Minnesota charities push effort to roll back e-pull tab restrictions

A February 2023 ruling by the Minnesota Court of Appeals led to a law later that year to prohibit “open-all” electronic pull tabs.

Native American tribal representatives argued such a form of e-pull tabs looks and operates too much like slot machines, which only tribes are authorized to operate in Minnesota.

The “open-all” feature provides for the revealing of every space on a single ticket with one touch. The appeals court opinion says that functionality conflicts with how e-pull tabs were defined when legalized in 2012.

Two years later, an effort is underway to repeal the statute. It comes via HF733, sponsored by Rep. Bjorn Olson (R-Fairmont).

Approved on a party-line vote Wednesday by the House Veterans and Military Affairs Division, the bill’s next stop is the House Commerce Finance and Policy Committee.

Tim Engstrom, communications director for the American Legion Department of Minnesota, speaks to the House Veterans and Military Affairs Division Feb. 19 in in support of HF733 that would remove restrictions on electronic gambling devices. (Photo by Michele Jokinen)

Olson said it’d be a “huge list” to show where charitable gaming proceeds have helped in Minnesota. “We are hindering their ability to further their mission. … The entirety of this bill is to rewrite a wrong, pick something that was done to hurt our charities, hurt our communities. It’s creating a situation where all we’ve done is find a loser in this situation.”

He said nobody from his south-central Minnesota district will drive 90 minutes to Mystic Lake on a Thursday night to play the slots.

“You’re not going to see a significant increase in revenue of the tribes, but what we are seeing is a significant reduction in revenue from our charities. That will hurt every single individual in this room’s communities.”

Rachel Jenner is executive director of Allied Charities of Minnesota. And a bill supporter.

“We are No. 1 in the nation for charitable gaming. … The removal of our game features, such as open all, free play, and bonus games is significantly altering the player experience and now we’re seeing that impacting our participation and our revenue.”

Among DFL arguments against the bill is keeping promises made.

“We must honor our veterans 100%. Every single person on this committee believes in that and feels that way and has a commitment to our veterans. But we must also honor our Minnesota tribes who have also been dishonored over time throughout history,” said Rep. Kari Rehrauer (DFL-Coon Rapids).

She said a tax reduction for charitable gambling organizations and a cap on manufacturing fees were in the 2023 law, and proposals for more tax relief for charitable organizations is being developed.

[MORE: Charitable Gambling Taxes from the nonpartisan House Research Department]

Jack Meeks, the chair of Citizens Against Gambling Expansion, suggested veterans’ groups would be better off continuing their push to amend the state’s tax code, rather than trying to overrule a legal decision.

“I still have to pay 33 percent of net receipts in taxes,” said Tim Engstrom. He’s the communications director for the American Legion Department of Minnesota and the gambling manager for American Legion Post 550 in Bloomington.