on the flare, up to the prize limit contained in Minnesota Statutes, section 349.211, subdivision 2a, no additional contribution may be made to the progressive jackpot;
D. only the progressive prize-winning ticket may be paid from the jackpot contribution prize pool;
E. electronic progressive pull-tab deals and games may not provide for an ideal prize payout of greater than 85 percent of the ideal gross receipts; and
F. electronic progressive pull-tab deals may not be commingled.
Subp. 6. Application software.
All application software must be owned by the manufacturer. Software developed by the manufacturer must also meet the requirements of this subpart.
A. For purposes of this subpart, application software is developed by the manufacturer if the manufacturer designs the central system, database, user interface, the program architecture, and programs the source code.
B. Application software must be designed to accommodate assistive technology. Assistive technology is any item, piece of equipment, software program, or product system that is used to increase, maintain, or improve the functional capabilities of persons with disabilities.
C. A licensed manufacturer may jointly develop application software for an electronic linked bingo system or an electronic pull-tab system with a licensed linked bingo game provider if the jointly developed application software permits the operation of electronic linked bingo or electronic pull-tab games on the same electronic linked bingo or electronic pull-tab device.
D. Any application software to be used by the manufacturer must be wholly owned free and clear and without any further obligation or condition by any entity other than the licensed manufacturer.
E. The electronic pull-tab game system manufacturer must provide documentation establishing ownership of the intellectual property rights to the entire game application software and system.
Subp. 7. Changes in software or hardware.
If there is any change in software or hardware by a manufacturer, the manufacturer must assign a new version or code build number and must submit the new software version or code build number to the director for review, and, if required by the director, the game or equipment must be submitted for review and approval by the board. The new version or code build number must be approved by a certified independent testing laboratory.
Subp. 7a. Same version; updates.
A. A manufacturer's installed software and system versions must be identical at all lawful gambling sites.
B. A manufacturer's electronic pull-tab devices must operate on the same version of all installed software. When upgrading pull-tab device software, all devices must be on the same version of all installed software within three days of the first installed upgrade.
Subp. 7b. Daily system close for update.
All pull-tab game systems must automatically close and update all site activity from the previous day to the central server by 2:30 a.m. central standard time.
Subp. 8. Electronic monitoring by board.
Electronic monitoring of the operation of the electronic pull-tab system by the board will be limited to read-only access of transaction logs and status of the system. The board is not allowed to alter any data or game play.
Subp. 9. Secured data transmission.
An electronic pull-tab game system must provide secured data transmission to all participating locations. Separate computing communications methods are required for each linked bingo game provider and each manufacturer. All data for each linked bingo game provider and manufacturer must be secure, separate from, and inaccessible to other linked bingo game providers and manufacturers.
Subp. 10. Changes in version of system or game.
A. If there is a change in the version or code build number of a system or game, the manufacturer must assign a new version or code build number for any changes or upgrades to the electronic pull-tab system or game to indicate a change of the version or code build number of the system or game according to standard practices.
B. Any changes to the electronic pull-tab game or system must be approved by the director before the game or system is placed into operation.
C. Any changes in a version or code build number that have an effect on the outcome of a previously approved game must be retested by a certified independent testing laboratory.
Subp. 11. Secure communication.
Connections between all components and access points of the electronic game system must only be through the use of secure communication protocols that are designed to prevent unauthorized access or tampering, employing:
A. Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST); and
B. IEEE 802.11 standards contained in the Wi-Fi Protected Access II (WPA2) authentication protocols.
Subp. 12. Independent verification check.
A. The electronic pull-tab game system and all devices that communicate with the electronic pull-tab game system must have the ability to allow for an independent verification check of the system's software from an authorized source approved by the board. The independent verification check ability is required for all application software that the board determines may affect the integrity of the game. The verification check must provide a means for on-site and off-site field verification of the software and applicable device to identify and validate the program, including user-acceptance testing and quality assurance required under subpart 38.
B. All Minnesota board-approved games must be identical to the games presented to a certified independent testing laboratory.
Subp. 13. Electronic accounting data.
Electronic accounting data must be at least ten digits in length and must be maintained in credit units equal to dollars and cents.
Subp. 14. Cash and inventory verification.
The system must record value of cash in, tickets played, credits won, credits played, cash out, and unredeemed credits.
Subp. 15. Restricted use.
A. Individual components of an electronic pull-tab game system must not be capable of being used as stand-alone units for the purposes of engaging in any function or use not permitted by these standards at any time.
B. External ports on the device, if any, will be secured or disabled from unauthorized use.
C. No component of an electronic pull-tab system may retain any personal player information after the player has returned the device to the seller.
Subp. 16. Memory backup.
Central servers must have nonvolatile backup memory or its equivalent that must be maintained in a secure compartment on each central server for the purpose of storing and preserving a redundant set of critical data that include:
A. error corrections that may have occurred on electronic pull-tab game systems or central servers, such as an invalid PIN or a game interrupt;
B. program error check and verification and authentication of any mismatch;
C. recall of all wagers and other play information associated with the last 100 plays on each device, including the electronic pull-tab ticket and the serial number of the game;
D. electronic accounting data capturing the record of transactions for electronic pull-tab devices in use for each central server including:
E. comprehensive checks of critical memory for each device in operation following game initiation but prior to display of game outcome to the player; an unrecoverable corruption of critical memory must result in an error notification and cause all electronic pull-tab devices in play to cease further function. An unrecoverable critical memory error report must be immediately generated to the Gambling Control Board and must include the name of the authorized person who performs any recapture or memory clear of the central server;
F. the system must have the ability to immediately, accurately, and securely cash out all players who have funds in the system in the event of power or communications network loss or other time of game or play interruption; and
G. all game play records must be kept for 3-1/2 years.
Subp. 17. Randomization.
