Charity groups speak out against Minnesota House's proposed changes to e-pull tabs
ST. PAUL, Minn. – Electronic pull tabs rang up $1.9 billion in revenue last year and some of that money supports local causes like veterans organizations, departments and youth sports teams.
Now charities are worried that proposed changes to the types of e-pull tab games that are allowed at bars and restaurants would reduce that funding by 25% or more.
"So many Minnesotans are touched by charitable gambling without ever playing bingo or pull tabs," Rachel Jenner with Allied Charities of Minnesota said during a Tuesday news conference at the capitol. "This bill could virtually destroy not only our current games but any future charities have in electronic gambling."
In 2012, the legislature legalized electronic pull tabs to help make U.S. Bank Stadium possible. Their popularity has grown since then, but there's been a debate about if some of the games operate too much like slot machines in casinos operated by American Indian tribes.
The House DFL tax bill makes changes to the law about electronic pull tabs that would prohibit games to have an "open all" feature. Instead, it would require players to manually activate e-pull tabs one-by-one.
Charities say this change will make most electronic games they have right now illegal starting in July. And it will take time to get new options up and running to meet new rules, therefore jeopardizing revenues in the meantime.
But Democrats these e-pull tab games run afoul of gaming agreements made with tribal nations. The Minnesota Indian Gaming Association has said it supports these changes.
"That [provision] is to align our policy with a with a recent court case, and most importantly, to keep our promises to the sovereign nations that share the geography of Minnesota," said Rep. Aisha Gomez, DFL-Minneapolis, chair of the tax committee.
She also pointed to a recent Minnesota Appeals Court decision that said the Minnesota Gambling Control Board didn't follow the proper rulemaking process to authorize the "open all" electronic pull tab games.
Current state law defines the e-pull tab games as requiring "that a player must activate or open each electronic pull-tab ticket" and having no features that "mimic a slot machine." The proposal would make clear such features are required.