Minnesota Capitol Could Bring Charity Gambling Tax Relief, Drop Ticket Price

Many people who engage in bar bingo games, pull tabs, or meat raffles usually assume that, whether they win or lose, their money still goes out to a good cause, supporting local charity organizations.

But that’s not always the case. Or, at least, that is what those who advocate for charitable gambling in Minnesota claim. Apparently, a large share of that money actually ends up with the state, in the form of taxes.

Now, a much-anticipated charity gambling tax relief currently being reviewed in the Minnesota State Capitol could fix that. 

Close to $200M in Tax a Year

“Our tax burden is quite high,” explained Rachel Jenner, executive director of Allied Charities of Minnesota. Jenner went on to say their organizations “sent about $196 million to the state last year.”

Data from the Minnesota Gambling Control Board, charitable gambling, defined as “any gambling activity conducted by Minnesota nonprofit organizations to raise funds for charitable purposes”, brought in nearly $5 billion in gross receipts during the last fiscal year, which ran from July 1, 2024, to June 30, 2025. 

The board says that close to 3400 nonprofits relied on charitable gambling to raise close to $145 million to support causes in local communities.

Jenner noted that around 85% of that revenue went back to players of bingo, raffle, pull-tabs, paddlewheels, or tipboards as prizes. Standard forms of gambling, like poker tournaments or “casino nights,” are not allowed as fundraisers.

After covering prizes, organizations must also pay staff and operational costs. In 2025 alone, charitable gaming groups paid more than $208 million in taxes and fees, with $196 million going directly to the state.

That leaves a much smaller portion for actual community support. In total, about 1,100 charitable organizations shared roughly $147 million for local donations, said Jenner.

The State Takes More Than the Charities

“Every year, the state takes more than the charities,” Jenner explained. “We want our organizations to be able to keep more of their money.”

Local groups are feeling the impact, with the Northeast Minneapolis Lions Community Foundation reporting $1.5 million in profits last year, but paid $949,310 in state taxes. That left $531,000 to distribute among more than 60 community organizations.

“It’s just frustrating when $500,000 goes to the community, and $1 million goes to the state,” said gambling manager Marisa Peck. “It’s just a big shocking number, that’s for sure.”

Advocates say most charitable gambling organizations are taxed at a rate of 33.5%, which Jenner argues is higher than what many large corporations pay. She also points out that, unlike traditional businesses, these groups cannot deduct expenses.

“We’re Looking to Modernize the Meat Raffle Limits” 

While Capitol lawmakers are currently discussing potential tax relief, possibly funded by future legalized sports betting revenue, another burning topic is on the table. Namely, changing the price of meat raffle tickets. 

Weekly meat raffles gather large crowds in the state, all hoping to win a large pack of meat. But lately, the meat packs have become smaller, says Bob Adams with the Coon Rapids Map Bandit Wrestling Club.

There is less money left over after buying the meat and paying staff to run the raffles, which means decreased profitability for the organizations. 

Accordingly, they require a price increase. However, raffles run under strict limits that have been in place since the 1980s. 

“We’re looking to modernize the meat raffle limits”, Jenner explained. 

A new bill in the state capitol would increase those limits. At the moment, charities can charge up to $2 for a meat raffle ticket, but the new bill would allow them to increase that to $5. This would also help increase the prize limit from $70 per round to $200.. 

While charities will still be free to charge one or two dollars a ticket if they choose, if they consider it would attract the biggest crowd, the new bill would offer them “an opportunity to get creative with how they want to play the games and what kind of prizes they want.The bill still has to go through a few more steps before it reaches the Senate floor, but the Senator who authored the bill says that he is confident it will go through this session, and now advocates now hope these new limits will go into effect as early as this fall.