An electronic pull-tab game system must use randomizing procedures in the distribution of electronic pull-tabs. The randomizing process for each pull-tab game must take place prior to the use of the game at the sales location. As used in this part, unless the context requires a different meaning, "pull-tab position" means the first pull-tab dealt, second pull-tab dealt, in sequential order. Any random number generation, shuffling, or randomization of outcomes used in connection with an electronic pull-tab system must be by use of a random number generation application that has successfully passed standard tests for randomness and unpredictability as defined in part 7861.0210, subpart 44.
Subp. 18. Game information.
A. Prior to the commencement of an electronic pull-tab game, the following data must be maintained and be viewable electronically on the electronic pull-tab game:
B. No information regarding the finite details or status of an electronic pull-tab game in play or on the criteria used to determine when a game will be closed may be provided to players except to notify players of an automatic game close feature.
C. Electronic pull-tab games may contain animated win determinations, but displays must not simulate spinning reels or nonstraight win line graphic representations. Animated game win determinations approved before July 15, 2019, may remain available for play for 180 days after July 15, 2019.
Subp. 19. Electronic pull-tab generation.
Upon request from a pull-tab device, the electronic pull-tab system must display an electronic facsimile of a pull-tab ticket. Once dispensed, such ticket must not be reused.
Subp. 20. System testing at sites.
The communications network system must be available for and have the capability of being tested by the board on site.
Subp. 21. Data access by board.
The system must include on-demand remote access at all times by the board to all electronic reporting data without participation of the manufacturer or the distributor.
Subp. 22. Game auditing.
A. Only upon the game termination shall the finite details of that game be revealed.
B. If a manual audit or other game determination by organization employees or volunteers is conducted while a game is in play, termination of the entire game must immediately occur. An audit or game determination includes a determination of the individual prizes won or individual prizes remaining to be won.
C. The organization's gambling manager may choose an automatic game close feature before putting games into play.
D. For purposes of this part:
E. Daily reports will be made available to the licensed organization's authorized personnel that contain data relating to gross ticket sales and gross prizes paid on a per-game basis.
F. An electronic pull-tab game system must allow for the early termination of games as determined by the licensed organization's authorized personnel.
G. Access to the reporting portal must be secure and limited only to the gambling manager, authorized organization members who are not sellers, the organization's accountant, and the licensed distributor that leased the electronic game system to the organization. Access to the portal requires a unique identifying code and password for each individual user:
H. Any individual with access to the reporting portal may not play electronic games.
Subp. 23. Game definition.
All game definition files must contain the following information:
A. game ID;
B. game type;
C. game version;
D. manufacturer;
E. game name;
F. form number;
G. purchase price per electronic ticket;
H. game ticket count; and
I. prize values with an associated index and frequency associated with how many of that particular prize exist.
Subp. 24. System security and access.
A. The electronic pull-tab game system must be located in Minnesota and in a secure location with limited, authorized access.
B. Any system elements that hold game data, other than the electronic pull-tab devices, must be in a locked area or in a locked case or compartment with access limited to designated personnel.
C. The manufacturer must register employees having authorized system access with the board.
D. The system must be in a secure location and provide electronic security for the games against alteration, tampering, or unauthorized access.
E. The system must allow the board and other authorized state representatives real-time access to data and equipment, including all accounting for sales, prizes, and credits per device, per site.
Subp. 25. Data alteration.
The electronic pull-tab game system must not permit the alteration of any accounting or significant event log information that was communicated from the electronic pull-tab device without board-approved access controls. In the event financial data is changed, the electronic pull-tab system must be able to produce an automated audit log documenting the:
A. data element altered;
B. data element value prior to alteration;
C. data element value after alteration;
D. time and date of alteration; and
E. user log-in of personnel that performed alteration.
Subp. 26. Backup and recovery.
A. An electronic pull-tab system must have a separate physical medium for securely storing games on the computer, which must be backed up in real time by a backup medium.
B. A disaster recovery plan detailing the system backup features including physical location for medium storage and procedures for periodic testing and recovery must be provided to the board as a condition of equipment approval.
C. All data required to be available or reported by this provision must be retained for a period of not less than 3-1/2 years.
D. All storage of critical data must use error checking and be stored on a nonvolatile physical medium.
E. The database must be stored on redundant media so that no single failure of any portion of the system would result in the loss or corruption of data.
F. In the event of a catastrophic failure when the electronic pull-tab game system cannot be restarted in any other way, it must be possible to reload the electronic pull-tab game system from the last viable backup point and fully recover the contents of that backup, to consist of at least the following information:
Subp. 27. System access; password requirements.
A. The manufacturer must maintain password access for the manufacturer; the distributor must maintain password access for the distributor; and the organization must maintain password access for the gambling manager and sellers.
