Minnesota Legislature, don't pull the plug on e-pulltabs

In 2012, Gov. Mark Dayton signed into law a bill allowing electronic pulltab games to help finance U.S. Bank Stadium, the home of the Minnesota Vikings. Since then, e-pulltabs have helped strengthen numerous local Minnesota charities such as veterans' organizations, civic clubs and youth groups, providing millions of dollars in needed support. By 2020, e-pulltab and linked bingo games accounted for 50% of all lawful gaming sales in the state.

Now legislation being advanced at the State Capitol would pull the plug not only on e-pulltab and linked bingo games but also on all the worthy charities they help. HF 2366 would crush local charities, COVID-wracked bars and restaurants, the U.S. Bank Stadium reserve account, and state and local government budgets.

After the deadlines for new bill introductions expired, HF 2366 was introduced. It would terminate games that "display or simulate any other form of gambling, entertainment, slot machines, electronic video lotteries, or video games of chance." On April 13, the Minnesota House Commerce, Finance and Policy Committee passed HF 2366. On April 21, it passed as an included part of the House Commerce Omnibus bill. Its Senate companion, SF 1863, is awaiting action.

HF 2366 was fast-tracked in the Legislature and rammed through a committee hearing with little public input. During one hearing, an opponent of the legislation was abruptly cut off as he made his case against this rash and unwise legislation. Advocates of HF 2366 proposed this bill after a state administrative law judge ruled that the e-pulltabs offered in Minnesota establishments by charitable organizations don't violate the monopoly of the state's Indian tribes to operate video slot machines.

Proponents of the legislation are comparing iPads in veteran's clubs and small businesses to slot machines in casinos. Proponents of the legislation made that argument in court and lost. In May 2020, Administrative Law Judge Barbara Case dismissed that argument. "The mere push of a button is too far attenuated to constitute 'mimicking' of a slot machine," Case wrote.

Dissatisfied with that outcome, proponents of the legislation are now attempting to ram the bill through the Legislature without regard to the substantial adverse fiscal impacts it will have on the state, local charities and small business partners — in addition to destroying the method adopted in 2012 to finance the Vikings stadium.

The fiscal note for HF 2366 states that "all existing electronic pull-tab and linked bingo games will be prohibited under the proposed language. Therefore, all revenue [$1.3 billion per year] will be eliminated on those games."

Additionally, "Local wages for those conducting lawful gambling will be reduced [estimated $35.75 million annually]" and "Available funds for lawful [charitable] purposes will be reduced [estimated $33 million annually]. …"

In a typical year, opponents would flood the Capitol to express concern over a deeply flawed bill like this. However, that is not possible this year due to the pandemic. This year, concerned Minnesotans cannot get within 100 feet of the doors of the Capitol because of a large chain-link fence that surrounds the building.

The benefits of electronic charitable gaming are enormous. Many Minnesota charities rely on the critical support generated by e-pulltabs. Ending e-pulltabs and linked bingo games would devastate small-town establishments after they've already endured a brutal year because of COVID restrictions.

Minnesota charities and businesses are resilient. It is more important than ever that we stand with them now by opposing this bill. We need to get this right for our local charities and small businesses. Our local American Legions, VFWs, youth sports and volunteer fire departments are counting on the help e-pulltabs provide.

Merrick empowers adults with disabilities. The Climb Theatre brings the arts to local communities and children. The Humane Society provides care to animals in need across Minnesota. These worthy organizations and countless others like them across the state need the financial support provided by electronic charitable gaming.

Legislators created e-pulltabs in 2012. Don't let them take away the good they have provided.