Bill > SF1941

This bill modifies the taxation of lawful gambling in Minnesota by implementing a flat five percent tax rate on gross gambling receipts (minus prizes paid), replacing the previous graduated tax structure. Currently, different types of gambling (like paper pull-tabs, electronic bingo, etc.) were taxed differently, but this bill simplifies the tax by applying a uniform five percent rate across most forms of lawful gambling. The bill also repeals the existing "combined net receipts tax" which previously imposed a more complex, tiered tax schedule based on an organization's total gambling income. Specifically, the bill removes the previous tax brackets that ranged from 8% to 33.5% depending on the organization's total gambling receipts. The new flat tax rate will apply to most lawful gambling activities, excluding a few specific types of gambling, and is designed to streamline the taxation process for gambling organizations. The changes will take effect on July 1, 2025, giving organizations time to prepare for the new tax structure.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1941&ssn=0&y=2025