Minnesota sports betting bills hit legislative floor amid universal acclaim

Legislators in Minnesota have tabled Senate and House bills aiming to legalize retail and online sports betting in the state through Minnesota’s tribal gaming operators.

HF2000, and its Senate counterpart SF1949, authored by Representative Zack Stephenson and Senator Matt Klein, respectively, would see up to 11 mobile sports betting licenses issued to the state’s tribes.

In each case, the tribal operator can only partner with one online firm, leaving 11 licenses available to operators. Tribal operators would also retain control of the state’s in-person sports betting, which would not be subject to taxation at a state level.

However, racetrack and racino operators would be excluded from offering sports betting, something which ultimately torpedoed the progress of a similar bill by Representative Stephenson during last year’s legislative session.

The legislation had garnered support from across the House, as well as crucial support from the Minnesota Indian Gaming Association (MIGA).

The bipartisan bill failed to pass due to an addition made during committee stage in the Senate – that of sports betting licenses for the state’s horseracing tracks, something strongly opposed by the tribes on exclusivity grounds.

In comments reported by the Associated Press, Representative Stephenson cited the expansion of sports betting across the US as necessitating the state’s involvement.

“More than 30 states, including all of Minnesota’s neighbors, have legalized sports betting in some form or fashion,” Stephenson said. “Minnesotans deserve the same opportunities that our neighbors have,” he added.

Under the 2023 iteration, each tribe would pay yearly licensing fees of $2,125, with mobile operator partners paying an upfront application fee of $6,000 followed by a renewable three-year license fee of $38,250.

Operators would be taxed at a rate of 10% of net wagers placed online, with retail operators not taxed at all. Initial estimates provided as part of the bills suggest the state could raise between $10m and $12m annually.

Tax would be used to reinforce regulation and consumer protection, as well as programs for problem gamblers and youth sports.

As with last year’s legislative initiative, the MIGA has voiced its support through the form of an open letter.

“Were your bill to become law, MIGA Tribes believe the resulting mobile and retail markets operated by Minnesota’s Tribal Nations would not only support Tribes, but would also provide a well-regulated and accessible market for the state’s sports bettors and a competitive market that is important to our state’s professional sports teams and marketing partners,” the association wrote.

Some of the state’s professional sports teams, which have partnered with MIGA to support the initiative, outlined their ongoing commitment to bringing sports betting to the state.

“As you know, the Tribes and teams have worked together for many months to find alignment on a bill that will create a vibrant market while providing for consumer protections,” the coalition said.

“We greatly value our tribal partnerships, our opportunity to work with MIGA, and greatly respect Minnesota’s tribal nations,” it added.