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Council moves to allow limited charitable gambling in Edina, debating how to share proceeds
Summary
After months of review and public comment, council approved first reading of an ordinance to permit premise gambling for nonprofits, amending staff’s three‑permit recommendation to allow up to six premise permits (one per nonprofit) and requiring reporting and a city fee; members debated social harms, allocation of proceeds, and whether to centralize distribution to an umbrella fund.
Edina — The City Council on Feb. 4 approved on first reading a revised ordinance to allow lawful charitable gambling (premise permits) inside Edina, moving staff recommendations from a three‑permit pilot to a possible six‑permit authorization while adding a guardrail that limits one premise permit per nonprofit organization.
Clerk Allison outlined staff recommendations for regulation: limit initial issuance to local nonprofits located in Edina, require 70% of net proceeds be spent in the defined trade area, impose a local gambling tax intended to cover regulatory costs (staff recommended 3%), and direct 10% of net proceeds to a city‑administered fund for community priorities. The ordinance would also eliminate background checks for certain exempt raffle events and allow lawful gambling in licensed liquor establishments with a permitted premise. (Clerk Allison)
Several council members said they were troubled by social harms associated with gambling and by the prospect of a "race to the bar" if a small number of permits were made available. "I don't feel good right now about this being a race to the bar," one member said. Some council members urged an umbrella approach or a mechanism to ensure proceeds reach a broad set of nonprofit needs (education, mental health, assistance for those in need). Member Agnu emphasized the need to weigh known harms against the potential benefit to nonprofits and suggested more analysis before setting final limits. (Member Agnu)
Other council members argued the city was late to the market; neighboring suburbs allow pull‑tab fundraising at local businesses and Edina nonprofits had asked for parity. Supporters said giving local nonprofits access to this revenue stream could help urgent needs such as scholarships, housing, and mental-health supports. "There is an unmet need in the community," a council member said, urging a practical pilot rather than indefinite delay. (Member Pierce)
After discussion the council amended staff’s draft to allow up to six premise permits and to include the restriction of no more than one permit per nonprofit. The ordinance passed first reading on a 4–1 vote; the council can adjust permit numbers after operational experience and staff assessment of administrative workload. Staff also proposed reporting back on administrative costs and program impacts to guide any future changes.
Why it matters: Charitable gambling can generate steady local revenue for nonprofits but brings social‑risk tradeoffs; council members asked for careful oversight and clear rules about how proceeds are used.
