Minnesota new online sports betting bill introduced to Senate
Minnesota Senators have introduced bill S.F. 4139 which proposes statewide legalization of Online Sports Betting through Native American tribal partnerships. The legislation would authorize up to 11 mobile sportsbooks that the state regulates. The bill outlines a 22% tax on net revenue. Funds would be distributed across charitable gambling interests and the horse racing industry, with responsible gambling programs receiving support.
Minnesota Senate Introduces Bipartisan Bill S.F. 4139 for Online Sports Betting
Four senators introduced S.F. 4139 on March 4, 2026. The bill went to the Senate Commerce and Consumer Protection and Rules and Administration committees. DFL Sen. Nick Frentz joined Republican Sens. Jeremy Miller, Eric Pratt, and Julia Coleman in bipartisan sponsorship.
Sen. Miller has championed Minnesota online sports betting legislation over the last several years. He introduced the Minnesota Sports Betting Act 3.0 that proposed a 20% tax rate. The current bill maintains a similar tribal-led structure to past proposals.
The legislation tries to deal with longstanding conflicts among stakeholders. Tribal nations seek control over mobile wagering operations. Charitable gaming operators and the horse racing industry want assurances their interests remain protected. The bill’s revenue distribution formula allocates funds across these competing groups.
Minnesota is the only Midwestern state without legalized sports betting. Wisconsin, Iowa, and other neighbouring states have authorized various forms of event wagering. This creates pressure for Minnesota lawmakers to act.
But DFL House Leader Zack Stephenson told Axios that sports betting ranks as “issue No. 27 on the agenda this year”. More pressing matters need attention. These include addressing alleged fraud in government services and proposed firearms restrictions following the assassination of former House Speaker Melissa Hortman. Prediction markets have become an additional motivation for lawmakers thinking about legalization.
How Would Minnesota Online Sports Betting Operate Under the New Framework?
The proposed framework grants licensing authority to Minnesota’s 11 federally recognized Native American tribes that operate Class III gaming. Each tribe could receive one mobile sports betting operator license. This allows them to offer online wagering through websites and mobile applications.
Participants must be 21 years or older to place wagers on athletic events, esports, college sports, fantasy contests, or other approved events. The bill imposes a 22% tax on sports betting net revenue, defined as cash received minus cash and noncash equivalents paid out as winnings within a month. Keep in mind that this tax applies to promotional credits and free bets.
Revenue distribution follows a specific formula. Refunds are processed first. Proceeds then flow into a Sports Betting Revenue Account and allocate as follows: 40% for tax relief payments to lawful gambling organizations, 15% to a sports betting equalization account, 10% each to sports marketing awareness and the commissioner of human services, 10% to amateur sports integrity and participation, and either USD 3.00 million or 15% (whichever is less) to racing economic development. Other categories receive any remaining amounts from the racing allocation on a proportional basis.
The legislation focuses on mobile platforms. Retail sportsbooks at tribal casinos or other physical locations are not permitted.
What Protections and Requirements Does the Bill Mandate?
Minnesota online sports betting legislation prioritizes addiction prevention through measures described as the most robust safeguards in the country. The bill mandates self-exclusion programs and allocates funding for problem gambling treatment. It establishes informed monitoring systems to identify risky betting behavior. Then much of the tax revenue generated from sports betting would fund mental health and gambling addiction resources.
Operators must provide a 24-hour helpline available by telephone or online live chat. Personnel trained in gambling disorder psychology and suicide prevention staff these lines. The commissioner would monitor the sports betting industry for effective methods to identify people at risk and adopt rules to implement best practices for preventing wagers by flagged individuals. Periodic compliance audits would verify that operators adhere to exclusion requirements.
Advertising restrictions prohibit promotions labeled as ‘risk-free’ and content targeting individuals under 21. All advertisements must include the 1-800-GAMBLER helpline. One distinctive feature bans push notifications from sports betting apps to curb compulsive behavior. Sen. Klein’s proposal has a three-hour cooling off period between depositing funds and placing bets.
The commissioner must commission baseline and recurring studies on gambling prevalence and problem gambling incidence in Minnesota. Research would get into sports betting’s effect on gambling disorders and youth gambling risks. It would also cover suicide related to gambling disorders.
