Gambling in Minnesota
 

The Big Three Legal Gambling Venues

 

While Minnesota adults participate in a number of different gambling variants, three of these activities dominate the gambling scene - pulltabs, Indian casinos and the Lottery. Three out of four adults in the state report having wagered on one or more of these activities; three out of five have made wagers on them in the past year. More than 2 million adults have played the Minnesota State Lottery since its inception in April, 1990, making it the most popular form of gambling in the state. The 63 percent of Minnesotans who have played the Lottery far outnumber the 52 percent who have played pulltabs and the 47 percent who have placed wagers at an Indian casino. Interestingly, participation seems to be inversely proportional to the amount wagered. The Lottery recorded $369 million in sales during fiscal year 1997 while pulltabs totaled $1.3 billion. Wagering at Indian casinos in Minnesota has been estimated at a minimum of $2 billion annually [Chart 1].

Chart 1 Chart 1: Dollars Wagered vs. Number of Players

As you might suspect, the number of people who have wagered on all three of these activities is quite large - 932,000 (28 percent) Minnesotans have tried all three [Chart 2]. Only 11 percent (353,000) have done so in the past year. Also in the past year, an estimated 575,000 (17%) adults in the state played Lottery games to the exclusion of the other two [Chart 3].

Chart 2 Chart 2: Lifetime Gambling Habits
Chart 3 Chart 3: Players in Past Year

Casino attendance appears to be declining - the percent of Minnesotans visiting an Indian casino in the past year has declined slightly for the past two years (38 percent in 1995, 33 percent in 1996 and 29 percent in 1997) [Chart 4].

Chart 4 Chart 4: Indian Casino Participants

Pulltab participation in the state is stable to declining - the percent of Minnesotans playing pulltabs during the prior year reached a peak in 1995 at 34 percent of the population and was measured at 31 percent in 1996 and 29 percent in 1997 [Chart 5]. Here we can also look at spending data as reported by Minnesota Gambling Control Board. Gross expenditures for pulltabs is reported as $1.162 billion in fiscal year 1994 (up .6 percent from the previous year), $1.255 billion in fiscal year 1995 (up 8 percent), $1.265 billion in fiscal year 1996 (up .9 percent) and $1.252 billion in fiscal year 1997 (down 1.1 percent).

Chart 5 Chart 5: Pulltab Participants

Lottery participation looks to be stable - 58 percent of the populace answered 'yes' to the question 'have you played the Minnesota State Lottery in the past year' in June of 1995 when the Powerball jackpot had rolled to a peak of $100 million in March and then again to $87 million the first week of June. Fifty percent of adults said they played in 1996, 48 percent in 1997 [Chart 6]. We can safely assume that about half of the adults in the state are current Lottery players.

Chart 6 Chart 6: Lottery Participation

What does this group look like? It is 53 percent male, 47 percent female. The average Lottery player has completed some post high school education and has an annual household income of $30,000 - $40,000. Thirty percent of the people in this group have a college diploma and 32 percent have annual household incomes over $50,000.

Fifty-six percent of Generation X'ers (18 - 34 years old) and 52 percent of Baby Boomers (35-54 year olds) have played in the past year while 41 percent of the Silent Generation (55-69 year olds) and 28 percent of Seniors (70 and older) made purchases.

How many people play each Lottery game? Again the data is from the SCSU survey. During June and July of 1997 we asked "when was the last time, if any, you played each of the following games - within the last two months, the last year, longer ago than that or never?" Here's how the numbers stack up (reported in thousands of Minnesota adults).

Past Two Months Past Year Longer Than That Never
Instant games 912 460 272 1,684
Powerball 688 395 198 1,688
Gopher 5 183 141 137 2,847
Daily 3 45 121 244 2,911

Of course not all Lottery play comes from Minnesotans. An estimated 3.9 percent of sales come from people living outside Minnesota. In terms of dollars, that's about $14 million during fiscal year 1997. North Dakota (the only bordering non-lottery state) leads the way followed by Wisconsin, Iowa, South Dakota, Ontario and Manitoba. Powerball is the largest draw with non-Minnesotans; about 6 percent of Powerball sales come from outside the state.

 

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