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Last Updated: 10/26/2017

Frequently Asked Questions

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Lawful Gambling Tax

651-297-1772
8:00 a.m.- 4:30 p.m. Mon.- Fri.

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Lawful Gambling Tax > Tax Information

  • If the Department of Revenue has a question, who are you most likely to call?Back to top

    We'll call the gambling manager and/or accountant to discuss any tax or inventory issues.​

  • Should I file the net receipts loss (NRL) if one site balances out the loss at another site?Back to top

    No. Net receipts are only considered a loss if the total of line 4c is negative. You only need to file the NRL when you intend to claim the credit.​

  • How do I calculate combined net receipts tax?Back to top

     

    If line 8 on Worksheet E is:
    over​ but no more than​ subtract from line 8​ multiply result by​ add
    $0​ $87,500​ 9% (.09)​ $0​
    $87,500​ $122,500​ $87,500​ 18% (.18)​ $7,875​
    $122,500​ $157,500​ $122,500​ 27% (.27)​ $14,175​
    $157,500​ $157,500​ 36% (.36)​ $23,625​

     

     Enter result on line 9, Worksheet E.​

  • Are lottery tickets, pari-mutuel betting or games at casinos included in nonprofit lawful gambling?Back to top

    The Minnesota Lottery, slot machines and games at a casino or betting on a horse race at Canterbury Downs are not included in nonprofit lawful gambling.​

  • What is nonprofit lawful gambling?Back to top

    In Minnesota, nonprofit lawful gambling activities include bingo, electronic bingo, paddletickets, raffles, tipboards, pull-tab and electronic pull-tab games.​

  • Is the net receipts loss (NRL) only for bingo, paddletickets and raffles?Back to top

    Yes. These are the games that are taxed at the 8.5% net receipts tax.​

  • What records do I need to keep?Back to top

    You are required to maintain complete, accurate and legible records supporting all your gambling activities. Records include, but are not limited to:

    • Winning and unsold tickets for pull-tab, tipboard, paddlewheel and raffle games and game flares
    • Reports and statements, including checker's records for each bingo occasion
    • Cash journals, ledgers, deposit slips, register tapes and bank statements supporting gambling activity receipts
    • Invoices that represent purchases of gambling products
    • Canceled checks or substitute checks and other documents supporting gambling activity expenditures
    • Organization minutes

  • How long do I need to keep records?Back to top

    You must keep gambling-related records for at least 3.5 years. We may inspect your records at any reasonable time without notice or a search warrant.

    The retention period starts on the return due date. It does not start on the invoice purchase date or the date you removed the game is  from play.

    For example, if you report a game as played on your January 2017 return (due February 20), the retention period begins Feb. 20, 2017, and ends on Aug. 20, 2020.

    Keep a copy of all tax returns, schedules and worksheets for your records, including all amended returns.​

  • How do we handle game destruction?Back to top

    Bingo paper and raffle tickets
    • If you wish to destroy bingo paper or raffle tickets, call our office and ask to speak to a Revenue Tax Specialist to arrange for a delivery time.
    Pull-tabs, tipboards, paddletickets
    • If you have a pull-tab, tipboard or paddleticket game that you do not want to put into play, or a damaged game that cannot be put into play, contact your distributor first to see if you can get credit for the cost of the game and/or tax paid on the game.
    • If you cannot get credit for the game, contact the Lawful Gambling Tax Unit and we will either direct you to either destroy the game or send the game to us to destroy.
    • Report the game(s) on a Schedule B2, Lawful Gambling Report of Barcoded Games, and check the box for "Destroyed with approval." Complete a separate Schedule B2 for each type of destroyed game (pull-tabs, tipboards or paddletickets).
    • You will be required to send us the unplayed game and a copy of the Schedule B2 on which it was reported. We will certify the Schedule B2 so that you may claim a refund for the unsold tickets. We will also provide you with a written receipt that the game was received and destroyed. You must keep the receipt in your permanent gambling records for at least 3.5 years.
    • If you destroy unplayed games without receiving approval, the game will be treated as a missing game. You will need to report the game on your next monthly return at ideal amounts, pay any tax liability due and deposit the ideal net receipts into your gambling account with funds from a non-gambling source.
    Games destroyed by a catastrophic event

    • If unplayed games, games in play, and/or played game remnants are destroyed by a catastrophic event (e.g., fire, flood, tornado, etc.), call our office for instructions.

  • What is the Gambling Control Board Regulatory Fee?Back to top

    A regulatory fee of 0.125 percent of the monthly gross profits is imposed to fund the Gambling Control Board. If there are no taxes due, the fee may be accrued until the total owed is $50, but must be paid with the March, June, Sept. and Dec. returns even if the total owed is less than $50. (M.S. 349.165, subd. 3 (b)).​