Minnesota charities brace for losses when new e-pull tab rules take effect
The Minnesota Legislature changed the face of electronic pull tabs during the last legislative session.
Charities and small businesses are preparing for those changes and told 5 EYEWITNESS NEWS they’ve done projections for when the new rules take effect for e-pull tabs. They’re expecting a minimum decline of 5% in e-pull tab revenue.
Starting in 2025, e-pull tabs will no longer be allowed to use “all-swipe” options and bonuses as part of the games. Native American casino owners and some lawmakers argued they too closely resembled slot machines.
Keith Franke, with Protect Our Charities, told 5 EYEWITNESS NEWS his organization crunched the numbers starting with a 5% loss in pull tab revenue and charted their financial future with losses up to 50%.
Even at a conservative figure of a 5% loss, Franke said, charities like the Lions Club in St. Paul Park will lose significant money.
“This is going to be devastating for charities and small businesses along with the manufacturers and distributors,” Franke said. “Our local Lions Club here in St. Paul Park is going to see just over a $9,000 loss after all the shifts and gimmicks. And the small business partners that they use is going to see just over a $5,000 loss.”
Arlo Arlendson with the St. Paul Park Lions Club said the small charitable group will lose thousands of dollars with a 5% decline in electronic pull tabs.
“Well, it’s monstrous for a small community, and there’s always people needing things in these communities because it’s just so expensive for stuff,” Arlendson said. “The kids’ programs are constantly in need of new equipment. Right up to the high school level.”
Minnesota Gambling Control Board records showed electronic pull tabs generated $1.9 billion in 2022.