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Eagan Lions seek reconsideration of denied fund‑loss; charities and club members urge rule and oversight changes
Summary
At the March board meeting the Eagan Lions asked the Gambling Control Board to reconsider a denied fund‑loss claim after a burglary; other public commenters described alleged mismanagement at an Ely club and Allied Charities called for modernization of fund‑loss rules.
The Gambling Control Board heard multiple public comments on fund losses and governance at its March 17 meeting in Roseville.
Representatives of the Eagan Lions Club, Dave Bierman (CEO for gambling operations) and gambling manager Steve Lempelis, asked the board to reconsider a fund‑loss denial that was issued at the board’s January meeting. Bierman said the organization had secured inventory in locked closets and a safe bolted to the floor, but that thieves used “extraordinary means” to access the safe after the building was shuttered by the property owner and city action. He said the building was shuttered July 26, 2024; the club learned how to request access on August 3 and access was granted August 14. Bierman said the club had 26 pull‑tab games on hand at the time, below their five‑month running average of 28.8 games, and that denying the fund‑loss would impose an “extreme hardship” on the nonprofit.
Board members discussed the timing of the shuttering and the club’s attempts to regain access. The board clarified that the item was returned to discussion (moved out of old business) for further review at the next meeting; a motion to bring the Eagan Lions item out of old business passed by voice vote and will be on next month’s agenda. Board members repeatedly advised the Eagan Lions to contact their assigned compliance specialist as the first point of contact.
Other public commenters raised additional governance concerns. Mike Banovis, a treasurer and board member for the Ely Witten Rod and Gun Club (license number 04828), described what he said were long‑running internal control failures, including absent membership oversight, missing audits and questionable uses of gambling funds; he said attempts by members to investigate led to harassment and resignations. The board accepted a copy of documents Banovis provided for staff review.
Rachel Jenner, executive director of Allied Charities of Minnesota, urged the board and the legislature to modernize fund‑loss rules that she described as decades old. Jenner said losses now can be tens of thousands of dollars because of higher‑denomination games and electronic pull‑tab systems, and she argued that denying fund‑loss claims can be punitive to victimized nonprofits that typically donate most of their proceeds and do not keep large reserves. Jenner said Allied Charities will pursue legislative changes and meet with Director Wade about possible rule or process updates.
No board action to change fund‑loss rules was taken at the meeting. The Eagan Lions reconsideration was moved out of old business for further review at the board’s next meeting.
