Lawful (Charitable) Gambling Funds

Some relief associations conduct lawful (charitable) gambling activities. As a reminder, gambling fund money cannot be used for the benefit of a pension or retirement fund, so a relief association cannot deposit gambling funds into its special fund.

State statute also prohibits a relief association from making a contribution of gambling funds to a municipality with the knowledge that the municipality intends to use the contribution for a pension or retirement fund. A relief association, therefore, cannot donate gambling funds to a municipality with the intent that the municipality return the contribution to the relief association's special fund. (See Minn. Stat. § 349.12, subd. 25(c)(3).)

Sometimes, the OSA receives questions from communities that are finding it difficult to pay required contributions to their relief associations.  These communities are looking for creative funding sources, and have inquired about using gambling fund money.  A municipality cannot use charitable gambling fund money to make the required or voluntary contribution to its affiliated relief association. 

In addition, relief associations are not authorized to use special fund money to reimburse a gambling fund for losses or to pay any assessed fines or penalties. If a relief association’s gambling fund incurs losses or is assessed fines, the losses or fines must be paid using general fund money or a different funding source.

Questions regarding lawful (charitable) gambling and gambling funds should be directed to the Minnesota Gambling Control Board (GCB), at (651) 539-1900. For additional information, visit the GCB website.

Last Updated January 2025