https://minnesotalawyer.com/statutes/chapter-240/Recent content in Chapter 240 — Appointment of Director on MinnesotaLawyer.comHugoen-ushttps://minnesotalawyer.com/statutes/chapter-240/240.01/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.01/This section defines the key terms used throughout the horse racing chapter, including words like ‘commission,’ ‘pari-mutuel,’ ‘racetrack,’ ‘card club,’ and other important terms related to horse racing regulation.https://minnesotalawyer.com/statutes/chapter-240/240.011/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.011/The governor appoints the director of the Minnesota Racing Commission. The director serves at the governor’s pleasure and must be qualified by experience and training. The governor picks from a list submitted by the commission.https://minnesotalawyer.com/statutes/chapter-240/240.02/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.02/This section creates the Minnesota Racing Commission, which oversees horse racing in the state. The commission has nine members appointed by the governor, with no more than five from the same political party. Members serve six-year terms.https://minnesotalawyer.com/statutes/chapter-240/240.03/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.03/The Racing Commission regulates horse racing in Minnesota to protect the public interest. Its duties include issuing licenses, enforcing racing laws, overseeing pari-mutuel betting, and setting rules for the industry.https://minnesotalawyer.com/statutes/chapter-240/240.04/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.04/The Racing Commission director manages the commission’s day-to-day operations, keeps records, oversees employees, and carries out the commission’s decisions. The commission can hire staff including veterinarians and investigators.https://minnesotalawyer.com/statutes/chapter-240/240.05/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.05/The Racing Commission can issue four types of licenses: Class A for racetrack ownership, Class B for race management, Class C for occupation licenses (jockeys, trainers, etc.), and Class D for county fair racing.https://minnesotalawyer.com/statutes/chapter-240/240.06/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.06/This section sets the rules for getting a Class A racetrack license, including application requirements, financial disclosures, and conditions the commission must consider. The commission can issue one or more Class A licenses but only one per person.https://minnesotalawyer.com/statutes/chapter-240/240.07/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.07/Class B licenses allow the sponsorship and management of horse racing at licensed racetracks. Applicants must post a $500,000 bond and meet detailed requirements about their background and business plans.https://minnesotalawyer.com/statutes/chapter-240/240.071/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.071/Licensed racetracks can only conduct horse racing and may operate card clubs if authorized. They cannot offer historical horse racing, slot machines, video games of chance, or other gambling devices.https://minnesotalawyer.com/statutes/chapter-240/240.08/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.08/Class C occupation licenses are required for people who work in horse racing where pari-mutuel betting is conducted. This includes horse owners, trainers, jockeys, grooms, and other racing workers.https://minnesotalawyer.com/statutes/chapter-240/240.09/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.09/County agricultural societies and certain nonprofit corporations can get Class D licenses to conduct horse racing with pari-mutuel betting at county fairs. The county board must approve the license application.https://minnesotalawyer.com/statutes/chapter-240/240.091/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.091/This section has been repealed and is no longer in effect.https://minnesotalawyer.com/statutes/chapter-240/240.10/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.10/This section sets the license fees for horse racing. Class A licenses cost $253,000 per year. Class B fees are $500 per racing day and $100 per simulcast day. Class D fees are $50 per racing day.https://minnesotalawyer.com/statutes/chapter-240/240.11/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.11/Licenses issued under the horse racing chapter generally cannot be transferred to another person. However, Class A, B, C, or D licenses for advance deposit wagering can be transferred with commission approval.https://minnesotalawyer.com/statutes/chapter-240/240.12/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.12/The Racing Commission can make agreements with racing authorities in other states to recognize each other’s occupation licenses. The commission can charge a fee for registering out-of-state licenses.https://minnesotalawyer.com/statutes/chapter-240/240.13/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.13/Class B and D licensees can conduct pari-mutuel betting on races at their track and on simulcast races from other locations. The section sets rules for how betting pools work, including takeout percentages and how winnings are calculated.https://minnesotalawyer.com/statutes/chapter-240/240.131/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.131/Advance deposit wagering lets people bet on horse races through an approved account system, even when they are not at the racetrack. The betting must comply with both Minnesota law and the federal Interstate Horseracing Act.https://minnesotalawyer.com/statutes/chapter-240/240.135/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.135/Racetrack operators with card clubs must set aside a portion of card club revenue for horse racing purses. The percentage increases as revenue grows. Ten percent of the purse money goes to the breeders fund.https://minnesotalawyer.com/statutes/chapter-240/240.136/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.136/Racetrack operators with card clubs must post the toll-free number for the state’s compulsive gambling program in a visible location within the card club.https://minnesotalawyer.com/statutes/chapter-240/240.14/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.14/The Racing Commission assigns specific racing days to each licensed racetrack. A racetrack can only conduct racing with pari-mutuel betting on the days assigned by the commission.https://minnesotalawyer.com/statutes/chapter-240/240.15/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.15/Racetrack operators