Minnesota sports betting bill fails to overcome “fatal” final hurdle
Legislators postpone bill as wrangles over horseracing track licenses torpedoes progression during current session
Plans to legalize sports betting in Minnesota have been shelved until at least 2023, after legislators in the state’s Senate failed to pass enabling legislation due to disagreements over licensing.
Meeting in the last session of the Minnesota Senate before its adjournment, senators did not pass bill HF 778, authored by State Representative Zack Stephenson, despite it being successfully passed through the House of Representatives.
HF 778 would have legalized mobile sports betting in the state, via Minnesota’s 11 Indian tribes, which would be free to execute contracts with out-of-state mobile sports betting operators.
The arrangement was similar to that used in Arizona, Connecticut, and several other US states.
Under the terms of the bill, tribes could be eligible to receive up to two master licenses and would be free to execute contracts with as many as seven sportsbook operators.
The bill aimed to introduce a percentage-based taxation system on all licensed operators but does not directly stipulate which tax rate will be levied.
All taxes collected were set be spread evenly across several different social causes in Minnesota, with 10% of all taxes going towards the administrative costs and upkeep of the commission.
The legislation had garnered support from across the House, as well as crucial support from the Minnesota Indian Gaming Association (MIGA).
Stephenson and his colleague Representative Pat Garofalo led legalization efforts in the House, while Senators Roger Chamberlain and Karla Bigham led lobbying and support efforts on the Senate floor.
However, it is understood that the bipartisan bill failed to pass during the current session due to an addition made during committee stage in the Senate – that of sports betting licenses for the state’s horseracing tracks.
Earlier this month, MIGA wrote a letter of opposition to the amendment made by the Minnesota Senate Finance Committee, suggesting this would compromise the tribe’s exclusivity on sports betting in the North Star State.
In this case, the inclusion of horseracing track sports betting licenses proved to be decisive in causing the bill’s failure, with the MIGA bemoaning the lack of progress on the issue.
In a statement, MIGA said: “During the 2022 session, legislators from both chambers and parties asked MIGA member tribes for their assistance in crafting a bill to provide Minnesotans a legal and safe sports betting market.
“The resulting legislation, HF 778, was the product of a broad stakeholder process and passed through seven committees and off the House floor with strong bi-partisan support.”
The statement continued: “After months of inaction, the Senate rejected the House proposal in the final days of the session. Instead, the Senate removed House priorities while adding licenses for the state’s commercial racetracks.
“These moves were opposed by many stakeholders and lawmakers which ultimately proved fatal for the legislation.
“MIGA and its members remain committed to work with any interested parties in crafting a sports betting bill that will benefit not just tribal communities, but all Minnesotans,” MIGA added.