B. The operating system software and application software must have multiple security access levels to control and restrict different classes of access to the system. The accounts for the access levels must be unique when assigned to the authorized personnel and only one user per account is allowed.
C. The manufacturer, the distributor, and the organization must register employees and volunteers with authorized system access with the board.
D. The operating system software and application software must provide comprehensive password security or other secure means of ensuring data integrity and enforcing user permission. It is required that:
Subp. 28. System log-in and log-out requirements.
Access to an electronic game system requires a password log-in with two-factor authentication (2FA) comprised of a personal identification code and a personal password. System log-in and log-out requirements apply to manufacturers, distributors, gambling managers, assistant gambling managers, users authorized by the gambling manager, and sellers.
Subp. 29. Time signature.
The time signature generated by the electronic game system and the central server must be identical.
Subp. 30. Electronic accounting and reporting; record of daily system transactions.
A. One or more electronic accounting systems must perform reporting and other functions in support of the electronic pull-tab game system. A manufacturer may enhance its accounting system, with director approval, for innovation in lawful gambling reporting. The electronic accounting system must not interfere with the outcome of any gaming function.
B. A database containing a permanent record of daily transactions played on the electronic pull-tab system and device must be maintained by the electronic pull-tab game system on the central server. The database and central server must be accessible to the Gambling Control Board at all times.
Subp. 30a. Point-of-sale system requirements.
A. The point-of-sale system used for the conduct of electronic games must require entry of the seller's unique identifying code to open the point-of-sale system.
B. The point-of-sale system must record the unique identifying code of any person making any transaction at any time. The user list naming each seller with the seller's unique identifying code must be available on the manufacturer's portal.
C. The point-of-sale system must be capable of immediately producing an electronic game occasion report, using the prescribed terminology, that includes the following information:
D. The point-of-sale system may only include game-related transactions.
Subp. 31. Reporting requirements of electronic accounting system.
The electronic pull-tab game system must provide the following reports to the Gambling Control Board and the Department of Revenue.
A. An electronic pull-tab game report must be available on demand for each game currently in play. The report must contain the following information:
B. An electronic pull-tab game report must be available on demand for each completed game. The report must contain the following information:
C. Other electronic pull-tab game reports that must be available on demand are:
D. By the tenth day of each month, the distributor must provide an invoice to the organization that includes the following information, using the prescribed terminology, for the previous month's electronic pull-tab activity at each premises:
E. Other statistical and activity reports as required by the board and maintained by the manufacturer and the distributor must be provided in a format prescribed by the board upon request.
F. Historical data from all sites, both active and inactive, must be available to the board as follows:
Subp. 32. Test system and equipment.
Manufacturers must provide a test system and equipment to the Gambling Control Board, at the manufacturer's expense, to test pending and approved games.
Subp. 33. Test software.
A. Manufacturers must provide identical software to the board as part of system approval by an independent testing laboratory and must disable the ability to write to the hard drive.
B. Manufacturers must allow regulatory test software to be added to an electronic game system to verify approved product.
Subp. 34. Electronic game system.
A. Each component of an electronic game system must function as indicated by the communication protocol implemented by the licensed manufacturer of the electronic pull-tab game system.
B. All communication between the central server and the electronic pull-tab devices must use authentication and encryption protection employing Advanced Encryption Standard (AES) specifications as defined by the National Institute of Standards and Technology (NIST) and the IEEE 802.11 standards contained in the Wi-Fi Protected Access II (WPA2) authentication protocols to provide secure authentication of the device and the server, ensuring the integrity of the data communicated, and for confidentiality.
C. The communicated data must be encrypted. All systems must require virtual private network (VPN) or secure sockets layer (SSL) encrypted tunneling protocols unless otherwise approved by the board. The certified testing laboratory must examine each submitted electronic game system to ensure that the proposed field configuration is secure. The certified testing laboratory may provide additional security recommendations to maintain the integrity of the configuration.
D. The electronic game system must be capable of being tested by the board to verify approved product.
Subp. 35. Electronic game system security.
A. The electronic game system security must be designed or programmed in such a way that it may only communicate with authorized electronic devices using a nonbroadcasting encrypted system.
B. The electronic game system security must include the ability to automatically disable an electronic pull-tab device if the device goes beyond a physical property restriction at a sales location. The device must remain disabled until reactivated at the point of sale.
C. The electronic game system must be secure from all other site communication systems and users at a gambling site.
Subp. 36. Firewall protection.
Communications must pass through at least one application-level firewall recognized by the certified testing laboratory. Redundant communications methods are allowed if equally protected by a firewall. Each manufacturer and linked bingo game provider shall implement and maintain their own communications methods, including any redundancy, separate from other manufacturers and linked bingo game providers. The firewall application must maintain an audit log of the following information and must disable all communications if unauthorized access is detected:
A. all changes to configuration of the firewall;
B. all successful and unsuccessful connection attempts through the firewall; and
C. the source and destination IP addresses and port numbers.
Subp. 37. Remote access.
Where permitted by the board, remote access must authenticate all computer systems based on the authorized settings or firewall application. The following are additional requirements:
A. no unauthorized remote user administration functionality;
B. no unauthorized access to any database other than information retrieval using existing functions;
C. no unauthorized access to the operating system and application software; and
D. maintenance of an activity log that includes:
Subp. 38. Prior board approval required for electronic gambling equipment; conformance with standards for previously approved electronic gambling equipment; independent laboratory testing required for certain electronic gambling equipment.
