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Council debates charitable-gambling fee and awaits reports before making changes
Summary
Councilors discussed whether the city’s 10% charitable-gambling fee should apply only to funds spent outside the city and agreed to wait for organization reports due at the end of February before taking action; no ordinance change was adopted at the meeting.
Kasson council members spent the roundtable portion of their meeting discussing how to implement a recently enacted charitable-gambling provision and whether the city should change how its 10% allocation is applied.
Committee member (S3) reported outreach to organizations currently using the gambling ordinance and said some entities have not provided the reports the council requested. He proposed that if an organization can prove funds remain within the city, the city should not take 10% of the dollars that stay local — instead, the fee would apply only to funds that leave the city. “If an organization can give us their information and prove that X number of dollars is staying within the community, then we wouldn't take 10% of what stays here. It would only be 10% of what leaves,” S3 said.
Councilors noted the statute requires calculation on net proceeds rather than gross. Members emphasized they are waiting for the reports (due by the end of February) before making any policy changes; staff said if the council later decides to change the fee, the city can refund monies collected under the new approach. The mayor said more data is needed to make an informed decision and that staff will provide reports at the next meeting.
No vote or ordinance amendment was taken during the roundtable; the council instructed staff to collect and present the incoming reports and to return to the council with numbers and options for policy change if warranted.
