Minnesota Sports Betting Bill Faces Long Odds With Clock Ticking

The clock is running down for Minnesota legislators as some rush to have their proposed bills passed before the state’s legislature adjourns for 2022. Senator Roger Chamberlain (R- Lino Lakes) is one such lawmaker whose proposed sports betting bill recently got a nod from the Senate Finance Committee through a 5-4 vote. The bill is slightly different from one that was tabled earlier in the House of Representatives, which, if passed, would give the state’s tribes a monopoly over the entire sports betting industry.

Chamberlain’s sports betting bill not only takes into account the rights of the federally recognized tribes but also ropes in the state’s two racetracks, which are slated to also receive both retail and online gambling licenses to operate. To defend the stance on the horse tracks, he stated that while protecting the tribes’ business model was a priority, but it would be unfair to allow exclusivity in this case. As it stands, the tribes already control a significant portion of gambling businesses in the North Star State. The Senator voiced his views about the nature of the well thought out bill, saying:

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“This version is good for tribes, it’s good for tracks, and most importantly, it is great for consumers. It gives Minnesotans gaming options at brick-and-mortar locations and online vendors. It respects the Tribal Nations and provides a revenue stream to the state. It’s time to get this done.”

Time is of The Essence

With every passing hour, it’s evident that there is not enough time, and if the bill is to be passed before the 2022 session is closed, the odds have never been longer. For obvious reasons, Chamberlain has pointed out the urgency of the matter, citing recent moves by states in the region to authorize some form of sports betting, albeit retail like in the case of Wisconsin. He said:

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“With the move by Wisconsin to legalize sports wagering, Minnesota is now the only state in our region without a legal option. This means Minnesotans must cross our borders to bet on games or find illegal workarounds with online vendors. Legalizing betting in the state would mean Minnesotans can bet from their own backyard and know they are doing so in a safe manner.”

The Indian Gaming Commission Opposed to the Senate Version

The inclusion of racetracks in the Senate bill has not been taken well by the Minnesota Indian Gaming Association. The tribal gaming body even penned an open letter stating that it would support the House version but never the Senate version.

Per the letter, all 10 tribes in the association will oppose the legislation if amended by the A-22 amendment that offers the racetracks a piece of the sports betting pie. The letter further adds that the House bill already provides a competitive marketplace for gamblers in the state while guaranteeing the viability of the MIGA tribes. This is a real wrench in the works as it slows down the deliberation process, especially with only hours left to consider what happens this year.

As with all Senate sessions, the opposition always comes from within and without. As such, legislators against sports betting in the state did not hesitate to express concerns regarding the negative impact legalizing sports gambling would have on residents. For example, Sen. John Marty (DFL-Roseville) pointed out the risks for kids and underage individuals, saying:

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“Every Vikings game now, you are going to have ads on the TV screen marketing it now. They aren’t aimed at kids under 21 because that’s prohibited in the bill, but I don’t know how you are going to stop it from getting there.”

Additionally, Sen. Bobby Joe Champion (DFL- Minneapolis) tried to convince the Senate to reject the bill based on the probability of gambling addiction in poorer communities. He said, “I’m sure you’ve seen that all these poor neighborhoods have the highest risk of being problem gamblers.” The proposed bills have provisions for a percentage of the revenue generated from legalized sports betting to finance treatment programs for gambling addiction, charities, and youth sports.

Tons of Revenue on the Line for Minnesota

The last couple of months have seen multiple states legalize sports betting, and Minnesota has been well on the path to doing so following the tabling of the House and Senate bills. With 34 states having legalized sports betting in one form or another, the stakes are pretty high. As the clock ticks in the Land of 10,000 Lakes, gaming industry supporters are pointing to revenue loss for the state should the legislature pass on the chance to approve the bill before the sports betting end of the session.

Speaking of 11th-hour bill-approval races, the ‘free the growler’ bill, sponsored by House File 778 sponsor House Rep. Zack Stephenson, recently enjoyed a better fate in the legislature. The said bill amends the previous liquor bill and permits craft distilleries to increase liquor sales by selling up to 750ml per customer per day. The breweries will also be able to run on-premises taprooms and sell alcohol after hours during the World Cup. The amendment to the liquor laws comes after 8 years of trying.

All in all, a sentiment that the sports betting proponents have repeatedly shared is that whatever happens within the remaining hours regarding the sports betting bill will no doubt significantly affect the state’s year-on-year revenue.