Electronic Pull Tabs: Big Changes for Gamblers, Few Changes for Cities

The Vikings stadium bill will bring electronic pull tabs to Minnesota, although there should be few changes for how cities manage lawful gambling.
(Published May 31, 2012)

The passage of the Vikings stadium bill, Chapter 299, in the closing hours of the 2012 legislative session will not only bring a new stadium to Minneapolis, but will bring electronic pull tab devices to lawful gambling organizations.

The League has drafted a more detailed document designed to answer questions about the impact of the new gambling system on cities.

The lawful gambling provisions of the Vikings bill are generally the same as contained in legislation sponsored by Allied Charities, which will reduce the taxes paid by lawful gambling organizations. The state estimates that electronic pull tabs will generate approximately $70 million in additional revenue annually, and the state share will be used to pay the state portion of the Vikings stadium.

The bill does not reduce or expand the current role that cities play in managing lawful gambling in their communities, and it does not change how charitable organizations are able to distribute gambling proceeds. Below is a brief summary of common questions about the new electronic pull tabs.

What are electronic pull tabs?
Electronic pull tabs are played on a device that is similar to an iPad. The device must be activated from a central location and it cannot accept coins or currency. Similar devices will be available to play “linked” bingo. The Gambling Control Board (GCB) estimates that the new devices will not be available until September 2012.

How is licensing handled for electronic pull tabs?
Under current law, a gambling organization must receive a resolution of support from the host city in order to obtain its initial premises permit. Once it receives the premises permit it is annually renewed through the GCB without further input from the city. Any currently licensed charitable organization is eligible to add electronic pull tabs without the need for approval of the host city.

The number of electronic pull tabs an organization may have is based on the seating capacity of the premises, as determined by the local fire code. The number of devices is limited to:

  • No more than 6 devices in play for permitted premises with 200 seats or less.
  • No more than 12 devices in play for permitted premises with 201 seats of more.
  • No more than 50 devices in play for permitted premises where bingo is the primary business.

An organization that offers electronic pull tabs must also offer paper pull tabs.

Do any of the pull tab proceeds go to the city?
Under current law, a host city can require that 10 percent of the net profits go to the city for lawful purposes defined in statute or for police, fire, and public safety uses. An increase in net profits due to electronic pull tabs would increase the money going to the city.

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