Game Room Laws in Minnesota (2026): What’s Legal and What Isn’t

Most people don’t realize how strict Minnesota is about game rooms. Seriously. Walk into the wrong establishment with the wrong machines, and you could be looking at criminal charges. Both for owners and players. Let’s break down exactly what you need to know about game room laws in Minnesota.

The rules here aren’t like other states. Minnesota takes gambling enforcement seriously, and game room owners have learned this the hard way.

What Is a Game Room Under Minnesota Law?

A game room is any business or space with gaming machines or devices. Think arcades, bars with games, or standalone entertainment venues. In Minnesota, what matters isn’t what you call it. It’s what the machines actually do.

Here’s the key question: Do the machines give you a chance to win money? If yes, you’re in gambling territory. And that’s where things get complicated.

Legal vs. Illegal Gaming Machines

Not sure what’s allowed? Most people aren’t. The line between legal entertainment and illegal gambling is razor-thin in Minnesota.

Legal machines include:

• Skill-based arcade games (no money payouts)
• Games where you pay to play but can’t win cash
• Pinball machines
• Claw machines (if prizes have minimal value)

Illegal machines include:

• Video poker machines
• Eight-line video slots
• Touch screen games where money is wagered
• Any video game of chance with cash prizes
• Slot machines (except in tribal casinos)

Hold on, this part is important. Some machines can switch between legal and illegal modes. One minute they’re running a trivia game. Flip a switch, and they become video poker. Minnesota authorities know this trick. They look for it specifically.

The Video Game Problem

Video games of chance are the biggest issue in Minnesota. These are machines that look like regular video games but function as gambling devices. You put money in. The game determines if you win. You get money out.

Sounds simple, right? But here’s what catches people: even if the machine claims to be a “skill game,” it’s illegal if it offers cash rewards based on chance.

Many game room owners have been shut down for having these machines. They thought they were legal. They weren’t.

What Makes a Game Illegal?

Minnesota law uses a three-part test. If a game has all three elements, it’s considered illegal gambling:

Consideration: You pay money to play. Chance: Winning depends on luck, not just skill. Prize: You can win something of value (usually money).

Remove any one element, and the game becomes legal. This is why skill-based tournaments are okay, as long as the organizer doesn’t profit.

Legal Gambling Options in Minnesota

Wondering what IS legal? Minnesota allows specific types of gambling, but they’re heavily regulated.

Charitable gambling is the big one. Licensed nonprofit organizations can run pull-tabs, bingo, raffles, tipboards, and paddlewheels. You see these in bars and restaurants all the time. They’re legal because nonprofits run them, not the bar owners.

Tribal casinos operate under special federal and state agreements. They can have slot machines and table games. But only on tribal land.

The Minnesota Lottery is state-run. Scratchers, lotto, and other official lottery games are legal.

Pari-mutuel betting on horse racing is allowed at licensed tracks. Canterbury Park has this, plus a card club.

Everything else? Pretty much illegal.

Social Gaming: What You Can Do at Home

Good news here. Minnesota explicitly allows social gambling in private settings. You can have a poker night at your house. Play cards with friends. Place friendly bets.

The catch? It must be truly social. No one can profit from organizing it. No entry fees. No rake. Just friends gambling together.

Dice games are even allowed in bars, but prizes must be food or beverages only. Not cash. Not gift cards. Just a burger or a beer.

Penalties for Breaking Game Room Laws

This is where it gets serious. Minnesota doesn’t mess around with illegal gambling. The penalties depend on what you did and whether you knew it was illegal.

Misdemeanor Charges (MN Statute 609.755)

You could face misdemeanor charges for:

• Making an illegal bet
• Possessing a gambling device
• Allowing your property to be used for gambling

Penalties: Up to 90 days in jail and/or a $1,000 fine.

Less severe than other charges, but still no joke.

