BUSINESS

Concerns on Vikings stadium funding forcing the hand of Minnesota lawmakers

TAGs: Business, Legal, Minnesota, Minnesota Vikings

minnesota vikings stadiumNo one’s sounding the alarm bells just yet, but after a supremely disappointing revenue figure that wasn’t even close to half of initial estimates, Minnesota lawmakers are prepared to sit down to discuss why revenues from electronic pull tab games for the year have been way short of expectations.

The state’s House Commerce Committee are expected to hold a hearing to discuss the issue, giving lawmakers who approved of this new form of gambling a chance to sit down and scrutinize the lagging revenues, money of which will be used to fund the state’s $348 million contribution to the building of the $1 billion Minnesota Vikings stadium in downtown Minneapolis.

The troubling revenue stream generated from these electronic pull tab bars has caused some concern on whether the state will be able to burden their share of the pie that will be used to fund the stadium. It’s certainly not off to a good start after the projected revenue from this electronic pull tab bars in 2012 were pegged at $34 million yet ended up only at $16 million.

Compounding matters is the snail’s pace at which these games are being set up and installed in bars. About a month ago, only 75 establishments had newly set up electronic gaming devices, a far cry from the expected number of about 300 by that time.

With the stadium expected to commence construction later this year, the pressure is certainly mounting for these games to generate the kind of revenue expected of them when state lawmakers voted to approve their use in bars across the state. Proponents of the legislation have been saying that people need to exercise a level of patience with these games and that there needs to be more time for them to gain traction and popularity among the residents of the state.

Unfortunately, time isn’t waiting for anybody, let alone these electronic pull tab devices, and the growing level of concern among lawmakers regarding the lagging revenue has given a lot of people cause for trepidation. It’s not that these devices aren’t generating revenue, it’s that they’re not generating as much as people expected, especially considering that the money coming out of this will be used in a project that’s set to begin construction in less than a year’s time.

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