Leech Lake Band of Ojibwe upsets the pulltab basket

WALKER, MINN. – Recent changes to charitable gambling on the Leech Lake Band of Ojibwe reservation have upset the pulltab basket.

Nine nonprofits relying on pulltab revenue to fund everything from youth hockey to volunteer fire departments stand to lose tens of thousands of dollars because they may no longer be allowed to operate in bars on the reservation. The band controls all charitable gambling in a new system that allows bars to offer gambling, pushing charities out of the equation.

Under the state’s system, nonprofits must conduct all charitable gambling, paying the bar 20% and a sliding scale to the state up to 35%. Under the band’s ordinance, bars keep up to 35% and the band gets no less than 60%. The state gets nothing — neither do charities.

Rollout of Leech Lake’s new system, which it says will promote tribal economic development and self-sufficiency, has been causing angst and confusion. Notification letters sent to bars said existing pulltab sales violate the band’s gaming ordinance and bars must obtain a license through the band, which can take four months. In order to get one, bars must operate electronic bingo slot machines or regularly offer electronic bingo games. Subsequent letters with a Nov. 1 deadline said to end sales immediately. Now the band wants voluntary compliance. It’s also voluntary for bars to support a charity, but not a requirement.

“That doesn’t mean we’re excluding the charities or banning the charities,” said Leonard Fineday, the band’s secretary and treasurer.

But that’s not how Allied Charities of Minnesota, a St. Paul nonprofit that serves charitable gambling organizations, sees it. Rachel Jenner, the executive director, has called the change “catastrophic.”

“You’ve now cut the charity out,” Jenner said.