MN HF1633

Amends Minnesota Statutes section 349.15, subdivision 1, to clarify allowable uses of gross profits from lawful gambling by licensed organizations.

Establishes a five-star rating system based on annual lawful purpose expenditures: 50% or more of gross profits earns five stars; 40-50% earns four stars; 30-40% earns three stars; 20-30% earns two stars; less than 20% earns one star.

Requires organizations to spend a minimum of 30% annually of gross profits on lawful purposes, or 20% annually for organizations conducting gambling in locations where the primary business is bingo.

Organizations failing to meet minimum thresholds are placed on automatic one-year probation effective July 1 and subject to license suspension or civil penalties up to $10,000 if they fail to improve.

Board must consider unique circumstances when determining penalties, including capital asset purchases, impaired facility access, and natural disasters affecting gambling operations.