In Minnesota, Native American tribes that operate casinos are demanding tighter regulation of electronic pull-tab machines that have proliferated in bars and helped contribute to charities for nearly a decade.
The Minnesota Indian Gaming Association, whose members enjoy a monopoly on slots machines, supports a House bill sponsored by state Rep. Zack Stephenson that would change the definition of slot-like electronic pull-tabs and as a result ban some forms of the games. However, the approval of the measure could lead to a revenue loss of $29 million a year for bars, $13 million a year for distributors of electronic games and $33 million for charities, according to a Legislative Budget Office report.
Electronic pull-tabs were authorized in 2012 as a way to pay for the construction of the U.S. Bank Stadium. Under an agreement with the tribes, the electronic pull-tabs could not “mimic a video slot machines. “ Governor Tim Walz said, “We have a responsibility to our Indigenous nations who, in good faith, negotiated around those issues of pull tabs. We need to honor the spirit and the letter of how those were originally created.” Recent estimates project Minnesota will have collected $250 million by 2023, enough to pay off the stadium.
The association issued a statement noting, “The Minnesota Indian Gaming Association and its member tribes urge the Minnesota legislature and the Minnesota Gambling Control Board to take clarifying actions necessary to ensure electronic pull-tab and bingo games comply with the intent of the 2012 authorizing statute.”
But bar owners and some Republican lawmakers have called for Senate Republicans to block the House bill from becoming part of the final state government budget bill. Senate and House lawmakers are currently working to merge their respective bills. State Rep. Keith Franke, a bar owner from St. Paul Park, said, “When I think about how this legislation was kind of shoved in after deadlines and the impact that it’s going to have statewide once again on these charitable organizations, it’s mind-boggling how we could not follow the process.” Franke noted all the revenue from charitable gambling goes directly back into the community.
Stephenson, the bill sponsor, said he’s aware of the bar owners’ and charities’ concerns. “They have done nothing wrong, and our legislation will still allow electronic gaming and the great work of our charities to continue while honoring the agreement we made with Minnesota’s tribal nations in 2012,” he stated. He pointed out the law would not take effect until September 2022, so developers would have time to redesign games to be in compliance with the proposed law change.
“This is about the state honoring our agreement. The state has a very long history of not keeping its word when it comes to agreements made with tribal governments. We don’t want to be a part of that long history of not keeping our word.” Stephenson said.
Last year, a state administrative law judge ruled against the Shakopee Mdewakanton Sioux Community, owners of Mystic Lake Casino, stating that electronic pull tabs offered in bars by charitable organizations did not infringe on the exclusive rights of Indian tribes to operate video slot machines.
