Minnesota legislators push back on pull tab changes: 'Charities will be hurt'

ST. PAUL, Minn. (FOX 9) - A group of charity leaders, business owners, and Minnesota sports celebrities are hoping to stop a significant change in electronic pull tabs.

The legislature is on the verge of making people do a little extra work to pull the digital tabs.

$1.9 billion is the amount of electronic pull tab revenue in this state last year. Local charities got tens of millions from that pot of money and so did the state’s tax coffers.

But new law could really reduce the jackpot.

Some Minnesota Republicans are all-in for electronic pull tabs — or EPTs — and say the proposed new law is a bust.

"The only thing this bill is doing is reducing revenues for nonprofits that do incredible work in our communities," said Rep. Shane Hudella, R-Hastings.

EPTs are digital versions of their printed siblings, revealing symbols or numbers with every play.

The results are predetermined, not random, and the total payoff to players has to be at least 85%.

And a portion of the proceeds goes to state tax coffers and to local charities like veterans’ groups, volunteer fire departments, and youth sports teams — which is why retired NHL players Devan Dubnyk, Tom Chorske, and Nate Prosser are checking in.

Tribal gaming operators say the "open-all" EPT option — which unveils all the animated characters across the reels with one touch — is too much like slots, so they’ve sued and lobbied for change in St. Paul.

The current omnibus tax bill would force people to activate only one tab at a time.

"Our Indigenous people have been wronged that we’ll never be able to make right when it comes to relations with our government but I think they’re getting this one wrong," Rep. Hudella said.

The issue also came up in 2021 and the state’s fiscal note estimated local charities would lose $33 million.

Industry leaders say they’d have to completely replace machines.

"Manufacturers are telling us it could take anywhere from a year to two years to revamp these games, which will also make them less playable," said Keith Franke, executive director of Protect Our Charities, who is also a bar owner and a former legislator.

The bill’s author says this limitation is necessary to honor deals with Native American tribes and it shouldn’t destroy EPTs because it just means they’re going from one touch to four touches.

The change is part of an omnibus tax bill already has already passed both houses and it’s in conference committee now, but Rep. Hudella says he thinks it can be stopped.