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Mr. Joel R. Hanson <br />February 1, 1991 <br />Page Four <br />The Legislature also passed several new statutes creating <br />criminal penalties for violations of the Charitable Gambling <br />Act. Most importantly, an individual who knowingly, or with <br />reason to know, makes an unlawful expenditure of gross profits <br />is now guilty of a crime, pursuant to Minnesota Statutes <br />§349.2127. Under that statute, the severity of the criminal <br />penalty depends upon the amount of the unlawful expenditure. <br />Any unlawful expenditure in excess of $2,500.00 results in a <br />felony offense. Mirn esota Statutes e349.502 now makes it a <br />misdemeanor offense to receive any monetary compensation as a <br />result of playing a video game of chance. Please note that the <br />County Attorney and the Attorney General have jurisdiction to <br />prosecute these offenses, and the City Attorney has no <br />jurisdiction under the statute to prosecute these violations. <br />Several additional amendments deserve mention. Minnesota <br />Statutes §349.2127, Subdivision 6, prohibits an organization <br />from accepting checks in payment for the purchase of any <br />gambling equipment or the chance to participate in any form of <br />lawful gambling. Minnesota Statutes §349.52 creates an <br />exception to the general rule that all forms of lawful gambling <br />must be treated equally by allowing a city to enforce more <br />stringent regulations on video games of chance, including their <br />prohibition. Finally, Minnesota Statutes §349.55 prohibits any <br />switch or lever on a video game of chance capable of <br />automatically cancelling replays. <br />If you have any questions regarding the proposed Ordinance <br />or the 1990 legislation, please contact Tom Sweeney or the <br />undersigned. <br />PTO:lmg <br />Enclosure <br />Very truly yours, <br />SWEENEY & BORER <br />aria— <br />Paul T. Ostrow <br />Page 12 <br />