Minnesota Gambling Industry in 2025: Key Trends and Developments

The gambling industry in Minnesota is mainly controlled by tribal casinos and the largest charitable gaming industry in the country; however, this could change as lawmakers are exploring ways to bring innovation and new global trends to consumers in the state.

Minnesota’s casino sector is much smaller compared to most states in the country. In California, for example, there are many options in the Golden State for players to enjoy, from online casinos to grand resorts. While Minnesota may not have such large resorts that attract high rollers from all over the world, it is still very profitable.

In 2024, the Minnesota Gambling Control Board (MGCB) reported $4.9 billion in total casino revenue, up 8% from 2023, with $712 million in net revenue and $207 million in combined net receipts tax and fees from operators. Lawmakers are exploring ways to bring new ideas and games to the state, following trends seen in larger markets like California.

To start the new year, Minnesota rolled out changes to electronic pull-tab games. For years, gamblers who used electronic pull tabs enjoyed features like free plays, bonuses, and the famous ‘open all’ button. However, a DFL-led legislature in 2023 passed a law that banned these features, stating that they made these games look like slot machines. Only tribal casinos are allowed to run under state compacts, and these e-pull tabs could violate this exclusivity.

Since the state banned the games, many charities have complained that their income has dropped. Last year, charities in Minnesota made a total of $386 million from e-pull tabs. According to the American Legion in Bloomington, the revenue from these tab games for January 2025 dropped by 44% when compared to January 2024.

Reacting to the decrease in revenue, Tim Engstrom of the American Legion Department of Minnesota explained that even though they tried to reassure customers, people didn’t enjoy the stripped-down games. Head of Allied Charities, Rachel Jenner, also added that the change could have devastating effects on local nonprofits.

Following this drop in revenue, Republicans have proposed a new bill to undo the changes. H.F. 733, which is sponsored by GOP Rep. Bjorn Olson of Fairmont and is supported by State Rep. Shane Mekeland, would bring the games to their old format and undo the restrictions. Supporters of the bill argue that it would increase funding for charities that rely heavily on the revenue from e-pull tabs.

Although Democrats oppose the bill, it has advanced to a House committee on a party-line vote. However, Rep. Olson believes that for the bill to successfully pass through the Minnesota House and Senate, which is controlled by Democrats, it would need support from both parties, while adding that he is willing to compromise.

There is also a push to legalize sports betting in Minnesota, as lawmakers have now introduced a second bill, which has given hope to sports fans and sportsbook operators. SB 757, proposed by Sen. Matt Klein, is the latest bill pushing to legalize online sports betting in the state after Sen. Jeremy Miller introduced the Minnesota Sports Betting Act 3.0 in January 2025.

Sen. Klein says the plan is to provide online sports betting licenses for the eleven federally recognized tribes in the state. The tribes can also collaborate with Daily Fantasy Sports (DFS) operators to make fantasy games legal in the state. Each tribe will also get one license each.

While the bill clearly explains provisions for taxes and how the money would be used, it would require bipartisan support for it to become law. For now, the chances of the bill going through are slim, and operators and fans can only hope that both Senate parties can come to an agreement before the end of the legislative session.

This content was produced in partnership with General Studios. If you or anyone you know has a gambling problem, call 1-800-GAMBLER.

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