Minnesota Court Upholds Setback for Electronic Pull Tab Market
A Minnesota appeals court has determined that the state gambling control board made an error in allowing "all-access" digital pull-tabs (EPTs) at bars, restaurants, and other venues.
Similar to conventional paper pull-tabs, EPTs display a series of symbols or numbers with each game, but the action is moved into a gaming machine, along with a digital visual experience that imitates slot machines.
Unlike slot machines, they don't use a random number generator to generate results. Instead, each outcome is pre-determined, much like if you were buying printed tickets, one at a time, from a store stack.
However, these machines are considered too slot-like by local tribal casino operators, who have exclusive rights to that market.
The Shakopee Mdewakanton Sioux Community (SMSC) filed a lawsuit against the Minnesota Gambling Control Board in 2019. The tribe contended that the "all-access" variety of EPTs, which reveal all symbols with a single touch, contradicted the state's interpretation of the machines when they were legalized in 2012.
Stuck in a Dilemma
The law mandated that players must "activate or open each electronic pull-tab ticket and each individual line, row, or column of each electronic pull-tab ticket."
Minnesota legalized EPTs as part of an initiative to generate funds for the US Bank Stadium in Minneapolis. These machines continue to bring in a substantial amount of money for charitable causes in the state.
In 2019, under tribal pressure, the control board sent letters to vendors indicating that it would no longer approve games that showed more than one symbol at a time. However, the board retracted this decision a week later after vendors objected, which led to the SMSC lawsuit.
In 2020, an administrative law judge ruled that "all-access" EPTs were legal. Monday's decision did not fully reverse this judgment. However, the appellate court decided that the control board's 2019 letters to vendors created an "unspoken rule" that these games were not permitted.
The appellate court found that the 2012 statute was unclear, which may pave the way for the legislature to reconsider it.
A $2B Industry
The SMSC reinforced its stance that the law is crystal clear on Monday.
"The Minnesota Gambling Control Board has disregarded the clear meaning and legislative intent of the law authorizing electronic pull-tabs by approving games that resemble slot machines," read the statement. "We hope the Legislature will pass necessary clarifications to ensure that electronic pull-tabs help charities raise money for worthy community causes without undermining tribal casinos."
EPTs generated $1.9 billion in 2022, according to the gaming control board's latest report, although this falls slightly short of the $2.1 billion the traditional version brought in. All profits go to non-profits and charities.
Sam Krueger, executive director of the Electronic Gaming Group, told 5 Eyewitness News on Monday that EPTs were highly popular, despite the persistent efforts of the tribal casinos to eradicate electronic charitable gaming in Minnesota.
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