Minnesota law states that only nonprofits registered with the Secretary of State or IRS can conduct any charitable gambling efforts. These nonprofits can apply for a license through the Minnesota Gambling Control Board. Currently, the Gambling Control Board has approved five forms of gambling: pull-tabs, bingo, paddlewheels, tipboards and raffles.
Charitable gambling is regulated by the seven-member Minnesota Gambling Control Board. It licenses organizations and gambling managers and makes rules for the conduct of gambling. It also regulates bingo halls and the distributors and manufacturers of gambling equipment.
The Gambling Control Board has detailed information on the A to Z of charitable gambling, including which organizations are eligible and exempt, gaming types and limits, acceptable gambling fund expenditures, statutes and rules, and much more.
Important Note: The Gambling Control Board (https://mn.gov/gcb or 651-539-1900) exists to help ensure that nonprofits are making the most of their charitable gambling efforts, implement their gaming efforts effectively and legally, and avoid any missteps that may lead to further inquiry or investigation. Nonprofits should NOT be afraid to contact the the Gambling Control Board with any questions. They exist to help you do things the right way!
Who can conduct charitable gambling?
Bingo, paddlewheels, pull-tabs, raffles, and tipboards may be conducted only by registered nonprofit organizations. There are four types of nonprofit organizations that are eligible to conduct lawful gambling: fraternal, religious, veteran, and other nonprofit.
You must provide proof of nonprofit status by ONE of the following:
- Certificate of Good Standing for current calendar year from Minnesota Secretary of State
- IRS income tax exemption 501(c) letter in your organization’s name
- IRS – Affiliate of national, statewide, or international parent nonprofit organization (charter): If your organization falls under a parent organization provide BOTH 1) a charter or letter from parent organization recognizing your organization as a subordinate and 2) an IRS letter showing parent organization is a nonprofit 501(c) with group ruling.
How may you spend gambling funds?
Allowable Expense
- gambling equipment such as pull-tabs, bingo paper, bingo blower, paddlewheel tickets, tipboard games;
- advertising;
- printing raffle tickets; or
- any services or goods that are directly related to the conduct of your gambling.
Charitable Contributions
- to or by 501(c)(3) organization and 501(c)(4) festival organizations;
- relieving the effects of poverty, homelessness, or disability;
- problem gambling programs approved by the Minnesota Department of Human Services;
- public or private nonprofit school;
- scholarships. If a contribution is made to a scholarship fund, it must be made to a nonprofit organization whose primary mission is to award scholarships;
- church;
- recognition of military service (open to public) or active military personnel in need;
- activities and facilities benefiting youth under age 21;
- citizen monitoring of surface water quality, with data submitted to Minnesota PCA;
- unit of government (NOTE: A direct contribution to a law enforcement or prosecutorial agency is not allowed);
- wildlife management projects or activities that benefit the public-at-large, with DNR approval;
- grooming and maintaining snowmobile or all-terrain trails that are grant-in-aid trails, or other trails open to public use, with DNR approval;
- supplies and materials for DNR training and educational programs;
- nutritional programs, food shelves, and congregate dining programs primarily for persons who are 62 or older or disabled;
- community arts organizations or programs;
- humanitarian service recognizing volunteerism or philanthropy; and
- real property and capital assets (acquisition and repair) – contact the Gambling Control Board for requirements.
Other Resources
Minnesota Gambling Control Board
Minnesota Alliance on Problem Gambling