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Minnesota took a step closer to legalizing sports betting Tuesday, but there is still a long haul to go before fans can place wagers on their favorite teams.
The House State Finance and Government Elections Committee voted via Zoom 7-5 to approve House File 778. The next stop for the bill is the House Judiciary Committee
The legislation, which is making its way through various committees in the Minnesota legislature, would put tribal interests in charge of sports betting and establish a sports wagering commission.
Other key details of the bill:
- 40% of sports betting revenue goes toward funding youth sports programs in disadvantaged areas;
- 40% of revenue goes toward problem gambling programs;
- 20% of revenue goes toward regulatory control of sports betting;
- Establishes two master licenses, one north of Interstate 94 and one south of Interstate 94;
- Establishes brick-and-mortar facilities as well as mobile betting;
- Horse racing tracks would not be eligible for sports betting licenses
Next Steps For Minnesota Sports Betting
State Rep. Zack Stephenson, the main sponsor, said he planned on amending the bill to restrict sports betting to those 21 and over, after hearing from lawmakers and advocates expressing concern that – as written – the law allows 18-year-olds to place bets.
That change will be made in the House Judiciary Committee since it could not be made in the House Finance Committee, Stephenson said.
Witnesses at the hearing generally praised the revision.
Some expressed concern, however, that the bill favors tribes at the expense of charitable organizations and horse tracks. Under the terms of the legislation, horse tracks like Canterbury Park would be excluded from offering sports betting.
“We’re picking winners and losers and that’s a problem,” said state Rep. Jon Koznick, who voted against the bill.
Stephenson said he wanted to ensure the expansion of gambling was run by those most familiar with gambling operations.
“[I] wanted to make sure to with operators who have the experience,” he said.
Andy Plato, executive director of the Minnesota Indian Gaming Association, represents 10 of the 11 tribes in the state. He stopped short of offering a full endorsement of the measure but said the tribes were happy with the direction the bill was going.
Competing Minnesota Sports Betting Bill
Sports betting is legal in all the states surrounding Minnesota, as well as Canada. Also, while sports betting has not been legalized in Minnesota, residents continue to gamble on sports via illegal offshore sites.
Stephenson’s bill is one of two sports betting bills before Minnesota lawmakers.
State Sen. Roger Chamberlain introduced legislation last month, Senate File 574. It is similar to Stephenson’s, but with one glaring difference – his would allow race tracks to offer sports betting.
“We are closer than we’ve ever been,” Chamberlain, said during an interview with KFAN last month. “It will be good for the tribes, it will protect tribal interests and also be positive for people who like to go to the track and place a wager.”
And in a statement to a local newspaper earlier this month, Chamberlain said his was the stronger option for sports fans in the state.
“The offer in its current form will not give the consumer a good product,” he told the Minnesota Reformer. “We need to expand the options for consumers to have the best possible experience.”
Chamberlain’s measure, however, has not received a hearing yet.
Minnesota does not set a deadline for when legislation can be introduced but does stipulate that bills must have hearings by a certain time. The first deadline is March 25.
