Gaming Permitted in Minnesota:

Tribal Casino
State Lottery
Pari-Mutuel Horse Racing
Charitable Gaming

Charitable gaming is conducted for the benefit of non-profit organizations and includes games such as bingo, raffles, paddlewheels, tipboards, and pull-tabs.

Minnesota ranks first in the United States for overall charitable gaming receipts, due primarily to its dominance in pull-tab sales. Gross receipts in 1999 totaled over $1.4 billion. In addition to the normal state tax on the organization’s income from gaming, there are three separate state taxes on charitable gaming.

—A 1.7 percent tax on the potential gross receipts from pull-tabs and tipboards;
— A 8.5 percent tax on gross profit (gross receipts minus prizes) from bingo, raffles, and paddlewheels;
— A "combined receipts tax" on the gross receipts from pull-tabs and tipboards.

In 2000, charitable gaming generated $72.5 million to the state, which was primarily directed into the state’s general fund.