Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations.
These activities are subject to the state's Lawful Gambling Tax (but not sales tax).
For more information:
- See Gambling Taxes
- Visit the Gambling Control Board website
- Call the Gambling Control Board at 651-539-1900
Gambling criminal enforcement and investigation — AGED is the primary state law enforcement agency to investigate crimes and violations relating to legal and unlawful forms of gambling. AGED special agents use surveillance, game audits, counterfeit and forgery detection to identify violations of state gambling laws. We have a review of some of the Minnesota laws that could pertain to online gambling below: Minnesota defines a bet as A bet is a bargain whereby the parties mutually agree to a gain or loss by one to the other. The definition provided by Minnesota could include poker as a bet since some element. Lawful Gambling Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations. These activities are subject to the state's Lawful Gambling Tax (but not sales tax). You can read specific Minnesota State Lottery chapters and rules on the Minnesota Legislature website by searching the Statutes, Session Laws, and Rules databases. § 349A (State Lottery) Minn. § 349A.08, subd. 8 (Debts Owed) Minn. § 609.651 (State Lottery Fraud) Minn. 7856 (Lottery Retailers).
A retail sale is:
- The sale, lease, or rental of tangible personal property
- The sale of tangible personal property used in conducting lawful gambling under chapter 349 or State Lottery under chapter 349A and is not considered a sale of property for resale
Voodoo fortunes slot machine. The table below explains when sales tax applies to the sale of gambling devices and equipment.
Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations.
These activities are subject to the state's Lawful Gambling Tax (but not sales tax).
For more information:
- See Gambling Taxes
- Visit the Gambling Control Board website
- Call the Gambling Control Board at 651-539-1900
Gambling criminal enforcement and investigation — AGED is the primary state law enforcement agency to investigate crimes and violations relating to legal and unlawful forms of gambling. AGED special agents use surveillance, game audits, counterfeit and forgery detection to identify violations of state gambling laws. We have a review of some of the Minnesota laws that could pertain to online gambling below: Minnesota defines a bet as A bet is a bargain whereby the parties mutually agree to a gain or loss by one to the other. The definition provided by Minnesota could include poker as a bet since some element. Lawful Gambling Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations. These activities are subject to the state's Lawful Gambling Tax (but not sales tax). You can read specific Minnesota State Lottery chapters and rules on the Minnesota Legislature website by searching the Statutes, Session Laws, and Rules databases. § 349A (State Lottery) Minn. § 349A.08, subd. 8 (Debts Owed) Minn. § 609.651 (State Lottery Fraud) Minn. 7856 (Lottery Retailers).
A retail sale is:
- The sale, lease, or rental of tangible personal property
- The sale of tangible personal property used in conducting lawful gambling under chapter 349 or State Lottery under chapter 349A and is not considered a sale of property for resale
Voodoo fortunes slot machine. The table below explains when sales tax applies to the sale of gambling devices and equipment.
Minnesota Gambling Rules
| Question | Is the Item Taxable? | References |
|---|---|---|
| Is the rental of electronic gaming devices taxable? | Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment. It does not matter if there is a revenue sharing agreement. |
|
| Are monthly equipment charges taxable? | Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment. |
|
| Are revenue sharing agreements taxable? | Yes. The lessee is responsible for the sales tax on the total sales price of the rental or lease of an electronic gaming device – even when the sales price is separated into various components. |
|
| Are bingo cards and pull-tabs taxable? | Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products. |
|
| Are electronic pull-tabs taxable? | Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products. |
|
| Are apps for electronic gaming devices taxable? | Yes, they are taxable when sold to the distributor. |
|
| Is the sale of the software taxable? | Yes, they are taxable when sold to the distributor. |
|
| Does local sales and use tax apply when the city also has a local gambling tax? | No. However, Minnesota sales tax (6.875%) still applies. |
|
| Are purchases of gambling equipment by a 501(c)3 organization with a gambling license taxable? | Yes. These organizations must pay sales tax when they purchase, lease, or rent gambling devices and equipment. |
|
Minnesota State Gambling Rules 2019
If you have any questions, email us at salesuse.tech@state.mn.us.
