Minnesota’s Quest for Legal Sports Betting is Alive in 2023

This year brings fresh optimism for supporters of Minnesota sports betting.

Senator Jeremy Miller from the Minnesota Legislature expressed optimism about the possibility of legalizing sports betting in Minnesota this year after a Democratic proposal was introduced. The proposal, introduced by Rep. Zack Stephenson and Sen. Matt Klein as companion bills HF 2000 and SF 1949, would legalize both retail and online sports wagering in the state.

The revised plan grants exclusive rights to the state’s 11 American Indian tribes, who currently run 19 casinos across the state, to permit betting at their casinos and on mobile devices. The tribes can also collaborate with online sports betting platforms such as FanDuel and DraftKings to provide mobile betting services.

In a letter of support for the new proposal, Minnesota’s professional sports teams including the Timberwolves, Wild, Twins, Vikings, Lynx, and United, expressed their backing for tribal exclusivity and indicated their opposition to non-tribal entities obtaining sports betting licenses.

The letter signed by all six of Minnesota’s professional sports franchises announced a new partnership between the sovereign tribal nations and the teams. The focus of this alliance is to ensure that the tribes have exclusive rights when sports betting is legalized in Minnesota. This collaboration will also open up opportunities for the teams to form lucrative partnerships with top sportsbooks.

The Minnesota Indian Gaming Association expressed their endorsement of the new proposal in a letter of their own, emphasizing that the mobile and retail markets run by Minnesota’s Tribal Nations would not only benefit the tribes but also create a well-regulated and easily accessible market.

The path to legal sports betting in Minnesota  

In 2022, Minnesota sports betting saw some progress when a bill successfully passed the House, but ultimately stalled in the Senate.

Just like the bill from this year, the state’s two racetracks, along with any other potential state entrants, would be excluded from participation. The decision to exclude Canterbury Park and Running Acres racetracks has received criticism, primarily from Republican legislators in the state. The new proposal is not focused on generating a financial windfall for the state, as Minnesota legislators are already dealing with a significant $17.6 billion budget surplus.

The proposed Minnesota sports betting legislation includes a 10% state tax on online bets, with the funds going towards gaming regulation, consumer protection, and initiatives for problem gambling and youth sports. Bets made in person at tribal casinos would not be taxed by the state.

Rep. Stephenson, the primary House author, stated that lawmakers are not aiming to generate revenue for Minnesota, but rather to shift from an illegal market to a lawful one and establish regulations for the industry.

The inclusion of consumer protection clauses is essential in this bill due to a provision that permits in-person sports betting at the age of 18, a controversial decision. Meanwhile, the minimum age for online sports betting in Minnesota would be 21.

Despite gaining some new momentum, this latest proposal still has a significant journey ahead. It requires 34 votes to pass the Senate and must also navigate through multiple committees in both the House and Senate before reaching the floor for consideration.

Rep. Stephenson does not expect votes in either chamber until April. However, he expressed optimism in January, stating, “I do think we have a great chance to get it across the finish line this year.” It is possible that this bill could succeed where previous attempts have failed.

Plenty of nearby competition

All states bordering Minnesota – North Dakota, South Dakota, Wisconsin, and Iowa – have legalized sports betting. Among them, only Iowa has online sports betting with 17 mobile sportsbooks, such as Caesars, PointsBet, and BetMGM, offering attractive promotions.

Even Canada, located to the north of Minnesota, has legalized sports betting nationwide. With options available in nearby markets or offshore, Minnesota sports betting fans have a plethora of choices outside of their own state borders. They are eagerly anticipating the 2023 legislative session to potentially bring them the long-awaited opportunity to bet legally in their own backyard.