Charitable Gambling refers to any gambling activity conducted by Minnesota nonprofit organizations to raise funds for charitable purposes. Last year, nearly 3400 nonprofits used charitable gambling to raise almost $145 million to support causes in communities throughout the state. Here are the basics:
Do we need to be a nonprofit?
Yes, only registered nonprofits may conduct charitable gambling.
What types of gambling are allowed?
You have five options:
Is an 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 options listed above. Gambling activities like “Casino Night” or poker tournaments are not allowed as fundraisers.
Does my nonprofit need a state license or permit to conduct charitable gambling?
With two very-limited exceptions, the answer is yes. The type of authorization you need depends on the scale and frequency of your gambling activities.
1. License
A license is required for large-scale gambling activities on an ongoing basis.
2. Exempt Permit (sometimes simply referred to as a "permit")
Rather than conducting charitable gambling on an on-going basis, many nonprofits conduct limited gambling activities, often in conjunction with other fundraising events (festivals, annual dinners, county fairs, etc.). An exempt permit is generally the correct choice for these situations.
3. Streamlined "Excluded Gambling" activities
Yes, the term "excluded" is a little confusing—these options have more restrictions than permits of licenses but offer a simpler application process (or none at all) and there’s no processing fee.
Important Note
In a single calendar year, an organization may only conduct gambling in one of the following categories:
Plan your fundraising carefully to avoid unintentionally limiting your options for the rest of the year.
How can I learn more?
Keep exploring the Gambling Control Board’s website for detailed information on licenses, permits, and more. Still have questions? Reach out to the licensing or compliance specialist in your county, or give us a call at (651) 539-1900.