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. Shane Mekeland, R-Clear Lake, said he supports legislation (H.F. 733) that would bring back original gaming features.
Mekeland 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. Mekeland 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.
“It was a shame for Democrats to undermine funding these organizations are counting on to perform their great services for residents in our local communities,” Mekeland said. “The work they do largely would go undone without these great civic groups stepping in to fill the void, but Democrats tied one arm behind their back. On top of that, this change in law has dealt a blow to local businesses that count on electronic games to bring customers through their doors. These establishments can’t afford any more setbacks of any kind, especially ones imposed by the state.”
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.
“House Republicans are looking to correct this injustice,” Mekeland said. “This bill restores funding for organizations that provide so many healthy outlets for our children at a time families need all they can get and also re-establishes an attractive revenue stream for businesses in our state during this tough economy.”
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