Gross Misdemeanor Charges (MN Statute 609.76)

These are more serious. You can be charged with a gross misdemeanor for:

• Operating a gambling place
• Taking a cut of gambling income
• Conducting an illegal lottery

Penalties: Up to 364 days in jail and/or a $3,000 fine.

Think of it like a serious traffic violation, but with potential jail time.

Felony Charges (MN Statute 609.76)

The most serious charges. These apply if you:

• Cheat at gambling (and you’re licensed or employed in gambling)
• Manufacture or distribute illegal gambling equipment
• Engage in sports bookmaking
• Use counterfeit chips or tokens

Penalties: More than one year in prison and/or substantial fines.

Honestly, this is where casual mistakes turn into life-changing consequences.

Who Enforces These Laws?

Multiple agencies handle gambling enforcement in Minnesota. The main one is the Alcohol and Gambling Enforcement Division (AGE) within the Department of Public Safety. They investigate illegal gambling operations. They conduct raids. They work with county attorneys to file charges.

The Gambling Control Board regulates legal charitable gambling. They issue licenses. They make sure nonprofits follow the rules. They also investigate reports of illegal activity.

Local police can enforce gambling laws too. If they suspect illegal gambling at a business, they can investigate and refer cases to prosecutors.

Basically, you’re not flying under anyone’s radar if you’re breaking these laws.

How Machines Get Flagged

Authorities have gotten smart about spotting illegal machines. They look for specific warning signs:

• Machines that accept cash and dispense cash
• Games with no clear skill element
• Devices labeled as “entertainment” but function like slots
• Multiple identical machines in one location
• Machines that track winnings or credits

Some machines even have remote switches. Owners can change them from legal to illegal mode. Investigators know this. They test machines extensively.

What About Skill-Based Games?

Okay, this one’s tricky. Some games claim to be skill-based. Poker, for example, involves both skill and chance. Texas Hold’em tournaments are legal in Minnesota if run properly.

The key? No one can profit from organizing them. Player winnings can’t exceed $200. And the event must be truly competitive, not just disguised gambling.

Card games like cribbage, bridge, and euchre are specifically allowed. But again, promoters can’t take a cut.

Special Rules for Bars and Restaurants

Many bars want to offer gaming to attract customers. That’s fine, but they need to be careful. Bars can host charitable gambling if they lease space to a licensed nonprofit. The bar doesn’t run the games. The nonprofit does.

Bars can also have regular arcade games, dartboards, and pool tables. As long as there’s no gambling element, they’re fine.

What bars absolutely cannot do:

• Run their own gambling games
• Install video poker or slot machines
• Take money from gambling activities
• Allow illegal gambling on their premises

If they do, they risk losing their liquor license. Plus criminal charges.

Recent Enforcement Actions

Minnesota ramped up enforcement in 2025. State officials sent cease-and-desist letters to 14 online gambling sites. They made it clear: online gambling isn’t legal here, even if some sites claim otherwise.

Authorities also increased inspections of bars and game rooms. They’re looking for illegal video games of chance. Several establishments lost their licenses after raids uncovered illegal machines.

This isn’t slowing down. Expect more enforcement in 2026.

How to Run a Legal Game Room

Want to open a legitimate game room? Here’s what you need to do.

Stick to pure entertainment. Offer arcade games, pinball, air hockey, and other skill-based games. No cash prizes. Maybe offer merchandise or free games as rewards.

Know your machines. Before buying any gaming equipment, verify it’s legal. Get documentation from the manufacturer. Check with a lawyer if you’re unsure.

Don’t mix business models. If you want to offer charitable gambling, partner with a licensed nonprofit. Don’t try to run it yourself.

Stay informed. Gambling laws change. New regulations come out. Stay updated through the Gambling Control Board website.

Keep good records. Document everything about your gaming equipment. Serial numbers, purchase receipts, operating manuals. If authorities ask questions, you’ll want proof your games are legal.

What to Do If You’re Investigated

If gambling enforcement shows up, stay calm. You have rights, but you also need to cooperate. Refusing to talk or hiding information makes things worse.

