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Charitable Gambling in Minnesota Charitable gambling has been legal in Minnesota since 1945. This information brief describes the legislative history, rules and regulations, and the outlook for charitable gambling. This information brief is only a summary of the law and rules governing charitable gambling. Charitable Gambling in Minnesota Charitable gambling has been legal in Minnesota since 1945. This information brief describes the legislative history, rules and regulations, and the outlook for charitable gambling. This information brief is only a summary of the law and rules governing charitable gambling. This information brief has four parts. The state of Minnesota’s online and offline gambling laws are reasonable when it comes to gambling online or offline. From what we researched about Minnesota gambling laws the only thing we can find to be illegal for online gamblers is operating an online gambling website. The lawful gambling industry includes manufacturers of games and gaming equipment, distributors who sell games and gaming equipment, and nonprofit organizations who purchase games and conduct lawful gambling. Manufacturers, distributors, and organizations must be licensed through the Minnesota Gambling Control Board.

December 14, 2020

Don’t Jeopardize Your Organization’s Gambling License

There have been reports that some Minnesota bars and restaurants intend to open for on-site eating and drinking prior to Friday, December 18 in violation of Executive Order 20-99. If so, your organization may feel pressure to also restart the conduct of gambling at these locations. Please remember that your organization is responsible for securing all games, including those played and unplayed.

The conduct of gambling at a location in violation of Executive Order 20-99 could result in the suspension or revocation of your organization’s lawful gambling license. If your organization has multiple premises permits, your ability to conduct gambling, even at sites that did not violate the Executive Order, could be affected.

December 10, 2020

To Attend Remote Board Meeting via WebEx: Prior to the 10:00 a.m. meeting start time, call 855-282-6330. At the prompt, enter meeting ID 146 757 1289, followed by the # key. You may be asked for extra information, but you may hit the # key again and you will be taken to the meeting.

To Participate in Public Comment: If you wish to provide public comment at the next meeting please submit, by 4:30 p.m. the prior Friday, your name, who you represent, and your comment to steve.pedersen@state.mn.us.

November 30, 2020

The October/November/December 2020 Gaming News is now available.

Pull-tab Sales at Liquor Stores

Many gambling managers have the impression that because off-sale liquor stores may continue to sell pull-tabs at this time, and, per executive order, on-sale bars can now also sell off-sale beer and wine, that all bars may therefore sell pull-tabs. However, that conclusion is incorrect.

Only bar and restaurant locations with an off-sale liquor license may conduct pull-tabs at this time – provided that the pull-tabs are conducted in a portion of a building with a separate entrance where on-site eating and drinking was not previously allowed. Although executive order temporarily allows bars with on-sale licenses to conduct some limited off-sale, very few locations have an actual off-sale license. Again, bars without an off-sale license and a separate entrance into an exclusively off-sale portion of the building are not allowed to sell pull-tabs.

Guidance for Reporting “Paused” Games

On Friday, November 20 organizations were allowed the option of “pausing” their pull-tab games in play rather than closing them. Pausing a game means that the organization may put that same game back into play once their premises reopens for on-site eating and drinking. The proceeds from paused games must be deposited into the gambling account within 4 business days after the game was paused. However, the game is not reported as closed on monthly reports until the game has been placed into play again and then removed from play.

Pausing games creates some unique reporting issues at month-end. The instructions below are meant to help your organization report paused games correctly so that your Profit Carryover Reconciliation, form LG100F, will balance.

There are three important numbers for an organization to remember when pausing their games; the amount of their cash bank for the games being paused, their deposit total, and the difference between those two numbers (which should be an indication of what the net receipts were for the games at the time they were paused).

Organizations should take the following steps:

• Deposit all the cash from each site (“Deposit Total” in the examples below) into their gambling bank account.
• On the LG100A, Lawful Gambling Receipts and Expenses per Site, reduce the starting cash bank amount for the games that are paused at the site to $0.
• Report the difference amount from the starting cash bank and deposit total amounts on the LG100F line 14 (the difference amount can be positive or negative depending on the circumstance).
• When re-opening a site, withdraw the same “Deposit Total” that they initially deposited and report the same cash bank amount that they had at the time the games were paused.

Click here for examples of how the reporting would work out depending on the starting cash banks as compared to the net receipts for each game. If you have questions, please contact your Compliance Auditor for assistance.

Continuing Education Opportunities

A new continuing education class on lawful purpose expenditures is now available by clicking on the following link: CE – Lawful Purpose Expenditures. It’s a video-based course presented by Nichole Engeswick, a Compliance Auditor working out of our Mankato office. Participants will watch four videos with a total combined running time of about 40 minutes and answer a few questions at the end of each video.

Information on these and other continuing education classes is also available under the “Education” tab by selecting the “Continuing Education” menu option.

Minnesota Gambling Laws permit domestic poker rooms and casinos operated by Indian Tribes in the state. MN residents can also enjoy poker, casino, and sports gambling right from home via reputable licensed offshore gambling sites.

Other Minnesota Gambling Pages

Gambling Laws In Minnesota

Under Minnesota law, unless specifically permitted by law, all forms of state-regulated gambling are illegal. However, pari-mutuel wagering, charitable gambling like raffles, pull tabs, and bingo, the state lottery, and private social gambling are legal under MN gambling laws.

Federally recognized native tribes in the state of Minnesota are permitted to offer casino and poker gambling as per negotiated tribal gaming compacts between tribes and the state of MN. Tribal gambling provides most of MN’s advanced gambling established.

There are no state or Federal laws specifically prohibiting licensed offshore online gambling access, thus allowing MN residents to utilize them for online gambling opportunities. Several federal gambling laws exist but target operators, not players.

