Minnesota Lawful Gambling Tax Instructions Booklet

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Minnesota Lawful Gambling Tax Instructions Booklet Powered By Docstoc
                                       Gambling Tax
                                       Forms and Instructions
                                       Revised November 2009

Inside this booklet                    Need help with your gambling taxes?
 Form G1
 Lawful Gambling Monthly Summary
 and Tax Return
 Form G7420
                                       Call:        651-297-1772
 Request to Destroy Pulltabs,                       Minnesota Relay 711 (tty)
 Tipboards and Paddletickets
 Form G7430
 Refund for Tax Paid on Unsold         E-mail:      lawfulgambling.taxes@state.mn.us
 Pulltab and Tipboard Ticket
 Form G1CC
 Annual Certified Cash Count for
 Games in Play by Site
 Form G1INV
 Annual Certified Physical Inventory
 by Site
 Form G1CI
 Annual Certified Physical Inventory
 and Cash Count Summary
 Schedule A
 Gambling Receipts and
 Expenses by Site
 Schedule B2
 Report of Barcoded Games
 Schedule ER
 Tax Credit for Exempt Raffles
 Schedule F
 Gambling Fund Reconciliation
                                       Pay your taxes electronically!
 Worksheet CS                          Go to our website at
 Lawful Gambling Cash Shortage
 Reimbursement                         www.taxes.state.mn.us
 Worksheet E                           (See Electronic payments on page 4 for step-by-step instructions)
 Combined Receipts Tax
 Worksheet P
 Lawful Gambling Site Profitability
 Barcode Label Sheet
What’s New
Annual audits, certified physical                                                                 For information regarding the new star
inventories and cash counts                                                                       rating system for expenditures, contact the                                       Periodically check our website
Effective July 1, 2009, annual financial audit                                                    Gambling Control Board.                                                           at www.taxes.state.mn.us for
and review requirements have changed. For                                                                                                                                           updates that apply to lawful
complete details and descriptions to three                                                        2010 interest rate
new annual reporting forms, see page 19.                                                          The interest rate for 2010 is 3 percent.                                          gambling taxes.
These three new forms are included in this                                                                                                                                          Minnesota Statutes (Chap-
booklet and are available on our website.                                                         Unrelated business income (UBI) tax
                                                                                                  Organizations with unrelated business                                             ters 297E and 349) and Rules
Allowable and advertising expense                                                                 income are required to annually file Form                                         (7861.032 and 8122) relating
thresholds eliminated; new star                                                                   M4NP, which is available on our website.                                          to lawful gambling taxes can be
rating system                                                                                     Gambling activities are considered unrelated                                      found on the Legislature’s web-
Worksheets EC, Expense Calculation, and                                                           business income. If you have questions, send
ADV, Advertising Expenses, are no longer to                                                       an email to ubi.taxes@state.mn.us.                                                site at www.leg.state.mn.us.
be used for periods after June 30, 2009.

General information                                                                                                                                                           Directory
   What’s new  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2
   Who must file  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3         Minnesota Department of Revenue
   Before you start (federal and Minnesota tax ID numbers)  .  .  .  .  .  .  .  .  .  .  .  .  . 3                                                                           Provides tax forms and information on filing
   Filing requirements  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3                  monthly returns.
   Due dates and extensions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3                               Information and assistance (8–4:30, M-F)
   Penalties and interest  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3                     Phone:
   Payments  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4         651-297-1772
   Recordkeeping requirements  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4                                       711 Minnesota Relay
   Record retention  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
   Assembling your return  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
   Amended returns  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
   Closing your gambling operation  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5                                       E-mail:
                                                                                                                                                                                  lawfulgambling .taxes@state .mn .us
Instructions for forms and schedules
   Form G1  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5   Website (forms/electronic payments):
                                                                                                                                                                                  www .taxes .state .mn .us
   Schedule A  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
   Schedule B2  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10             Address:
       Destroying games  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11                         Minnesota Revenue
       Fund losses  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12                  Mail Station 3350
       Defective games  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13                          St . Paul, MN 55146-3350
       Missing games  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
       Reporting distributor credits or refunds  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
       Sending barcode labels with Schedule B2  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14                                                           Minnesota Gambling Control Board
   Schedule F  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14        Provides information on gambling regulations,
                                                                                                                                                                              licensing requirements, training opportunities
Mathematical error notices  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17                               for organizations’ employees, Schedule C/D,
Determining site profitability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18                                    “LG” forms and instructions.
Annual financial audits/reviews and annual certified
   physical inventories and cash counts  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19                                                   Information and assistance (8–4:30, M-F)
Lawful gambling forms                                                                                                                                                             651-639-4000
The following forms are included in the center of this booklet . Photocopy them                                                                                               Website (all “LG” forms):
to use when you file your gambling tax return.                                                                                                                                    www .gcb .state .mn .us
      Forms filed with Revenue                                                                                         Not filed with Revenue                                 Address:
      Form G1                Schedule ER                                                                               Worksheet CS                                               Minnesota Gambling Control Board
      Schedule A             Form G1CC                                                                                 Worksheet E                                                1711 West Cty . Rd . B ., Suite 300 South
      Schedule F             Form G1INV                                                                                Worksheet P                                                Roseville, MN 55113
      Schedule B2            Form G1CI
      Barcode Label Sheet    Form G7430
                             Form G7420                                                                                                                                       The information in this booklet is available in
   2                                                                                                                                                                          other formats upon request.
General information
Who must file                                   Form G7430. If you reported unsold tickets       The U.S. postmark date, or date recorded or
All licensed gambling organizations must        for pulltab and tipboard games played            marked by a designated delivery service, is
file Form G1, Lawful Gambling Monthly           during the calendar year, use this form          considered the filing date (private postage
Summary and Tax Return, and the necessary       to claim a refund for taxes paid on these        meter marks are not valid). When the due
supporting schedules.                           tickets. File Form G7430 along with the          date falls on a Saturday, Sunday or legal
                                                other required forms and schedules for           holiday, returns postmarked on the next
                                                February only.                                   business day are considered on time. When
Before you start                                                                                 a return is mailed late, the date it is received
                                                Form G7420. Before you can destroy any
You need both a federal and a                                                                    at the Department of Revenue is treated as
                                                unused or unusable pulltabs, tipboards and/
Minnesota tax ID number                         or paddletickets, you must obtain approval
                                                                                                 the date filed.
Your federal ID number is also known
                                                to do so. Use this form to request permis-       If your return is incomplete, we will return
as your Employer Identification Number
                                                sion from the department to destroy these        it to you for completion. If the delay causes
(EIN), and is used to identify a busi-
                                                types of games.                                  your return to be filed late, you will be sub-
ness entity. If you don’t have one, you can
                                                                                                 ject to penalty and interest charges.
apply on the IRS website at www.irs.gov         Form G1CC. All organizations must annu-
(search for employer ID number) or call         ally complete and submit a separate Form
1-800-829-4933.                                 G1CC for each site to record the certified       Penalties and interest
                                                cash count for games in play.                    Late payment. A late-payment penalty is
Your Minnesota tax ID is the seven-digit                                                         due if you file your return on time but do
number assigned to you when you reg-            Form G1INV. All organizations must annu-         not pay all the tax due. If your payment is
ister with the Department of Revenue.           ally complete and submit a separate Form         one to 30 days late, the penalty is 5 percent
If you don’t have one, apply for one            G1INV to record the certified physical           of the unpaid tax; 31 to 60 days late, 10 per-
online at www.taxes.state.mn.us or call         inventory for each site.                         cent; over 60 days late, 15 percent.
651-282-5225 or 1-800-657-3605.
                                                Form G1CI. All organizations must annu-          If your payment is more than 90 days
You must provide your federal and               ally complete and submit Form G1CI to            late, you will be referred to the Gambling
Minnesota tax ID number on all lawful           summarize the inventory and cash count of        Control Board for sanctions.
gambling forms submitted to the                 all sites after physical inventories and cash
Department of Revenue.                          counts have been conducted.                      Late filing. If you also do not file your
                                                                                                 return on time, you must pay an additional
                                                Worksheets to complete, but do                   5 percent of the unpaid tax.
Filing requirements                             not file
Forms to submit to the                                                                           Interest is figured on the total tax plus pen-
                                                The following worksheets are required to be      alty at the following rates from the date you
Department of Revenue                           completed, but are not filed with either the     should have paid the tax until the date the
Form G1, Schedule B2 and Schedule F.            Department of Revenue or the Gambling            total is paid:
If you’ve conducted gambling during the         Control Board.
month, file Form G1, Schedule B2 (to report                                                      2010 = 3%       2008 = 8% 2006 = 6%
bar-coded games) and Schedule F. If you         Worksheet CS. Use this worksheet to deter-       2009 = 5%       2007 = 8% 2005 = 4%
had no gambling activity during the month,      mine if you exceed the allowable limit of
                                                cash shortages per site for fiscal year July 1   The same interest rates apply to refunds.
file Form G1 and Schedule F only.
                                                through June 30.                                 By law, payments are applied first to any
Schedule A. If you have more than one                                                            penalties you owe, then to any interest, then
gambling site (whether or not there was any     Worksheet E. Use this worksheet to track
                                                your gross receipts for pulltabs, tipboards      to the tax.
gambling activity), file this schedule along
with Form G1 and Schedules B2 and F. You        and interest for fiscal year July 1 through      Abatement. You have the right to request
may also need to file this schedule if your     June 30. If you exceed $500,000 during this      an abatement of any penalty assessed. To
organization conducted offsite gambling         period, you will be subject to the combined      request an abatement, contact the depart-
that you do not want to add to an existing      receipts tax.                                    ment (see page 2).
site (see Schedule A instructions on page 9).   Worksheet P. Use this worksheet to deter-
                                                                                                 If you need a filing extension
Barcode label sheet. If you played bar-         mine if an individual site is profitable.
                                                                                                 Automatic filing extension. You may
coded games during the month, attach the                                                         receive one automatic 30-day filing exten-
barcodes to this form (see page 14), and        Due dates and extensions                         sion during a 12-month period.
file this sheet along with the other required   Filing deadline
forms and schedules.                                                                             To request a 30-day filing extension, by the
                                                The regular due date for filing your
                                                                                                 regular due date you must mail or fax us a
Schedule ER. File this form along with          monthly return (Form G1 and schedules)
                                                                                                 written request (see page 2) that includes
other required forms and schedules if you       and paying the tax due is the 20th day of
                                                                                                 your name, address, federal and state tax ID
conducted tax-exempt raffles during the         the month after the month for which the
                                                                                                 numbers, license number, and the month
month, for which the net proceeds are used      return is being filed. For example, your
                                                                                                 for which you are requesting an extension.
exclusively to help relieve the effects of      monthly return for July must be received by
poverty, homelessness or disability for an      August 20. You must file your return by the
individual or family.                           due date even if no tax is due.                                                              3
General information
This is a filing extension only, however, not     Note: If you use a payroll service, check to     Records include, but are not limited to, the
a payment extension. If you owe tax, you          see if you’ve exceeded the thresholds and are    following items:
must estimate how much you owe and pay            required to pay electronically in the future.
                                                                                                   •	 winning	and	unsold	tickets	for	pulltab,	
it by the regular due date. Any tax not paid
                                                  e-File Minnesota. You can pay your                  tipboard, paddlewheel and raffle games
on time is subject to penalties and interest
                                                  lawful gambling taxes electronically over           and game flares
(see Penalties and interest on page 3).
                                                  the Internet or by phone using our free          •	 reports	and	statements,	including	
Approved extensions. You can request a            e-File Minnesota system.                            checker’s records for each bingo occasion
filing extension of more than 30 days or                                                           •	 cash	journals,	ledgers	deposit	slips,	regis-
                                                  •	 To	pay	over	the	Internet,	go	to	our	
a 30-day extension for a second month                                                                 ter tapes and bank statements supporting
                                                     website at www.taxes.state.mn.us and
during a 12-month period. Estimate the                                                                gambling activity receipts
                                                     click “Login to e-File Minnesota” on the
amount on line 13, and pay the tax by the                                                          •	 invoices	that	represent	purchases	of	gam-
                                                     e-Services menu. Follow the prompts for
regular due date (for payment options, see                                                            bling products
                                                     a business to make a payment of lawful
Payments on page 4).                                                                               •	 canceled	checks	or	substitute	checks	and	
                                                     gambling tax.
                                                                                                      other documents supporting gambling
To request an extension, by the regular           •	 If	you	don’t	have	Internet	access,	you	can	      activity expenditures
due date you must mail or fax us a written           pay by phone at 1-800-570-3329.               •	 organizational	minutes.
request (see page 2) that includes:
                                                  For both methods, you’ll need your
•	 your	federal	and	state	tax	ID	numbers,         Minnesota tax ID number, password and            Record retention
•	 your	license	number,                           banking information. Note: If you’re using       Gambling-related records must be kept
•	 the	month	for	which	you	are	requesting	        the e-File Minnesota system for the first        for at least 3½ years, and may be inspected
   an extension,                                  time and you need a temporary password,          by the department at any reasonable time
                                                  call our Registration Services office at         without notice or a search warrant.
•	 the	date	you	expect	to	file	the	return,	and
                                                  651-282-5225 or 1-800-657-3605.
•	 the	reason(s)	why	you	cannot	file	on	time.                                                      The retention period for played games starts
                                                  After you authorize the payment, you’ll          on the due date of the return on which the
Your request must be received by the regular      receive a confirmation number for you to         game is first reported. It does not start on
due date of the return, or by the automatic       keep with your records. You can cancel a         the invoice purchase date or the date the
extended due date if you’ve filed for one. We     payment up to one business day before the        game is removed from play.
will notify you in writing if your request has    scheduled payment date if needed.
been approved or denied.                                                                           For example, if you report a game as
                                                  Check payments                                   played on your January 2010 return (due
If it is approved, you must estimate the                                                           February 20), the retention period begins
                                                  If you’re not required to pay electronically,
amount of tax you will owe for the month                                                           Feb. 20, 2010 and ends Aug. 20, 2013.
                                                  you can pay by check. Make check pay-
and send us a check and a copy of the
                                                  able to Minnesota Revenue. On the memo           Keep a copy of all tax returns, schedules and
approval letter (see page 2). If the actual tax
                                                  line of your check, write “gambling tax,”        worksheets for your records, including all
is more than the amount paid, you will owe
                                                  the organization’s license number, and the       amended returns.
interest on the difference. Interest will be
                                                  month and year of the tax being paid.
calculated from the regular due date until
the date it is paid.                              When you provide a check as payment, you         Assembling your return
                                                  are authorizing us to use information from       Arrange the forms in the following order
If your request is denied, we will notify you
                                                  your check to make a one-time electronic         and staple:
by letter and indicate the date by which you
                                                  fund transfer from your account. As a result,    1.   Form G1        5.   Barcode Label Sheet
must file the return.
                                                  your bank will report the payment as an          2.   Schedule A     6.   Schedule ER
                                                  electronic transaction, and you will not
Payments                                          receive the canceled check. If we experi-
                                                                                                        Schedule F
                                                                                                        Schedule B2
                                                                                                                            Form G7430
                                                                                                                            Form G7420
Electronic payments                               ence technical or processing problems,
If your organization’s total sales or with-       we may process your payment as a check           Mail to: Minnesota Revenue, Mail Station
holding tax liability during the last 12          transaction.                                     3350, St. Paul, MN 55146-3350.
months ending June 30 was $10,000 or                                                               Send only original completed returns,
more, you are required to make payments           Recordkeeping                                    schedules and barcodes. Photocopies will
electronically. In addition, if the organi-
zation is required to pay any Minnesota
                                                  requirements                                     not be accepted.
                                                  Every licensed organization is required to       Note: Do not attach LG1010, Schedule C/D.
business tax electronically, you are required
                                                  maintain complete, accurate and legible          Send the originals to the Gambling Control
to pay all Minnesota business taxes
                                                  records supporting all gambling activities       Board (see page 2) and keep a copy with
                                                  (as reported to the department) for the five     your records.
                                                  types of lawful gambling—bingo, paddle-
                                                  wheels, raffles, tipboards and pulltabs.         Do not attach worksheets (e.g., Worksheets
                                                                                                   CS, E and P). Keep these with your records.

