Sen. John Marty filed a new Minnesota sports betting bill on Wednesday, which includes an increased tax rate, most of which is dedicated to problem gambling services.
This latest Minnesota sports betting proposal, Senate File 5330, calls for a 40% tax on operator net revenue. It also earmarks the bulk of state tax revenue to problem gambling and addiction initiatives:
- 25% for compulsive gambling treatment programs;
- 25% for the Minnesota affiliate of the National Council on Problem Gambling;
- 25% to the state general fund; and
- 25% for addiction prevention and mental health services in public schools.
Newest Minnesota sports betting bill
The bill is similar to House File 2000 and Senate File 1949, two other Minnesota sports betting companion bills.
SF 5330, like the two others, provides exclusivity to the 11 Minnesota tribes and bans in-game wagering.
The main difference is the 40% tax rate. HF 2000 was recently amended to mirror the 20% tax on net revenue included in SF 1949.
Bill sponsor has concerns about sportsbooks
Sen. Marty mentioned his concerns about legalizing MN sportsbooks in a recent Star Tribune editorial. He does not believe Minnesota sports betting would be a significant revenue driver.
Marty also expressed concerns about potential increased costs for mental health and addiction services, which explains his proposed revenue distribution.
Minnesota sports betting limits
Marty also included specific limits for how much players can deposit and lose in a given period.
Customers could only deposit and lose $500 in a single 24-hour period. They would also only be able to lose $3,000 in 30 days before being prohibited from betting for 72 hours.
Players could only stay logged into their MN sports betting app for four consecutive hours.
No horse racing funding in latest proposal
With 75% of state tax revenue in Marty’s bill set aside for problem gambling and addiction services and the other 25% going to Minnesota’s general fund, there is no specific funding for the horse racing industry.
The racing industry is not receiving enough support, in the view of Republicans who favor licenses for tracks.
Rep. Zack Stephenson recently amended HF 2000 to include $625,000 in annual funding for the race tracks. It is a $25,000 increase from his original proposal.
Next steps for MN sports betting
Stephenson led an informational hearing Wednesday, detailing the amendments to HF 2000, which now sits with the Taxes Committee.
Republicans expressed concerns about smaller tribes being disadvantaged when negotiating Minnesota sports betting deals with online operators.
Stephenson responded to those concerns by saying it was not up to the legislature to instruct the tribes on spending their money.
