Minnesota Sports Betting Bill Has Big Chance For 2024

In 2023, the Minnesota Democrat-Farmer-Labor (DFL) party, which controlled the legislative chambers and the governor’s mansion, focused on other platform goals, leaving the Minnesota sports betting bill in the backseat. However, this year brings renewed hope as Representative Zack Stephenson reintroduces the bill and aims to strike a deal with industry stakeholders and tribal groups.

As of now, the sports betting bill has passed the Human Services Finance Committee, which approved an amendment to appropriate funds for Minnesota sports betting. The bill has now been forwarded to the State and Local Government Committee for further consideration. The DFL, despite having the majority, needs Republican support to pass the legislation due to internal party opposition.

One of the key challenges in the legalization of sports betting in Minnesota is the involvement of tribal groups and horse racing tracks. The tribes currently control gaming exclusivity in the state and are keen to retain that control over sports betting. They have strong connections with the DFL and have previously opposed sports betting legislation. On the other hand, the horse racing tracks are eager to be included in the industry and are pushing for licenses to operate sportsbooks.

Representative Zack Stephenson’s sports betting proposal, known as HF 2000, grants access to sports betting, including online sportsbooks, to the 11 Minnesota tribes. The bill also introduces a 10% tax rate on sports betting revenue. Stephenson emphasizes the need for regulation, as illegal sports betting is already prevalent in Minnesota through offshore websites and other means.

To address concerns regarding problem gambling, the Human Services Committee has approved an amendment to allocate a portion of the tax revenue from sports betting towards supporting problem gambling programs. The funds will be divided into three categories: preventative measures, treatment options, and addressing the downstream impact of gambling-related issues. Additionally, half of the funds will be dedicated to youth sports programs, including integrity projects aimed at educating college athletes about the risks of gambling.

In 2022, Representative Zack Stephenson faced challenges from the Republican-led Senate, which amended the bill to include horse racing tracks. However, the bill ultimately failed to pass the Senate. In the following year, Senator Matt Klein took up the companion bill to HF 2000, known as Senate File 1949, and introduced amendments to allocate 30% of sports betting revenue to the tracks. Despite these efforts, the tracks are still lobbying for additional concessions, such as sportsbook licenses.

While the tribes have the ability to launch sports betting operations without legislative approval, they are keen on maintaining a strong working relationship with the state. The DFL has actively engaged with the tribes in an effort to include them in the decision-making process. However, as the tracks struggle to gain political leverage, the tribes remain a formidable force in shaping the future of sports betting in Minnesota.

Senator Jeremy Miller recently introduced a new Senate sports betting bill, known as Senate File 3803. This bill allows tribes to partner with the tracks and sports teams to operate in-person sportsbooks. The proposal also includes a 15% tax on sports betting revenue.

As Minnesota continues to navigate the complex landscape of sports betting legislation, it is clear that a delicate balance must be struck between the interests of the tribes, horse racing tracks, professional sports teams, and the state. The negotiations and discussions among these key stakeholders will play a crucial role in determining the final outcome. While challenges remain, there is optimism that Minnesota will join the growing list of states that have legalized sports betting, providing a regulated market for bettors and generating revenue for the state’s economy.