Some of these include the Federal Wire Act which prohibits interstate wagering operations and handling and the UIGEA which prohibits financial institutions from process payments for gambling-related services, but none of these federal laws make it illegal for players to gamble online through licensed offshore sources.

Gambling Penalties Under Minnesota Law

Certain gambling-related offenses, especially the offense of operating an illegal gambling activity within the state of Minnesota are gross misdemeanor offenses. People who participate in an illegal gambling activity as players can also face gross misdemeanor charges under certain circumstances especially if they are found participating in the management of a gambling place.

Minnesota Poker Laws

Tribal casinos are the only licensed gaming facilities in the state of Minnesota where one can play poker. Several locations for tribal poker gambling exist but not state licensed offers for physical or online poker gambling.

It is illegal for MN players to use probability calculating devices at poker facilities in the state or keeping track of cards used in a game. Home poker games are legal in Minnesota as long as no one profits from the game or gets a cut from the profits of the game.

Home games that are advertised or regularly scheduled are considered illegal in the eyes of MN law enforcement. The home game must be a random game to be legal with no house rake or profit gained.

Private poker tournaments with low value prized and no fee or buy-ins are also legal in Minnesota. However, MN residents can easily use licensed offshore online poker sites to fulfill their poker gambling needs.

Minnesota Pari-Mutuel and Lottery Gambling Laws

The state offers a state-regulated lottery and licensed race tracks. Pari-mutuel wagering is considered legal at the racetracks in Minnesota for horse and dog races. Online parimutuel wagering is also acceptable through terminals at off the track betting facilities.

Charitable gambling is another legal gambling form in Minnesota and there is a big charitable gaming industry in the state. Many Minnesotans love pickle games, pull tabs, punchboards, bingo, and raffles.

Racebooks and specialty games can be found through licensed offshore online MN gambling sites as well.

Efforts By Minnesota To Regulate Online Gambling

In September 2012, Minnesota took its first step towards regulating online gambling when it approved the use of electronic pull-tab machines that would allow games to be played remotely from an approved location using a tablet.

In a surprising step backward, the state made a futile attempt to compel ISPs to block access to online gambling sites in 2009. Other than approving electronic pull-tab machines in 2012, Minnesota has not put forth any online gambling legislation.

Is There A Minnesota State Lottery?

Mn Gambling Commission

Yes, the Minnesota Lottery was established by a voter referendum in 1988. There are three types of lottery games that residents can play: scratch, draw, and multi-state games. Lottery tickets are not sold online and residents must be 18 years old to purchase a ticket. However, some licensed offshore MN online gambling sites offer lottery tickets and similar games.

Sports Betting Laws In Minnesota

Since the repeal of PASPA, many states have started to make moves to legalize domestic sports betting. Minnesota has reportedly had a sports betting bill drafted and presented to the Minnesota Legislature but as of now, nothing has come out of it. It is very likely that Minnesota has a sports betting bill pass in 2019, but for now, residents can only legally play online sportsbooks through licensed offshore sources.

Mn Gambling Control Board Minnesota

Minnesota Gambling Laws Disclaimer

Players who would like to review the official laws and statutes for Minnesota gambling can do so here: Minnesota Office of Statutes. This link provides access to the state’s records and you will see the laws in their original language and format. This can provide more exact details than our summaries.

Mn Charitable Gambling Rules

Minnesota Online Gambling Laws FAQS

What Are The Legal Forms Of Gambling In Minnesota?

The state of Minnesota has held legal compacts with Native American tribes in place that govern the tribal casinos in the state for quite a while, these can also offer poker gambling within or in stand-alone establishments. These with pari-mutuel betting, social gambling, lotteries, and charitable gambling make up all of the legally available domestic land-based gambling options in the state.

What Are The Consequences Of Illegal Gambling In Minnesota?

In the state of Minnesota, misdemeanors associated with illegal gambling-related offenses are categorized by the terms “gross” and “petty”. A petty misdemeanor is punishable by a fine of up to $300 dollars. A regular misdemeanor is the middle ground between the two and carries a $1000 fine and up to 90 days in jail. A gross misdemeanor is the most severe and is punishable by a fine up to $3000 or a full year in jail.

What Is A Native American Tribal Compact?

A compact is a negotiated contract between two political factions that makes determinations on the complicated nature of overlapping jurisdictions and the responsibilities that comes with them. In 1988, the Indian Gaming Regulatory Act was signed into law to provide an operational standard on legal native American gambling.

The IGRA declared that it state-tribal compact was necessary for any gambling operations that are federally recognized as “Class III”. These compacts function as a regulatory framework for the state and tribes to share revenues and work together to create income for the state and the tribe.

What Is Pari-Mutuel Gambling?

Pari-mutuel gambling is when bettors are betting against each other instead of the house. This is the main method of gambling used at horse tracks around the world. Bettors can pick their first, second, and third place winners and place their bets into a communal pot.

Mn Gambling License

Upon the conclusion of the race, the horse track will take a small portion of each bet, where winning bets collect their earning from the communal pot where they split the total winnings.

What Is Social Gambling?

Minnesota State Gambling Board

Social gambling is the legal allowance to play recreational games of poker with real money bets in the privacy of your own home. This is an exception to the state base gambling laws in Minnesota. If the host of the game doesn’t make any more money than that of what he might win in the game itself, the game is placed in a private dwelling, all players are over the age of 18, and the game is not advertised in any way – it is legal.

What Is Charitable Gambling?

This is another exception made in the state law of Minnesota for charitable organizations. Nonprofit organizations like veteran’s organizations or churches have the legal allowance to use certain forms of gambling as fundraisers. This and social gambling are common exceptions to gambling laws in most states.