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Minnesota charitable gambling sales hit new high

Charitable gambling sales in Minnesota have surged past $2 billion annually, double the total wagered as recently as five years ago. A strong economy and growing popularity of electronic pulltabs helped boost sales about 16 percent in the year ending June 30, according to preliminary estimates by the Minnesota Gambling Control Board. After paying out winnings, veterans groups, youth sports associations and other nonprofits that sponsor the gambling are expected to net about $300 million. “With a good economy you have more discretionary income and you have more people who are going to bars and restaurants,” said Tom Barrett, executive director of the Gambling Control Board. While more money than ever was spent on pulltabs, bingo cards and meat raffles last year, taxes and the cost of running gambling operations often eats up a significant share of gambling proceeds. In recent years only one of every four dollars of gambling revenue has made its way to the advertised charities, according to Control Board records dating back to 2013. In fiscal 2017, for example, gamblers wagered $13 million at AMVETS Post 1 in Mendota. After winnings, taxes and operating expenses were paid, the veterans group received $54,000. That’s less than half the $115,000 salary of the gambling manager, according to tax records.

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