Minnesota sports betting legislation failed to move beyond its first step this session on Thursday.
Sen. Matt Klein (Democratic-Farmer-Labor) guided his Minnesota sports betting bill, SF 757, through a hearing in the Senate State and Local Government Committee. The bill stalled out in the committee, however, hitting a 6-6 vote with legislators concerned about various aspects of the bill.
Multiple lawmakers expressed major concerns about problem gambling. At the start of the hearing, Klein immediately added an amendment, which he said made it a bipartisan bill, including support from Republican Sen. Jeremy Miller, who authored a separate bill this session.
Senator stands up against online betting
Sen. Erin Maye Quade (DFL) said the committee has a lot of work to do before it moves on. Maye Quade told LSR last year that there is still plenty of bipartisan opposition in both chambers.
Maye Quade said many of the bill’s protections are easy to circumvent. She also mentioned that 75% of the tax revenue goes back to funding other gambling industries.
“This benefits literally nobody except a predatory tech industry,” she said. “There is so much more work to get any sort of real protections. If the industry likes this bill, it’s probably not good.”
Minnesota sports betting details
Klein’s proposal would give the state’s 11 tribes exclusivity and tax sports betting revenue at 22%. The tax revenue would go to various causes, including the horse racing industry and charitable gaming industry.
Heading into the session, Klein said the makeup of the legislature would favor bipartisan issues like sports betting.
A bill with the support of all stakeholders reportedly ran out of time at the end of the 2024 session.
Tribes on board for sports betting
The Minnesota Indian Gaming Association represents nine of the 11 tribes in the state. MIGA Executive Director Andy Platto offered the organization’s full support for the bill.
He said the bill respects the tribal sovereignty it has fought to maintain through previous attempts.
Platto also lauded a mechanism sending 15% of tax revenue to ensure all tribes benefit from the legalization.
Race tracks OK with plan
The bill also would send tax revenue from sports betting to a horse racing development fund that helps improve the industry. It also would legalize advance deposit wagering for horse racing.
Randy Sampson from Canterbury Park, which proved to be a hurdle in previous years, testified to support the bill.
JT Foley, executive director of the Coalition for Fantasy Sports, also testified in support of the bill. The organization represents DFS 2.0 companies like Underdog and PrizePicks.
Responsible gambling key focus
Minnesota lawmakers have been concerned about the potential societal harms associated with online sports betting. Last month, Sen. John Marty held a hearing about those concerns.
Klein said this proposal would make it the safest sports betting law in the country. Among its responsible gambling pieces were prohibitions on the following:
- Push notification advertising
- Advertising on school property
- College prop bets
- Targeting incentives at bettors
Despite the mechanisms to help protect Minnesotans, several responsible gambling organizations testified against the legislation.
The committee heard Marty’s bill, SF 978, which contains significant responsible gambling measures. Marty is not a sports betting supporter, but believes if the state is going to legalize it, it should have these significant protections. With Klein’s bill stalled, Marty asked the committee to table his bill.
