Sec. 3. The auditor of each county receiving a distribution of county gambling game wagering fees under section 2 of this chapter shall distribute the county gambling game wagering fees as follows:
(1) To each city located in the county according to the ratio the city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the town's population bears to the total population of the county.
(3) After the distributions required by subdivisions (1) and (2) are made, the remainder shall be retained by the county.