Gambling Control Board denies one fund-loss claim, approves routine exhibits after public comment over security lapses

The Gambling Control Board on Jan. 21 denied a fund-loss request tied to $25,000 in cash and property left in a condemned building, approved multiple routine exhibit items by voice vote and heard public comment from a Toby Lions Club representative who questioned the investigative record.

Board Chair opened the meeting and led votes to approve the agenda and minutes before the board observed a moment of silence for former board member Norm Pent. Director Wade presented an industry update saying November 2024 gross receipts totaled $422,000,000 and were "up about 7%" versus prior comparison figures; early December receipts were expected to be lower, with electronic pull tabs possibly down about 3% while staff continued to compile final numbers.

The board heard a public comment from Craig Peterson of the Toby Lions Club, who said an investigator recommended denial of the club's fund-loss claim and questioned aspects of the police report and security procedures. "It was brought to our email from the investigator last week that you're gonna look at it this week, and she recommended denial, which I question I didn't understand," Peterson said. He told the board the club regularly resets safe codes and rekeys doors but questioned how the agency would verify that had been done.

Board members discussed the Eagan Lion Club (the subject of a separate fund-loss exhibit) and raised concerns that investigators found roughly $25,000 in cash and property left in a condemned building for several months. Board member Doug Lewis, who reviewed the investigator's paperwork, said the circumstances were "very troubling" and emphasized the agency's focus on the integrity and security of charitable gambling equipment and funds: "I had some deeply concerns with why an organization would leave $25,000 worth of property and cash, and they condemned building that's been condemned for several months, is very troubling to me." The board ultimately approved a motion to deny that fund-loss request by voice vote.

The board approved the following exhibits by voice vote (motions and second recorded on the transcript; votes taken by aye/nay voice and no roll-call tallies were recorded): - Exhibit A — transfer of gambling funds to an organization account: recommended approval; motion passed by voice vote. - Exhibit C — property and capital asset expenditure requests (included an ADA bathroom approval for a VFW): recommended approval; motion passed by voice vote. - Exhibit I — exclusive use for LPE funds (discussion noted that monuments/statues can qualify under the policy definition of honoring military service): recommended approval; motion passed by voice vote. - Exhibit K — contribution of gambling funds to another licensed gambling organization (example cited: Anoka Area Hockey Association): recommended approval; motion passed by voice vote. - Exhibit M — fund-loss carryover approval: recommended approval; motion passed by voice vote. - Exhibit N — fund-loss request recommended for denial (the Eagan Lion Club matter involving property and cash in a condemned building): motion to deny passed by voice vote. - Exhibit Q — license termination plans: recommended approval; motion passed by voice vote. - Exhibit S — manufactured games approval: recommended approval; board discussion noted there are "hundreds" of games under the agency's purview; motion passed by voice vote. - Exhibit U2 — application for a license: recommended approval; motion passed by voice vote and the board congratulated the new applicant.

Director Wade reported additional administrative items: 10 continuing-education citations were mailed to gambling managers who did not complete required credits for 2024 (each citation is $500 and, per the director, citation fees go to the state's general fund rather than the board's budget). The agency was reported as roughly 7% under budget at the six‑month point and the board welcomed new staff attorney Doug Lewis and reiterated that staff plan to offer new continuing-education classes for CEOs and sellers.

Committee reports included an Education and Outreach update noting website and forms cleanup, exploration of additional language translations for improved accessibility, and plans for a CEO training class. The Compliance Review Group reported that, including 2024, 14 organizations had come through CRG and 11 had completed their consent agreements; three organizations were scheduled for upcoming meetings.

The board set its next meeting for Tuesday, Feb. 18, at 10 a.m. at the Gambling Control Board office in Roseville and adjourned without further business.