10.a Staff report - gambling premises permit Saddle Club
Staff Report
Date of Meeting: April 20, 2021
To: City Council
From: Brenda Eklund, City Clerk
Re: Dead Broke Saddle Club Application for Lawful Gambling Premises Permit
Background:
Mark Larson, Gambling Manager for the Dead Broke Saddle Club, has applied for a Lawful
Gambling Premises Permit for the organization to conduct charitable gambling at Thirsty
Buffalo Saloon, 21050 Ozark Avenue, upon the establishment’s proposed opening on May 1,
2021.
Issue:
Should the Council approve a Lawful Gambling Premises Permit for the Dead Broke Saddle Club
at Thirsty Buffalo Saloon?
Proposal Details:
City of Scandia Code of Ordinances, Chapter 130: Gambling Regulations governs lawful
gambling within the city. The purpose of the ordinance is to “regulate lawful gambling within
the City, to prevent its commercialization, to ensure the integrity of operations, and to provide
for the use of the net profits only for lawful purposes.” The ordinance establishes the
qualifications that must be met by organizations and premises for gambling. Dead Broke Saddle
Club plans to conduct paper pull-tabs, bar bingo and paddlewheel activities. The organization
has signed a lease agreement with the owner of Thirsty Buffalo Saloon. Form LG215, Lease for
Lawful Gambling Activity is attached to this report.
Only certain organizations are authorized to conduct lawful gambling in Scandia. They must be
licensed by the State and also meet at least one of five criteria in the ordinance (Section
130.07). Dead Broke Saddle Club provided documentation that they are licensed by the MN
Gambling Board since the early 90’s and are currently in good standing. The physical site for the
organization’s headquarters and where the organization regularly holds meetings and conducts
its activities, is located within a municipality contiguous to the city (City of Hugo), meeting the
criteria of Section 130.07.
The organization currently conducts charitable gambling at the Blacksmith in Hugo and Lucy’s
Burgers in White Bear Township.
Section 130.08 of the ordinance specifies the qualifications of the personnel/gambling manager
of the organization. Review of the application included a background check on the gambling
manager and a review of the state licensing information by the Washington County Sheriff’s
office. The inspection concluded that there were no incidences which would prevent approval
of the gambling permit application.
Section 130.14 requires that a licensed organization shall spend 75% of its lawful purpose
expenditures derived from gambling conducted at the premises within the city’s trade area.
The trade area is defined as Scandia, contiguous cities and townships and any portion of the
Forest Lake School District. The organization reports that 100% of proceeds go towards
charitable organizations, and provided the attached donation summary report . Mr. Larson
stated that proceeds from Thirsty Buffalo will be donated within the trade area of Scandia to
support the local food shelf, fire department, Scout programs, Scandia Riders Saddle Club, 4-H
clubs, Scandia Elementary as among examples of where charitable gambling proceeds will go.
Once approved, a premises permit runs concurrently with the organization’s gambling license
on a perpetual basis, unless the permit is suspended or revoked by the Gambling Control Board
or is voluntarily terminated by the organization.
Fiscal Impact:
The $100 permit fee has been paid.
Options:
1) Approve Resolution No. 2021-19, approving the premises permit.
2) Amend Resolution No. 2021-19 with conditions.
3) Do not approve. A resolution to deny must be acted on.
Recommendation:
Action to either approve or deny must be taken by the Council within 60 days after receipt of
the application which was made on March 31, 2021. Staff recommends Option 1.