Allied Charities of Minnesota

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  • 14 Feb 2020 07:00 | Allen Lund (Administrator)

    Members,

    Attached please find an article that was printed in the StarTribune today. It was the front page lead story.

    After reading it I flashed back to my American Legion meeting last night in Osseo. At our meeting we approved 14 donations for a total of $23,790. Among them was money for college scholarships, a school district program for homeless students, Veteran’s homes in Minneapolis and Silver Bay, a homeless program for Mother’s and their children, Girl’s basketball, MN National Guard Youth Camp, students to attend Boy’s State, students to attend Legionville, a foundation for those with disabilities and the High School trap league. These donations will benefit hundreds of people.

    That was happening all across Minnesota last evening. On 260 weekdays a year our 1150 organizations are meeting to approve hundreds of thousands of donations that help our neighbors live better lives to the tune of $335,000 per day on each of those 260 days.

    This is what is at stake.

    One clarification that I would make is that charities are not looking at taking money out of the stadium fund. We are saying that with a $1.3 billion dollar surplus and a stadium fund estimated to have in excess of $250 million in a couple of years that there is more than enough money to give charities some much needed relief by lowering the amount of taxes that we pay moving forward.

    startribune02142020.pdf


  • 13 Feb 2020 13:19 | Allen Lund (Administrator)

    Members,

    The 2020 Legislative session has started. Updates on bills and hearings will be provided as they are available.

    All bills submitted from last session are still alive. We believe that if there is a tax bill that a charitable gaming tax reduction will be in play. The state has over a $1.3 billion surplus. Where the money comes from for relief for charities is not our call, it is the legislatures. If the relief suggested last year (11% reduction) had been enacted, charities would have still sent in more than the previous fiscal year as our taxes were up 18%. The state increased their take in FY19 by $14.7 million more than the previous fiscal year, which is over two times greater than the $6.7 million increase that charities garnered. How do you explain that the state increased their take by $8 million more than charities did to those in need in our communities? Let your legislators know that this needs to be addressed while there is a surplus and charities are more than paying their way. If you don’t speak up, neither will your legislators.

    The GCB has submitted a bill (HF3126, no Senate companion) that would have charities that are required to have the outside annual audit (sales of $750,000 in a fiscal year) submit to them an electronic copy of the audit. Currently the audit goes to MN Revenue.

    ACM has two initiatives in draft form. The first was suggested by an ACM member and would move the external audit and GM bond from allowable expense to lawful purpose. This would help with an organization’s star rating. The idea is that all state mandates be LPE as taxes and fees are today.  

    The second initiative would have a 60 day cooling off period if a site and charity cannot agree to part ways and the site terminates the charity. It was modeled after a current St. Paul ordinance that requires a one year hiatus for the site to have charitable gaming if the charity and site do not agree on parting ways and the site terminates the charity . ACM has been hearing from charities that sites are asking for more and more resources from organizations and if the organization balks, the site is terminating the charity. ACM recognizes that sites are a very important part of our ability to conduct charitable gaming, but the demands of the site cannot exceed the organizations ability and fiscal realities to comply. One year seemed too harsh, 60 days seems reasonable for a site to be without the ability to conduct charitable gaming if an organization is terminated without agreement.

    A hearing for the tribal petition in regards to electronic pull tabs is set for Thursday, February 27 at the office of administrative hearings in St. Paul. The hearing is open to the public.

    A New York state court of appeals has ruled that Fantasy Sports in that state are illegal gambling. Expect an appeal.

    Not directly related to gambling organizations, Rep. Bob Dettmer has submitted two bills that would exempt federally chartered veteran service organizations from paying property taxes on their buildings. HF3049 and HF3050 (no Senate companion) will be sent to the House Property Taxes committee.


  • 03 Jan 2020 10:20 | Allen Lund (Administrator)

    Members,

    Happy New Year to you all. 

    I received three calls yesterday from licensed organizations in regards to electronic POS systems logging out in five minutes if there is no activity. Below is the rule that covers this. We are told that the electronic manufacturers had not been in compliance and the GCB has recently told them that they needed to be.

    I had one organization tell me that a seller of theirs needed to log in 25 times during a recent shift. 

    We have spoken to the GCB about this, but they need to hear directly from you if you think that this is not a reasonable rule. The GCB can be reached at 651-539-1900.

