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    Introduction to Charitable Gambling

    Charitable Gambling refers to any legal gambling activity conducted by Minnesota nonprofit organizations to raise funds for charitable purposes. Last year nearly 3400 nonprofits used charitable gambling to raise almost $150 million to support causes in communities across Minnesota. Here are the basics:

    Do we need to be a nonprofit? Yes, you must be a registered nonprofit.

    What's allowed? You have five options:

    • raffles
    • bingo
    • pull-tabs
    • tipboards
    • paddlewheels

    Is a silent auction charitable gambling? No, auctions are not considered gambling.

    Can we do other kinds of gambling? No. If you're using gambling to raise money, it has to be one of the five choices listed above. Gambling activities like “Casino Night” or poker tournaments are not allowed as fundraisers.

    Do I need a license or permit? With one limited exception, the answer is "Yes." However, the type of authorization you need depends on the scale and frequency of your gambling activities.

    The Three Categories of Charitable Gambling

    1. License

    • Required for: consistent, large-scale gambling activities on an ongoing basis
    • Organization must have been in existence for the past three years
    • Example: VFW conducts all forms of lawful gambling year-round at its club
    • Example: a youth hockey association conducts paper and electronic pull-tabs at Joe's Bar

    2. "Exempt" Permit

    • Required for: limited number of gambling activities per year
    • Separate permit needed for each event
    • Click here for information on permits
    • Example: a church conducts a raffle with a $5,000 prize and bingo at its annual festival

    3. Excluded Activity

    • For very limited gambling fundraising using a raffle or bingo
      (pull-tabs, tipboards, and paddlewheels ALWAYS require an exempt permit or a license)
    • Example: Start Simple raffle (a form of an "excluded" raffle)
      (note: excluded raffles are the only category that do not require a license or permit)
    • Example: excluded bingo at a fair (requires an Excluded Bingo Permit)
    • Click here for information on excluded activities
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