This subpart applies to board approval of electronic gambling equipment, conformance with standards for previously approved electronic gambling equipment, and independent laboratory testing required for certain electronic gambling equipment.
A. Before the sale, lease, or distribution of any electronic gambling equipment in Minnesota, a manufacturer must obtain prior board approval for the electronic gambling equipment. The manufacturer must provide to the director at no charge the following:
B. Electronic pull-tab deals submitted for approval of a new family of games proposed for production or already in production but not yet approved for sale in Minnesota or new members to a previously approved family of games must include:
C. Electronic gambling equipment must be received by the board on or before the 15th day of the month to ensure consideration at the board's meeting the following month. The manufacturer must include information on any equipment that will be sold or leased on an exclusive basis according to part 7864.0240, subpart 1a.
D. The board must notify the manufacturer in writing no later than five days after a board meeting of the board's decision on whether the product is approved for sale in Minnesota.
E. For changes to the payout structure or ticket count for any approved game or for any game within a family of games, the manufacturer must assign a new game form number and submit the game for review and approval by the board before being offered for sale in Minnesota.
F. For changes to approved electronic gambling equipment, the manufacturer must submit the changes to the director for review, and, if required by the director, the equipment must be submitted for review and approval by the board.
G. Within 14 days of receipt of a deal, the director must notify the manufacturer in writing of the director's decision to recommend approval or recommend denial of a game.
H. Manufacturers are in compliance if the electronic gambling equipment is approved by the board and is produced in compliance with the manufacturing standards prescribed in this part. Once approved, a manufacturer may not change the equipment without prior approval of the board, in compliance with this part. The board may withdraw its approval if it determines that the electronic gambling equipment:
I. Not later than December 31 of each calendar year, a manufacturer must submit to the board, on a form prescribed by the board, a list of all board-approved games that it intends to sell in Minnesota. Any board-approved game not included on the manufacturer's list, or any board-approved game that has not been played by a licensed organization in Minnesota in the previous two calendar years, will be considered abandoned by the manufacturer and will be removed from the board's approved games database. Nothing in this subpart prohibits a manufacturer from voluntarily informing the board at any time of an abandoned game. A voluntarily abandoned game may not be provided by a manufacturer for play in Minnesota unless the game is reapproved by the director. Abandoned games already uploaded for play by a licensed organization before December 31 may continue to be played until the game is closed.
J. Electronic gambling equipment, including electronic bingo devices, electronic pull-tab devices, electronic systems, and programmable electronic devices, that are submitted for approval must consist of the following:
K. Independent testing requirements for electronic gambling equipment when required by the board shall include a certification from a board-approved testing laboratory that the electronic gambling equipment tested meets the manufacturing standards and requirements as established in Minnesota Statutes and Minnesota Rules and in conformance with game procedures as provided by the manufacturer. The certification must include:
L. Independent testing of electronic gambling equipment includes:
History
- Statutory Authority: MS s 349.151; 349.163; 349.1635
- History: 38 SR 1613; 41 SR 137; 44 SR 25
Minn. R. 7864.0240 Manufacturer Operations, Accounts, Reports, and Records
Subpart 1. Sales and lease restrictions and requirements.
This subpart does not pertain to gambling equipment designated for sale to an Indian tribe. In addition to the requirements of Minnesota Statutes, section 349.163, a manufacturer must comply with the following.
A. A manufacturer must be able to identify the person to whom gambling equipment is sold or leased and provide the recipient's identity upon the board's request.
B. A manufacturer must include a copy of the invoice with each shipment of gambling equipment.
C. A manufacturer may not sell or provide a partial series of bingo paper sheets or bingo paper sheet packets.
D. The lease or sale agreement of a pull-tab dispensing device must be recorded on a form prescribed by the board. If a distributor's license is suspended, revoked, denied by the board, not renewed, or terminated, the lease agreement must be canceled.
E. For electronic bingo devices, a manufacturer must provide:
F. For electronic pull-tab devices, a manufacturer must provide a monthly invoice based on a predetermined lease amount.
G. A lease for an electronic pull-tab system and devices between a manufacturer and a distributor must include:
H. The lease amount of an electronic pull-tab system and devices:
I. The manufacturer must submit a copy of a lease agreement to the board within ten days of signing or amending a lease agreement.
Subp. 1a. Lawful gambling equipment sold or leased on an exclusive basis; restrictions and agreements.
This subpart pertains to gambling equipment designed or manufactured by a licensed manufacturer for sale or lease on an exclusive basis to a distributor or linked bingo game provider.
A. Gambling equipment with a proprietary name of an organization that owns its permitted premises may be sold or leased on an exclusive basis.
B. Gambling equipment with a proprietary name for a leased site may not be sold or leased on an exclusive basis.
C. To sell gambling equipment on an exclusive basis to only one licensed distributor, the manufacturer must document the terms in a valid, written exclusivity agreement. The written agreement must contain, at a minimum, the following:
D. To sell or lease a specific type and model of permanent gambling equipment on an exclusive basis to only one licensed distributor or linked bingo game provider, the manufacturer must document the terms in a valid, written exclusivity agreement. The written agreement must contain, at a minimum, the following:
Subp. 2. Sales invoices and report required.