General information, Form G1
Amended returns
File an amended return to report changes
to Form G1 or schedules. Check the box for
                                                  Form G1                                            Merchandise prizes for
                                                                                                     meat raffles
amended returns at the top of Form G1.            Note: If you have more than one site,              If merchandise (meat) prizes are lost
                                                  complete Schedule A for each site before           before they are awarded, you must reim-
Important: If you use tax software to
                                                  filling out Form G1 (see page 9).                  burse the gambling account for the cost
prepare your gambling tax return, and you
                                                                                                     of the prize.
make a change to a previously filed return,
remember to also file an amended return
                                                  Fill out the top of Form G1 completely,            If meat prizes are spoiled or ruined
with the Department of Revenue.                   including your federal and state tax ID            before they are awarded, you may
                                                  numbers, which are required.                       expense them off on Form G1, line 27,
If you file an amended Form G1 for any
                                                                                                     or Schedule A if you have prior approval
month and you have already filed G1               Check the appropriate box if:                      from your compliance specialist at the
returns for later months, you do not have         •	 The	return	is	an	amended	return.                Gambling Control Board.
to amend the later months if only the profit
                                                  •	 You	have	an	extension	to	file	(either	
carryover amount would be changed.                                                                   If meat prizes are sold, you must sell
                                                      an automatic extension or a requested
                                                                                                     them for exactly what was paid for the
We will automatically correct the profit car-         extension). Attach a copy of your letter
                                                                                                     prizes and deposit the proceeds in the
ryover for the later months and will notify           requesting an automatic extension or the
                                                                                                     gambling account. No entry is required
you of the changes made. Be sure to correct           letter from the Department of Revenue
                                                                                                     on Form G1 or Schedule A; however,
your own copies, however, for your records            granting an additional extension.
                                                                                                     Schedule F will be affected (see Note
(Form G1, lines 38, 40 and 44).                   •		 You	had	no	gambling	activity	during	the	       below). Deposit the proceeds into the
Note: To amend Form LG1010, Schedule                  month to report on lines 1 through 3 and       gambling checking account. The meat
C/D, see the instructions in Lawful Purpose           lines 8 and 9 of Form G1. Even though          cannot be sold for a profit.
Expenditures, which is available on the               you have no gambling activity, be sure to
                                                      enter income from interest, dividends and      If you choose to donate meat prizes,
Gambling Control Board’s website (see page
                                                      other investments of gambling funds on         you must contact your compliance spe-
                                                      line 7. Also, enter any amounts paid for       cialist at the Gambling Control Board. If
                                                                                                     approved, record the cost of the prize as
Closing your gambling                                 allowable expenses and/or lawful purpose
                                                                                                     a lawful purpose expenditure on Form
                                                      expenditures on lines 18 through 42.
operation                                                                                            LG1010, Schedule C.
If you permanently stop conducting                Line 1                                             Note: In all of the above cases, you must
gambling activities, you must file Form           Bingo                                              reduce the quantity of the merchandise
LG204, License Termination Plan, with the         Bingo activity includes any paper and hard         inventory maintained on Form LG830,
Gambling Control Board within 30 days             card bingo, bar bingo, and linked bingo            and reduce the cost of merchandise prizes
from the date you stop the activities. All        conducted by the organization. To deter-
                                                                                                     on Schedule F, line 11d.
unplayed games in the organization’s pos-         mine the gross receipts and prizes paid for
session must either be returned to the dis-       bingo, complete the following worksheets:
tributor for credit or a refund, or sent to the                                                     The selling price is listed on the distribu-
                                                  •		 LG909,	Bingo Occasion Summary/Bingo
department for destruction. This includes                                                           tor’s invoice. Adjusting the selling price with
any unplayed bingo paper the organiza-                                                              coupons or certificates will reduce the gross
                                                  •		 LG811,	Bingo Occasion Summary/Hard
tion may have. Contact us before shipping                                                           receipts from bingo reported on Form G1,
or bringing in any unplayed games. The                                                              line 1A. Report the gross receipts from
                                                  •	 LG920, Bar Bingo Paper Sales
organization must not destroy unplayed                                                              bingo certificates at the time they are sold.
games.                                            To figure the amounts to enter on line 1:
                                                                                                    Keep all bingo-related records for at least
You must continue to file your monthly tax        •	 Column	A:	Total	the	gross	sales	from	line	     3½ years.
returns:                                             5 of all LG909s, line 1 of all LG811s and
                                                     line 4 of all LG920s completed during the      Line 2
•	 until	all	gambling	proceeds	are	expended	         month.                                         Raffles
   and inventory disposed of according to         •	 Column	B:	Total	the	prizes	paid	from	line	     Report all raffles you concluded during the
   the Gambling Control Board’s approved             6 of all LG909s, line 2 of all LG811s and      month. To determine gross receipts and
   termination plan, and                             the total of lines 5, 8 and 9 for all LG920s   prizes paid for raffles, complete the fol-
•	 for	any	month	in	which	there	is	activity.         completed during the month.                    lowing worksheets:
If you have questions, contact the                •	 Column	C:	Total	the	net	receipts	from	         •		 LG820,	Raffle Inventory and Sales Log
Department of Revenue (see page 2).                  line 7 of all LG909s, line 3 of all LG811s     •		 LG830,	Merchandise Prize Perpetual
                                                     and line 11 of all LG920s completed dur-           Inventory
                                                     ing the month.
                                                                                                    To figure the amounts to enter on line 2:
                                                  Coupons and certificates are the only items
                                                  that may be used to adjust the selling price      •		 Column	A:	Enter	the	total	gross	receipts	
                                                  of bingo hard cards, sheets, packets, and             from LG820, Column 7.
                                                  packages (may be adjusted down to zero).                                                        5
Form G1 (continued)
•		 Column	B:	Total	of	the	amount	of	cash	        on the top card of the pad when reporting         •	 total	prizes	paid	from	line	16,	Column	K	
    and the actual cost of merchandise prizes     paddleticket games on Schedule B2.                   on Form G1, line 8, Column B.
    awarded. Do not include the cost of                                                             •	 total	net	receipts	from	line	16,	Column	L	
                                                  During the month, if all paddleticket cards
    printing tickets.                                                                                  on Form G1, line 8, Column C.
                                                  of a group are played, the game is closed
•		 Column	C:	Enter	raffle	net	receipts.          and reported as played on Schedule B2.            If you played both tipboards and progres-
Frequently, raffles will extend over two or       At the end of the month, each group of pad-       sive tipboards, add the totals from both
more months (from the purchase and sale           dletickets in play during the month must be       Schedules B2 and enter the results on line 8,
of raffle tickets to the awarding of prizes).     closed and reported on Schedule B2, even          Columns A, B and C.
Report the gross receipts and prizes paid for     if all paddletickets have not been played.        Keep all played tipboard games and records
the raffle in the month of the drawing. For       Report all unplayed paddletickets as unsold       for at least 3½ years. Do not open any
raffles with more than one drawing during         on Schedule B2.                                   unsold tipboard tickets. Do not open any
the play of the raffle, report gross receipts
                                                  Send the barcode label with your tax return       seal card or tipboard windows that have not
and prizes paid in the month of the first
                                                  when the sealed group of tickets is removed       been played or won. All redeemed winning
                                                  from play. A sealed group of tickets is consid-   tickets must be kept with the tipboard flare.
Note: Report on Schedule F, line 15, any          ered one play and one entry on Schedule B2.
bank deposits from raffle ticket sales that                                                         Line 9
are still in play and are not included on         From your Schedules B2 for paddletickets,         Pulltabs
Form G1, line 2.                                  enter:                                            From your Schedules B2 for pulltabs, enter:
To report merchandise prize purchases             •	 total	gross	receipts	from	line	16,	Col-        •	 total	gross	receipts	from	line	16,	Col-
for raffles still in play that have not been         umn J on Form G1, line 3, Column A.               umn J on Form G1, line 9, Column A.
reported on Form G1, enter the amount on          •	 total	prizes	paid	from	line	16,	Column	K	      •	 total	prizes	paid	from	line	16,	Column	K	
Schedule F, line 11c or 11d, depending on            on Form G1, line 3, Column B.                     on Form G1, line 9, Column B.
whether the prizes have been awarded or           •	 total	net	receipts	from	line	16,	Column	L	     •	 total	net	receipts	from	line	16,	Column	L	
not.                                                 on Form G1, line 3, Column C.                     on Form G1, line 9, Column C.
Prizes reported on Form G1, but not               Keep the master flares, paddleticket card         Keep all winning, unsold and defective
awarded (calendar raffles) are a liability.       stubs, winning paddletickets, unsold pad-         pulltabs, along with other pulltab records,
Report on Schedule F, line 20.                    dletickets, and all other paddleticket records    for at least 3½ years. Do not open any
Keep all unsold raffle tickets and unsold         for at least 3½ years.                            unsold or defective pulltabs.
certificates of participation, winning
ticket stubs, raffle log books, inventory         Line 5                                            Line 12
records, and other raffle records for at least    Loss carryforward                                 Monthly regulatory fee
3½ years. Organizations must account for          If you don’t anticipate any income from           If there are no taxes due on line 11, the reg-
all unsold raffle tickets. Any missing raffle     bingo, raffles or paddletickets in the near       ulatory fee may be accrued (not paid) until
tickets are considered sold and must be           future that would offset a loss carryforward      the total fee owed is $50 or more. However,
included in gross receipts. The organization      reported on line 5, you can stop reporting it     the regulatory fee must be paid with the
must pay for the missing raffle tickets from      by checking the box.                              March, June, September and December
                                                                                                    returns, even if the total owed is less than
nongambling funds (i.e., organization’s gen-      Note: If you have more than one site, see         $50.
eral account).                                    Schedule A instructions on page 9.
Tax-exempt raffles. Organizations may                                                               Line 14
conduct tax-exempt raffles if the net pro-
                                                  Line 7                                            Tax paid to distributors
                                                  Interest and other income                         Enter the total 1.7 percent gambling tax
ceeds are used exclusively to help reduce
                                                  Total the interest earnings, admission            listed on paid invoices for pulltabs and tip-
the effects of poverty, homelessness, or dis-
                                                  charges, cover charges, and dividends from        boards during the month. Do not include
ability for an individual or family. Complete
                                                  gambling savings accounts, certificates of        amounts from unpaid invoices. Do not
Schedule ER to determine the credit. The
                                                  deposit, mutual funds or other investments        include any sales tax or freight charges.
credit is nonrefundable and cannot be
                                                  of gambling funds. (If you have investments
greater than your tax liability. Contact the
board to determine if a raffle qualifies as tax
                                                  in stocks, contact the Gambling Control           Line 19
                                                  Board.) Enter the amount in Columns A             Purchases
                                                  and C.                                            From your invoices, enter the actual cost
Line 3                                            Note: If you have more than one site, see         of games received through the last day of
Paddletickets                                     Schedule A instructions on page 9.                the month whether paid for or not. Include
A paddleticket game is a sealed group of up                                                         the amount of state and local sales tax and
to 100 paddleticket cards.                        Line 8                                            freight charges listed on the invoices, but do
                                                  Tipboards                                         not include the 1.7 percent distributor tax,
Even though each card has its own serial                                                            if any. Include the cost of:
                                                  From your Schedules B2 for tipboards, enter:
number, use the serial number printed
                                                  •	 total	gross	receipts	from	line	16,	Col-        •		 bingo	paper,	bingo-paper	packages	and	
 6                                                   umn J on Form G1, line 8, Column A.                bingo-paper sheet packets,
Form G1 (continued)
•	 linked-bingo	paper,
•		 paddletickets	and	paddleticket	cards,         Physical vs. perpetual inventories
•		 tipboards	and	tipboard	tickets,
•		 pulltabs,                                     Physical inventory                                Perpetual inventory
•		 jar	tickets,                                  Taking a physical inventory requires              A perpetual inventory is an ongoing
•	 raffle	tickets,                                counting and recording the gambling               record of gambling products from the
•	 certificates	of	participation,	and             products in inventory on the last day of          time they are received by the organization
•	 button	raffles	(see	Button raffles below).     the month and verifying the information           until they are either played, transferred,
To transfer unplayed games between sites,         with the perpetual inventory.                     returned or destroyed with prior approval.
you must enter a negative line 19 amount          When taking a physical inventory, use             When purchasing gambling equipment,
for the cost of the game on Schedule A of         the following forms available from the            you must keep an ongoing tracking system
the site that has the game and a positive line    Gambling Control Board:                           of the equipment. A properly maintained
19 amount on the Schedule A of the site to                                                          perpetual inventory system allows you to
which the game is being moved.                    •		 For	pulltabs,	paddletickets	and	tip-
                                                                                                    know what is in your inventory on any day
                                                      boards, use Form LG846.
                                                                                                    of the month.
 Button raffles                                   •		 For	bingo	paper,	use	Form	LG903.
                                                                                                    The person who maintains the per-
 If purchase of a button and raffle ticket        •		 For	raffle	tickets,	use	Form	LG821.
                                                                                                    petual inventory must not be the same
 or certificate of participation are needed                                                         person who does the physical inventory.
                                                  Pulltab, paddleticket, and tipboard
 to participate in a raffle, enter the cost of                                                      Information in the perpetual inventory
                                                  games. For each game in play or in
 the button and raffle ticket or certificate                                                        records may include, but is not limited to,
                                                  unplayed inventory at month’s end, enter
 of participation on line 19. All money                                                             the following:
                                                  the following items on Form LG846:
 from sales of both must be reported as
 raffle gross receipts on line 2A.                •		 manufacturer	ID,                              •		 date	of	the	invoice,
                                                  •		 part	number,                                  •		 distributor	name,
 If purchase of only a raffle ticket or                                                             •		 invoice	number,
                                                  •		 name	of	the	game,
 certificate of participation is needed to                                                          •		 manufacturer	ID,
                                                  •		 serial	number,	and
 enter the raffle, then only the cost of the                                                        •		 part	number,
                                                  •		 cost	of	the	game,	not	including	sales	tax,	
 raffle ticket or certificate of participation                                                      •		 game	serial	number,
                                                      the 1.7 percent distributor tax or freight
 is entered on line 19. All money from the                                                          •		 actual	game	cost,
 sale of the raffle tickets or certificates of                                                      •		 date	each	game	was	put	into	play,	trans-
 participation must be reported as raffle         Do not include closed games or games
                                                                                                        ferred, returned or destroyed with prior
 gross receipts on line 2A.                       returned for credit.
                                                                                                        approval, and
                                                  Bingo and raffles. Include the dollar value       •		 date	each	game	was	closed.
Line 21                                           of bingo paper (note if paid for or unpaid)
                                                                                                    The Gambling Control Board requires
Ending inventory                                  from Form LG903. Also include the cost
                                                                                                    perpetual inventories be recorded on
To determine the amount to enter on               of raffle tickets from Form LG821 (note if
                                                                                                    forms provided by the board or in a
line 21, you must conduct a physical inven-       paid for or unpaid).
                                                                                                    format approved by the board.
tory at the end of the last day of the month.
                                                  Use the end-of-month physical inventory
                                                                                                    •		 For	pulltabs,	tipboards,	and	
Enter the total value of the physical inven-      records to verify and compare the accu-
                                                                                                        paddletickets, use Form LG844.
tory on line 21 (see Physical vs. perpetual       racy of your perpetual inventory. If there
inventories on this page). Do not include         are any discrepancies, you will need to           •		 For	bingo,	use	Forms	LG900,	LG901,	
sales tax, the 1.7 percent distributor tax or     investigate and correct your inventory.               LG902 and/or LG930.
freight charges.                                                                                    •		 For	raffles,	use	Form	LG820.

