Minnesota betting bill moves a step closer with committee vote
New legislation would see mobile licensing through state tribes with up to 11 licenses up for grabs
Minnesota legislators have advanced a new bill through the latest stage of committee review, moving the prospect of mobile sports betting in the Gopher State one step closer.
Last week, bill HF 778 passed the Minnesota House Judiciary Finance and Civil Law Committee by a 9-6 vote, having previously transitioned successfully through three other committees in the state’s legislature.
The approved bill now passes to the state’s Taxes Committee which could potentially be the final committee review before being put to a house vote.
Authored by Representative Zack Stephenson, HF 778 would legalize mobile sports betting in the state, via Minnesota’s 11 Indian tribes, who would be free to execute contracts with out-of-state mobile sports betting operators.
The arrangement is similar to that used in Arizona, Connecticut and several other US states.
Under the terms of the bill, tribes could be eligible to receive up to two master licenses and would be free to execute contracts with as many as seven sportsbook operators.
The specific location of the tribal operator is a factor in determining the number of licenses being awarded, with those tribes located both north and south of Interstate Highway 94 being eligible to receive one license.
The award of two licenses, however, shall only be made to organizations comprised of two or more Native American tribes.
In all cases, licenses are valid for a period of 20 years with a fee of $6,000 being paid on application, rising to a license issuance fee of $38,250. License renewal fees are at the much lower amount of $8,500.
A mobile sports betting platform provider or services provider license is required to provide sports betting platforms, sports betting technology, sports betting applications, or associated mobile sports betting hardware, software, or equipment within the state.
A mobile sports betting operator is prohibited from contracting with more than one mobile sports betting platform provider under the terms of the bill.
Tribes executing agreements with mobile operators must pay a sublicensing fee of $2,125 annually to a state-appointed commissioner, who will have oversight responsibility for all regulated gambling.
The bill aims to introduce a percentage-based taxation system on all licensed operators but does not directly stipulate which tax rate will be levied.
All taxes collected will be spread evenly across several different social causes in Minnesota, with 10% of all taxes going towards the administrative costs and upkeep of the commission.
A minimum age to gamble of 18 is proposed in the bill, however it is understood that this could be raised to 21, following testimony from responsible gambling groups during the committee stage.
Representatives from the Minnesota Indian Gaming Association also testified in support of the bill, despite previously opposing efforts to expand sports betting in the state over concerns about what this might do to land-based casino operators.
A separate bill, authored by Senator Roger Chamberlain and first launched in February, is currently under consideration and could see sports betting launch in Minnesota by as early as 2023.