A manufacturer who sells, leases, or provides gambling equipment must electronically report the sales or leases made each month to the commissioner of revenue by the 20th of the following month, as required under Minnesota Statutes, section 297E.04. A manufacturer must record the transaction on a sales invoice containing the information required by the commissioner of revenue:
A. manufacturer's name, address, Minnesota tax identification number, federal employer identification number, and license number; and name, address, Minnesota tax identification number, federal employer identification number, and license number of the distributor or linked bingo game provider to whom the sale was made;
B. invoice number and date of shipment;
C. unit price or lease price of each item, the total amount invoiced, and for permanent gambling equipment, a description of the equipment being sold or leased, including the make, model number, and serial number;
D. statement whether the gambling equipment is designated for sale to an Indian tribe;
E. for pull-tabs and tipboards, including promotional pull-tab and tipboard tickets as defined in part 7861.0210, subpart 43, and Minnesota Statutes, section 349.12, subdivisions 18 and 31, the number of deals and a description of each pull-tab deal or tipboard, including game name, manufacturer identification, form number, part number, and serial number;
F. for sealed bingo paper sheets, the serial number and color of each set;
G. for each set of bingo paper sheet packets, the following information:
H. for bingo paper sheets (case paper), the following information:
I. for bingo hard cards, the price per face; and
J. for paddleticket cards:
Subp. 3. Pricing and rebate reports required.
A pricing report must be filed annually in an electronic format prescribed by the director. Records of rebates must be available for director review upon demand. For each type of gambling equipment offered for sale or lease by the manufacturer, the pricing report must include:
A. manufacturer's name;
B. product code, description, and form number;
C. for pull-tabs and tipboard tickets:
D. for all other gambling equipment, the unit of measure, original and current price per unit, and date the original and current prices were established;
E. unit pricing detail must not include:
F. adjustments for shipping, discounts, and rebates must be reported separately on the annual pricing report, are subject to review and approval or denial by the director, and include:
G. only changes or additions to the previously filed report must be reported to the director at least two days before the date the new price will take effect. For products no longer available for sale, the current pricing must be reported as $0.
Subp. 4. Return of paper pull-tab and tipboard games, raffle boards, or bingo boards; return of electronic pull-tab deals; determination of defective game; credit invoice issued.
A. A manufacturer must accept the return of a game of paper pull-tabs or tipboards, raffle boards, or bingo boards from a distributor if the game was not manufactured according to the standards in part 7864.0230 and take the corrective actions in subitems (1) and (2).
B. A manufacturer must accept the return of unplayed electronic pull-tab deals.
Subp. 4a. Defective electronic pull-tab game.
This subpart applies if an electronic pull-tab game is found to be defective but not in play.
A. The manufacturer must remove the game from the system and notify the Gambling Control Board of the defective electronic pull-tab game within one business day. If the defect does not affect the outcome of the game, the director must first approve resolution of the defect.
B. The manufacturer may resolve the defect:
C. In addition to the reports required in subparts 5 and 6, the manufacturer must file monthly with the board a report of games pulled from play and removed from inventory.
Subp. 4b. Defective, altered, lost, or stolen electronic pull-tab device.
A. If a distributor notifies a manufacturer that an electronic pull-tab device is defective or has been altered, lost, or stolen, the manufacturer must immediately disable the device and notify the board.
B. The manufacturer must report to the board any removal of a defective or an altered electronic pull-tab device at a site, or any lost or stolen device, within one business day.
Subp. 5. Returned gambling equipment report required.
A manufacturer who accepts returns of gambling equipment not manufactured according to the standards in parts 7864.0230 and 7864.0235 must file a report with the board no later than the 10th day of the following month. The report must be in a format approved by the board and include the following information:
A. manufacturer's name and license number, and name and license number of the distributor returning the equipment;
B. month and year of the report;
C. standards which were not met, actions taken to bring the equipment into compliance, and for paper and electronic pull-tab games and tipboard games, a statement that the games were destroyed if they could not be brought into compliance;
D. for paper and electronic pull-tab games and tipboard games, the number of deals and the form numbers;
E. for bingo hard cards, bingo paper sheets, bingo paper sheet packets, and sealed bingo paper sheets, the number of cases, serial number, and series number for uncollated paper;
F. for paddletickets, the number of paddleticket cards and the form number; and
G. for bingo number selection devices, electronic bingo devices, paddlewheels, paddlewheel tables, and pull-tab dispensing devices, the make, model, and serial number; and except for electronic bingo devices, the state registration stamp number attached to the equipment.
Subp. 6. Recall of gambling equipment; credit invoices.
If a manufacturer sells gambling equipment that is not in compliance with parts 7864.0230 and 7864.0235, the board may require the manufacturer to take corrective action, including a recall, if the integrity of the game is harmed or the fair play of the game may be adversely affected. These provisions also apply to a recall initiated by a manufacturer.
A. Within three business days of receipt of notification from the board, the manufacturer must initiate the recall of gambling equipment from licensed distributors or linked bingo game providers.
B. Within 25 business days of initiating the recall, the manufacturer must complete the recall and notify the board in writing that the recall has been completed. The notification must include:
C. Within 15 business days of notifying the board as required by item B, the manufacturer must issue credit invoices to distributors or linked bingo game providers for the cost of the gambling equipment returned, including any valid and documented losses over which the organization had no control or ability to prevent and which were reimbursed by distributors or linked bingo game providers. Copies of the credit invoices must be filed electronically as required by the commissioner of revenue.
