Minnesota State Capitol May Offer Tax Relief for Charitable Gambling and Reduce Ticket Prices

(AsiaGameHub) –   Participants in bar bingo, pull tabs, or meat raffles often believe their money supports a good cause, regardless of whether they win, by funding local charities.

However, this is not necessarily true, according to advocates for charitable gambling in Minnesota. They claim a significant portion of that money actually goes to the state as taxes.

A long-awaited charity gambling tax relief currently being considered at the Minnesota State Capitol may now address this issue.

Close to $200M in Tax a Year

“Our tax burden is quite high,” stated Rachel Jenner, executive director of Allied Charities of Minnesota. She added that their organizations “sent about $196 million to the state last year.”

According to the Minnesota Gambling Control Board, charitable gambling, described as “any gambling activity conducted by Minnesota nonprofit organizations to raise funds for charitable purposes”, generated almost $5 billion in gross receipts in the last fiscal year from July 1, 2024, to June 30, 2025.

The board reports that nearly 3400 nonprofits used charitable gambling to generate close to $145 million for local community causes.

Jenner indicated that approximately 85% of that revenue was returned to players of bingo, raffle, pull-tabs, paddlewheels, or tipboards as winnings. Conventional gambling activities, such as poker tournaments or “casino nights,” are prohibited for fundraising.

After paying out prizes, organizations also have operational and staffing expenses. In 2025, charitable gaming groups paid over $208 million in taxes and fees, of which $196 million was directed to the state.

This results in a considerably smaller amount for direct community aid. Jenner said that in total, roughly 1,100 charitable organizations divided about $147 million for local donations.

The State Takes More Than the Charities

“Every year, the state takes more than the charities,” Jenner stated. “We want our organizations to be able to keep more of their money.”

The effect is being felt locally; the Northeast Minneapolis Lions Community Foundation reported $1.5 million in profits last year but paid $949,310 in state taxes. This left $531,000 to be distributed to over 60 community groups.

“It’s just frustrating when $500,000 goes to the community, and $1 million goes to the state,” commented gambling manager Marisa Peck. “It’s just a big shocking number, that’s for sure.”

Advocates state that most charitable gambling organizations face a tax rate of 33.5%, which Jenner contends is higher than the rate for many large corporations. She also highlights that, unlike standard businesses, these groups cannot write off expenses.

“We’re Looking to Modernize the Meat Raffle Limits”

While lawmakers at the Capitol are debating potential tax relief, which might be financed by future revenue from legalized sports betting, another urgent issue is under discussion: adjusting the price of meat raffle tickets.

Weekly meat raffles attract big crowds across the state, with participants hoping to win a large package of meat. However, Bob Adams of the Coon Rapids Map Bandit Wrestling Club says the meat packages have recently gotten smaller.

After purchasing the meat and covering staffing costs for the raffles, less money remains, leading to reduced profits for the organizations.

As a result, a price increase is needed. Nonetheless, raffles operate under strict limits that have been enforced since the 1980s.

“We’re looking to modernize the meat raffle limits”, Jenner said.

A proposed bill at the state capitol would increase those limits. Currently, charities can charge a maximum of $2 for a meat raffle ticket, but the new legislation would permit an increase to $5. This change would also raise the prize limit from $70 per round to $200.

Charities would still have the option to charge one or two dollars per ticket if they believe it would draw the largest crowd. The new bill would provide them “an opportunity to get creative with how they want to play the games and what kind of prizes they want. The bill must still undergo several more steps before it reaches the Senate floor, but the Senator who wrote the bill expresses confidence it will pass this session, and advocates hope the new limits will be implemented as early as this fall.