Are Greedy Minnesota Pull Tab Operators Now Closing Out Games Too Soon?

If you think the pull tab industry is big in the state of Minnesota, you're right, and in a big way. In fact, Minnesota's pull tab industry is the largest in the U.S., with charitable gambling (paper and electronic) totaling over $2 billion in annual sales, with over 90% coming from pull tabs.

In Minnesota, pull tab operators must mark off the larger winners that have been pulled in a bin, so all players know which denominations are still up for grabs. A great scenario for pull tab players is when a box has been played a lot, so the number of pull tabs left is noticeably diminished, leaving several big winners still available.

Granted, even when that scenario happens, there are no guarantees you'll get one of those top payouts, because it is gambling after all, and the house always wins. But as the number of pull tabs available goes down while the number of winners remains, a player's odds of winning do improve.

I've witnessed that happen, which creates a fun atmosphere and often gets more people to play. Even then, there have been many times when pull tab sales end for the day, and some games still have big winners left, despite the fact that many pull tabs have been sold. That's when people who have been following the action get excited to stop in the next day and try their luck at that game.

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However, a concerning trend has happened, at least in several Northern Minnesota bars/restaurants, where people arrive the next day only to discover that the game was closed by the pull tab operator and a new game was swapped in before the doors opened.

Are Some Pull Tab Operators Closing Out Games Too Soon?

While it's important to note that it's not illegal for pull tab operators to close out a game whenever they want, I've heard several people complain that some are being a bit greedy by closing games without giving players, who have dumped a lot of money into a game, the chance to win when the box appears to be shifting in their favor.

According to Arrow International, charities typically make a profit of roughly 20% to 30% of the total gross sales on a pull tab box, often netting between $500 and $1,000+ per deal (box) once all tickets are sold, depending on the payout percentage. However, that profit is reduced by payouts, taxes, and operating costs.

So, while each game payout is different, charities are overall making money, even if some games prove to be more profitable than others. I think that's great, and I love helping our local organizations.

However, recently, I witnessed a $2 pull tab game in Hermantown, Minnesota, that had four $500 winning tickets remaining, out of six, and several others of $100 or more when pull tab sales ended for the day.

Looking at the box, it was obvious that well over half, maybe even two-thirds of the tabs had been sold, so people were planning to have lunch there the next day and try their luck at that game. I was disappointed to learn later that when they arrived early the next day, the game had already been closed and a new game had been swapped in. Needless to say, people were not happy.

After that happened, I started hearing from more people who had witnessed that same thing happening at other places in Minnesota. One person said the person hired to sell pull tabs actually apologized to the group, saying it wasn't her decision, and that "they" told he she had to.

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That's easy to believe since the people hired to sell pull tabs are not making a fortune, so they look forward to people winning big because a good pull tab player always tips the seller when they win a larger amount.

When Should A Pull Tab Game Actually Be Pulled?

The bottom line is that pull tab operators want to make money, and people who play pull tabs want to get lucky and win some money, so where is the balance?

Pull tab sellers have told me there is a program that tells them when to close out a game. I even had one seller show me on an iPad how that looked, as it gave a thumbs up or a thumbs down. She told me that a thumbs-up meant if a patron bought the remaining tickets in the box, they'd make money.

However, it didn't take into account if other people in the establishment were still playing out of that box and could rip a winner at any moment, or if someone had pulled a winner, didn't recognize it for whatever reason, and accidentally threw it away.

So, I can see where that is helpful, but it's still ultimately up to a pull tab operator to decide when to close out any single game, unless all tabs are sold.

It's not a perfect science, but it seems to me that if there are still several of the top prizes available to win, you shouldn't close a game regardless of how many pull tabs have been sold. It's a discredit to the people who play, and it gives the impression that the pull tab operator is just being greedy, even though they're still making plenty of money overall. Simply stated, it's a bad look, and it appears to be happening far too often.

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What have other pull tab players experienced in Minnesota? Is pulling games early becoming far too common, robbing players of at least the chance to win some of their money back?

Unless I'm wrong, it would seem to me that winning only leads to more long-term spending, and winning for everyone, including pull tab operators and the organizations they represent.