Minn. charities wary of Vikings stadium tax projections

Published 12:39 pm Wednesday, March 14, 2012

ST. PAUL, Minn. — Some of the Minnesota charities that operate pull-tabs and bingo games whose tax proceeds are being eyed to help pay for a new Vikings stadium believe the state’s projections of how much money would be raised are too optimistic.

The Vikings stadium bill under consideration at the Capitol would allow charities to offer new, electronic versions of the pull-tab and bingo games they now operate. The hope is that would increase gameplay, with a corresponding spike in tax revenues to finance the proposed $400 million state share of a billion-dollar stadium in downtown Minneapolis.

But Minnesota Public Radio News reported Wednesday (http://bit.ly/wulT1E ) that some charitable game operators are skeptical of the Dayton administration’s projections. For instance, those projections estimate the gambling operation at the Hoffman Senior Citizens Club in the small western Minnesota town of Hoffman would see a 229 percent growth in sales — the highest figure in the state in percentage terms.

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Under the projections, a $900 weekly bingo game would mushroom into raising six figures annually if the facility was able to offer the “electronic linked bingo” game proposed in the stadium bill. Darlene Christensen, the CEO of that facility, was skeptical they could see $100,000 in new sales the state thinks the bingo operation could get.

“Our people wouldn’t go for that at all,” Christensen said. She said the facility once tried offering an electronic version of a bingo game but it wasn’t successful, and their seniors stick to the old-fashioned paper game now.

State revenue commissioner Myron Frans conceded the numbers may not add up in Hoffman. But he said they’re still valid overall. He said the projections assume that the number of places that offer gambling will jump by a third, and that the growth is likely to be uneven — big in some places, but nonexistent in others.

“I understand that some charities are going to feel like we were way off on them and some of them we may be,” Frans said. “But the goal was not to get into that, because we’re also not trying to model who the new ones might be.”

Frans said the predictions are difficult because there’s no real example for the state to follow in terms of a big expansion of electronic gambling.

“They’re reasonable, they’re actually conservative in some ways, but they are a projection,” he said.

The stadium bill was introduced this week at the Capitol and is slated to start working through the House and Senate committee process, with the first hearing Wednesday in the Senate Local Government and Elections Committee.