Edina moves to allow charitable gambling for first time
The Edina City Council voted Monday to overturn a long-standing ban on charitable gambling, directing staff to draft a new ordinance that would allow up to three locations in the city to host gambling operations to raise money for nonprofits and local causes.
Edina currently stands apart from most other suburbs in the Twin Cities metro area by prohibiting ongoing charitable gambling — a fundraising tool widely used across Minnesota and in neighboring communities. The council's decision to reverse this policy reflects a shift in thinking about how the city can generate revenue for local organizations and services.
Under the proposed approach, the city would start cautiously by issuing permits for no more than three charitable gambling locations. Council members emphasized this measured rollout, with one noting that "most cities have probably no more than two or three premise permits" and that it makes sense to "start out slowly and then ramp up as we see the needs of the community."
Proponents outlined multiple benefits during the discussion. Charitable gambling would create new revenue streams for local restaurants and bars, generate funding for city programs like mental health services, and provide financial support to nonprofits and student groups. "It allows us to not only support our local businesses that are craving the ability to do this and bring more revenue streams into our local restaurants, also be able to offer our city another way to bring in more funding," one council member said, adding that the money would help fund "mental health programs, our student groups, our student athletes, more upkeep in our student facilities."
The council has directed city staff to draft the new ordinance, which will replace Edina's existing lawful gambling rules. The specific permits would authorize charitable gambling at designated premises throughout the city. No timeline was provided for when the new ordinance will be presented for final approval, but the next steps involve staff developing the detailed language and requirements for how the program would operate.
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Consideration of Amending Edina's Lawful Gambling Ordinance to Allow Charitable Gambling
The discussion centered on the rationale for allowing ongoing charitable gambling in Edina, citing its prevalence in other suburbs and its significant role as a fundraising mechanism across Minnesota. Proponents highlighted the potential for increased revenue streams for local businesses, city services (like mental health programs and facility upkeep), and local non-profits, including student groups. The proposed approach involves drafting a new ordinance that would initially allow up to three premise charitable gambling permits, with an intent to start cautiously and expand based on community needs.
That is just one other way that we can tap into our community. It allows us to be able to not only support our local businesses that are craving the ability to be able to do this and bring more revenue streams into our local restaurants, also be able to offer our city another way to be able to bring in more funding. But for our local nonprofits to be able to feed back into our community, it allows our student groups to be able to get more funding. It allows us to be able to build up our revenue streams for things like our mental health programs, our student groups, our student athletes, um more upkeep in our student facilities, all of these things that every single year we run dry on. It's just one more way for us to improve every hornet every day.
In doing um my research, it really shows that uh most cities have probably no more than two or three premise permits. We don't know for sure what the need will be. So, it I think it makes sense for us to start out slowly and then ramp up as we see the needs of the community and the nonprofit uh organizations.
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The city council has directed staff to repeal and replace Edina's current lawful gambling ordinance, a move that would allow ongoing charitable gambling in the city. Edina is one of the only major suburbs in the metro area that does not permit ongoing charitable gambling. The issue gained renewed attention last year when the Dina Education Fund asked the council to reconsider the policy to allow nonprofits to run charitable gambling such as pull tabs on an ongoing basis at specific locations. >> That is just one other way that we can tap into our community. It allows us to be able to not only support our local businesses that are craving the ability to be able to do this and bring more revenue streams into our local restaurants, also be able to offer our city another way to be able to bring in more funding. But for our local nonprofits to be able to feed back into our community, it allows our student groups to be able to get more funding. It allows us to be able to build up our revenue streams for things like our mental health programs, our student groups, our student athletes, um more upkeep in our student facilities, all of these things that every single year we run dry on. It's just one more way for us to improve every hornet every day. Charitable gambling is widely used across Minnesota as a way for nonprofits to support community programs and services. In fact, Minnesota is the largest charitable gambling state in the country. In 2024 alone, charitable gambling generated 2.3 billion in gross receipts and 712 million in net receipts after prizes were paid. Pull tabs make up most of that activity, accounting for about 96% of revenue, followed by bingo at just over 3% with raffles, paddle wheels, and tip boards making up the remainder. Under the direction from the council, staff will draft a new ordinance that would allow up to three premise charitable gambling permits in Edina. That ordinance will be brought back to the city council for consideration at a future meeting. >> In doing um my research, it really shows that uh most cities have probably no more than two or three premise permits. We don't know for sure what the need will be. So, it I think it makes sense for us to start out slowly and then ramp up as we see the needs of the community and the nonprofit uh organizations. This step opens the door for local nonprofits to explore a new fundraising option while allowing the city to carefully shape how charitable gambling would operate in Edina. Enough.
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