Line 23
Payroll expenses                                 •		 worker’s	compensation	insurance,	and           Line 26
Enter the total paid during the month for:       •		 FICA	tax	(both	the	employer’s	share	and	       Accounting and legal
                                                     the employee’s share).                         Include the following gambling-related
•		 net	wages	(after	all	deductions)	paid	to	
    employees for services related to gam-       Do not include compensation paid to
    bling, including payments to members         employees from the organization’s general          •	 cost	for	accounting	services	(e.g.,	book-
    who are not involved with gambling ac-       fund or any other account except the gam-             keeping, filing and tax-preparation
    tivities who perform the annual certified    bling account.                                        services including those expenses related
    inventories and cash counts,                                                                       to payroll taxes),
•		 federal	and	state	income	taxes	with-         Line 25                                            •	 costs	of	the	required	annual	audits	and/or	
    held from employees’ wages for services      Advertising                                           certified inventories and cash counts filed
    related to gambling,                         Enter advertising expenses, including                 with the Department of Revenue, and
•		 federal	unemployment	tax	(FUTA),             printing costs, you paid during the month.         •	 costs	for	qualifying	legal	work	related	to	
•		 Minnesota	unemployment	compensation	         Note: If you have more than one site, see             gambling.
                                                 Schedule A instructions on page 9.
    tax,                                                                                                                          Continued
Form G1 (continued)
Line 27                                           Line 29                                           •		 If	all	amounts	are	cash	short,	enter	the	
Supplies and miscellaneous                        Rent                                                  total on line 33 without parentheses.
Include the following gambling-related            Enter the rent expense for the month for the      •		 If	amounts	are	both	cash	long	and	cash	
expenses:                                         site used for lawful gambling activities from         short, add the cash-long and cash-short
                                                  Form LG216, Columns G and H.                          amounts separately, and combine the
•	 service	charges	paid	to	the	bank	on	your	
   gambling bank accounts,                        For bar operations, use the rent amount               totals. If the result is cash long, enter the
                                                  before any reduction for cash shortages.              amount on line 33 in parentheses. If the
•	 cost	of	miscellaneous	office	supplies,	such	
                                                                                                        result is cash short, enter the amount
   as paper, pencils, pens and envelopes,
   including sales tax paid on the items,         Line 30                                               without parentheses.
                                                  Utilities                                         If you conduct paddlewheel games with
•	 printing	costs	(do	not	include	print-          If the organization owns the site where
   ing costs for advertising, raffle tickets or                                                     chips, you must reconcile the chip count on
                                                  lawful gambling is conducted, you may be          at least a monthly basis. Include any overage
   certificates of participation),                able to include costs for certain utilities you   or shortage in chip count on line 33 as cash
•	 linked	bingo	provider	fee,                     actually paid during the month on line 30.        long or short.
•	 cost	of	lodging,	meals	and	transportation	     Veteran and fraternal organizations
   to attend lawful gambling seminars and                                                           If you conduct bingo and/or raffle activi-
                                                  must determine if they are eligible to            ties, determine the amount of cash long or
   classes authorized by the Department of        deduct utility expenses as lawful purpose
   Revenue or the Gambling Control Board,                                                           short from these activities and include it in
                                                  expenditures.                                     your line 33 calculations. Include the totals
                                                  Contact the Gambling Control Board for            from Forms LG909 (line 14) and LG811
•	 other	expenses	that	cannot	be	reported	                                                          (line 12).
   on another line of Form G1, such as the
   cost of storing, shredding or destroying       Line 31                                           Line 34
   gambling equipment.                            Insurance                                         Reimbursement of cash shortages
                                                  To figure the amount to enter on line 31:         For bar operations under a new lease, enter
Line 28                                                                                             any reduction in rent for cash shortages
Equipment and repairs                             1. Determine the cost of liability insurance
                                                                                                    on line 34 in the month the rent check was
Include the following gambling-related               paid during the month.
expenses:                                         2. From your insurance company, deter-
                                                     mine what your liability insurance would       Complete Worksheet CS, Lawful Gambling
•	 cost	of	office	furnishings	and	office	                                                           Cash Shortage Reimbursement (included
                                                     be if you were not conducting gambling.
   equipment used for gambling and                                                                  in this booklet), each month for each site.
   gambling-related activities, such as desks,    3. Subtract step 2 from step 1.                   Cumulative total cash shortages start at zero
   chairs, tables, computers, computer            4. Determine the cost of theft insurance          in July of each year and end in June of the
   software, calculators, vaults and other se-       paid during the month to insure gam-           following year.
   curity containers for cash. Do not include        bling equipment and funds from theft,
   amounts entered on line 27.                                                                      If the total cash shortages in June for each
                                                     burglary and casualty loss.
                                                                                                    site for the year exceed 0.3 percent of gross
   If the office furnishings or equipment         5. Add steps 3 and 4, and enter the total on      receipts (i.e., Worksheet CS, Column H,
   are used for both gambling and nongam-            line 31.                                       for June is a negative amount), you must
   bling activities, multiply the cost by the                                                       reimburse the gambling account from
   percentage of time the items are used          You must keep documentation from your
                                                  insurance agent to verify this deduction.         nongambling sources by July 20. Enter the
   for gambling. The remaining cost of the                                                          amount of reimbursement on line 34. If you
   items must be paid for from nongam-                                                              reimbursed your gambling account after the
                                                  Line 32
   bling sources.                                                                                   month you are reporting, also include this
                                                  Bond and investigation fees
•	 cost	of	gambling	devices	that	have	a	          Include the following gambling-related            amount on Schedule F, line 10.
   useful life of more than one year, such        expenses:
   as numbered bingo balls, flash boards,                                                           Line 35
                                                  •	 annual	investigation	fees	charged	by	your	     Reimbursement of allowable expenses
   monitoring systems, scales, pulltab ticket
                                                     local governing body in place of a 3 per-      If your organization had a negative expense
   containers, pulltab dispensing devices
                                                     cent tax, and                                  balance on either:
   (machines) leased or purchased, bingo
                                                  •	 the	cost	of	a	gambling	manager’s	bond	or	
   hard cards, equipment for selecting bingo                                                        •	 the	24th	month	of	your	license	period	
                                                     bond renewal paid during the month.
   numbers, paddlewheels, paddlewheel                                                                  ending June 30, 2009 or earlier, or
   tables and chips,                              Line 33                                           •	 the	21st	month	of	your	license	period	
•	 cost	of	materials	and	labor	to	repair	and/     Cash (long) or short                                 starting October 1, 2007 or before,
   or store any of the office furnishings,        If you did not conduct bingo or raffles,          you must deposit the amount into your
   office equipment and gambling devices          refer to your Schedules B2, Column N.             gambling account.
   listed above.
                                                  •		 If	all	amounts	are	cash	long,	enter	the	      Mail a copy of Worksheet EC to the
                                                      total on line 33 in parentheses.              Gambling Control Board with documenta-
                                                                                                    tion showing reimbursement of your gam-
Form G1, Schedule A
bling account from a nongambling source          •		 The	amount	of	any	reimbursement	            tion may authorize other members to sign
of funds. Report the reimbursed amount on            from manufacturers or distributors for      in their absence by passing a motion at a
Form G1, line 35, as a negative amount. If           defective games previously reported on      monthly membership meeting. The motion,
you need assistance, contact the Gambling            Schedule B2 as a loss. Attach supporting    second and vote must be documented in the
Control Board.                                       documentation listing the month and         meeting minutes and a copy of the minutes
Effective July 1, 2009, expense calculations         year the game was reported on Sched-        sent to the Department of Revenue.
are no longer tracked and organizations              ule B2 along with the barcode data.
                                                                                                 If there is an unpaid tax liability for the
whose license periods started August 1,          Line 47                                         period being reported, the CEO, gambling
2007 or later do not need to reimburse for       Dollar value of unsold tickets                  manager, and/or designees that actually sign
negative expenses in their 24th month. Also,                                                     the return may be held personally respon-
                                                 Enter the total from your Schedules B2 for
organizations whose license periods started                                                      sible for the unpaid tax liability.
                                                 pulltabs and tipboards (line 16, Column I).
November 1, 2007 or later do not need to
                                                 Do not include paddletickets.                   The CEO and gambling manager are
reimburse for negative expenses in their 21st
or 24th month.                                                                                   expected to sign the tax return. The organi-
                                                 Sign the return                                 zation is not allowed to have a designee sign
Although the expense calculations are            The following are required to sign Form G1:     the return simply as a convenience to the
no longer tracked as of July 1, 2009, the                                                        organization.
                                                 •		 the	chief	executive	officer	(CEO)	of	the	
Gambling Control Board requires that a
                                                     organization,                               The person who prepared the return must
minimum of 30 percent of gross profits (or
                                                 •		 the	gambling	manager	of	the	organiza-       also sign, date, and enter his or her daytime
gross receipts) are spent on lawful purposes
                                                     tion, and                                   phone number and name of the firm.
each fiscal year. Lawful purpose includes all
                                                 •	 the	person	who	prepared	the	return.
taxes on Form G1, line 15, plus all expendi-
                                                                                                 Note: Information on your lawful gambling
tures listed on Form LG1010, Schedule C/D        If the CEO or gambling manager are not          forms is public information.
(line 43 of Form G1).                            available to sign the return, the organiza-
Organizations can track their lawful pur-

