Veterans’ groups push for bill to use more gambling proceeds for infrastructure

Between 2019 and 2021 the Buffalo American Legion Post underwent a “massive capital improvement project.”

The $400,000 project improved a dated event hall, fixed “almost unusable” bathrooms, replaced carpeting that had been laid 30-plus years ago, and added soundproof doors that can be opened for large events.

However, only $40,000 could come from gambling proceeds, with the remainder from the post, club and a loan, Joe Herzog, the post’s gambling manager, wrote in a letter to the House Veterans and Military Affairs Division. 

“Since the project was completed in 2021, we have had several weddings, many celebrations of life, graduation, birthday, anniversary parties, private company events, Chamber of Commerce events, and post events such as fish fry, veterans breakfast, honor guard dinners, children and youth summer and Christmas events, etc. These events produce revenue for our post and in June 2025, we will host The American Legion 10th District Convention in our event hall. … In our small town of Buffalo, our post building serves many purposes in our community, not just members and our post meetings.”

Sponsored by Rep. Kristin Robbins (R-Maple Grove), HF753 would allow a licensed veterans organization to use a greater portion of gross profits from lawful gambling activity to pay for repairs, maintenance or improvements to real property and capital assets owned by the organization. Any expenditure would need to be made before July 1, 2031. Current law is 5%.

Receiving division support via voice vote Wednesday, the bill’s next stop is the House Commerce Policy and Finance Committee.

Up to 50% of a fiscal year’s gross profits could be used to replace an unrepairable building, the percentage could go higher if approved by the Gambling Control Board for extenuating circumstances. 

“This bill doesn’t cost the taxpayers anything, it just allows us to be able to make these improvements,”  said Barry Henriksen, state adjutant-quartermaster at the Department of Minnesota Veterans of Foreign Wars. “If they go away, the community loses.”