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Gambling Revenue

The state receives revenues from three state-authorized forms of gambling: pari-mutuel horse racing, charitable gambling, and the state lottery. The state also receives a nominal sum from Indian tribes that operate casinos; that money partly defrays state expenses in supervising state gaming compacts.

Sources of State Revenue from Gambling

Fiscal Year 2009: $160 million

Pie graph showing percentages of gambling revenue
  FY 2009
(millions)
Lottery $118.24
Charitable Gambling 40.48
Pari-Mutuel 0.8
Tribal Casinos 0.16

The general fund is the largest beneficiary of legal gambling, but 40 percent of net state lottery proceeds are constitutionally dedicated to the Environmental and Natural Resources Trust Fund. Additionally, most of the revenue from the 6.5 percent in-lieu sales tax on lottery proceeds are dedicated to the Game and Fish and Natural Resources funds. Revenue from charitable gambling and pari-mutuel taxes and fees is nondedicated and goes to the general fund.

Disposition of State Revenue from Gambling

Fiscal Year 2009: $160 million

Pie graph showing disposition of gambling revenue
  FY 2009
(millions)
General Fund $103.84
Environmental Trust Fund 30.88
Game & Fish Fund 11.36
Natural Resources Fund 11.36
Compulsive Gambling 2.08
Indian Gaming Revolving Account 0.16

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Originally published January 2011. Fiscal year 2011 data are from Minnesota Management and Budget, November 2010 forecast. Other data are from the Department of Revenue, unless otherwise noted.