| Legislature Home | Links to the World | Help | Search |
|
|
| House | Senate | Joint Departments and Commissions | Bill Search and Status | Statutes, Laws, and Rules |
House Research home > Minnesota Government in Brief > Government Finance
The state imposes taxes on charitable gambling in lieu of sales taxes:
Total lawful gambling tax revenue in fiscal year 2009 was about $40 million.
In addition to these taxes, each licensed organization pays a monthly "regulatory fee" of 0.1 percent of gross receipts from gambling at each of its sites. This fee is paid into a lawful gambling regulation account.
The state tax on pari-mutuel betting is 6 percent of the "takeout"---the percentage deducted by the racetrack from each pari-mutuel pool before payouts on winning tickets. At Canterbury Park in Shakopee the takeout averages about 20 percent of total betting. The first $12 million in takeout is exempt from tax. Total pari-mutuel tax revenue for fiscal year 2009 was $850,000, of which about $49,000 went to the general fund.
In fiscal year 2009, the lottery sent $64.7 million to the general fund, of which $2.13 million was dedicated to problem gambling treatment. This general fund revenue came in part from a 40 percent share of net proceeds from the lottery, paid out after prizes and administration, and in part from a portion of a 6.5 percent in-lieu of sales tax, taken out before other deductions. The lottery also funds game and fish ($11.3 million), natural resources ($11.3 million), and the Environmental Trust Fund ($30.8 million), in part from the in-lieu of sales tax and in part from a dedication of net proceeds after prizes and administration.
Federal law prohibits states from taxing the proceeds of gaming on Indian land.
Originally published January 2011.