Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Gambling Fund topic
No spam. Unsubscribe anytime.
Oronoco council corrects gambling ordinance and splits 10% gaming funds after debate
Summary
After heated debate about whether the city should continue collecting 10% of local lawful-gambling proceeds, Oronoco City Council approved an amendment to clarify the gambling-code citation and voted to distribute $8,174.75 in accumulated funds, splitting the total between listed community organizations and the Oronoco Fire Relief Association.
The Oronoco City Council on Feb. 17 approved a correction to the city code that clarifies how the city may use 10% contributions collected from lawful gambling and authorized a one-time distribution of $8,174.75 — amended at the meeting to split the amount evenly between community groups and the Oronoco Fire Relief Association.
The ordinance amendment (Option A) replaces an incorrect statutory citation with Minnesota Statute 349.12, subdivision 7A, narrowing which charitable purposes the city may fund from the 10% gambling contribution. Council members were warned by legal staff that the existing code language was overbroad and needed correction so future distributions fit state law.
Discussion turned sharply to how the dollars had been used and whether the city should keep collecting the 10% at all. One councilor moved to repeal the ordinance entirely (Option B) so the city would no longer collect the 10%; that motion failed on a voice vote. Multiple council members argued the 10% has in past years funded community groups and that preserving the contribution with correct statutory language keeps the city positioned to accept future funds.
A separate but related resolution (2026-04) presented a list of recommended recipients for $8,174.75 collected in 2025. The list proposed grants to local groups including the Lions Club ($3,000), downtown Gold Rush sponsorship ($2,000), VFW post ($2,000), History Center ($500) and an age-friendly group ($640.75). Several councilors and the fire-relief representative objected that none of the listed line items primarily funded fire or public-safety equipment or training, even though the Oronoco Fire Relief Association runs most of the gambling activity.
To address those concerns under the meeting’s time pressure and the state filing deadline, Councilor Daniel proposed a friendly amendment to split the balance so half of the $8,174.75 would go to the fire relief association and the remaining half would be distributed to the organizations listed in the resolution. The amendment was accepted and the council approved the amended resolution by voice vote.
Council legal staff and administrators said the city can, going forward, accept proposals to spend the 10% on any of the categories expressly listed in Minnesota Statute 349.12 subdivision 7A (which cross-references allowable charitable purposes). Staff also said the city will involve the Oronoco Fire Relief Association earlier in future distribution discussions so that organizations that operate gambling and run the underlying activity have input on disbursement.
The council’s action preserves the 10% contribution in city code, corrects the statutory reference to limit allowable uses to those listed under state law and sets an immediate distribution that directly returns half the balance to the fire relief association that ran the gambling. The city administrator was authorized to implement the amended resolution and to take steps necessary to distribute the funds.
