The Impact of Internet-Based Gaming on Minnesota’s Economy | Key Trends and Innovations

Published 9:11 am Friday, June 27, 2025

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Minnesota is quietly reshaping its economy—and much of it has to do with what people are doing online. From sports betting apps to locally developed video games, internet-based gaming is making its mark. Behind the screens are new jobs, fresh tax revenue, and a tech sector that’s quickly evolving. But along with these wins come real-world concerns: addiction, regulation, and how to make sure everyone benefits.

Gaming in Minnesota: A Quiet Boom

Gaming here isn’t just about casinos anymore. It’s online, mobile, and woven into the broader digital economy.

Tribal and Commercial Growth

Tribal casinos still lead the way, generating around $839 million in taxes and shared revenues in 2023 while employing over 31,000 people—many in smaller towns where job options are limited.

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Meanwhile, online commercial gaming is catching up. Though smaller, it’s growing fast, bringing in roughly $220 million last year and supporting around 4,000 jobs in tech, marketing, and customer service.

Gaming Type Revenue (2023) Jobs
Tribal Casinos $839M 31,400
Commercial Online Gaming $220M ~4,000

The Online Betting Surge

Minnesotans placed an estimated $929 million in illegal online bets in 2023. That’s nearly a billion dollars flowing into unregulated markets.

Why legalize it?

  • State tax revenue boost
  • Safer, more transparent platforms
  • New jobs in compliance and tech
  • Less black-market activity

What’s the risk?

  • Gambling addiction
  • Underage access
  • Resistance from physical casino operators

More Than Games: Jobs & Innovation

Gaming is fueling more than entertainment—it’s powering employment and tech growth.

Who’s Hiring?

Beyond the casino floor, online platforms are hiring analysts, cybersecurity staff, and live chat agents. The game development industry, part of a $90B national sector, supports engineers, designers, and testers—many based in the Midwest.

Roles tied to gaming:

  • App developers
  • Fraud prevention specialists
  • Payment system engineers
  • Game testers & QA staff

Online Gambling in Minnesota

Despite current restrictions, internet gambling is already booming behind the scenes. In fact, $929 million in illegal online bets were placed in 2023 alone. That’s why online gambling in Minnesota is no longer just a legal issue—it’s a financial one.

If regulation passes, projections show:

  • $1.2–1.5 billion in legal market value
  • $60–80 million in potential annual tax revenue
  • Over 5,000 new jobs

What Smart Regulation Brings:

  • Age restrictions and safeguards
  • Transparent operations and auditing
  • Revenue-sharing with tribal partners

A fair, level playing field for operators

Revenue Flows: Taxes, Fees & Community Investments

Let’s talk numbers. Minnesota’s gaming sector contributes significantly to the state’s revenue pool—helping fund everything from local nonprofits to statewide infrastructure.

State & Local Tax and Licensing Revenue

In 2023, $4.6 billion in gross receipts flowed through lawful gambling channels in Minnesota. This generated about $193 million in tax revenue, which goes toward public schools, roads, and health programs.

Nonprofit and Tribal Community Funds

Charitable gambling also plays a unique role here. Groups ranging from youth sports teams to veterans’ organizations raised about $157 million last year through pull-tabs and other games.

Revenue Source Amount (2023)
State Gambling Taxes $193 million
Nonprofit Gaming Funds $157 million
Total Gaming Receipts $4.6 billion

 

What’s at Stake

Social Impact

Gambling’s easier than ever to access, especially online. And that brings risk. Experts say young adults and low-income communities are especially vulnerable to addiction.

The Road Ahead

Policymakers are exploring:

  • Self-ban tools
  • 24/7 support hotlines
  • Geolocation to block underage users
  • Revenue-sharing between tribes and racetracks

Final Thoughts

Minnesota is standing at a digital crossroads. Gaming already brings jobs and funds to the state. With thoughtful regulation, it could do even more—without harming vulnerable groups.

Keys to responsible growth:

  • Legalize with strong safeguards
  • Involve tribal leaders fairly
  • Support addiction prevention
  • Encourage innovation in fintech and games

If done right, internet-based gaming could become one of Minnesota’s most modern—and most inclusive—economic success stories.

 

Gamble Responsibly. You must be 21 years old or older to gamble. If you or someone you know has a problem with gambling help is available at 1-800-GAMBLER.