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HF 169

All lawful gambling receipts subjected to a flat rate tax, and combined net receipts tax repealed.

2025-2026 Regular Session Introduced by Peggy Bennett and 6 co-sponsors

Minnesota HF 169 replaces tiered gambling taxes with a flat-rate tax on all lawful gambling receipts, simplifying collections but potentially shifting revenue and competitive impacts across gambling sectors.

Author added Dotseth
#gambling #taxation
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WeVote Research Nonpartisan
Bill Summary · HF 169

Legislative bill overview

HF 169 replaces Minnesota's current gambling tax structure with a flat-rate tax on all lawful gambling receipts, eliminating the existing combined net receipts tax. The bill simplifies the tax code by moving from a progressive or tiered system to a single tax rate applied uniformly across gambling operations.

Why is this important

Gambling taxes fund state programs and local governments in Minnesota. How these taxes are structured affects gambling operators' profitability, consumer prices, and revenue predictability for the state budget. This change could shift the tax burden between different types of gambling operations and impact funding streams for education, treatment programs, and local communities.

Potential points of contention

  • Revenue impact uncertainty: A flat rate may generate more or less state revenue than the current system depending on the rate chosen; this could create budget shortfalls or surpluses without compensation elsewhere
  • Competitive fairness: Different gambling sectors (casinos, tribal gaming, lottery, charitable gambling) may be affected unequally, potentially favoring larger operations over smaller ones or vice versa
  • Simplicity vs. flexibility: While flat rates are administratively simpler, they eliminate the ability to adjust tax burdens based on gambling type, profitability levels, or policy priorities like harm reduction

Compiled from official sources — confirm details with the bill’s official record.

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