                                                 Schedule A
pose expenditures on the Board’s new Form
LG1012. Organizations will receive a star
rating after the end of each fiscal year indi-
cating their lawful purpose rating based on
the percentage of annual gross profits spent     Complete Schedule A, Gambling                   •	 the	site	permit	was	terminated	and	you	
on lawful purpose expenditures. Contact          Receipts and Expenses by Site, only                are reporting final expenses, final income,
the Gambling Control Board for more              if you have more than one gambling                 sale of equipment, return of product,
information.                                                                                        transfer of product to another site, etc., or
                                                 site or conduct offsite activity.
If you are required to reimburse your gam-                                                       •	 offsite	activity	is	being	reported	at	site	
bling account for a negative balance, the        Complete Schedule A for each site                  999. See below for details.
required reimbursement amount is the nega-       before filling out Form G1. The                 Do not complete more than one Schedule
tive amount on Worksheet EC, Column J.           information on all your Schedules A             A per site per month. If you complete sepa-
Report the reimbursed amount on Form G1,
                                                 will then be summarized on Form                 rate Schedules B2 for the same site because
line 35 as a negative amount. Deposit the
amount into your gambling account by the         G1.                                             you operate a combination site (i.e., sell
                                                                                                 from both a booth and a bar operation), you
20th day of the following month.
                                                 If you have more than one site, follow the      must combine Schedules B2 for reporting
If you reimburse the gambling account in         Form G1 instructions to complete Schedule       on a single Schedule A or Form G1.
the month following the month you are            A for each gambling site. (See the instruc-     If you have offsite gambling activity,
reporting, report this as a positive amount      tions for lines 5, 7, 25 and 35 on page 10.)    report the activity on your monthly return
on Schedule F, line 11e, and provide a brief
explanation.                                     You’ll need your Schedules B2 for each site,    using one of the following methods:
                                                 and bank and dividend statements. If you        •	 add	the	offsite	activity	to	Form	G1	if	you	
Note: If you have more than one site, see
                                                 conduct bingo or raffles, you’ll need records      have only one active site, OR
Schedule A instructions beginning on this
                                                 showing receipts and prizes paid.               •	 add	the	offsite	activity	to	Schedule	A	for	
                                                 If you discontinue activity at a site, notify      one of your active sites, OR
Line 39                                          the Gambling Control Board and continue         •	 report	the	offsite	activity	on	a	separate	
Approved adjustments                             to file Schedule A for that site until the         Schedule A using site number 999. You
Enter the following:                             Board notifies you that the site has been          may want to choose this option if (1) all
                                                 terminated.                                        other active sites are either bar operations
•		 The	amount	of	any	approved	adjustment	
                                                                                                    under new leases, or (2) active sites are
    received from the Department of Revenue      Do not complete Schedule A for a site for          located in cities or counties with local
    or the Gambling Control Board during the     which you do NOT have a valid premises             taxes or requirements that a contribution
    month you are reporting. Attach a copy of    permit issued by the Gambling Control              be made to a city or county-administered
    the letter.                                  Board, unless:                                     fund for lawful purpose contributions
•		 Any amount entered on this month’s Form
                                                                                                    (i.e., 10 percent fund).                 9
    G1, line 5C (enter as a positive number).                                                                                  Continued
Schedule A, B2
Important: If you have only one active
site and choose to do a site 999 Schedule A
to report offsite gambling activity, you must
                                                   Schedule B2
also complete a separate Schedule A for
your regular active site.                          Complete Schedule B2, Report                    cannot be moved between bar operations
                                                   of Barcoded Games, to report all                and booths, or vice versa, once they have
Allocating expenses among sites                                                                    been put into play.
For lines 5, 7, 25 and 35, you may choose to       barcoded pulltab, tipboard and
allocate expenses among your sites.                paddleticket games you remove                   Include only games that have been removed
                                                   from play or inventory during the               from play or inventory by the end of the
If you conduct gambling in a city that                                                             month.
assesses a local tax or has a lawful purpose       month.
fund to which you are required to donate,                                                          See page 14 for instructions on sending bar-
you should allocate the expenses to reflect                                                        code labels with your Schedules B2. If you
the actual expenses at each site.                  Before you put a game into play, be sure        have non-barcoded games, call our office
                                                   to verify that the serial and part numbers      for instructions.
Line 5                                             on the tickets and the flare barcode are the
Loss carryforward                                  same (see page 13, Defective games).            Columns A and B
If last month’s Form G1, line 6C, is a nega-       Complete a separate Schedule B2 for each        Manufacturer ID and part number
tive number, you may either: (1) enter the         type of game (i.e., pulltabs, tipboards,        Enter the manufacturer’s ID and the part
entire amount (without parentheses) on                                                             number of the game. These numbers are
                                                   progressive tipboards, progressive pulltabs,
Schedule A, line 5, for one site only, or (2)                                                      printed on the barcode label (see sample
                                                   paddletickets). If you conduct tipboards
distribute the amount among all sites.                                                             below). Do not enter name of game.
                                                   and progressive tipboards, or pulltabs and
Whichever method you choose, you must              progressive pulltabs, complete separate
use the same method throughout the year.           Schedules B2; then combine the amounts          Column C
                                                   and report the total on Schedule A or Form      Game serial number
Line 7                                             G1, line 8 or line 9, respectively.             Enter the game’s serial number printed on
Interest and dividends                                                                             the barcode label.
To report interest and dividends on line 7,        For each type of game, complete a separate
                                                   Schedule B2 for played, destroyed, defective    If the serial number on the label is not the
you may either: (1) enter the total interest
                                                   and missing games, and games reported as        same as the serial number on the individual
and dividends received by the organization
                                                   fund losses. If you computer-generate your      game tickets, the game is defective. See
on line 7 for one site only, or (2) distribute
the amount among all sites.                        schedules, list the games by the date they      instructions for defective games on page 13.
                                                   were removed from play starting with the
Whichever method you choose, you must                                                              Column G
                                                   earliest date.
use the same method throughout the year.                                                           Ideal gross receipts
                                                   If you have more than one gambling site,        Enter the amount you would receive if all
Line 25                                            complete a separate Schedule B2 for each        tickets were sold. This amount is printed
Advertising                                        site.                                           on the flare, payout slip and distributor’s
To report advertising expenses, you may                                                            invoice.
either: (1) enter the entire amount paid for       If you operate a combination site (i.e., you
advertising expenses by the organization on        have a booth operation and a bar opera-         Column H
line 25 for one site only, or (2) distribute the   tion at the same site), complete separate       Ideal prizes
amount among all sites.                            Schedules B2 for the booth and the bar          Enter the amount that would be paid out if
                                                   operation to separate cash shortages. Then,     you paid all prizes in the game, including
Whichever method you choose, you must
                                                   combine the amounts and report the total        any “last sale” prizes. (“Last sale” prize
use the same method throughout the year.
                                                   on a single Schedule A or Form G1. Games        amounts are printed on a sticker attached
Line 35                                                                                            by a distributor to the flare.)
Reimbursement of allowable expenses
To report reimbursements for negative                                                              B2 instructions continued on page 11.
expense calculations for periods prior to
July 1, 2009, you may either: (1) enter the          Sample barcode label
entire reimbursement amount calculated
for the organization on line 35 for one site           MFG ID                              PART #                     SERIAL #
only, or (2) distribute the amount among
all sites.

