Gambling Laws of Minnesota Legal State of Gambling

The Legal Gambling Status in Minnesota

In Minnesota, the landscape of legal gambling encompasses several distinct forms, each governed by specific regulations. Tribal casinos hold sway over the live gambling scene, operating within the boundaries of state law and established compacts. These casinos, exclusively located on tribal lands, stand as the primary venues for casino gaming. Horse racing enthusiasts can revel in the thrill of races and betting at select tracks such as Canterbury Park in Shakopee. The state lottery, inaugurated in 1989, operates under the governance of the Governor's director with Senate oversight, while bingo remains a legal pursuit for licensed non-profit agencies since 1945. Poker and other real-money casino games are sanctioned at both horse racing tracks and tribal casinos, offering diverse gaming experiences. Moreover, the state hosts sweepstakes casinos or internet cafes, where patrons engage in free-play online casino games, earning tokens and prizes akin to real-money casinos, yet without the monetary risk due to their sweepstakes model.

Legal Gambling Forms in Minnesota

In Minnesota, some forms of gambling are legal and allowed under specific regulations. These include activities like gambling at tribal casinos, horse racing and betting at designated tracks such as Canterbury Park, buying tickets for the Minnesota Lottery, playing bingo operated by licensed nonprofit agencies, and participating in poker and other casino games at authorized locations like horse racing tracks and tribal casinos. However, it's important to note that online gambling, where people bet or play games using the internet, is currently illegal in Minnesota.

The legal gambling age in Minnesota is 18 for purchasing lottery tickets, participating in charitable gambling, and betting on horse races, while it is 21 for entering and gambling at tribal casinos.

Legalization of Lotteries in Minnesota

Minnesota's venture into establishing a state lottery spanned over years of legislative attempts and public opinion shifts. Efforts to introduce a lottery amendment began as early as 1972, yet substantial progress toward implementation wasn't realized until 1986. Governor Rudy Perpich's support in 1985, along with public backing, notably at 73 percent in favor, contributed to the lottery becoming a significant political consideration. The lottery was seen as a means to generate substantial revenue for rural economic development and natural resources initiatives, valued at $1.8 billion. As the lottery issue gained momentum, debates focused on how to allocate generated funds. By 1988, the state legislature voted to introduce a constitutional amendment to operate a lottery without a designated allocation for the proceeds. This marked the culmination of a journey that involved evolving perceptions about gambling, diverse proposed uses for lottery revenue—from environmental programs to economic development—and ultimately, the decision to establish the framework for a state lottery in Minnesota.

Gambling in Minnesota – Licensing, Tax and Fees

In Minnesota, taxes on lawful charitable gambling activities are structured as a flat tax of 8.5 percent, applied to an organization's gross receipts minus the prizes paid out, commonly referred to as net receipts. This tax rate remains consistent regardless of an organization's gambling earnings. The oversight and regulation of gambling activities, including charitable gambling, fall under the purview of the Minnesota Gambling Control Board. Tasked with ensuring compliance and providing essential regulatory resources, the Board plays a pivotal role in supervising the state's charitable gambling sector, recognized as the largest in the nation. Through its regulations and oversight, the Board aims to maintain the integrity and success of lawful gambling practices across Minnesota.