The scale and circumstances are very different from today's $1 billion Vikings stadium debate, but a Minneapolis hockey arena may be the state's only other example of a sports facility backed by pulltabs.
In 1996, the Edison Youth Hockey Association used pulltab revenues to fund a $2.2 million ice arena in Northeast Minneapolis, partly with a loan that was backed by the city.
But when charitable gambling revenues took a dive and Minneapolis ice hockey declined, the city was left in the lurch. It started making the association's lease payments — to the tune of $186,818 — and was eventually forced to sell the property to the Park Board for $710,000. It was later renamed the Northeast Ice Arena.
Pulltabs made the deal possible. Edison made an $800,000 down payment with money it had accumulated from pulltab operations at three Northeast bars: Sully's, Arones and Laura's 1029.
There were concerns about using the same revenue stream to back a long-term loan, however. Edison's pulltab revenues were at their lowest levels since 1991, according to a Star Tribune story from the time, and some thought they weren't stable enough.
Paul Erickson, who heads the Minnesota Amateur Sports Commission, told the Star Tribune in 1996 that cities were "nervous about using pulltab revenue because it's not reliable." That's because circumstances can change quickly, whether it's due to a statewide smoking ban or a bar changing ownership.
He's not ready to make the same conclusions about the Vikings stadium deal, which would allow for electronic pulltabs and use the extra taxes to pay for the state's share of the stadium.
"I think you could argue that in the macro sense, charitable gambling tax proceeds would be more reliable because you're looking at the whole state," Erickson said. "I think charitable gambling becomes more unreliable in a local setting because of the changes that can occur."
