ST. PAUL – As Minnesota charities brace for a massive decline in charitable gaming revenue this year due to changes made to electronic pull tabs, state Rep. Paul Anderson, R-Starbuck, said he supports legislation (H.F. 733) that would bring back original gaming features.
Anderson said electronic pull tab popularity has soared over the past few years, and they have been a godsend for bars and other establishments that offer them. 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.
In 2023, Gov. Tim Walz and legislative Democrats approved a law eliminating the “open all” feature that made the electronic pull-tab games popular. Anderson said it took a year and a half to implement the new law since e-pull tab technology without the “open all” feature did not exist in the United States.
“Electronic pull tabs have been an important revenue stream for people in our district, whether they are working with local organizations or benefit from the services these groups provide,” Anderson said. “It is concerning a change in state law has taken funding away from organizations that provide so many healthy outlets for many people, including children. In addition, electronic pull tabs have been a good draw for local establishments over the years, providing a source of entertainment that attracts customers – and much-needed revenue – to establishments. We just need to bring back what we had.”
The watered-down electronic pull tabs took effect Jan. 1, and local veterans organizations, such as American Legions and VFWs, have reported a dramatic drop in activity, ranging from 20- 44 percent statewide. Even at a 30-percent revenue decline, those relying on charitable proceeds in Minnesota – EMS groups, food shelves, youth sports teams and associations, Boys and Girl Scouts, and other local charities – could be looking at a $115 million annual loss due to the electronic pull tab change.
“This damage was caused by the state’s own doing and House Republicans are working to fix this problem so we can restore charitable gaming to what it used to be in Minnesota,” Anderson said. “Local organizations play such a critical role in our communities and this change in law is hindering them from doing the good work they do.”
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