The Brooklyn Park City Council is considering an amendment to the city’s lawful gambling ordinance in an effort to ensure pull tabs, raffle tickets and other games more directly benefit the community where they are sold.

The conversation began when the council requested additional information about Brooklyn Park’s gambling ordinance — and then proposed multiple changes — after a license proposal came in this summer. City staff returned to council chambers Oct. 12 to share a draft amendment.

“The city can be more strict on regulations, including prohibiting gambling, but the Gambling Control Board is the overarching group that audits all the spending reports for compliance,” Rental and Business Licensing Manager Keith Jullie said.

While it is ultimately up to the Minnesota Gambling Control Board to licence and oversee lawful gambling organizations, local governments have the option to further regulate them.

Under Brooklyn Park’s current ordinance, organizations can have up to three gambling locations within the city, and 75% of the net profits must be spent in Brooklyn Park or its trade area: Maple Grove, Champlin, Osseo, New Hope, Crystal, Brooklyn Center and Minneapolis.

The current lawful gambling licenses issued in Brooklyn Park include:

Champlin Park Takedown Club, operating at Heavy Rotation Brewing Co.Champlin Park Youth Hockey Association, operating at MC’s TaphouseEdinburgh USA Pro-am, operating at the Tavern at EdinburghNorthwest Area Jaycees, operating at Mad Jacks and Broadway PizzaPalmer Lake VFW, operating at Post #3915

Of these organizations, only the Palmer Lake VFW lists a business address in Brooklyn Park. The others list either Champlin or Maple Grove.

Jullie presented an amendment that would require all future gambling organizations to be physically located in the city; remove Minneapolis from the trade area; increase the net profit spending requirement from 75% to 85%; add a 10% local contribution requirement to the city and add a 0.5% local tax to cover administrative costs.

As proposed, all currently-licensed organizations not located in Brooklyn Park would be allowed to continue operating at their existing locations under the updated ordinance. The amendment would also require all gambling organizations to submit copies of financial and expenditure reports to the city.

The proposed amendment would generate an estimated $77,479 in additional budget revenue, according to city documents. Of that total, $18,356 would come from the 0.5% local tax and therefore could only be used to cover administrative costs. Any unused local tax funds would be returned to the organizations.

The 10% local contribution fund, which carries fewer restrictions, would generate the remaining $59,123. Those dollars could be used for public safety-related services, equipment, training and more.

The council did not make an official motion regarding the proposed amendment, but some members shared their thoughts with city staff.

Council Member Christian Eriksen noted that many of the organizations with gambling licenses in Brooklyn Park use them for charitable purposes.

“I’m inclined to trust the VFW to just do good work with the funds that are given to them, for example,” Eriksen said. “But then again, if we’re going to limit them, I would like to see it spent to support veterans in our area. Yes, also true.”

Council Member Shelle Page argued the VFW has more detailed financial reports than some other license holders in Brooklyn Park. She said she “would love to see” more detailed reports across the board.

Mayor Hollies Winston described himself as “a bit neutral” on the proposed amendment.

“It brings in a little bit of extra income. However, I don’t want to delve too deeply into, necessarily, people’s spending patterns with these dollars,” Winston said. “I think as long as they’re adhering to the law, I’m fine with that.”

Council Member Nichole Klonowski said she would want to make sure the proposed changes wouldn’t inadvertently harm existing organizations with legal gambling operations in Brooklyn Park, but noted that “subsidizing gambling should also not be the city’s business.”

Klonowski continued: “I like the idea of, for sure, removing Minneapolis. I don’t see why, in any way, we’re funding anything for them.”

Page was also supportive of removing Minneapolis from the trade area. She added that she would be in favor of the 0.5% regulatory tax, but not the 10% local contribution requirement. “I know in each one of those organizations, a large part of people are volunteers and do a lot of work to bring that money in, and that would be less dollars going to those efforts that they’re doing,” she said.

City staff now has the opportunity to bring the amendment back to council chambers for a first reading at a future meeting with some, or possibly all, of the changes presented Oct. 12.