The House sponsor of a sports betting bill announced a deal Tuesday to settle an electronic pulltabs matter that had the potential to scuttle the entire gambling legalization effort.

Rep. Zack Stephenson, DFL-Coon Rapids, said the arrangement he brokered resolves the concerns of the Allied Charities of Minnesota (ACM) that runs charitable pulltab operations in bars and restaurants throughout the state.

“We still have a lot of work to do to pass a sports betting bill, but this is a very important step in the right direction,” Stephenson said.

ACM has been concerned that changes to electronic pulltabs would curb its income. In 2023, the DFL-controlled Legislature banned the “open-all” feature on electronic pulltabs, meaning the tabs had to be opened individually and not with a single touch.