Charitable Gambling

Charitable gambling was introduced in Minnesota as a way for nonprofits registered with the IRS and the Office of the Minnesota’s Attorney General to raise funds. According to a July 2010 article in the Star Tribune, charitable gambling typically generates more than $1 billion in receipts every year since 1989, except for last year, which saw a decline in funds from charitable gambling. This decline has been attributed to many factors, including the smoking ban, younger people who are uninterested in low-tech gambling and declining membership in the veterans and fraternal organizations that hold about half of the charitable gambling events.

In 1980, the state limited the types of gaming allowed to pull-tabs, bingo, tipboards, paddlewheels and raffles. Overall, pull-tabs account for 91 percent of revenue, and bingo about six percent. According to Allied Charities of Minnesota, an organization serving charitable gambling nonprofits, the rest comes from tipboards, paddlewheels and raffles.

 

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