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Hello from the State Capitol,
Local charities would likely benefit under legislation introduced in the Minnesota House recently.
Last session, the legislative majority and Governor Walz approved a law that restricted e-gambling features that could mimic video slot machines. This included the popular electronic pull tab technology used by local American Legions and VFW’s. Since then, e-pull tab use has declined, leading to lowered amounts of charitable gambling revenue that can be distributed to local organizations in need.
In response, legislation has now been sponsored that would restore e-gambling to its original form.
It’s clear fewer people are playing e-pull tabs because the games aren’t as fun, and ultimately that’s bad news for local groups in need of financial assistance.
Last year $386 million was generated in net revenue from the gaming devices, and the charitable gaming proceeds from them were distributed to needy organizations in our communities. These include EMS groups, food shelves, youth sports teams and associations, Boy and Girl Scouts, and many other local charities.
An analysis comparing electronic pull tab play in January 2024 and January 2025 yielded disappointing results, finding declines across the state ranging from 20%-44%. If you were to project a 30% decline over a full year, that would mean $115 million in lost revenue for charitable organizations across the state.
These are troubling numbers, and we need to find a way to reverse this trend for our service organizations.
Have a good weekend,
Paul
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