D. If a recalled paper pull-tab or tipboard game cannot be brought into compliance with the standards, the manufacturer must destroy the game. At the board's request, the manufacturer must submit an affidavit stating that the equipment was destroyed.
Subp. 7. Report of delinquent distributor or linked bingo game provider required.
This subpart pertains to the notice to the board that a distributor or linked bingo game provider is delinquent in payment of an invoice or lease agreement.
A. If a manufacturer has not received payment from a distributor or linked bingo game provider within 30 days of the day immediately following the date of invoice or lease agreement, the manufacturer must report the delinquency to the board in writing in an electronic format authorized by the board. The manufacturer must ensure that the board will receive the notice by the 31st day, or the next business day, after the invoice date for the sale or lease of the gambling equipment. The notice must include:
B. If a manufacturer has not received payment in full within 60 days of its initial notice to the board, the manufacturer must notify the board of the continued delinquency. The manufacturer must ensure that the board will receive the notice on the 61st day, or the next business day, after the manufacturer's initial report to the board.
C. When the delinquency is paid, the manufacturer must notify the board immediately.
D. Upon receipt of the initial notice under item A, the board must:
E. Upon receipt of the second notice under item B, the board must notify:
F. When the board has been notified that the delinquency is paid in full, the board must notify all manufacturers that the delinquency has been paid and that the sale or lease of gambling equipment to the distributor or linked bingo game provider is authorized.
G. Until authorized by the board, a manufacturer may not extend credit or sell or lease gambling equipment to a distributor or linked bingo game provider in violation of an order under items D and E.
Subp. 8. Examination of books and records.
The board, the commissioner of revenue, or the commissioner of public safety or their agents may examine the books and records of any manufacturer without notice at any time during normal business hours.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528; 38 SR 1613; 41 SR 137; 44 SR 25
Chapter 7865 GAMBLING LICENSEES; DISCIPLINARY ACTIONS
Minn. R. 7865.0010 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7865.0020 Repealed by subpart
Subpart 1.
[Repealed, 31 SR 1239]
Subp. 1a.
[Repealed, 29 SR 443]
Subp. 2.
[Repealed, 31 SR 1239]
Subp. 3.
[Repealed, 29 SR 443]
Subp. 4.
[Repealed, 31 SR 1239]
Subp. 5.
[Repealed, 31 SR 1239]
Minn. R. 7865.0025 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7865.0030 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7865.0040 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7865.0050 [Repealed, 31 SR 1239]
[Repealed, 31 SR 1239]
Minn. R. 7865.0210 Compliance Review Group
Subpart 1. Establishment of compliance review groups.
The chair of the board must appoint at least one panel consisting of at least three board members to serve as a compliance review group. Compliance review groups will meet as necessary to exercise the powers and duties granted to them by subpart 2.
Subp. 2. Powers and duties of compliance review groups.
Each compliance review group:
A. may meet as necessary to consider alleged violations of laws or rules related to lawful gambling by persons or entities licensed under Minnesota Statutes, chapter 349;
B. may direct the director to initiate investigations of persons or entities licensed under Minnesota Statutes, chapter 349, for the purpose of determining whether laws or rules related to lawful gambling have been violated;
C. may require any person or entity licensed under Minnesota Statutes, chapter 349, to appear before it to discuss alleged violations of laws or rules related to lawful gambling;
D. may conduct hearings according to this subpart and require any person or entity required to appear to participate in a prehearing conference prior to the appearance. The prehearing conference may occur at the board office, or by means of a telephone conference call or other electronic method;
E. may propose, negotiate, and enter into consent orders with licensees to resolve any violations of laws or rules related to lawful gambling;
F. may recommend to the board that it take disciplinary action against a person or entity licensed under Minnesota Statutes, chapter 349;
G. may recommend to the board that it summarily suspend a license under Minnesota Statutes, section 349.1641;
H. may initiate and recommend any other proceedings necessary to ensure that violations of the laws and rules related to lawful gambling are detected and addressed appropriately; and
I. must consider the following factors in negotiating the terms of a consent order, which may include the term and length of any suspension or revocation of a license or premises permit issued under Minnesota Statutes, chapter 349, the amount of a fine or civil penalty, reimbursement to the gambling account, and corrective action required to be taken by the licensee:
Subp. 3. Definitions.
The following terms have the meanings given them in this chapter.
A. "Suspension" means that the licensee keeps its license or premises permit, even though its conduct of lawful gambling in Minnesota must stop during the time of suspension.
B. "Revocation" means that the license or premises permit is terminated on the effective date of revocation.
C. "Complete change of ownership" means that when a violation occurred a person who was the lessor or owner of a site, an immediate family member of a lessor or owner, a person residing in the same household as an owner or lessor, or who otherwise held a direct or indirect financial interest of five percent or more in the site is currently not:
History
- 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
- History: 31 SR 1239; 35 SR 1276
Minn. R. 7865.0220 Suspensions or Revocations of Licenses or Permits
Subpart 1. Factors considered for suspension or revocation of license or premises permit.
