Charitable gambling revenue across Minnesota rose 9 percent

American Legion posts account for 10 percent of all charitable gambling

ROCHESTER — Revenue rose in the realm of charitable gambling in Minnesota in fiscal year 2024 by 9 percent compared to the previous year, reaching a net of $712 million and allowing Minnesota charities to increase donations by $6 million.

The figures came in comments Allied Charities of Minnesota Director Rachel Jenner gave at the annual ACM Convention at the Mayo Civic Center in Rochester Nov. 21-22.

Total donations came to $128 million, she said. Fiscal years for Minnesota charitable gambling end June 30.

“Despite the small tax-rate reductions we received in 2023, our taxes also increased $6 million to $199 million in state and local taxes paid,” Jenner said. “The state remains the No. 1 benefactor of charitable gambling — as you can see taxes took 28 percent of every dollar we deposited. ACM is committed to changing this.”

The Minnesota Legislature came close to legalizing sports betting, and the bill had language that would have provided $40 million in tax relief for charitable gambling organizations. It fell one vote short. Jenner said she needs bipartisan support for sports betting to pass in 2025.

“Our legislative initiative in 2025 will be to support a sports betting bill that steps down our tax rates over three years to the proposed rates of 3 percent, 10 percent, 18 percent and 26 percent respectively,” she said.

The end of 2024, she added, brings an end to conventional rules for electronic pulltabs. Games falling under a new law enacted in 2023 go into effect Jan. 1, 2025.

“Game manufacturers are optimistic about the success of these games and their ability to generate the same revenue as the old games,” Jenner said, “so we encourage you to continue to offer electronic games.”

The 193 American Legion posts and units and one 40&8 voiture with charitable gambling licenses donated $9,675,014 in the fiscal year that ended June 30, 2024, a 4 percent increase from the prior year.

Those same posts, units and voiture paid $17,641,874 million in taxes and fees. Despite slight tax cuts, they still paid 1.6 percent more in taxes — a result of the revenue increase. Still, it is clear they end up paying more to taxes than to causes.

American Legion-related net receipts came to $68.1 million. ($460.4 million gross minus $392.3 million in prizes.) American Legion posts have more gambling licenses than any other organization in Minnesota, and their percentage of net receipts when compared to all licensed organizations is 9.56 percent.

In other words, it’s safe to say the Legion alone accounts for about 10 percent of all charitable gambling in Minnesota.

Many communities like having an American Legion post because they donate to a variety of causes, said Commander Carl Moon.

“Many charities do one sport or one cause, and that’s great,” he said, “but it’s very valuable for any town that their Legionnaires give to a variety of community needs, such as veteran causes, local food shelves, youth programs, scholarships, firefighting, flags, Scouting, honor guards, homelessness — many areas that otherwise would not receive gambling proceeds.”

His Commander’s Project this year is the Veterans Defense Fund. It is a nonprofit working to expand veterans treatment courts across the state.

“Treatment courts are valuable for helping veterans dealing with PTSD and other unseen wounds of combat. This essentially allows judges to ask, ‘Why are you here?’ and get them to treatment rather than just leave them with a black mark on their record for the rest of their lives.”

To donate, posts can make the check to Minnesota American Legion Foundation and enter “Fund 82” in the memo. Fund 82 always is the Commander’s Project. Gambling funds are allowed. After the July 2025 Department Convention in Willmar, the entire total will be tallied and presented to the Veterans Defense Fund.