Whichever method you choose, you must
use the same method throughout the year.               MR                123-ABC-NP4

                                                   Manufacturer ID       Part number                         Serial number
 10                                                (two letters)         (may be up to 15 characters)        (may be up to eight characters)
Schedule B2 (continued)
Column I                                                                                      Reimbursing the starting bank. If the                                   amount of the jackpot prize is not actu-
Value of unsold tickets                                                                       cash-in-hand for a game is a negative                                   ally paid out at that time. The deposit for
Enter the value of tickets that were not sold                                                 amount, reimburse the starting bank                                     the game is the profit from the game (net
when you removed the game from play. You                                                      by writing a check from your gambling                                   receipts) plus the progressive tipboard
must keep all unsold tickets, including defec-                                                account payable to “Cash Game Bank.”                                    jackpot prize contribution. Figure the cash-
tive tickets, for at least 3½ years. Unsold and                                               Record the following information on the                                 in-hand by subtracting the amount of the
defective tickets must remain unopened.                                                       check memo line:                                                        jackpot contribution from the cash count at
                                                                                              MEMO: Replenish game bank, date removed                                 the end of the game excluding the starting
Column K                                                                                            Mfg. ID, part #, serial #                                         bank (Form LG473) (see Example D).
Value of prizes paid
Enter the total dollar value of redeemed                                                      You should replenish starting cash banks
                                                                                                                                                                      Example D
winning tickets, including:                                                                   within four business days after the game
                                                                                              is removed from play. Starting banks not                                1 . Cash count at end of game
•	 dollar	value	of	cash	prizes.                                                                                                                                           including starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .                 600 .00
                                                                                              replenished by the end of the month should
•	 dollar	value	of	merchandise	prizes.	The	                                                                                                                           2 . Starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   300 .00
                                                                                              be reported as unreimbursed starting banks
   cost of the merchandise prize must be the                                                                                                                          3 . Deposit (subtract step 2 from step 1)  .  .                                    300 .00
                                                                                              on Schedule F, line 6b.
   same as the cost listed on the flare.                                                                                                                              4 . Contribution to progressive jackpot  .  .  .                                   100 .00
•	 dollar	value	of	any	“last	sale”	prize.	This	                                               Making deposits. Gambling receipts must                                 5 . Column M: Cash-in-hand
                                                                                              be deposited in the gambling bank account                                   (subtract step 4 from step 3)  .  .  .  .  .  .  .  .                          200 .00
   amount is on the distributor invoice and
   the sticker that is attached to the flare.                                                 within four business days after the game is
                                                                                              removed from play.                                                      Column N
For progressive tipboard prizes, report the
dollar value of all cash prizes awarded plus                                                  Generally, the amount you deposit for the                               Cash long or short
the amount contributed to the progressive                                                     game is the same as the amount of cash-                                 Subtract Column L from Column M. See
jackpot (Form LG473, Progressive Pulltab or                                                   in-hand in Column M (see Games with mer-                                Example E for examples of how to sub-
Tipboard Audit Record).                                                                       chandise prizes and Progressive tipboard or                             tract combinations of negative and positive
                                                                                              pulltab prizes below for exceptions). On the                            numbers.
You are required to keep all redeemed win-                                                    deposit slip, list the amount from each game
ning tickets and prize receipts for at least                                                  separately and include:                                                 Example E—Column M minus Column L
3½ years.
                                                                                              •	   manufacturer	ID                                                    • Subtracting a positive from a positive:
Column L                                                                                      •	   part	number	of	the	game                                              Col . M = 400 Col . L = 500
                                                                                                                                                                        400 – 500 = (100) cash short
Net receipts                                                                                  •	   serial	number	of	the	game
                                                                                                                                                                        Col . M = 500 Col . L = 400
If Column K is more than Column J, the                                                        •	   site	where	the	game	was	played                                       500 – 400 = 100 cash long
game has negative net receipts (i.e., prizes                                                                                                                          • Subtracting a positive from a negative:
                                                                                              Games with merchandise prizes.                                               Calculate as if the positive is a negative and add.
paid out exceed the gross receipts for the
                                                                                              Merchandise prizes must be paid for                                       Col . M = (200) Col . L = 300
game). Put parentheses around a negative                                                                                                                                (200) – 300 = (500) cash short
                                                                                              directly from the gambling bank account.
amount.                                                                                                                                                               • Subtracting a negative from a positive:
                                                                                              If the game has merchandise prizes only,
                                                                                                                                                                           Calculate as if the negative is a positive and add.
Column M                                                                                      figure the cash-in-hand by subtracting the                                Col . M = 200 Col . L = (300)
Cash-in-hand                                                                                  cost of the prizes from the cash count at the                             200 – (300) = 500 cash long

