Once again, the North Star State is making another run at bringing legal sports wagering to its residents instead of letting millions of taxable wastes away in illegal markets. Tribal nations have been given an upper hand in proposed regulation measures.
The Land of 10,000 Lakes, Minnesota, is taking yet another stab at legalizing sports betting within the confines of the state. Sponsored by Rep Zack Stephenson and Senator Matt Klein, the new sports betting bill also has support from tribal nations and professional sports leagues in the state.
However, this isn’t the lawmakers’ first stab at legalizing sports betting in the North Star State. Previous attempts to garner support for a similar bill got the okay in the Democratic-controlled House but were suddenly halted in their tracks when it was tabled before the GOP-dominated Senate.
Thankfully, since then, the mood on the sports wagering bill has shifted, with many groups coming out to support the initiative. So, as of now, the key proponents of the bill strongly believe it will get the legislative green light with this year’s attempt.
A Pro-Gambling Change of Heart by the MIGA
Spanning months and years, the Minnesota Indian Gaming Association (MIGA) has long opposed an expansion of sports betting in the state. However, in a welcome U-turn, the association wrote a letter to Rep. Zach Stephenson, expressing its support for his latest bill.
The change in tune by the association is perhaps because, under the proposed legislation, indigenous tribes would be given complete control of retail wagering at their casinos. Likewise, online wagering within the purview of the state also falls in tribal authority according to the proposed measure. The letter read in part:
Quote“Were your bill to become law, MIGA tribes believe that the resulting mobile and retail markets operated by Minnesota’s Tribal nations would provide a well-regulated and accessible market for the state’s sports bettors and a competitive market that is important to our state’s sports bettors and market partners.”
So, the bill would provide sports betting licenses for the following tribes:
And even though sports teams under the bill would not be allowed to operate sportsbooks, the Timberwolves, Vikings, Twins, Loons, and Wilds are ready to back the measure to fruition. Meanwhile, Canterbury Park and the Running Aces horse racing tracks are excluded from operating sports betting as tribal casinos were favored to run the activity due to their experience.
Sports Betting Tax Revenue to Go Towards Worthy Causes
Rep Stephenson, who introduced the bill to the House, expressed hope in how the revenue from sports betting will impact the state. He even compared the state to neighboring jurisdictions, such as Iowa and Wisconsin, already reaping the fruits of legalizing sports betting for their residents.
His push for the bill mainly hinges on Minnesota’s residents not enjoying the same opportunities accorded to their neighbors. Thus, the freedom for wagering on sports will become a reality if his bill sails through the legislative process. Additionally, the potential sports betting tax rate set at 10% by Rep Stephenson is expected to generate $10 to $12 million annually for state coffers upon maturity. But, of course, as is the case for tribal gaming in any other US jurisdiction, in-person gambling in tribal casinos won’t be taxed by the state.
Per Rep Stephenson’s proposal, the tax revenue will go towards several good causes. For one, the bill proposes that 40% of taxes collected be channeled towards fighting problem gambling. Further, 20% of the tax income generated is to be used to ensure the fairness, integrity, and high standards of all sports betting activity in Minnesota. Finally, the bill proposes that the remaining 40% of the taxes go toward youth sports programs, especially in communities affected by high juvenile crime rates. Speaking on the necessity of the bill, Stephenson stated:
Quote“We’re not doing this to raise the revenue for the state of Minnesota, we’re doing this to transition from an illicit market to a legitimate market and to put guardrails on the activity.”
The Senate is Where the Real Battleground is
Before the dream of legal sports betting comes to life in Minnesota materializes, there are still many fundamental steps to go through. For starters, the bill must clear several committees in both the House and the Senate, which means that for now, we’ll have to manage our expectations of a vote occurring any time soon. Nonetheless, it doesn’t mean we can’t look forward to the process that will unfold.
The key battleground is expected to be the Senate, where the Democrats hold a slender advantage of just 1 seat. And while the bill needs 34 votes to pass, it doesn’t mean it will be a smooth sail in the House either. Fortunately, giving the tribes the mandate to run the activity also guarantees more support from the House and is a significant boost to winning legislative approval.
But then again, in the Senate, the mover Senator Matt Klein is not feeling quite confident about clearing the 34 votes mark, which is required. That said, he remains hopeful, with his recent remarks suggesting so. He said in part:
Quote“I take it as my charge to get it across the finish line in the Senate, and I’m very optimistic we can do that. I think it will be a bipartisan vote.”
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