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- By Chez Oxendine
- Gaming
Minnesota tribes could tap into the $150 billion sports betting market under one of three bills introduced recently in the state legislature, though each proposal takes a different approach to legalization.
Sen. Jeremy Miller (R-Winona) introduced the “Minnesota Sports Betting Act 3.0” on Jan. 23. The legislation proposes a 20% state tax rate on online wagering revenues, which Miller estimates would generate $80 million annually. Under the bill, 50% of those tax revenues would support charitable gaming operations, and 25% would fund efforts to bring major sports events to the state.
Miller said the bill combined ideas from his previous legislative bids to legalize sports betting with ideas from constituents and stakeholders. Notably, the previous version of the bill proposed a 15 percent tax on online revenues, rather than 20 percent.
“The goal of this proposal is to bring folks together to work toward a bipartisan solution to legalize sports betting in Minnesota,” Miller said in a statement.
A week later, Sen. Matt D. Klein (DFL-Mendota Heights) introduced SF 757, which would allow tribes to launch both retail and mobile sports betting platforms after obtaining licenses from the Minnesota gaming commissioner. The bill sets a legal gambling age of 21, with a 22% tax levied against revenues obtained through online sports wagers. Roughly a third of tax revenues would support tribes that don’t operate sports betting, state race tracks, and charitable gambling organizations not eligible to run mobile betting.
Klein’s bill also requires two gambling studies. The first would establish a baseline for gambling rates prior to sports betting legalization, to be updated every three years to track any increases in gambling behaviors. The second study would examine gambling’s effects on suicide rates, disordered behaviors, and risks to youth.
In a third proposal, Sen. John Marty (DFL-Roseville) and Scott Dibble (DFL-Minneapolis) introduced SF 978, which focuses on mitigating potential negative effects of sports betting. Their bill would establish a helpline, set best practices for gambling addiction support, and create limits on gaming advertising, wagering, and the use of customer data.
“Corporate sports bookmaking is an industry that profits from encouraging people to gamble more,” Marty said in a statement to BringMeTheNews after he introduced the bill Monday. “If Minnesota is going to legalize this predatory industry, we must do so with safeguards that will minimize the harm.”
Across the United States, sports bettors have wagered $150 billion across 33 legal markets, with operators earning $14 billion in revenues, according to Legal Sports Report. State and local governments have collected $2.9 billion in taxes.
“Minnesota continues to miss out on what is now a $150 billion industry,” Miller said in a statement posted to his website. “We were on the brink of success last year; I strongly believe 2025 could be the year we get this across the finish line.”
That finish line could be some distance, given that at time of writing the Minnesota legislature is in deadlock due to a boycott by Democratic House members following a contentious election, per a story by the Alexandria Echo Press.
