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Minnesota Gaming Laws

Website
March/April 2006 Gaming News  (pdf)
Texas Hold'em Industry Advisory (A&GE of MN) (pdf)
 
Card Games at Business Establishments (8/18/05)

Minnesota law makes any "bet" illegal.  A "bet" is defined as "a bargain whereby the parties mutually agree to gain or loss by one to the other of specified money, property or benefit dependent upon chance, although the chance is accompanied by some element of skill."  According to this definition, any card game where the participants pay to play, and have a chance to win money, would constitute a "bet" and therefore, be illegal gambling. 

However, the criminal gambling statute creates an exception for "a private, social bet."  The important thing to remember about a private social bet is that it cannot be part of "organized, commercialized or systematic gambling."  The owner of the location of the social bet cannot derive any profit from the bet, organize regular occasions for such bets or advertise their occurrence.  Potentially, any gambling that occurs in a business establishment could constitute illegal gambling because the owner of the establishment derives the indirect benefit of increased patronage.

It appears that the law was intended to exclude from prosecution such events as penny-ante card games among friends one's home, small spontaneous wagers between friends and other spur-of-the-moment private transactions.  Once those wagers occur on a regular basis at a business establishment, it is difficult to characterize them as "social bets" and the location of the event runs a substantial risk of violating the law. 

Additionally, Minnesota law allows for social skill card games of cribbage, skat, sheephead, bridge, euchre, pinochle, gin, 500 and smear or whist and Texas Hold'em, so long as the tournament or contest does not provide any direct financial benefit to the promoter or organizer.   

Players in Texas Hold'em tournaments cannot be charged any fee or be required to give any consideration (something of value) as a condition of participation.  In other words, players must be able to participate in a Texas Hold'em tournament for free.  Prizes can be awarded in Texas Hold'em tournaments.  However, as in the case with tournaments involving other social skill games, the value of all prizes awarded in a single tournament cannot exceed $200.  With respect to Texas Hold'em, the law further specifies that the value of all prizes awarded to an individual winner of a tournament at a single location may not exceed $200 per day.  To participate in Texas Hold'em tournament or contest, a player must be at least 18 years old. 

Minnesota law requires the organizer or promoter of any Texas Hold'em tournament to ensure that reasonable accommodations are made for players with diabilities.  In addition to making other accommodations to tournament tables and cards, a tournament organizer or promoter has to make sure that Braille cards are available for blind players and that the cards visible to the entire table are announced.

 

THE NEW MINNESOTA TEXAS HOLD'EM INTERPRETATION
Texas Hold'em allowed with restrictions, June 10, 2005.
 
Texas Hold'em tournaments or contests are allowed with the following restrictions:
The tournament or contest may not provide any direct financial benefit to the
   promoter or organizer
No person under the age of 18 may participate.
No entry fee or other consideration for participated is allowed.
The value of all prizes awarded to an individual winner at a location may not
   exceed $200 each day.
Reasonable accommodations must be made for players with disabilities.
Accommodations to the table and cards shall include the announcement of cards
visible to the entire table and the use of Braille cards for players who are blind.
[Minnesota Statute 609.761, Subd. 3)
If you have questions regarding the conduct of Texas Hold'em tournaments, contact
the Alcohol and Gambling Enforcement Division (Department of Public Safety) at
651-296-6159.
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