§ 109-12. Gross receipts.

Each organization licensed to operate gambling devices shall keep records of its gross receipts, expenses and profits for each single gathering or occasion at which gambling devices are operated or a raffle is conducted. All deductions from gross receipts for each single gathering or occasion shall be documented with receipts or other records indicating the amount, a description of the purchased item or service or other reason for the deduction, and the recipient. The distribution of profits shall be itemized as to payee, purpose, amount, and date of payment.

§ 109-13. Separation of funds.

Gross receipts from the operation of gambling devices and the conduct of raffles shall be segregated from other revenues of the organization and placed in a separate account. The person who accounts for gross receipts, expenses and profits from the operation of gambling devices or the conduct of raffles shall not be the same person who accounts for other revenues of the organization.

§ 109-14. Monthly reports.

Each organization licensed to operate gambling devices or to conduct raffles shall report monthly to its membership, and to the City Clerk/Treasurer, its gross receipts, expenses and profits from gambling devices or raffles and the distribution of profits. The licensee shall preserve such records for three years.

§ 109-15. Eligible premises.

Gambling devices shall be operated and raffles conducted by a licensed organization only upon premises which it owns or leases, except that tickets for raffles may be sold off the premises. Leases shall be in writing and shall be for a term of at least one year. No lease shall provide that rental payments be based on a percentage of receipts. A copy of the lease shall be filed with the City Clerk/Treasurer. The Council may in its discretion waive any lease requirement as set forth herein.

§ 109-16. Prizes.

Total prizes from the operation of paddle wheel and tipboards awarded in any single day in which they are operated shall not exceed $500. Total prizes resulting from any single spin of a paddle wheel or from any single tipboard shall not exceed $100. Total prizes awarded in a calendar year from the operation of paddle wheels and tipboards and the conduct of raffles shall not exceed $15,000. Merchandise prizes shall be valued at fair-market retail value.

§ 109-17. Requirement for charitable gambling licensees; waiver.

All charitable gambling licensees under Minnesota Statutes, Chapter 349, shall pay quarterly 10% of its net profits to the City of Kellogg or its designated recipient. The City of Kellogg may elect to waive this requirement after taking into account all factors, including but not limited to whether or not the charitable gambling licensee has expended or spent a substantial portion of its net profits for various charitable activities in and around the area of Kellogg, Minnesota.