Minnesota Legislature Examines Charity Gambling Tax Relief and Meat Raffle Ticket Price Increase
Charity Gambling Contributions and Tax Burden
Many participants in activities such as bar bingo, pull tabs, and meat raffles believe their money supports local charitable causes regardless of winning or losing. However, advocates for Minnesota’s charitable gambling sector point out that a significant portion of the revenue ends up being paid to the state in taxes.
Legislators at the Minnesota State Capitol are currently reviewing a proposed tax relief plan aimed at reducing this burden on charitable gambling organizations.
High Taxes on Charitable Gambling Revenues
Rachel Jenner, Executive Director of Allied Charities of Minnesota, highlights the heavy tax rates on these groups, noting that nearly $196 million was paid to the state in taxes last year alone. According to data from the Minnesota Gambling Control Board, charitable gambling — which includes gambling activities run by nonprofits to raise funds for charitable purposes — generated close to $5 billion in total revenue during the 2024-2025 fiscal year.
Approximately 3,400 nonprofit organizations depend on charitable gambling, collectively raising around $145 million annually to support local community causes. Around 85% of the money raised is returned to players as prizes through bingo, raffles, pull-tabs, paddlewheels, and tipboards, with other gambling formats like poker and casino nights being prohibited as fundraisers.
After prize payouts and covering operational costs, these organizations paid over $208 million in taxes and fees in 2025, with the majority going to state coffers. This leaves a much smaller share available for direct community donations, with about 1,100 nonprofits distributing roughly $147 million for local causes.
State Taxes Exceed Community Distributions
Jenner emphasizes that the state collects more from charitable gambling than the charities themselves retain, which impacts the ability of these organizations to fund their missions effectively. For example, the Northeast Minneapolis Lions Community Foundation reported profits of $1.5 million last year but paid nearly $950,000 in state taxes, leaving just over $530,000 to share among more than 60 community groups.
Marisa Peck, gambling manager for the foundation, expressed frustration over the imbalance of funds, highlighting that the state receives almost twice what goes to the community. Many charitable groups face tax rates as high as 33.5%, a figure Jenner notes is steeper than that faced by some large corporations, and unlike businesses, these nonprofits cannot deduct expenses from their taxable income.
Proposed Updates to Meat Raffle Ticket Prices and Limits
Alongside tax relief discussions, lawmakers are considering changes to the regulations governing meat raffles, a popular weekly event in Minnesota where participants compete to win packs of meat. Due to rising costs for prizes and staffing, nonprofits have struggled to maintain profitability under the existing rules set since the 1980s.
Bob Adams of the Coon Rapids Map Bandit Wrestling Club explains that smaller meat prize packs have become common due to funding constraints. To address these challenges, legislation has been introduced to raise the allowable price for meat raffle tickets from $2 to $5 and increase prize limits from $70 per round to $200.
This change aims to provide charities with more flexibility to attract participants and enhance prize offerings. While organizations may choose to keep ticket prices low to maximize attendance, the new law would give them the option to adjust pricing and prizes creatively.
The bill remains under consideration but is expected by its sponsor to pass during the current legislative session, with advocates hopeful these new rules could take effect as soon as fall.
