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Last Updated: 7/16/2018

Frequently Asked Questions

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Lawful Gambling Tax

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Lawful Gambling Tax > Tax Information

  • 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.​

  • 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.​

  • What if I'm being audited?Back to top

    ​The Minnesota Department of Revenue audits tax returns to make sure the information you provide is correct.

    We usually have 3½ years after a return is due or filed, whichever is later, to audit your return and send you a formal notice of any change in the amount of tax, penalty, and interest you owe, or if we owe you a refund.

    If we decide to audit your organization, we will contact you to arrange a date and time for the audit. We will also send you a confirmation letter which will include the “Minnesota Revenue is auditing (reviewing) my tax return. Now What?" fact sheet.

  • How do we handle game destruction?Back to top

    Bingo paper

    • If you want to destroy bingo paper, call us at 651-297-1772 for options on how to deliver the bingo paper to the Department of Revenue.

    Barcoded games

    • If you have a pull-tab, tipboard, paddleticket, or raffle board game that you do not want to put into play, or a damaged game that you cannot put into play, contact your distributor 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 us and we will direct you to either destroy the game or send the game to us to destroy.
      • Report the game(s) on the Lawful Gambling Report of Barcoded Games (Schedule B2), and check the box for “Destroyed with Revenue approval.” Complete a separate Schedule B2 for each type of destroyed game (pull-tabs, tipboards, paddletickets, or raffle board).
    • If you send the game to us to destroy, include a copy of the Schedule B2 you reported it on. We will certify the Schedule B2 and provide you with a written receipt that we received the game and destroyed it. You must keep the receipt in your permanent gambling records for at least 3½ years.
    • If you destroy an unplayed game without our approval, we will treat it as a missing game. You must report the game on your next monthly return at the ideal amount and pay any tax liability due.

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