Enter the amount of cash received from the                                                    end of the game (i.e., the deposit amount)                              • Subtracting a negative from a negative:
                                                                                              (see Example C).                                                             Calculate as if the second negative is a positive and
game. Do not include cash from the starting                                                                                                                                add.
cash bank (see Example A).                                                                                                                                                 Col . M = (500) Col . L = (200)
                                                                                              Example C                                                                    (500) – (200) = (300) cash short
                                                                                                                                                                           Col . M = (200) Col . L = (500)
Example A                                                                                     1 . Cash count at end of game                                                (200) – (500) = 300 cash long
                                                                                                  not including starting bank  .  .  .  .  .  .  .  .  .  . 300 .00
1 . Cash count at end of game
    including starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  . 300 .00                 2 . Cost of merchandise prizes  .  .  .  .  .  .  .  .  .  . 200 .00
2 . Starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 200 .00   3 . Column M: Cash-in-hand
3 . Column M: Cash-in-hand
                                                                                                  (subtract step 2 from step 1)  .  .  .  .  .  .  .  .  . 100 .00    Destroying games
    (subtract step 2 from step 1)  .  .  .  .  .  .  .  .  . 100 .00
                                                                                                                                                                      Unplayed games
                                                                                              If a game has both cash and merchandise                                 Bingo paper and raffle tickets
If the cash-in-hand is a negative amount,                                                     prizes, call our office for instructions.                               If you wish to destroy bingo paper or raffle
put parentheses around the amount (see                                                        List each game separately on the deposit                                tickets, call our office and ask to speak to an
Example B).                                                                                   slip. Also list the amount paid for mer-                                auditor to arrange for a delivery time.
                                                                                              chandise prizes separately with the barcode                             Pulltabs, tipboards, paddletickets
Example B                                                                                     information for the game and site permit                                If you have a pulltab, tipboard or pad-
1 . Cash count at end of game                                                                 number.                                                                 dleticket game that you do not want to put
    including starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  . 100 .00                                                                                         into play, or a damaged game that cannot be
2 . Starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 200 .00   Progressive tipboard or pulltab prizes.
                                                                                              Each progressive tipboard game played                                   put into play, contact your distributor first
3 . Column M: Cash-in-hand
    (subtract step 2 from step 1)  .  .  .  .  .  .  .  .  . (100 .00)                        makes a contribution to the progressive
                                                                                              jackpot included in Column K, but the                                                                                                                         11
Schedule B2 (continued)
to see if you can get credit for the cost of the   Fund losses                                     If the court orders restitution, or if you
game and/or tax paid on the game.                  Fund losses by questionable means are           receive insurance reimbursement, contact
                                                   defined as missing cash or inventory            our office.
If you cannot get credit for the game,
complete and submit Form G7420,                    resulting from theft, burglary or unknown
                                                   causes. Fund losses can include:                How to report fund losses
Request to Destroy Pulltabs, Tipboards and                                                         Report games with fund losses on
Paddletickets. If your request is approved,        •	 games	that	were	never	played,                Schedule B2. Complete a separate fund-loss
you will be directed to either destroy the         •	 games	that	were	partially	played	but	had	    Schedule B2 for paddleticket, tipboard and
game or send the game to us so we can                 no receipts deposited,                       pulltab games. Do not report games with
destroy it.                                        •	 games	that	were	partially	played	and	had	    fund losses on the same schedule as played
Report the game on a Schedule B2                      some receipts deposited,                     games.
and check the box for “Destroyed with              •	 missing	cash	banks,	and
                                                   •	 closed	games	with	missing	cash.              If there are not enough game remnants to
approval.” Complete a separate Schedule B2                                                         do an audit, or if the game has been tam-
for each type of destroyed game (pulltabs,         When you discover that a game has a fund        pered with, you must report it at its ideal
tipboards or paddletickets).                       loss, report it to local law enforcement        net receipts (i.e., ideal gross receipts minus
Complete Columns A through L entering all          officials:                                      ideal prizes).
tickets as 100 percent unsold in Column I.         •	 within	24	hours	for	a	loss	from	a	pulltab	   Complete Columns A through H of
Reporting the game at 100 percent unsold              dispensing device, and                       Schedule B2 and check the box “Reported as
will produce zero gross receipts in Column J       •	 within	five	days	of	the	discovery	for	all	   fund losses” at the top of the form.
(no combined-receipts tax) and zero net               other forms of gambling.
receipts in Column L. You will receive a                                                           Column I: Enter the dollar value of tickets
                                                   If you do not report the loss to local law      not sold at the time of the loss. If reporting
refund of the gambling tax paid for the
                                                   enforcement officials within these time         the game at ideal net receipts, enter zero.
game when you file Form G7430 with your
                                                   frames, the Gambling Control Board will
February return.                                                                                   Column K: Add the dollar values of each
                                                   not consider your fund-loss request. You
You will be required to send us the unplayed       will be required to reimburse your gambling     redeemed winning ticket and enter the total.
game and a copy of the Schedule B2 on              account from nongambling sources.               If reporting the game at ideal net receipts,
which it was reported. We will certify the                                                         enter the amount from Column H.
                                                   Within 60 days of discovering the loss, you
Schedule B2 so that you may claim a refund                                                         Column M: Count the cash received from
                                                   must provide the Gambling Control Board
for the unsold tickets. We will also provide                                                       the game. Subtract from the total any
                                                   with one of the following:
you with a written receipt that the game was                                                       starting cash bank, and enter the result in
received and destroyed. You must keep the          1. Proof that your gambling account was         Column M.
receipt in your permanent gambling records            reimbursed for the amount of the loss
for at least 3½ years.                                from a nongambling source of funds.          If only some cash is lost or stolen, your cash-
                                                      Send a copy of the gambling bank receipt     in-hand may be positive (see Example F).
If you destroy unplayed games without
                                                      and deposit slip, a copy of the canceled
receiving approval, the game will be treated
                                                      nongambling fund check, a copy of the        Example F—Fund loss: Some cash lost or stolen
as a missing game. You will need to report
                                                      nongambling-source bank account state-       1 . Cash count at end of game
the game on your next monthly return at
                                                      ment and the date the loss was reported          including starting bank  .  .  .  .  .  .  .  .  .  .  .  .  . 300 .00
ideal amounts, pay any tax liability due and
                                                      to your members. OR                          2 . Starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 200 .00
deposit the ideal net receipts into your gam-
                                                   2. Request an adjustment to your profit car-    3 . Column M: Cash-in-hand
bling account with funds from a nongam-                                                                (subtract step 2 from step 1)  .  .  .  .  .  .  .  . 100 .00
bling source.                                         ryover by submitting Form LG250, Fund
                                                      Loss Request, directly to the Gambling
Played games                                          Control Board.                               If some or all of the cash is lost or stolen,
Remnants from played games may be                                                                  including the starting cash bank, your cash-
                                                   Do not attach the above information to
destroyed after 3½ years from the time                                                             in-hand may be zero (see Example G). For
                                                   your tax return or other reports. If the
the games were reported played on your                                                             fund losses, any missing starting bank is cal-
                                                   board approves the fund loss, you will be
monthly Form G1. Games must be                                                                     culated separately from the game. You will
                                                   notified in writing to adjust your Form G1.
destroyed by shredding, burning, soaking or                                                        need to reimburse the starting cash bank
                                                   Attach a copy of the board’s approval to
other form of complete destruction.                                                                from your gambling account.
                                                   your return.
Games destroyed by a                               If the board denies your request, you will      Example G—Fund loss: All cash lost or stolen
catastrophic event                                 be required to reimburse the gambling
                                                                                                   1 . Cash count at end of game
If unplayed games, games in play and/or            account from nongambling sources. You               including starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 0 .00
played game remnants are destroyed by a            must reimburse the account within 90 days       2 . Starting bank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 200 .00
catastrophic event (e.g., fire, flood, tornado,    of the board’s denial and submit proof          3 . Column M: Cash-in-hand
etc.), call our office for instructions.           of the reimbursement to the board (see              (subtract step 2 from step 1
                                                                                                       if zero or less, enter zero)  .  .  .  .  .  .  .  .  .  .  .  .  .  . 0 .00
                                                   above). Until reimbursement of the gam-
                                                   bling account has been made or the board
                                                   approves your request, you must include the
 12                                                fund loss on Schedule F, line 11a.                                                                                   Continued
Schedule B2 (continued)
Skip Column N: You should not report cash           Record the date the game was returned to        Contact the distributor about receiving
shorts or longs when reporting fund losses.         the distributor in your inventory records.      credit for the game. The distributor may
                                                    Remember to get a receipt from the dis-         want to review the game to verify the defect.
Column O: Fill in date pulled.                      tributor when the game is picked up.            If you give the game to the distributor,
To determine the total fund loss, total             Note for multiple serial numbers: Your          include an explanation of the defect and a
Columns I through M, and enter the results          records should indicate all serial numbers.     copy of Schedule B2 if the game was in play.
on Schedule B2, line 16. Then, subtract                                                             Be sure to get a signed receipt. The game
the Column M total from the Column L                If the game is already in play, remove it       will be returned to you and must be kept for
total. Add any missing starting cash bank.          from play immediately and contact the           at least 3½ years.
The result is your total fund loss. Enter this      department to report the defect. (A game
                                                    is “in play” if one ticket has been sold to
amount on Schedule F, line 11a.
                                                    a player.) Report the game on a separate        Missing games
When you report gross receipts for each             Schedule B2 for the period checking the         You are 100 percent accountable for the
type of game on Form G1, lines 1 though 9           “Defective” box at the top of the schedule.     games you purchase. We keep track of pur-
(or Schedule A if you have more than one                                                            chased games through monthly distributor
site), include the gross receipts from any          Send us the game remnants and a copy of         reports of games sold. Games are tracked
fund-loss games.                                    the Schedule B2 so we can destroy the game.     by barcode data (manufacturer ID, part
                                                    We will certify the Schedule B2 so that         number and serial number).
Defective games                                     you will get credit for the unsold tickets      Periodically, you may receive a “missing
You may discover defective games before or          even though you no longer have posses-          game” letter from our office. It will include
after a game has been put into play, or after       sion of the game. We will also give you a       a list of games you purchased that have
the game is removed from play. Examples of          receipt for your records showing that we        not been reported on a return as played.
defective games include games with:                 have destroyed the game. You must keep the      You will be asked to report the status of
                                                    receipt in your gambling records for at least   the games in question (e.g., unplayed,
•		 mismatched	or	multiple	serial	numbers;	         3½ years.                                       unopened inventory; played and reported
•		 defective	tickets	(e.g.,	tickets	that	don’t	                                                    on Schedule B2 and Form G1; returned to
    open, blank tickets, delaminated tickets        Defective tickets                               distributor for credit; missing, etc.). Note:
    [face and back separated], tickets with         If you discover defective tickets after the
                                                                                                    If you return a game to a distributor for
    bad die cuts, bad glue or bad printing,         game is in play, remove it from play imme-
                                                                                                    credit, make sure you get a receipt for the
    etc.),                                          diately. (A game is “in play” if one ticket
                                                    has been sold to a player.)                     game.
•		 incorrect	or	missing	information	(e.g.,	
                                                    Report the game on a Schedule B2 for            If you cannot account for a game, you must
    incorrect selling prices on tickets or flare,
                                                    defective games in the month the defect was     report it on Schedule B2 at ideal amounts
    flares without Minnesota logo, wrong
                                                    detected. Be sure to check the “Defective”      (see page 12, How to report fund losses).
    flare with the game, etc.), and
                                                    box at the top of the form.                     Check the “Missing” box at the top of the
•		 prize	discrepancies	(e.g.,	extra	winners,	                                                      schedule. You must pay any tax liability due.
    not enough winners, prizes that do not          Contact the distributor about receiving         Deposit the ideal net receipts for the game
    match prizes listed on flare, etc.).            credit for the game. The distributor may        into your gambling account with funds
                                                    want to review the game to verify the defect.   from a nongambling source (usually the
Mismatched or multiple serial                       If you give the game to the distributor,        organization’s general fund).
numbers                                             include an explanation of the defect and a
A game with mismatched serial numbers               copy of Schedule B2 if the game was in play.
is a game in which the serial numbers on            Be sure to get a signed receipt. The game       Reporting distributor
the sales invoice, barcode labels, flare and        will be returned to you and must be kept for    credits or refunds
game tickets do not match.                          at least 3½ years.                              Credit memos. If you receive a credit from
                                                    If you want immediate credit for the tax        a distributor, include the amount (cost of
A game with multiple serial numbers is a
                                                    on the unsold tickets, ask your distributor     game plus sales tax) as a negative amount
game where tickets have two or more dif-
                                                    to complete Form G7410. Otherwise, a tax        on Form G1, line 19 (or Schedule A if you
ferent serial numbers.
                                                    refund will be made on all the unsold tickets   have more than one site). Report the gam-
Before you place a game into play, check            in February of the following year.              bling tax as a negative amount on Form G1,
that the serial numbers on the sales invoice,                                                       line 14.
barcode labels (on the box, inside the box          Prize discrepancies                             Refund checks. If you receive a refund
and on the flare) and game tickets match.           If you discover a prize discrepancy after the   check from a distributor or manufacturer
If they don’t, or if you find multiple serial       game is in play, remove it immediately. (A      for a defective game previously reported as
numbers, return the game to the distributor         game is “in play” if one ticket has been sold   a loss on Schedule B2, include the amount
for full credit for the cost of the game and        to a player.) Report the game on a Schedule     as a positive number on Form G1, line 39.
taxes.                                              B2 for defective games using the actual         Attach supporting documentation showing
                                                    amount of prizes awarded (this may pro-         the month and year the game was reported
You must provide the distributor with a             duce negative net receipts).
written statement that the game is defective.                                                       on Schedule B2 along with the barcode data.

Schedule B2, F
Sample barcode label sheet
                                                                                                                                                                            Schedule F
  Barcode Label Sheet                                                                                                                                                       Complete Schedule F, Gambling
  Attach barcode labels to this sheet in the same order as the games are reported on Schedule B2. Federal ID number
  Use separate sheets for each type of game reported or game status and each site.
                                                                                                                                 Minnesota tax ID number   License number   Fund Reconciliation, to determine
  Name of gambling site                                                                                  Site permit number      Month/year reported       Page
                                                                                                                                                                            your gambling fund balance at the
  Type of game (check one)

      Pulltabs     Tipboards     Paddletickets
                                                 Progressive pulltabs
                                                 Progressive tipboards
                                                                         Game status: These labels are from games (check one)

                                                                            Played      Destroyed      Reported as fund losses    Defective      Missing
                                                                                                                                                           Total barcodes
                                                                                                                                                           this page        end of the month.