must pay taxes to the state based on their pari-mutuel betting revenue. The tax rate is 6% on amounts over $12 million per year. There is also a 1% tax on live race betting that goes to the Minnesota breeders fund.https://minnesotalawyer.com/statutes/chapter-240/240.155/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.155/Money the Racing Commission receives from fees for veterinary services, steward costs, and horse testing goes into a special account. This money is used to pay for the commission’s regulatory activities.https://minnesotalawyer.com/statutes/chapter-240/240.1561/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.1561/If the legislature does not pass a budget by July 1 of an odd-numbered year, money is automatically available from the general fund to keep the Racing Commission’s essential financial operations running.https://minnesotalawyer.com/statutes/chapter-240/240.16/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.16/All horse races must be overseen by a board of three stewards appointed or approved by the Racing Commission. Stewards enforce racing rules during races and can impose penalties for violations.https://minnesotalawyer.com/statutes/chapter-240/240.17/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.17/Before a racetrack license can take effect, the local government must approve it. Cities must approve by city council vote, and in townships, the town board must approve. Failure to act within 30 days counts as approval.https://minnesotalawyer.com/statutes/chapter-240/240.18/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.18/The Minnesota breeders fund supports horse breeding in the state. Money comes from a percentage of pari-mutuel betting revenue and is distributed as awards, purse supplements, and stallion rewards to encourage breeding Minnesota horses.https://minnesotalawyer.com/statutes/chapter-240/240.19/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.19/The Racing Commission must approve all contracts that racetrack licensees enter into for goods and services. Contract rules must require affirmative action plans and may include goals for minority, women, and disadvantaged businesses.https://minnesotalawyer.com/statutes/chapter-240/240.20/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.20/Anyone who disagrees with a decision of the Racing Commission can appeal it through the process described in sections 14.63 to 14.68 of Minnesota Statutes.https://minnesotalawyer.com/statutes/chapter-240/240.21/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.21/The Racing Commission and its representatives, including the Division of Alcohol and Gambling Enforcement, can inspect any licensed racetrack and examine its books and records at any time without a search warrant.https://minnesotalawyer.com/statutes/chapter-240/240.22/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.22/The Racing Commission sets a schedule of civil fines for violations of racing laws and rules. Fines can be up to $50,000 for Class C licensees and up to $200,000 for Class A, B, or D licensees. Fines over $10,000 can be appealed through a contested case hearing.https://minnesotalawyer.com/statutes/chapter-240/240.23/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.23/The Racing Commission has authority to create rules governing many aspects of horse racing, including race conduct, communications, information sales, track conditions, safety, and backstretch housing.https://minnesotalawyer.com/statutes/chapter-240/240.231/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.231/The Racing Commission’s authority is limited to horse racing and card games at authorized card clubs. The commission cannot expand gambling or approve historical horse racing, slot machines, video games of chance, or other gambling devices.https://minnesotalawyer.com/statutes/chapter-240/240.24/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.24/The Racing Commission must make rules about medication and drug testing for racehorses. Generally, no medication can be given to a horse within 48 hours of a race. Horses must not carry any foreign substance during a race, with limited exceptions.https://minnesotalawyer.com/statutes/chapter-240/240.25/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.25/This section lists acts that are illegal in connection with horse racing. These include placing or accepting bets outside the pari-mutuel system, tampering with races, bribing officials, and using devices to affect race outcomes.https://minnesotalawyer.com/statutes/chapter-240/240.26/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.26/Violations of horse racing laws carry serious criminal penalties. Accepting illegal bets, race fixing, and bribery are felonies. Placing illegal bets and certain other violations are gross misdemeanors.https://minnesotalawyer.com/statutes/chapter-240/240.27/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.27/The Racing Commission can ban certain people from all licensed racetracks in the state. This includes convicted felons, people whose licenses have been revoked, and anyone the commission believes would harm the integrity of racing.https://minnesotalawyer.com/statutes/chapter-240/240.28/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.28/Racing Commission members and employees cannot have financial interests in licensed racing operations or own racehorses that compete at Minnesota tracks. Commission members also cannot bet on races at licensed tracks.https://minnesotalawyer.com/statutes/chapter-240/240.29/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.29/Every licensed racetrack must schedule at least one race per racing day that is limited to Minnesota-bred or Minnesota-foaled horses. If not enough such horses are entered, a similar restricted race can be substituted.https://minnesotalawyer.com/statutes/chapter-240/240.30/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.30/A Class B licensee operating pari-mutuel betting at a Class A racetrack can also operate a card club if authorized by the commission. The card club can offer poker and other card games but not house-banked games. The licensee charges a fee for playing rather than taking a percentage of pots.https://minnesotalawyer.com/statutes/chapter-240/240.35/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-240/240.35/Licensed security personnel at a card club can detain someone if they have probable cause to believe the person violated gambling laws. The detention must be reasonable in length and manner, and law enforcement must be called promptly.