Allowances for charitable gambling (new law)

With difficult economic times, even charitable organizations are struggling. Rep. Joe Atkins (DFL-Inver Grove Heights) said for some of these organizations, it’s a matter of staying alive or going out of business.

Signed by Gov. Tim Pawlenty May 1, a new law offers a bit of financial relief.

Sponsored by Atkins and Sen. Tony Lourey (DFL-Kerrick), the omnibus lawful gambling law permits charitable organizations to increase their allowable expense by 5 percent from July 1, 2008, to June 30, 2009, an increase from 70 percent to 75 percent of gross profits from bingo, and from 60 percent to 65 percent of other forms of lawful gambling.

Effective May 2, 2008, the law mandates additional training requirements for gambling management, and requires the Gambling Control Board to present a report to the Legislature on operational and regulatory procedures, tax structure and recent trends in lawful gambling by Jan. 15, 2009.

It also removes the current annual $48,000 prize award cap for progressive bingo game prizes, removes annual limits on raffle prizes, and places a $50,000 cap on any one raffle prize.

HF3397/SF3098*/CH260