MNeagle
29th July 2010, 08:20 AM
Chalk it up to a generation gap -- or a tough economy. But charitable gambling receipts in Minnesota are reported to be at their lowest level in more than 20 years.
Minnesota's charitable gambling industry, long the biggest in the nation, has seen gross receipts drop from $1.2 billion in 1989 to $998 million two decades later, Allied Charities of Minnesota announced Wednesday.
Donations to charities plunged with receipts. Last year, $43 million was donated to Minnesota charities through the sale of pulltabs and bingo games, down from $78 million in 1999 and $101 million in 1989.
That's bad news for charities, as well as folks who enjoy gambling, said King Wilson, executive director of Allied Charities. Wilson attributes part of the problem to young people's lack of interest -- or exposure to -- low-tech gambling. "There's a group of young folks on computers who don't even know what a pulltab is," said Wilson.
Charitable gambling was introduced in Minnesota in 1985. It's generated more than $1 billion in receipts every year since 1989 -- except last year. It's part of the culture of the state. Nearly 3,000 bars and other sites offer gambling to support youth sports, churches, firefighters and countless community festivals such as Little Canada's Canadian Days this weekend.
Wilson and other gambling leaders attribute the decline in part to the limited number of games -- exceedingly low-tech games -- the state allows charitable gaming to offer. Pulltabs account for about 91 percent of revenue, and bingo picks up about 6 percent. The rest comes from tipboards, paddlewheels and raffles.
Wilson wants to see electronic bingo and hand-held video devices that younger folks are comfortable with. Until that happens, traditional gambling faces tough competition from video games and other games offering more action than pulling a piece of paper off a tab.
"If I walked into a bar and asked some of my friends if they wanted to play pull tabs, they wouldn't know what I was talking about," said Jon Bohn, 26, a government consultant to Allied Charities. "They don't have that kind of visual stimulation that people crave with their entertainment."
Another reason for the decline in gambling may be that nearly half of the 3,000 places that hold charitable gambling events are veterans and fraternal organizations, many of which have declining membership.
Some success stories
But, clearly, all are not struggling. The Lions Clubs in Ramsey and Burnsville, for example, took in about $7 million in gross receipts last year, said Tom Barrett, executive director of the Minnesota Gambling Control Board. The American Legion posts in Apple Valley and Chanhassen took in roughly $4.5 million.
Bob McNeal is gambling manager at the Fridley American Legion chapter, which grossed about $2.5 million in charitable gambling last fiscal year.
The Legion's bar is its biggest source of funding, he said, but gambling is important, too.
Last night, for example, the Legion offered "bar bingo" along with its normal pulltab operations.
"We look at gambling to enhance the bar experience," said McNeal. "We have to come up with innovative ways to get customers in."
Wilson believes the statewide smoking ban contributed to the declining number of people in bars who buy pulltabs.
Most Minnesotans don't realize how important charitable gambling is in the state, said Barrett. It generates twice the receipts of the Minnesota lottery, he said. And now, with government cutbacks and a weak economy, charities can use all the help they can get, he said.
"All those pulltabs add up," he said.
Jean Hopfensperger • 612-673-4511
http://www.startribune.com/local/99514874.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD 3aPc:_Yyc:aUUF
Minnesota's charitable gambling industry, long the biggest in the nation, has seen gross receipts drop from $1.2 billion in 1989 to $998 million two decades later, Allied Charities of Minnesota announced Wednesday.
Donations to charities plunged with receipts. Last year, $43 million was donated to Minnesota charities through the sale of pulltabs and bingo games, down from $78 million in 1999 and $101 million in 1989.
That's bad news for charities, as well as folks who enjoy gambling, said King Wilson, executive director of Allied Charities. Wilson attributes part of the problem to young people's lack of interest -- or exposure to -- low-tech gambling. "There's a group of young folks on computers who don't even know what a pulltab is," said Wilson.
Charitable gambling was introduced in Minnesota in 1985. It's generated more than $1 billion in receipts every year since 1989 -- except last year. It's part of the culture of the state. Nearly 3,000 bars and other sites offer gambling to support youth sports, churches, firefighters and countless community festivals such as Little Canada's Canadian Days this weekend.
Wilson and other gambling leaders attribute the decline in part to the limited number of games -- exceedingly low-tech games -- the state allows charitable gaming to offer. Pulltabs account for about 91 percent of revenue, and bingo picks up about 6 percent. The rest comes from tipboards, paddlewheels and raffles.
Wilson wants to see electronic bingo and hand-held video devices that younger folks are comfortable with. Until that happens, traditional gambling faces tough competition from video games and other games offering more action than pulling a piece of paper off a tab.
"If I walked into a bar and asked some of my friends if they wanted to play pull tabs, they wouldn't know what I was talking about," said Jon Bohn, 26, a government consultant to Allied Charities. "They don't have that kind of visual stimulation that people crave with their entertainment."
Another reason for the decline in gambling may be that nearly half of the 3,000 places that hold charitable gambling events are veterans and fraternal organizations, many of which have declining membership.
Some success stories
But, clearly, all are not struggling. The Lions Clubs in Ramsey and Burnsville, for example, took in about $7 million in gross receipts last year, said Tom Barrett, executive director of the Minnesota Gambling Control Board. The American Legion posts in Apple Valley and Chanhassen took in roughly $4.5 million.
Bob McNeal is gambling manager at the Fridley American Legion chapter, which grossed about $2.5 million in charitable gambling last fiscal year.
The Legion's bar is its biggest source of funding, he said, but gambling is important, too.
Last night, for example, the Legion offered "bar bingo" along with its normal pulltab operations.
"We look at gambling to enhance the bar experience," said McNeal. "We have to come up with innovative ways to get customers in."
Wilson believes the statewide smoking ban contributed to the declining number of people in bars who buy pulltabs.
Most Minnesotans don't realize how important charitable gambling is in the state, said Barrett. It generates twice the receipts of the Minnesota lottery, he said. And now, with government cutbacks and a weak economy, charities can use all the help they can get, he said.
"All those pulltabs add up," he said.
Jean Hopfensperger • 612-673-4511
http://www.startribune.com/local/99514874.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD 3aPc:_Yyc:aUUF