    The GCB has replied to the Tribal Petition regarding electronic pull tab games. Their responses can be read on the ACM website at www.alliedcharitiesmn.org   The GCB believes that they did not exceed their authority in this case. Further developments will be posted on the ACM website as they become available.

    7864.0235

    Subp. 27. System access; password requirements.

    A. The manufacturer must maintain password access for the manufacturer; the distributor must maintain password access for the distributor; and the organization must maintain password access for the gambling manager and sellers.

    B. The operating system software and application software must have multiple security access levels to control and restrict different classes of access to the system. The accounts for the access levels must be unique when assigned to the authorized personnel and only one user per account is allowed.

    C. The manufacturer, the distributor, and the organization must register employees and volunteers with authorized system access with the board.

    D. The operating system software and application software must provide comprehensive password security or other secure means of ensuring data integrity and enforcing user permission. It is required that:….

    (4) the password must have a length of at least six alphanumeric characters; and

    (5) the system must automatically log out after a period of inactivity in excess of five minutes.

    Regards,

    Al


  • 13 Dec 2019 06:09 | Allen Lund (Administrator)

    Members,

    Thank you again to all who attended the Rochester convention. In 2020 we are in Duluth November 19 – 21.

    The FY2019 GCB Annual Report is out. Here a link to the report https://mn.gov/gcb/assets/fy2019-annual-report.pdf

    FY19 sales grew by $330 million. We got an additional $6.7 million (8.7% increase) to the bottom line for community and mission.

    Taxes/fees were up $14.7 million (18% increase).

    Revenue share on electronics was up $10 million (62% increase).  

    Rent/Bar Op dollars were up $5 million (16% increase).

    Payout across all forms increased from 84.2% to 84.6%.

    Payout on paper tabs increased from 84.9% to 85.2%.

    Payout on e-tabs increased from 85.7% to 85.8%.

    Overall profit per dollar wagered decreased from 3.9 cents to 3.6 cents (8% decline).

    On the $330 million increase in sales we netted 2 cents per dollar wagered.  

    On December 3, 2019, the Shakopee Tribe filed an action with the Minnesota Office of Administrative Hearings asking an Administrative Law Judge (ALJ) to issue a cease and desist order against the Gambling Control Board prohibiting it from approving any electronic pull tab games that allow a single button or swipe to open all the tabs.  The petition also asks that any such games previously approved be disallowed.  The Petition is based on the claim that Minn. Stat. 349.12(b)(3) requires each line to be opened separately (“a player must activate or open each electronic pull-tab ticket and each individual line, row, or column of each electronic pull-tab ticket”).

     

    The petition has been filed under a provision of law that allows a party to challenge the enforcement or implementation of an “unadopted rule.” The Tribe argues that initially, the Board approved electronic pull tab games that met the statutory language.  But in 2015, without any notice to the public or formal rulemaking, the Board adopted a new “policy”(an unadopted rule) to permit “one-swipe” games. The GCB has ten business days to respond to the petition. We will keep you informed of any further developments. The petition can be viewed on the ACM website www.alliecharitiesmn.org

    I cannot believe that another year is almost gone. Thank you again for all that you do for your community, mission and organization. You truly make a difference. Be proud of that.

    Regards,

    Al Lund

  • 12 Dec 2019 08:26 | Allen Lund (Administrator)
  • 24 Nov 2019 12:33 | Allen Lund (Administrator)

    State Senator Roger Chamberlain speaks about charitable gaming in MN.

    https://merrickinc.org/charitable-gambling/

  • 14 Nov 2019 08:40 | Allen Lund (Administrator)

    stribarticle11142019.pdf

    All of our taxes (not just electronic taxes) go into the stadium fund after paying $36.9 million into the General Fund. Electronics compose roughly 25% of our overall tax payments. We are paying in double what is needed into the stadium fund to pay the $31 million stadium bond payments. 

  • 13 Nov 2019 09:10 | Allen Lund (Administrator)

    The covention booklet is attached. There could be last minute changes, but this will give you an overall view of what will be happening next week. 

    2019conventionbooklet11132019.pdf

  • 04 Nov 2019 14:47 | Allen Lund (Administrator)

    Members,

    See attached.

    Seminar 15 on Thursday, November 21 at 3:40 pm is the Pulltabs Plus/Secret Service Seminar and Seminar 30 oh Friday, November 22 at 11:05 am is the Central Gaming Services Seminar.

    I apologize for the error.

    Regards,

    Al

    2019 rochester seminar descriptions 11012019.pdf

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