Problem gambling support at heart of latest Minnesota sports betting bill
New proposed legislation calls for minimum 40% tax rate while allocating 75% of tax revenue to responsible gambling initiatives
Minnesota lawmakers have struggled to find common ground on sports betting legislation as evidenced by the introduction of multiple bills in 2024 alone, with the latest coming on April 4.
Sponsored by Senator John Marty, SF 5330 is the third different sports betting bill introduced to one of the legislative chambers this year and is centered around problem gambling support.
The bill has similarities to its predecessors in that it routes licensing through the state’s 11 tribes, but it differs significantly by instituting a minimum 40% tax rate on gross revenue – as opposed to 20% and 10% rates, respectively, in previous bills – with 75% of that revenue allocated to combating problem gambling.
According to language in SF 5330, for each dollar of tax revenue, 50% would go to the commissioner of human services, with that money getting equally divided between education and problem gambling awareness measures as well as the funding of a compulsive gambling treatment program.
An additional 25% of tax revenue would be earmarked for addiction prevention and mental health services in public and charter schools via the commissioner of education. The remaining 25% would go to the state’s general fund.
Marty has been a vocal proponent of the need for enhanced responsible gaming guardrails, which he substantiated as part of a March 14 tweet in which he stated he doesn’t view legalized sports betting as “a big revenue source for the state.”
The tweet continued: “I see the reality we face: huge additional costs to taxpayers in mental health and addiction problems.”
While SF 5330 differs from the predecessor bills in a few relevant areas, its similarities to those bills – namely a ban on in-play wagers and the exclusion of horseracing tracks – figure to pose a more immediate threat to its prospects, as both have represented sources of opposition from key stakeholders.
No sports betting bill in the state has made it out of its respective chamber of origin thus far. Lawmakers nonetheless have some time on their side, as Minnesota’s legislative session runs through to May 20.