Online Gambling License in Minnesota

The Minnesota Gambling Control Board is the state body entrusted with regulating and overseeing gambling-related activities in the state. Overall, the Board is tasked with monitoring lawful gaming activities, such as in-state charitable gaming. It’s also entrusted with other responsibilities, such as promoting educational material and making sure profits from gaming activities are invested in community projects or used for charitable purposes.

The official MGCB manifesto elaborating on the Board’s role and function states that its main competence lies in overseeing lawful and ‘charitable’ gaming. The record states that the Board is not capable of guaranteeing that it can “adequately detect and deter” illicit gaming, partly due to “poor technology.”

The Minnesota Gambling Control Board licenses non-profit organizations seeking to offer charitable gambling. It ensures the integrity of charitable gaming events and compliance with gaming laws and policies. The Board consists of 7 members, 5 of which are appointees by the governor, one by the Commissioner of Public Safety, and one member appointed by the State Attorney General.

The Board holds meetings open to the public every third Monday of the month. Every meeting has a designated agenda that discusses different points of interest, approves new games, and takes action upon request.

Types of Gambling Regulated by the Minnesota Gambling Control Board

With Minnesota’s legal landscape allowing mainly charitable gaming activity, gaming options are severely limited. Here are a few types of gaming the state’s Gaming Control Board considers “lawful” and regulates:

• Electronic games – The Board refers to electronic games such as pull tabs and bingo played on electronic devices in person. The devices selling pull tabs or electronic linked bingo can be handheld or portable. The price of every electronic pull tab must not go over $5.

• Paper Pull Tabs – Licensed organizations can sell paper pull tabs through electronic machines or at specific locations. Each pull tab must display the Minnesota state designation (MN) and a serial number to be sold legally. Cash prizes for paper pull tabs range from $599 to $1,499, based on the ticket price.

• Bingo cards – Licensed MN organizations can sell paper bingo cards in compliance with specific terms. One important provision is that the organization must clearly display its name and licensing information somewhere on the premises. Depending on the game type (single, cover none, cover all, hot-ball, progressive, or linked bingo), the prizes range from $500 to $2,000.

• Raffles – Minnesota law defines a raffle as a game where people buy tickets for a chance to win prizes in random draws. The organization cannot charge fees, request donations, or require purchases for raffle entry. Only cash, debit cards, and checks are allowed for payment; credit cards are not permitted.

• Paddlewheel – A licensed organization can sell paddlewheel tickets but may not award them as prizes, as is the case with raffle tickets, paper pull tabs, or paper bingo tickets. The Board allows paddlewheel cash prizes and gift cards, but cash rewards must not be over $70 in value.

Minnesota Gambling Control Board Regulatory Framework

The Minnesota Gambling Control Board prohibits the majority of for-profit gambling activities, including (online) casino gambling and digital sports betting. There are around a handful of exceptions where a licensed (non-profit) organization, holding the proper permit, can host a certain gaming activity considered “lawful” or for strictly designated charitable purposes.

These lawful games are listed above (bingo, pull tabs, raffles), but the terms for each game can vary. For instance, for raffles, the Board allows cash prizes, gift cards, or merchandise. However, the prizes cannot include gambling-related items such as pull-tabs in card form, paper bingo tickets, or raffle tickets.

Regarding licensing regulation, there are several types of organizations that can obtain a license to promote the aforementioned games. These can include religious, fraternal, veterans, and other groups designated as non-profits with an IRS income tax exemption 501(c) letter or a Certificate of Good Standing from the Minnesota Secretary of State.

The Minnesota Gambling Control Board’s Lawful Gambling Manual lists several types of licenses and permits, including Organization Licenses, Gambling Manager Licenses, and Premises Permits. For the former two, you must answer all 9 questions (for Organization License) and all 13 questions (for Manager License) with “yes” in order to qualify for a license application.

For premises permits, the organization must first obtain approval from the local city/county governing body.

The annual cost of an Organization License in Minnesota is $350. However, organizations anticipating less than $100K of gambling takings can ask for a waiver from the Gambling Control Board. The annual license fee for a Gambling Manager License is $100. А Premises Permit has a $150 annual fee. The city/county, however, can collect investigation fees, which, depending on the city/county, range from $100 to $500.

FAQs about the Minnesota Gambling Control Board