INFORMATION #1 06-15-2009Information
giver
TO: City Council
FROM:
DATE:
MEMORANDUM
Tina Allard, City Clerk
June 8, 2009
SUBJECT: Gambling Fund Expenditures
As you may recall from the May 18 Council meeting, Councilmember Moon questioned how
much gambling organizations can keep each year of their profits.
Per current state statute, there is no limit on the amount of funds an organization could keep
in an account. Starting July 1, 2009, due to new legislation, organizations will be required to
spend at least 30% of their net profits on lawful purpose expenditures in a 12-month period.
If an organization fails to spend a minimum of 30% of net profits on lawful purposes each
year, they are automatically put on probation for one year. The organization must increase
their rating to a minimum of 30% or be subject to sanctions by the Gambling Control
Board. The Board may suspend the organization's license or impose a civil penalty up to
$10,000 if they fail to meet the minimum requirements.
New Rating System to be implemented on July I
Spent on Lawful Purpose Rating
More than 50% 5 stars
More than 40%
More than 30%
4 stars
3 stars
More than 20%
Less than 20%
2 stars
1 star Probation, suspension, or
penalty may be imposed
S:\Administration\Council RCA\Licensing\Gamb6ng\2009\Gambling Org Funds.doc