On "Secret Plans" to fund the Stadium

Dayton’s “secret plan” on Vikings funding taking shape at Capitol

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Governor's 'secret plan' for Vikes stadium funding may be revealed today

Excerpt:

The governor’s “secret plan” to replace revenues that were promised through e-pulltabs may be revealed today. At MPR, Tim Nelson reports: “The plan to boost Vikings stadium-bound revenue likely won’t include a sports memorabilia tax. That proposal appears dead. Supporter of the memorabilia proposal House Taxes chair Ann Lenczewski announced at a conference committee meeting that she’d opted to back the governor’s so-called ‘secret’ plan to make up for the shortfall in gambling tax revenues. … [She said], “The (revenue) commissioner will be telling people about that later… The House is going to give up the sports memorabilia approach and support the governor’s approach.” Let’s start a pool … Electronic bake sales? Online keno? Sports cliche bingo?

Comment: It seemed obvious that the Pull-Tabs was a foolish guess

Gov Dayton: Pull tabs in grocery stores

E-Pulltabs Coming Up Short In Funding Vikings Stadium
Excerpt:

The revenue coming in from the electronic pulltab games are not enough to fund the new Vikings stadium.

But state leaders say pulltab revenues will get better, even as the budget report issued on Wednesday said the money isn’t coming in anywhere near as rapidly as predicted.

Gov. Mark Dayton says he’s not overly concerned, but that the state might need to start marketing electronic pulltab gambling — not just at bars, but even grocery stores.

“There are enterprises like Cub Foods that are qualified and eligible to allow these games,” Dayton said. “And we are going to need somebody to go out and market these opportunities. So I think we will catch up. We are slightly behind now, but we’ll get there.”

Comment: Folly! See earlier posts: Electronic pull-tabs: Revenue Reality Check and Flaws in the Stadium plan

Electronic pull-tabs: Revenue Reality Check

Can electronic pull-tabs pull in enough stadium revenue?

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A major pillar of the Vikings stadium proposal unveiled last week is tax revenue from an expansion in charitable gambling. But such a financing plan has lots of unknowns — and one key question: Will the introduction of electronic gambling gizmos generate enough income to repay the bonds?

The financing proposal depends on electronic pull-tabs supplying funds to repay $398 million in bonds the state plans to float to build the facility. (Minneapolis will back another $150 million in bonds with sales taxes, pending City Council endorsement to the financial arrangement.

The entire public financing plan, Gov. Mark Dayton said last week, wouldn't use "a single dollar of general fund tax revenues.")

Minnesota already allows paper pull-tabs. To win cash prizes, players match pictures on the front of the cards they purchase, usually for $2 each, under tabs that they tear off. Bars and restaurants sell them on behalf of nonprofits, and the proceeds -- minus the prize money, expenses and taxes -- go to charity. Among those who benefit in Minnesota: American Legion posts, VFW groups and others who use the money to support local sports leagues, scholarships and the like.

Comment: I'm not particularly naive but until pull tabs were recently explained to me, I didn't even know what they were. Sounds like a giant waste of time and money! The linked article examines the dubious propects of the electronic pull tab revenue source. A must read because if this stream fails, all Minnesotans will be holdlng the bag for the Vikings stadium