Sports Betting Bill Would Provide Tax Relief for Charitable Gambling

At the Osseo-Maple Grove American Legion, charitable gambling in the form of pull tabs — both traditional and electronic — are part of the experience.

Much of the money spent on these games helps youth sports and local nonprofits.

“Some of our big ones that we go support is CEAP and CROSS, so two of the local food shelves,” said James Hultgren, the gambling manager of the Osseo-Maple Grove American Legion.

Hultgren says last year, they donated $115,000 to community organizations. However, an even bigger chunk went to the state of Minnesota.

“For our fiscal gambling year of 2023, over $328,000 was paid to the state in taxes,” he said.

At the state Capitol, an amendment added to the sports betting bill (HF2000) that’s currently making its way through the committee process would create about $40 million a year in tax cuts for charitable gambling operations.

Officials from the Osseo-Maple Grove American Legion say a tax relief amendment in the sports betting bill would let them put $119,000 more into the community.

“It doesn’t make sense that we pay more to the state of Minnesota than our charitable benefactors,” said Kristy Janigo, legislative chair of the American Legion Department of Minnesota. “So this bill actually flips that to where our nonprofit partners will receive, and our community will receive, more than the state.”

Janigo, who’s also a city council member in Maple Grove, worked with state lawmakers to get the tax relief amendment added, particularly after the state made tweaks to electronic pulltab games that go into effect next year. Janigo and others fear the changes to e-pull tabs could result in a loss of gambling revenue.

“We really need this,” Janigo said of the amendment that’s part of the sports betting bill. “In light of the changes to e-tabs, but also because we’ve needed tax cuts for many years.”

If they get those tax cuts, officials at the Osseo-Maple Grove American Legion say it’ll mean more money for local nonprofits.

“Right now, it’s 45 percent of our revenue goes to the state from our total gambling,” Hultgren said. “So if you take that in half, that’s $119,000 that we could directly put into this community.”

Meanwhile, if the sports betting bill passes, that amendment would also allow the legion to use more of the gambling revenue for building upkeep.

Related: Local Charities Say E-Pull Tab Legislation will Impact their Bottom Line

Maple Grove | Osseo