E-tab battle affects charities, communities

To understand the scope and impact of charitable gambling in Minnesota, consider the small town of Claremont, population 584, as an example.

Claremont Chamber of Commerce shares its gambling profits with groups in Dodge and Steele counties. Last year, that amounted to $186,097.

It’s no wonder chamber president Dean Schuette is concerned about efforts to curtail certain types of e-pulltabs, which are part of the gambling mix.

“That will have a big impact on local charities that we help support,” he said.

On Monday, the Minnesota American Legion and Allied Charities of Minnesota held a press conference at the State Capitol to tell lawmakers that e-tabs are “crucial” to small, charitable gambling operations. The event is in response to a court challenge over the “open all” function on e-pulltab games.

The Shakopee Mdewakanton Sioux Community first challenged the feature in 2019, saying it operated too much like a slot machine. Tribes state-wide have exclusive rights to slot machines.

There’s a great deal at stake here for both sides. While e-tabs got a slow start, they now rival paper pull-tabs in wagers; $1.9 billion and $2.1 billion, respectively. Originally legalized to help off-set the cost of U.S. Bank stadium, home to the Minnesota Vikings, e-tabs have become so popular, the state may be able to pay off that debt 20 years ahead of time.

Only a portion of e-tab profits go to the state; the rest stay in the communities where they’re generated. That’s why we feel it’s important for local groups that run and benefit from charitable gambling to weigh in on this issue with their state lawmakers.

The tribes say e-tabs represent a threat to their gaming rights and break the promise of a 2012 gaming rights agreement that allowed them. Because the gaming commission has allowed the open-all option for almost eight years, though, making a change now will cost local vendors and charities millions.

A 2021 effort to legally remove the open-all option failed; there’s no word on whether it will be introduced again. So this is the time for those with a vested interest to start talking with their lawmakers and find a way to preserve those critical dollars that help care for our veterans, support scholarships, and provide educational opportunities and sports activities for young people.

When it comes to charitable gaming, our money is always on the community.