Another to push to legalize Minnesota sports betting is underway, as is an attempt to shutdown prediction markets and sweepstakes casinos in the state.
Earlier this month, a bipartisan group of sponsors, including long time proponent Sen. Jeremy Miller, introduced a Minnesota sports betting bill, Senate File 4139. The legislation includes a proposal similar to those seen in recent sessions that have come up short.
“Sports betting continues to be one of the top issues I hear from folks all across the state of Minnesota which is why i’m so passionate and committed to trying to get this done,” Miller said when it was introduced. “I believe this will be the first time at least in Minnesota that we have a bipartisan and bicameral bill, so we are making some good progress.”
Rep. Cedrick Frazier filed a companion bill in the House, House File 4204.
Minnesota sports betting details
The proposal would allow the 11 Minnesota tribes to partner with commercial sports betting operators.
Operators would pay an initial license fee of $250,000.
The legislation would implement a 22% tax on sports betting revenue. A significant chunk of the tax revenue would help offset taxes for charitable gambling and pari-mutuel horse racing operators in the state.
Additional revenue would go to the general fund and problem gambling resources.
Path to Minnesota sports betting
The Republicans and Democrat-Farmer-Laborers were at odds for the first several attempts to legalize sports betting. The Republicans hoped to include the state’s horse racing tracks, while the DFL supports tribal exclusivity.
In 2024, Minnesota lawmakers came close to an agreement on sports betting. However, it did not pass before legislators adjourned for the session.
Opposition to sports betting
Proponents came back to the 2025 session with the agreement in place.
It was met with staunch opposition and did not move beyond its initial committee.
There are an array of lawmakers who are against sports betting, including Sen. John Marty, who wants strong protections for consumers if legalization is in the cards.
Others, like Sen. Jordan Rasmusson, have expressed further concerns about the potential increase in problem gambling if Minnesota sports betting is legalized. Sen. Erin Maye Quade led the opposition last year and told LSR previously sports betting has strong bipartisan opposition.
Cracking down on unregulated gambling
Last year, Minnesota Atty. Gen. Keith Ellison took action against 14 illegal sports betting operators and online casinos.
Ellison sent the cease-and-desist letter to offshore sportsbooks and casinos as well as dual-currency sweepstakes operators, including Bovada, MyBookie and Luckyland.
Along with the sports betting bill, lawmakers have also introduced bills that aim to shutdown prediction markets and sweepstakes casinos in the state.
Prohibition bills
Rasmusson, Marty, Maye Quade and Sen. Matt Klein introduced Senate File 4474 and Senate File 4511 this week. Klein is a sponsor of previous session sports betting legislation.
The first proposal would make it a felony to offer prediction market trading on sports, casino-style games, politics, people and other events. It would make advertising the markets as legal a felony.
The second proposal would make it a felony to operate or promote online dual-currency games that simulate sports betting or casino-style games, like sweepstakes casinos. Along with targeting operators, the legislation aims to crack down on suppliers as well.
This year, several jurisdictions have seen legislation to counter prediction markets, including in New York, Hawaii and Illinois. An Iowa bill would require the platforms, like Kalshi, to acquire a license.
Last year, six states outlawed sweepstakes casinos while many other state regulators sent hundreds of cease-and-desist letters. Last week, Indiana Gov. Mike Braun signed a sweepstakes casino ban into law.
