MN HF898

Changes the evaluation criteria for licensed gambling organizations from a gross profits percentage basis to a ratio of lawful purpose expenditures compared to total allowable expenses for the 12-month period beginning July 1.

Modifies star rating thresholds: five-star rating requires 100 percent or more ratio; four-star requires 80-99 percent; three-star requires 60-79 percent; two-star requires 40-59 percent; one-star requires 20-39 percent; zero-star rating added for less than 20 percent ratio.

Reduces the minimum expenditure requirement for organizations with gross receipts over $750,000 from 30 percent to 20 percent of annual total allowable expenses on lawful purposes, maintaining 20 percent for organizations where bingo is the primary business.

Requires the board to consider unique factors or extraordinary circumstances when determining penalties or suspensions, including capital asset purchases, construction impacts, and natural disasters affecting gambling operations.

Establishes maximum civil penalty authority of $10,000 for violations of minimum expenditure requirements, effective the day following final enactment.