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Gambling Control Board hears February revenue drop, discusses proposed fund-loss reform
Summary
Director Wade told the Gambling Control Board February gross receipts fell about 12% year-over-year and staff is tracking a proposed fund-loss reform that would change how charities may reimburse gambling losses; the bill was not included in the board's budget bill and remains under review.
Director Wade told the Gambling Control Board that industry receipts showed mixed signs: February 2025 gross receipts were down about 12% from February 2024, and electronic tap (etab) sales showed a year-over-year dip in March but a month-to-month uptick since February 2025.
"We are not funded by the general fund... we're self-funded," Director Wade said when explaining the board's biennial budget request. She said the board requested level funding — $6,334,000 in each year of the upcoming biennium — and that both House and Senate committee bills currently carry that figure. Wade cautioned the bills must still pass floor votes and eventual conference committee reconciliation.
Wade described proposed policy language pushed by stakeholders to change how the board handles fund-loss denials. She said an early version of the stakeholder-drafted proposal would have prevented the board from requiring an organization to reimburse a denied fund loss from a non-gambling account; it also would have required the board to provide organizations an explanation when a fund-loss request is denied. That language was not included in the board’s budget bill, Wade said, but could be introduced separately as a policy bill.
"The charities brought that forward," Wade said, explaining stakeholders contend gambling site cash holdings have grown substantially since charitable gambling began and that requiring reimbursement from a small general fund can be crushing for some organizations. Wade said the board worked with stakeholders and legislators to adjust the proposal so the board could still approve or deny fund-loss requests and use citations or corrective action rather than mandating reimbursement from non-gambling funds.
Board member Mr. English and others emphasized that staff reviews fund-loss appeals on an individual basis, and counsel and staff reiterated that packet materials and investigative records underpinning decisions are available through data-practices requests. Compliance Enforcement Manager Brett McKeever told the board there were no new investigative findings in the Eagan Lions Club file since it was last considered.
Wade also reported security incidents affecting licensed sites: a group burglarized several bars, including a site in Anoka, but was unable to access or remove a safe at that location and gambling monies were not taken. Wade said the agency's education and outreach plans include summer speaking engagements for veterans organizations and continuing general-manager seminars.
No formal policy change was adopted at the meeting; the board instead received the director's report and discussion of the potential fund-loss reform continued as an item for staff and legislators to watch.
The board set its next meeting for Monday, May 19 at 10 a.m.
