Latest snag for Minn. Vikings stadium: gambling operators
Published 11:32 am Friday, March 30, 2012
ST. PAUL — Supporters of a new Vikings stadium have run into a new obstacle: Backlash from charitable gambling operators whose taxes are the hoped-for source to cover about one-third of the nearly $1 billion project.
Those charities are skeptical of promises of new profits from proposed electronic versions of a couple games, and angry at a tax bite many believe takes far too much of their profit. Resistance from the charities has so far kept the bill from a hearing in the House.
The state wants to raise its $398 million contribution to the stadium by authorizing electronic versions of the pull-tab and bingo games that charities operate at bars and fraternal clubs around Minnesota. The Gambling Control Board forecasts a spike in sales and tax receipts that would bring in about $124 million, with about half going to the state to cover stadium bonds and the charities keeping the rest.
Gov. Mark Dayton’s proposal to direct about $10 million toward tax relief isn’t enough to change the minds of many charity operators. Dayton acknowledged the hang-up Thursday, saying the charities and their legislative allies “need to work out their own conclusion to this first, and hopefully we’ll get an agreement.”
For charities, the proposal’s problem is that it rests on a widely despised system of taxing their gambling operations.