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Of the nearly 20 charitable gaming licensees operating events, pull tabs and bingo games in Chisago County— just two are five star listed, which is the optimal ranking the state awards to charitable gaming operations.  

Minnesota’s Gambling Control Board was required by the legislature to develop a rating system, so that supporters could tell at a glance when playing bingo or ripping through pull tabs, what percentage of gaming revenues are being spent by any licensed organization on “lawful purpose expenditures.”  

The system developed is a star-rating with system’s lowest rank two stars, or descriptive of 20 percent of net proceeds going to lawful purposes.

The best rank is five stars, or 50 percent of net proceeds  going to lawful purpose expenditures.

The Chisago County Press reports the annual data which is normally a year behind.  Reports for 2023 released on-line show two that still hold the highest level— five-star ranking.  

A number of local groups have dipped to four and three stars.  

If net expenditures are being used, allowed expenses at a rate lower than 30 percent — this results in a two star rating, which is only allowed until the following year.  If the organization’s charitable support hasn’t improved to 30 percent of net, the license is in jeopardy.

Lawful purpose expenditures embrace a broad category.  

Allowed uses of gaming proceeds range from buying fireworks  to donations supporting youth programming, to catering costs for recognition events.  The organization holding the license also can include costs of materials, space rental for booths in bars, etc and manager stipends as lawful purpose expenses.

What goes to a charity or a local unit of government under a sharing system— out of net left-over after prizes and the lawful expenditures—  is what star percentages are based on.  An organization contributing 50 percent of this amount gets five stars, and so forth.

The five star rank was granted to Lakes Center for Youth & Families and to Stacy-Lent Firefighter Relief Association.

(The Forest Lake American Legion Post also is five star rated but it does not operate charitable gaming inside of Chisago County. )  

North Branch American Legion has a three star ranking.

Among area Lions clubs, the Scandia Lions hold a four star rank, the Stacy Lions have a three star rating.  Forest Lake Lions also are at three stars.

The VFW in Forest Lake earned a four star rank.

In the immediate region the largest annual gaming operation revenues were reported by the Forest Lake Area Athletic Association or FLAAA.  The group runs charitable gaming in Wyoming at Split Rocks and Cornerstone, among other locations.  The FLAAA reports $20,077,000 for gross revenues and paid out $17.3 in prizes, for a net of $2,698, 000.  It has a three star rating.

The largest wholly within Chisago County, the North Branch Hockey Association had revenues of $13.8 million.   Its rank was four-star.  (See legislative request story.)

Many area cities have adopted an optional ordinance calling for five or 10 percent of charitable gaming proceeds, generated within their boundaries, to be remitted to the city.  

For example, Chisago City receives funds from Chisago Lakes Area Recreation Association and also net proceeds percentage of gaming supporting Chisago City fire relief association. These are both rated four-star.

Chisago City in its use of proceeds report, detailed expenditures of $16,000 from this account.  Payments were for a law enforcement recognition event, for acquiring Christmas holiday lighting and fireworks for Ki Chi Saga Days. 

Taylors Falls gets 10 percent of the net sales in town  for gaming to support North Branch Area Hockey Assoc. and the Shafer Franconia Firefighters’ Relief Assoc.  

Wyoming City gets 10 percent from FLAAA net sales in the city.  

The City of Shafer gets five percent from its firefighters’ charitable gambling activity, out of which recently the city designated about $15,000 to help defray sheriff patrol contract costs. 

The city of Lindstrom and the city of North Branch have not enacted an ordinance for sharing a percentage of charitable gaming net, according to their financial directors. 

A couple of recreation/environmental related groups in the North end of the county are four star rated— the Rush Lake Improvement Association and the Rush City Sno Bugs.  The association took in $11, 990, 804 and paid out $10.7 in prizes for a net of about $1.3 million.  The snowmobile group had $5,238,000 in revenues and paid out $4.5 in prizes. 

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