                   Barcode label 1                                                   10                                                         19                          To complete Schedule F, you will need:

                             2                                                       11                                                         20
                                                                                                                                                                            •	 bank	statements	from	your	gambling	
                                                                                                                                                                               checking and savings accounts, and cer-
                             3                                                       12                                                         21                             tificates of deposit,
                                                                                                                                                                            •	 end-of-month	account	balances	(balances	
                             4                                                       13                                                         22
                                                                                                                                                                               as of the last day of the month you’re
                             5                                                       14                                                         23
                                                                                                                                                                            •	 check	register,	and
                             6                                                       15                                                         24
                                                                                                                                                                            •	 invoices	and	financial	statements	for	
                             7                                                       16                                                         25
                                                                                                                                                                               gambling fund investments (such as
                                                                                                                                                                               certificates of deposit and mutual funds).
                             8                                                       17                                                         26                             Note: To find out if you’re in compliance
                                                                                                                                                                               with regulations, contact the Gambling
                             9                                                       18                                                         27                             Control Board.
  (Rev. 11/08)                                                                                                                                                              If your bank statements do not provide an
                                                                                                                                                                            end-of-month balance, call the bank to get
                                                                                                                                                                            that information. If the bank is unwilling to
                                                                                                                                                                            provide the information, you must deter-
Sending barcode labels                                                                      When attaching the barcode labels:
                                                                                                                                                                            mine the end-of-month balance yourself
with Schedule B2                                                                            •		 Make	sure	each	barcode	can	be	read.	Do	                                     from your bank statements. If you need
There are three barcode labels with each                                                        not overlap barcode labels.                                                 help, call our office.
game:                                                                                       •		 Do	not	cut	or	shave	barcodes.
                                                                                                                                                                            Line 1
•		 one	label	attached	to	the	box,                                                          •		 Do	not	send	in	duplicate	barcodes.                                          End-of-month account balance
•		 one	label	attached	to	the	flare,	and                                                    •		 Do	not	staple,	overlap,	tape,	fold	or	ar-                                   Enter the end-of-month balance of your
•		 one	label	loose	inside	the	box	(or	loose	                                                   range the barcodes out of order.                                            gambling checking account from your
    under the shrinkwrap).                                                                  •	 Do not send in photocopies of the                                            bank statement. If you have more than one
                                                                                                barcodes.                                                                   checking account, add the balances, and
You must send in the loose barcode label                                                                                                                                    enter the total.
from each game with your monthly return.                                                    If there is no loose barcode label in the
Attach the label to the barcode label sheet
                                                                                            game, you must print the manufacturer’s ID                                      Line 2
                                                                                            number, the part number and serial number                                       Deposits in transit
included in this booklet. Place the labels
                                                                                            on the label sheet in the space where you                                       Enter total deposits made during the month
in columns (see sample above) in the
                                                                                            would have placed the loose label. Get the                                      not included on your bank statement.
same order as the games are listed on
                                                                                            information off the label on the game or
Schedule B2. Use separate pages for played,                                                                                                                                 If a deposit is not on your bank state-
                                                                                            flare. Refer to the sample barcode label on
destroyed, defective, fund-loss and missing                                                                                                                                 ment after more than a month, check your
                                                                                            page 10 to identify the information.
games. If you have more than one gambling                                                                                                                                   deposit slips to make sure the deposit was
site, separate the pages by site.                                                           Print the information clearly in the same                                       made.
                                                                                            order as it is on the game label and draw a
Arrange the pages by gambling site in the
order of played games, destroyed games,
                                                                                            box around it.                                                                  Line 4
                                                                                            The label information is read by our                                            Outstanding checks
fund-loss games, defective games and
                                                                                            scanning system and matched with game                                           Enter the total checks issued through the
missing games, and place in the prescribed
                                                                                            information provided by distributors. In                                        last day of the month that are not included
order (see Assembling your return on page
                                                                                            this way, we can track the games and notify                                     on your bank statement.
                                                                                            you of any “missing” games (i.e., games you                                     Include any checks written since you started
                                                                                            purchased that have not been reported on a                                      gambling activities that have not been
                                                                                            monthly return).                                                                reported on your bank statements.
                                                                                            Keep the barcode records for at least 3½
 14                                                                                         years.                                                                                                             Continued
Schedule F (continued)
If you have checks that have been out-            Add the two amounts and enter the total
standing for more than two months, contact        on line 8. Do not include any amounts              Negative net receipts
the person or company to whom the check           included on line 2.                                games (games played to
was issued to determine if the check was
received and cashed.                              Line 9                                             a loss)
                                                  Other gambling accounts                            Negative net receipts means that more
Line 6a                                           Include the following:                             money was paid out in prizes than was
Cash starting banks (per your books)                                                                 received from the sale of the tickets
                                                  •		 end-of-month	balances	from	your	gam-
The “starting bank” is the money placed in                                                           (gross receipts). If your organization
                                                      bling savings accounts,
the cash drawer before the start of a game to                                                        decides to pull the game with negative
                                                  •		 end-of-month	value	of	any	certificates	of	     receipts, for whatever reason (players
make change and pay prizes awarded.
                                                      deposit purchased with gambling funds,         no longer want to buy tickets from that
You should have separate starting banks for       •		 end-of-month	value	of	any	mutual	fund	         game, defective game, etc.), the starting
each game of pulltabs, tipboards and pad-             investments of gambling funds, and             cash must be reimbursed (replenished).
dletickets put into play. (Separate starting
                                                  •	 end-of-month	value	of	any	other	invest-         The reimbursement of starting banks
banks are not required if you use a cash
                                                      ments of gambling funds.                       is simply exchanging one asset (writing
register or pulltab dispensing device.)
                                                                                                     a check from the checking account)
Keep in mind that if you put additional cash      Line 10                                            for another (placing the cash into the
into a game while it is still in play (e.g., by   Reimbursement of excess cash                       starting bank at the site). This exchange
writing a check from the gambling account         shortages                                          is not reported as an expenditure on
to cash/start bank) to cover winning tickets,     If you reimbursed your gambling account            Form G1. For instructions on how to
you have increased your starting cash bank.       for excess cash shortages after the last day of    reimburse the starting bank, see page 11,
                                                  the month you are reporting (or any prior          Reimbursing the starting bank.
For line 6a, add the following to the pre-        month not reimbursed previously), enter
vious month’s line 6a amount:                     the amount on this line.                           Note: For a negative net receipts game
•		 amounts	of	any	new	starting	banks,	and                                                           that has not been reimbursed by month’s
•		 increases	to	any	existing	starting	banks.     Line 11a                                           end, report the amount of the unreim-
                                                  Fund losses                                        bursed starting bank on Schedule F, line
Subtract from the result:                         Enter the amount of any loss reported as a         6b.
•		 decreases	to	any	existing	starting	banks	     fund loss on Schedule B2 that has not yet
    not related to negative net-receipt games.    been approved or denied by the Gambling
                                                  Control Board, or reimbursed. Do not              Line 11e
Line 6b                                           include fund losses that have already been        Other additions
Unreimbursed starting banks                       reimbursed.                                       Enter the total of any other gambling
If you do not reimburse the starting bank                                                           assets not included on lines 6 through 11d,
after a negative receipts game (see Negative      Line 11b                                          including the following:
net receipts games on this page), enter the       Unsold ticket refunds
total unreimbursed amount on line 6b as a         Enter as a positive number the amount             •	 Cash	prizes	awarded	for	raffles	or	games	
positive number. This amount can be taken         from your February Form G7430, line 8.               still in play but not reported on Form G1.
from Schedule B2, Column M, for every             If your unsold ticket refund exceeds your         •	 Amounts	reported	on	Form	G1,	line	35,	
starting bank unreimbursed by the end of          tax liability for February, enter the amount         for negative expense calculation reim-
the month.                                        from Form G7430, line 11, on the Schedule            bursements for the month not depos-
                                                  F for March and each succeeding month                ited in the gambling account (from a
Line 6                                            until you receive your refund check.                 nongambling source) by the end of the
End-of-month cash balance                                                                              month.
Line 6 is the actual amount of cash you           Line 11c                                          Attach a separate sheet with a detailed
should have after counting all start banks        Merchandise prizes awarded for raffles            description of any amounts included on
(reconciled for those games in play) at           and games still in play but not reported          line 11e.
month’s end.                                      on Form G1
                                                  Enter the cost of merchandise or meat pur-        Line 14
Line 8                                            chases that were awarded as prizes for raffles    Taxes and fees
Cash not deposited                                or games still in play but not reported on        Include taxes and fees from this month’s
First, determine the amount of cash               Form G1 or Schedule B2.                           Form G1, line 13, plus any previously
received from pulltab, tipboard and pad-                                                            reported unpaid taxes and fees, including
dleticket sales reported on Schedule B2 for       Line 11d                                          accrued unpaid monthly regulatory fees.
the month that was not deposited.                 Merchandise prizes not awarded                    Also include any overpayments of gambling
                                                  Enter the cost of merchandise or meat pur-        taxes that may be used to reduce the taxes
Then, determine the amount of cash
                                                  chases not yet awarded as prizes.                 and fees owed.
received from bingo and raffle ticket sales
reported on Form G1 for the month that
was not deposited.
Schedule F (continued)
Line 16                                         •		 any	interest	income	credited	to	your	ac-     Compare the payments made for allowable
Linked bingo prize contributions and                count that is not reported on this month’s   expenses and lawful purpose expenditures
progressive tipboard or pulltab jackpots            Form G1.                                     with the amounts reported on Form G1.
Enter the total prizes that have not yet
                                                Attach a detailed description of each item       Compare all bank deposits for the period
been paid to a linked bingo provider or not
                                                and amount included in the total.                to net receipts reported on Form G1. Trace
yet awarded for progressive tipboard and
                                                                                                 all amounts listed on Schedule B2, Column
pulltab games (from Form LG474), but            Lines 22–24                                      M, to the deposits listed on the bank
have been reported as prizes on Form G1 or      Gambling fund balance and profit                 statement.
Schedule B2 (for progressive tipboard and       carryover
pulltab games).                                 The amounts on lines 22 and 23 should be         Adjust the bank deposits for:
If you discontinue the play of a progres-       the same, and line 24 should be zero. If they    •		 payments	made	for	merchandise	prizes,	
sive tipboard or pulltab game before the        are not, check your return and schedules for         and
jackpot prize is awarded, call our office for   errors, such as:                                 •		 reimbursement	of	starting	cash	banks,	if	
reporting instructions.                         •		 math	errors,                                     necessary.
Line 17                                         •		 discrepancies	due	to	rounding,               Verify the amounts for any partial deposits
Loans                                           •		 incorrect	reporting	of	inventory,            made for games that were in play on the last
Enter the total amount owed at the end of       •		 numbers	incorrectly	transferred	from	        day of the month.
the month for loans made to the organiza-           other forms,
tion’s gambling fund for initial start-up                                                        If you cannot find the error and correct it
                                                •		 games	played	but	not	reported,               before you file, enter the amount of the dis-
costs or emergency expenditures that, if not
met, would require you to stop gambling.        •		 closed	games	not	audited	or	audited	         crepancy on Form G1, line 46, and file your
You must have written records docu-                 incorrectly, and                             return by the due date. File an amended
menting these loans.                            •		 fund	losses	not	reported	or	reported	        return when you find the error.
                                                    incorrectly.                                 If you don’t find the error by the time
Note: You must have approval from the
Gambling Control Board to repay these           If line 22 is more than line 23, look for:       you have your annual audit or review,
loans.                                                                                           have the CPA who conducts the audit/
                                                •		 deposits	or	interest	earned	on	all	gam-
                                                                                                 review help you investigate and resolve the
                                                    bling accounts that were not reported as
Line 18                                             net receipts on Form G1,
                                                                                                 discrepancy. Once resolved, work with your
Unpaid games                                                                                     auditor to prepare an amended return for
                                                •		 expenses	reported	on	Form	G1	that	were	      the organization.
Of the amounts entered on Form G1, lines
                                                    not actually paid from the gambling ac-
21 and 22, enter the total cost of games                                                         If you are unable to resolve the discrepancy
                                                    count, and
listed on distributors’ invoices that were                                                       through your own efforts or through your
unpaid at the end of the month. Include         •		 expenses	reported	twice	(e.g.,	reporting	
                                                                                                 auditor, call our office. We will base any
sales tax and freight charges listed on the         the 8.5 percent tax on Form G1, line 11,
                                                                                                 final resolution on your organization’s indi-
invoices for the games. Do not include dis-         and on Schedule C/D, LG1010).
                                                                                                 vidual situation. The resolution may include
tributor/gambling tax.                          If line 23 is more than line 22, look for:       an approved adjustment or may require you
                                                •		 expenses	or	bank	charges	paid	from	the	      to reimburse the gambling account from
Line 20                                                                                          nongambling sources.
Other subtractions                                  gambling account but not reported on
Enter any other amount paid from gam-               Form G1,                                     Any discrepancy reported on Schedule F
bling funds that is not included on lines 14    •		 net	receipts	reported	twice,                 must be resolved by the end of your annual
through 19, or the amount by which you          •		 credits	for	overpayment	of	gambling	         audit/review. If you are not required to have
reduce the gambling bank account for items          taxes that have not been refunded or         an audit/review, it must be resolved by the
that cannot be listed on lines 14 through 19.       taken on a subsequent return,                end of your accounting fiscal year.
Include the following items on line 20:         •		 deposits	in	transit	not	accounted	for	on	
                                                    the gambling account reconciliation,
•		 prizes	reported	on	Form	G1,	but	not	yet	    •	 incorrect	reporting	of	merchandise	
    awarded (e.g., calendar raffles),               prizes,
•	 deposits	to	the	gambling	account	for	        •		 payments	from	the	gambling	account	
    nongambling activities. You must get ap-        that were not for gambling activities,
    proval from the Gambling Control Board
    to transfer these funds from the gambling   •		 a	fund	loss	that	has	not	been	acted	upon	
    account to the general fund,                    by the Gambling Control Board, and
•	 games	with	donated	cash	prizes	that	have	    •		 underreporting	of	combined-receipts	tax.
    not been paid out,

