The proposed bill seeks to repeal taxes on all lawful gambling receipts in Minnesota and introduces several amendments to existing laws governing gambling activities. Key changes include the deletion of references to certain tax sections, particularly section 297E.02, and the introduction of new provisions regarding tax liabilities and the conditions under which gambling licenses may be denied or revoked. The bill also establishes new record-keeping requirements for distributors, mandates detailed sales records, and imposes stricter penalties for violations, including civil penalties of up to $1,000 per infraction. Additionally, it clarifies the definition of contraband related to gambling equipment and outlines the judicial process for determining the legality of seized property.

The bill emphasizes compliance and accountability among gambling operators and local governments, specifying that penalties collected will be deposited into the general fund and that fees imposed by the board will be credited to a lawful gambling regulation account. It also introduces a tax rate of 8.5 percent on gross receipts from gambling activities, with provisions for tax exemptions for qualifying organizations. The effective date for these changes is set for July 1, 2025, allowing stakeholders time to adjust to the new regulatory framework. Overall, the legislation aims to streamline gambling regulations in Minnesota while enhancing transparency and ensuring adherence to tax obligations.

Statutes affected:
Introduction: 270C.56, 297A.68, 299L.03, 299L.07, 349.12, 349.151, 349.162, 349.163, 349.1641, 349.19, 349.2125, 349.2127, 349.213, 349.22