Does the city have a local gambling tax where the sale takes place? The tax rate the distributor or other entity must charge the lawful gambling organization depends on if the city where the sale takes place has a local gambling tax.

The taxable sales price of the gambling devices and equipment includes any revenue the lawful gambling organization shares with other entities (such as the distributor, manufacturer, or both) under a revenue sharing agreement.

When an agreement between the lawful gambling organization and a distributor or other entity (such as the distributor or manufacturer) includes revenue sharing, the revenue sharing agreement is taxable. The taxable sales price includes any monthly charges. Monthly gambling device or equipment charges are taxable when sold, leased, or rented to a lawful gambling organization by a distributor or other entity. Software and apps that facilitate the playing of electronic lawful gambling games.Computer tablets used to play electronic lawful gambling games.Gambling devices and equipment for electronic lawful gambling games (such as electronic pull-tabs or electronic bingo) Gambling devices and equipment for non-electronic lawful gambling games Taxable Examples Include, But Are Not Limited To: The following are examples of taxable items when sold by a distributor or other entity to a lawful gambling organization. A retail sale does not include the sale of tangible personal property for the purpose of resale, sublease, or subrent. A retail sale includes the sale, lease, or rental of tangible personal property. Retail sales of tangible personal property used in conducting lawful gambling (under Minnesota Statutes, Chapter 349) or State Lottery (Chapter 349A) are subject to sales tax. Visit the Gambling Control Board website.These activities are subject to the state’s Lawful Gambling Tax, but not sales tax. Some food or bar establishments lease or grant space to these organizations. Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, raffles, paddletickets, tipboards, and pull-tabs. Log in to Referring Agencies e-Services.

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