Mathematical error notices
When a mathematical error occurs on your          The error notice shows the month the error      To correct the error, you may need to file
monthly return, we’ll send you an error           was made and the line numbers affected on       one or more amended returns or simply
notice to help you find the reason for the        the return. It also shows the dollar amounts    change your tax returns to match the num-
error and correct it.                             as filed, as corrected and the difference       bers as recalculated by the Department of
                                                  between the two.                                Revenue.
It’s important to review the error notice
immediately upon receipt. Don’t just accept       The “difference” shown on the error notice      If you agree with the error and the changes
the amounts in the “As corrected” column          may not be the same as the variance in          the department has made, it is important
as being right. Investigate the reasons for       your profit carryover. To determine how         to make the same changes to your records.
the changes.                                      your profit carryover is affected by changes    Do not destroy the original returns; they
                                                  shown on the notice, you must review the        must still be retained for 3½ years.
Some common reasons for errors include:
                                                  recalculated amounts on Form G1, line 44,
                                                                                                  If you disagree with an error notice or have
•	 using	an	incorrect	beginning	profit	car-       and on Schedule F, lines 23 and 24.
                                                                                                  questions, call our office. When you call,
   ryover or inventory number,
                                                  Any notice that starts with changes to Form     have the tax return in question, and any
•	 totaling	lines	incorrectly,	or                 G1, line 38, means that only the profit car-    other returns that may be affected, available
•	 incorrectly	calculating	the	8.5	percent	tax	   ryover has been changed in that month. To       so you can review the information over the
   or combined-receipts tax.                      determine why this change was made, the         phone.
                                                  tax returns and mathematical error notices
                                                  for prior months must be reviewed.

Sample error notice


              Your Organization
              123 Your Street
              Your City, MN 55555

              License #: 01234
              Month corrected: 9/2009
              Date return received: 10/21/2009

                   Location              Form             Line             As filed          As corrected        Difference
                                          G1               12             12,572 .00            7,440 .59        –5,131 .41
                                          G1               13             12,572 .00            7,440 .59        –5,131 .41
                                          G1               15             13,962 .00            8,830 .59        –5,131 .41
                                          G1               16             12,145 .00           17,276 .41         5,131 .41
                                          G1               37              –584 .00             4,547 .41         5,131 .41
                                          G1               38             41,893 .00          45,129 .64          3,236 .64
                                          G1               40             41,309 .00           49,677 .05         8,368 .05
                                          G1               44             46,351 .00          54,719 .05          8,368 .05
                                          G1               46                   0 .00         –8,368 .05         –8,368 .05
                                           F               23             46,351 .00          54,719 .05          8,368 .05
                                           F               24                   0 .00         –8,368 .05         –8,368 .05

Determining site profitability
It’s important to review your gambling         Unreported liabilities                             Cash shortages
operation periodically to determine            •	 Has	the	gambling	manager	ever	post-             •	 Are	they	high?
if it’s profitable. Use Worksheet P, Site         poned being paid because there wasn’t           •	 Have	you	had	to	reimburse	your	account	
Profitability, to help you determine if an        enough money?                                      for excess cash shortages on a regular
individual site is profitable after paying     •	 Do	you	still	owe	money	to	the	audi-                basis? Note: Do not include reimburse-
taxes and prizes.                                 tor who did last year’s annual audit or            ments for excess cash shortages on Work-
When completing the worksheet, don’t              review?                                            sheet P. This will produce a false picture
move expenses from one site to another.        •	 Do	you	owe	back	rent	to	the	pulltab	site	          for an individual site.
Maintain your allocation of expenses as you       or bingo hall?                                  •	 Would	changing	from	one	type	of	opera-
normally would on your tax return. For         •	 Have	you	paid	gambling	expenses	out	               tion to another help solve a cash-shortage
example, if the gambling manager’s salary is      of the general fund? This is not allowed;          problem?
allocated equally among the sites, continue       gambling expenses must be paid out of           •	 Would	assigning	games	to	individual	sell-
to do that when completing Worksheet P.           gambling funds.                                    ers or bartenders work better?
Here are a few things you should consider
when determining profitability.                Site expenses                                      Should you expand?
                                               •	 Does	the	volume	of	sales	at	the	site	justify	   Before you decide to expand, take a close
Payout percentage                                 the amount of rent you are paying?              look at your payout percentages. A single
If the payout percentage is above the state    •	 Are	there	certain	days	or	hours	when	           site may be profitable, but adding sites may
average, you should look at ways to reduce        pulltab sales at your booth are slow? Con-      bring you to an income level where you
it to maximize profits.                           sider if the booth should be open during        would owe combined-receipts tax causing a
                                                  slow hours.                                     once profitable site to become unprofitable.
The state average is about 81.8 percent,
but even that is high. Ideally, consider       •	 What	type	of	operation	are	you	conduct-         Before expanding to a new site, look at the
having your actual payouts closer to 79 or        ing at the site (booth, bar operation,          site’s history. To review a site’s Schedule A
80 percent.                                       dispenser)? Would a different type of op-       information, call our office. You’ll need the
                                                  eration work better? Should your booth          name of the previous organization and site
                                                  become a bar operation? Should the bar          names (both past and present names if they
                                                  operation become a booth or dispenser?          have changed).
                                                                                                  Before you expand, make sure the expan-
                                                                                                  sion is worth the additional effort and will
                                                                                                  provide additional income.

Annual financial audits/reviews and annual
certified physical inventories and cash counts
What’s new                                         The recording of the game cost, the listing      and the cash count needs to be reconciled
Annual financial audit and review require-         of inventory of bingo paper and raffles and      with Schedule F, line 6a (starting banks per
ments have changed effective July 1, 2009.         the completion of Parts 2 and 3 may be           books).
                                                   done by a member involved in the organiza-
For organizations with fiscal years ending
after June 30, 2009:
                                                   tion’s gambling operation.                       Effective for fiscal years
•	 annual	audits	are	required	for	organiza-
                                                   Form G1CC, Annual Certified Cash Count           ending on or prior to
                                                   for Games in Play by Site. Use this form to
   tions with gross receipts of $500,000 or        record the cash count for games in play. Use
                                                                                                    June 30, 2009
   more, and                                       a separate form for each site.                   Annual audit
•	 reviews	have	been	eliminated.	                                                                   If your gross receipts from gambling are
                                                   The certified cash count must be con-            more than $300,000, you must have an
For organizations with fiscal years ending         ducted by either two members, officers or
on or before June 30, 2009, the previous                                                            annual financial audit completed by a CPA
                                                   employees of the organization who have           for your gambling activities, bookkeeping
thresholds and requirements for financial          been appointed by the organization’s board
audits and reviews continue to apply.                                                               and financial records.
                                                   and are not directly involved in the organi-
Note: The standards for performing an audit        zation’s gambling operation or by an inde-       Review
or review are provided in Minnesota Rule           pendent certified public accountant (CPA).       If your gross receipts from gambling are
8122.                                              Part 1 must be completed and the form            between $150, 000 and $300,000, you must
                                                   signed by these two individuals or a CPA.        have an annual financial review completed
Effective for fiscal years                         Observance of the game audits must also          by a CPA.
ending after June 30, 2009                         be done by these two individuals or a CPA.
                                                                                                    Fiscal year
If your gross receipts from gambling               The audit of the games and the completion
                                                   of Parts 2 and 3 may be done by a member         Your annual audit or review period is the
are $500,000 or more, you must have an
                                                   involved in the organization’s gambling          time period used for filing federal Form
annual audit completed for your gambling
                                                   operation.                                       990 or 990T. The fiscal year may differ from
activities, bookkeeping and financial records
                                                                                                    your licensing period.
(Minnesota Rule 8122 continues to apply).          Form G1CI, Annual Certified Physical
If your gross receipts from gambling are less      Inventory and Cash Count Summary. Use            Due date
than $500,000, you are not required to have        this form to record the total cost of ending     The annual audit or review must be post-
an audit completed and financial reviews           inventory and start bank for all sites. This     marked by the last day of the sixth month
have been eliminated.                              summarization of the physical inventory          following the end of your fiscal year. Email
                                                   and cash count must be completed and             or mail it to the department.
Annual certified physical inventory                signed by the gambling manager and the
and cash count                                     CEO.                                             Requesting a filing extension
Every organization, regardless of the                                                               If the audit or review cannot be completed
amount of gross receipts, is required to con-      Fiscal year                                      by the due date, the organization’s CEO,
duct an annual certified physical inventory        Your fiscal year is the time period used for     gambling manager or accountant hired to
and cash count at the end of its fiscal year.      filing federal Form 990 or 990T. It may          perform the audit or review may request an
This must be taken on the last day of the          differ from your licensing period.               extension.
organization’s fiscal year at the close of busi-
ness or the first day of the new fiscal year       Due date                                         Certified physical inventory and
before the start of business.                      The organization has 30 days from its fiscal     cash count (required for annual
                                                   year end to submit the necessary reporting       audit)
The following forms must be used:                  forms to the Department of Revenue.              A certified physical inventory and cash
Form G1INV, Annual Certified Physical                                                               count of all sites must be taken within 30
                                                   Requesting an extension                          days of the balance-sheet date or the date
Inventory by Site. Use this form to record
                                                   If the certified physical inventory and cash     the auditor was engaged to perform the
the site inventory of games in play and
                                                   count cannot be completed by the due date,       audit, whichever is later. The inventory
unplayed games. Use a separate form for
                                                   the organization’s CEO, gambling manager         and cash count must be completed by two
each site.
                                                   or accountant hired to perform the certi-        members, officers or employees of the orga-
The certified physical inventory must be           fied physical inventory and cash count may       nization appointed by the organization’s
conducted by either two members, officers          request an extension via email, fax or mail.     board or by a CPA hired to complete the
or employees of the organization who have                                                           annual audit. The certified physical inven-
                                                   If an extension is granted, it will be allowed
been appointed by the organization’s board                                                          tory must be submitted to Revenue within
                                                   to the last day of the following month —
and are not directly involved in the organi-                                                        30 days from the time it was taken; the cash
                                                   the certified physical inventory and cash
zation’s gambling operation or by an inde-                                                          count must be recognized on the financial
                                                   count must be taken at month’s end as the
pendent certified public accountant (CPA).                                                          statements.
                                                   physical inventory needs to be reconciled
Part 1 must be completed and the form                                                                                                        19
                                                   with Form G1, line 21 (ending inventory)
signed by these two individuals or a CPA.
Mail Station 3350, St . Paul, MN 55146-3350