Gambling Control Board suspends Badger JC's license over charitable payout shortfalls

Chair Forsman opened discussion on a revisit of correspondence regarding Badger JC's and read a motion to suspend the organization’s license (No. 2315) until it comes into compliance with payout requirements. The chair and counsel said the action follows CRG recommendations and previous notice to the organization.

"There's a motion before the Board to suspend their license," Chair Forsman said, and the motion was moved, seconded and approved by voice vote. Attorney Leah Hedman, with the Attorney General's Office, summarized the specific shortfalls: the organization reported charitable expenditures of 28.1% in fiscal year 2024 and 25.4% in fiscal year 2025, leaving a shortfall of $3,308 for FY2024 and $6,325 for FY2025 to meet the 30% statutory floor. Hedman noted fiscal year 2026 reporting is due by the fiscal year end on June 30 and emphasized the agency had been in contact with the organization about correcting the deficiency.

The board voted to suspend the Badger JC's license until Director Waite determines the organization has met lawful-purpose expenditure requirements under Minnesota Statute section 349.15 subdivision 1. Director Waite and board members said the suspension is aimed at ensuring the organization fulfills its statutory charitable purpose rather than collecting fines; the suspension remains in effect until the director reports the organization is back in compliance.