In negotiating the terms and length of any suspension or revocation of a license or premises permit issued under Minnesota Statutes, chapter 349, the compliance review group must consider the factors in part 7865.0210, subpart 2, item I, and Minnesota Statutes, section 349.155, subdivision 4.
Any grounds for denial of a license or premises permit are also grounds for suspension or revocation of a license or premises permit.
Subp. 2. Suspension or revocation of organization license for illegal gambling.
Under Minnesota Statutes, section 349.155, subdivision 4a, paragraph (b), the board must suspend or revoke an organization's license if the organization's chief executive officer, gambling manager, or one or more of its assistant gambling managers participated in or authorized the illegal gambling prohibited by part 7861.0260, subpart 1, item J.
Subp. 3. Suspension or revocation of premises permit for illegal gambling.
When the board has determined that a violation of part 7861.0260, subpart 1, item J, has occurred based on Minnesota Statutes, section 349.155, subdivision 4a, paragraph (a), clauses (1) and (2), the board must suspend or revoke an organization's premises permit as follows.
A. For the first violation of part 7861.0260, subpart 1, item J, at a site, the board must suspend each premises permit for the site for up to 90 days from the date of the board's final resolution or determination on the violation. An organization may not pay rent for the site during the term of the suspension. When suspending an organization's premises permit, the board must consider the following factors:
B. For the second violation of part 7861.0260, subpart 1, item J, at a site, the board must suspend each premises permit for the site for two years from the date of the board's final resolution or determination on the violation. An organization may not pay rent for the site during the term of the suspension. If a complete change of ownership occurred between the first and second violations, the second violation is considered a first violation and the board must suspend each premises permit for the site for up to 90 days according to item A and must prohibit any organization from paying rent during the term of the suspension.
C. For the third violation of part 7861.0260, subpart 1, item J, at a site, the board must revoke each premises permit for the site for a minimum period of five years from the date of the board's final resolution or determination on the violation. Revocation must continue until a complete change of ownership occurs after the third violation. No organization may obtain a premises permit for the site during the term of the revocation. If a complete change of ownership occurred between the second and third violations, the third violation is considered a first violation and the board must suspend each premises permit for the site for up to 90 days according to item A and must prohibit any organization from paying rent for the site during the term of the suspension. If the licensee does not enter into a consent order with the board according to the provisions of this subpart, and part 7865.0210, subpart 2, item I, the suspension or revocation of a premises permit is a contested case under Minnesota Statutes, chapter 14.
History
- 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
- History: 31 SR 1239; 35 SR 1276
Minn. R. 7865.0225 Reimbursements to Gambling Bank Account
The board may require an organization to deposit funds from a nongambling source into the organization's gambling bank account to reimburse the account as required under part 7861.0320, subpart 5. If the licensee does not enter into a consent order with the board according to this part and part 7865.0210, subpart 2, item I, the reimbursement is a contested case under Minnesota Statutes, chapter 14. In determining the reimbursement to be required after a contested case hearing, the board must consider the factors in part 7865.0210, subpart 2, item I.
History
- 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
- History: 31 SR 1239; 35 SR 1276
Minn. R. 7865.0230 Fines and Other Sanctions
Subpart 1. Imposition of civil fine by board.
The board may impose a civil fine upon any licensee for violation of the following:
A. any provision of Minnesota Statutes, sections 349.11 to 349.23;
B. any provision of Minnesota Statutes, chapter 297E;
C. any rule adopted by the board; or
D. any order issued by the board. The civil fine may not exceed any amount authorized in Minnesota Statutes, chapter 349. In determining the amount of the fine to be imposed, the board must consider the factors in part 7865.0210, subpart 2, item I.
Subp. 2.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 3. Imposition of proposed fine by director; payment or appeal of fine by licensee required.
This subpart applies to a proposed fine issued by the director.
A. The director may issue to any licensee a proposed fine, determined according to the factors in part 7865.0210, subpart 2, item I, on a citation form prescribed by the board.
B. Within 30 calendar days of receiving the citation, the licensee must:
C. If the licensee fails to pay or appeal the proposed fine within 30 calendar days, the licensee may be subject to further disciplinary action by the board.
Subp. 4. Appeal from licensee of proposed fine by director.
The following apply to an appeal from a licensee of a proposed fine issued by the director under subpart 3.
A. An appeal must contain the licensee's name, the date the citation was issued, the amount of the proposed fine, and the reasons why the proposed fine should not be paid.
B. Upon receipt of an appeal, the director must review any new information provided by the licensee and determine whether the proposed fine should be rescinded or revised, or the appeal should be referred to the compliance review group. If the director determines that the proposed fine should not be rescinded or revised, the appeal must be referred to the compliance review group for a hearing. Within ten days of the receipt of an appeal, the compliance review group must schedule a hearing.
C. The licensee may be represented by counsel and present documents and other evidence to support its position.
D. Within ten days of the hearing date, the compliance review group must issue an order recommending to the board whether a civil fine should be imposed. If the compliance review group determines that a civil fine should be imposed, the order must contain a recommendation for the amount of the fine.
E. The board must act on the recommendation at its next regularly scheduled meeting.
F. Within ten days of acting on the matter, the board must issue an order including findings of fact and conclusions of law. The order is a final agency decision.
Subp. 5. Payment of fine from gambling gross receipts prohibited.
