All lawful gambling receipts subjected to a flat rate tax, and combined net receipts tax repealed.

HF 169 replaces Minnesota's previous tiered tax on gambling with a flat 8.5% tax on all lawful gambling receipts (minus prizes paid). This bill directly affects gambling organizations operating in Minnesota, including casinos, racetracks, and bingo halls. The key change eliminates the old "combined net receipts tax" system - which taxed profits at progressive rates based on revenue levels - and substitutes a simpler flat-rate calculation. The new tax takes effect July 1, 2025, and applies to all gambling except paper pull-tabs, tipboards, electronic bingo, and specific exempt games.