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Gambling business projections for pulltab sales exaggerated, paper reports

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Projections that showed electronic pulltab sales would find immediate success and fund the Vikings stadium were based largely on estimates made by gambling businesses with an interest in the untested form of gaming.

The Star Tribune's story says that sales estimates were based on gambling devices from other states, made by national gambling equipment managers and vendors. The estimates became the foundation for the Department of Revenue’s projection that the new games would raise $35 million for stadium funding by the end of 2013. In November, that figure was revised to $17 million. Last month it dropped to $1.7 million.

Estimates turned out to be so inflated that they’ve undermined the funding formula for the state’s $348 million share of the stadium. State officials have acknowledged they may have to come up with an alternative funding source.

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