Do not consent to searches without a warrant. Politely decline. Wait for legal authorization.

Contact a lawyer immediately. Don’t try to explain your way out of trouble. Get legal representation.

Preserve evidence. Keep all documents related to your machines and business operations. Your lawyer will need them.

Do not make statements without your lawyer present. Anything you say can be used against you. Wait for legal advice.

Many cases involve misunderstandings about what’s legal. A good lawyer can sort this out.

Reporting Illegal Gambling

Suspect someone’s running illegal gambling? Minnesota wants to hear about it. You can report violations to:

• Alcohol and Gambling Enforcement Division: (651) 201-7536
• Online complaint form at dps.mn.gov
• Local police department

Reports can be anonymous. Authorities take these complaints seriously and investigate them.

Common Myths About Game Room Laws

Let’s clear up some confusion.

Myth 1: “It’s just a game room, not a casino.” Wrong. If your games involve gambling, the law doesn’t care what you call it.

Myth 2: “Small-time gambling doesn’t matter.” Also wrong. Law enforcement doesn’t ignore small operations. They prosecute them.

Myth 3: “If I call it entertainment, it’s legal.” Nope. What matters is how the game actually works, not what you name it.

Myth 4: “Everyone has these machines.” That doesn’t make them legal. It just means more people are breaking the law.

Myth 5: “I can claim I didn’t know it was illegal.” Ignorance isn’t a defense. You’re responsible for knowing the law.

The Future of Game Room Laws

Will Minnesota loosen up? Maybe. But don’t count on it soon.

Sports betting has been discussed in the legislature since 2016. Still not legal. Some lawmakers push for it. Others oppose it. Progress has been slow.

Online gambling faces similar challenges. The state shut down several online sites in 2025. This shows Minnesota isn’t ready to embrace online gaming.

For now, expect laws to stay strict. Maybe even get stricter.

Frequently Asked Questions

Can I have a slot machine in my home for personal use? Yes, as long as you don’t use it for gambling with others for money. Minnesota law allows gambling devices in private homes for amusement only.

Are sweepstakes cafes legal in Minnesota? No. These businesses try to work around gambling laws by selling internet time and giving away sweepstakes entries. Minnesota considers them illegal gambling operations.

Can I open an arcade with prize games? Yes, but prizes must be minimal value. Claw machines and similar games are fine if they’re skill-based and prizes aren’t worth much.

What happens if I’m caught playing at an illegal game room? You could face charges too, not just the owner. Players can be charged with illegal gambling, which is a misdemeanor.

Do food and drink establishments need special licenses for games? Not for legal arcade games. But if they host charitable gambling, the nonprofit running it needs proper licensing.

Final Thoughts

Minnesota game room laws are strict for a reason. The state wants to control gambling and prevent exploitation. If you’re planning to open a game room or add gaming to your business, do it right. Research the laws. Consult a lawyer. Make sure every machine is legal.

The penalties aren’t worth the risk. A misdemeanor conviction affects your record. A gross misdemeanor or felony changes your life. Stay legal, stay safe, and when in doubt, check with the Gambling Control Board.

Now you know the basics. If you need specific legal advice, contact a Minnesota gambling attorney. They can guide you through the details of your situation.

References

1. Minnesota Statutes Chapter 609 (Criminal Code, Gambling Sections 609.75-609.762) – https://www.revisor.mn.gov/statutes/cite/609
2. Minnesota Gambling Control Board Official Website – https://mn.gov/gcb/
3. Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division – https://dps.mn.gov/divisions/age/gambling
4. Minnesota Statutes Chapter 349 (Lawful Gambling) – https://www.revisor.mn.gov/statutes/cite/349
5. Minnesota Council of Nonprofits – How to Conduct Charitable Gambling – https://minnesotanonprofits.org/resources-tools/topics/fundraising-grantseeking/how-to-conduct-charitable-gambling