A licensed organization may not use gambling gross receipts to pay a fine imposed by the board or director and must pay a fine from a nongambling source of funds.
Subp. 6. Consequences of failure to correct violations.
Failure to correct the violation for which the fine was imposed is grounds for the suspension or revocation of a license.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528
Minn. R. 7865.0240 Stays of Imposition for Suspension, Revocation, or Civil Fine
Subpart 1. Entitlement.
A licensee subject to a board order for a suspension or revocation or a civil fine is entitled to a stay of imposition of that sanction upon filing an appeal to the court of appeals. A licensee is not entitled to a stay of imposition if the board determines that the potential or actual harm to the public and the integrity of lawful gambling resulting from the grant of such a stay would exceed the harm to the licensee from the denial of such a stay.
Subp. 2. Procedure.
This subpart applies to requests for stays of impositions of sanctions:
A. A licensee seeking a stay according to subpart 1 must file a written request with the board. The request must contain:
B. Any request for a stay complying with item A must be considered by the chair of the board according to subpart 1.
C. Any request for a stay must be considered by the board after initial consideration and response by the chair.
History
- Statutory Authority: MS s 14.055; 349.151; 349.154; 349.16; 349.162; 349.163; 349.1635; 349.165; 349.167; 349.169; 349.17; 349.1711; 349.1721; 349.173; 349.19; 349.191; 349.211
- History: 31 SR 1239; 38 SR 1613
Minn. R. 7865.0250 Variances to Board Rules
Subpart 1. Variance request submitted to board.
A licensee may request a variance from a rule pertaining to lawful gambling.
A. The request must contain:
B. The board may not consider a variance request that seeks:
Subp. 2. Procedure for variance requests.
In addition to the requirements of Minnesota Statutes, section 14.056, the board must approve or deny a variance request according to the following procedures:
A. Upon receipt of a variance request, the board must notify the requesting licensee of the time, date, and place of the board meeting at which the variance will be considered. The board will consider variance requests during its regularly scheduled monthly meeting.
B. The board may request the licensee to submit additional information regarding the variance request, or to appear before the board to provide additional information. If the board determines that the licensee must appear before the board, the board must provide advance notice to the licensee before the board meeting at which the variance request is considered. This procedure is not a contested case hearing as defined in Minnesota Statutes, chapter 14.
C. If the licensee requesting the variance fails to follow the procedures in this part, the provisions of Minnesota Statutes, section 14.056, or fails to appear before the board when requested, the board must deny the variance request.
Subp. 3. Criteria for approving and denying variance requests.
The board may approve a variance from any of its rules if it finds that all of the following criteria have been met:
A. strict application of the rule would cause undue and substantial hardship to the licensee applying for the variance;
B. approving the variance does not confer a benefit on the licensee which is not enjoyed by other licensees similarly situated;
C. approving the variance does not substantially impair the intent and purposes of the board's rules;
D. the variance can be approved without impacting the integrity of lawful gambling, or the public health, safety, or welfare;
E. approving the variance does not allow violation of Minnesota Statutes, chapter 297E, 299L, or 349; and
F. the variance is for a onetime variance for the licensee, not an ongoing variance of the rule.
History
- 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
- History: 31 SR 1239; 35 SR 1276
Minn. R. 7865.0260 Hearings and Appeals of Incomplete or Denied License and Permit Applications
Subpart 1. Appeal of denial or determination; application fees.
An applicant may appeal the denial of an application pertaining to a license or permit according to the procedures in this part. All fees submitted with a license or permit application are considered earned and are not refundable.
Subp. 2. Appeal of denial of application.
The denial of an application may be appealed by an applicant.
A. To appeal the denial, the applicant must file a written request with the board within 15 days of receiving the notice that the application has been denied. The request must contain a complete copy of the application and a statement describing the reasons the license or permit should not be denied. The appeal is not a contested case under Minnesota Statutes, chapter 14.
B. The board must refer the appeal to the executive committee. The executive committee must review the appeal within ten days of receipt and issue a written decision within ten days of its consideration of the appeal. If the committee reverses the denial, the license or permit must be issued effective the first day of the month following the committee's written decision. The executive committee's decision is a final agency decision.
Subp. 3.
[Repealed, 35 SR 1276; 35 SR 1528]
Subp. 4. Contested case hearing for denial of renewal application.
A licensed distributor, linked bingo game provider, or manufacturer may appeal the denial of a renewal application.
A. To appeal the denial, the licensee must file a written request for a contested case hearing with the board within 15 days of receiving notice that the application has been denied.
B. Upon receipt of the request, the board must schedule a contested case hearing before an administrative law judge under Minnesota Statutes, chapter 14.
C. The hearing must be held no later than 30 days after the board receives the request for the hearing unless the licensee and the board agree on a later date.
D. If the licensee fails to appear at the hearing after having been notified of it, the licensee is considered in default and the proceeding may be determined against the licensee on consideration of the written notice of denial, the allegations of which may be considered to be true.
E. The board must issue its final decision within 30 days after receipt of the administrative law judge's report and subsequent exceptions and argument under Minnesota Statutes, section 14.61. The board may enter an order making the disposition that the facts require.
F. If no hearing is requested within 30 days of the service of the notice, the denial becomes final.
History
- 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
- History: 31 SR 1239; 35 SR 1276; 35 SR 1528
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