Minnesota gambling laws refer mainly to companies and syndicates who try to profit from games of chance and specify the punishment associated with the prosecution of such companies. While online gambling is not, strictly speaking, legal, it isn’t illegal either with many residents signing up on off-shore gambling sites to play casino games online.

Individuals caught doing the following can be prosecuted and fined up to $3000:

(1) maintains or operates a gambling place or operates a bucket shop;
(2) intentionally participates in the income of a gambling place or bucket shop;
(3) conducts a lottery, or, with intent to conduct a lottery, possesses facilities for doing so;
(4) sets up for use for the purpose of gambling, or collects the proceeds of, any gambling device or bucket shop;

According to the Minnesota statutes:

Lawful gambling is not a lottery or gambling within the meaning of sections 609.75 to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic bingo device, and electronic pull-tab device permitted under this chapter and by board rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 299L. An electronic game device allowed under this chapter may not be a slot machine. Electronic game devices, including but not limited to electronic bingo devices, electronic paddlewheels, electronic pull-tab devices, and electronic raffle selection systems authorized under this chapter, may only be used in the conduct of lawful gambling permitted under this chapter and board rule and may not display or simulate any other form of gambling or entertainment, except as otherwise allowed under this chapter.

It’s interesting to note that, like with many states, tribal casinos are exempt from federal laws around what is and isn’t classified as gambling. In addition to this, racetracks are allowed to operate poker and other house-banked games that use cards.

Gambling or using gambling devices in licensed establishments won’t get you in trouble. It’s when you start gambling for profit or attempt to turn games of chance into a business that you will find yourself on the wrong side of the law.

The State of Minnesota requires that you apply for a license to not only operate a gambling-related business, but also if your business manufactures and distributes gambling devices like pull-tabs, bingo equipment, paddlewheel equipment, tip boards, and pull-tab dispensing devices.

Applicants are screened and areas that are investigated are personal, business, and financial relationships and associations, as well as all financial details, to establish whether the funds are from a reputable source.

Depending on the type of license required, the cost of each differs significantly. Contact the Gambling Control Board if you need a license for gambling equipment or the Gambling Enforcement Division for gambling devices for more details about costs.

The investigation begins once a deposit of the relevant funds have been made and further deposits may be required depending on the extent of the investigation.

Licenses are not required by law if the chance drawing for prizes meet the following requirements:
● the participant is not required to purchase a ticket for drawing to win a prize
● the participant must be allowed to enter the draw without any consideration for a chance to win a prize.

In other words, you can hold a raffle if a person can purchase a ticket without the need for a cash donation. While you are welcome to suggest a donation amount, it cannot be coerced for a chance of winning a prize. If the organizer implies or coerces the participant in any manner, there is a substantial risk of violating the law.

It is highly recommended by the Alcohol and Gambling Enforcement Division that all organizations keep a record of the following:

● donations
● number of participants
● prizes awarded
● number of prizes awarded.

You are also welcome to hold the following tournaments of the following card games of skill: cribbage, skat, sheepshead, bridge, euchre, pinochle, gin, 500, smear or whist, and Texas Hold'em, but only if the tournament or contest does not provide any direct financial benefit to the organizer.

Essentially, unless the games of chance are for charity, or can benefit the state through funds raised by the lottery, only licensed establishments can offer gambling.