After many previous attempts to bring sports betting to the Minnesota masses, it appears as though this most recent effort is garnering the support needed to bring the North Star State closer to the finish line.
Compromise is Key
A few tweaks to the latest sports betting bill iteration and several handshake agreements have breathed life back into the possibility of online gaming in Minnesota becoming a distinct possibility. Representative Zack Stephenson’s House File 2000 has gone through enough changes to make it palatable to many of the major players who must agree in order to get sports betting passed.
First and foremost, the tax rate has been doubled on sportsbook operators from 10% to 20% much to the delight of many of Stephenson’s colleagues. More money to go around usually brings more mouths to the feast and such is the case in this instance.
The Allied Charities of Minnesota, an organization that represents small charities in the state, as well as independent bars and VFWs were outraged at the proposed elimination of electronic pull tabs in previous sports betting bills as they have generated as much as $40 million to these groups.
However, the additional monies being directed to those charitable organizations make Stephenson’s bill more palatable, and Allied Charities of Minnesota is now supporting the legislation.
Representative Stephenson said, “Well, I think momentum is building, I think we have a great chance. It’s a difficult bill because gambling bills by their nature have to be bipartisan, there are Democrats and Republicans who will never vote for it. So, you have to assemble a broad bipartisan coalition and these days that is very difficult, but momentum is building.”
What’s Next?
Whether this bill will ultimately pass muster with both chambers is still unknown and there are other similar sports betting bills currently being debated. As of this writing, HF 2000 is stalled in the House Taxes Committee, and Stephenson, who is the chair of the Commerce Finance and Policy Committee, has stated he is eager to have an informational discussion about his bill with the members of his committee.
Although Stephenson has successfully brokered a deal with the charities and the tribal nations in Minnesota, one of the concerns is that the bill would include historical horse racing (HHR) at local racetracks. Stephenson has assured fellow members that HHR would not be included in his bill.
“I just want to be clear that in no universe will a bill leave this committee with historical horse racing,” replied Stephenson when asked about how historical horse racing could be viewed as a game of skill versus chance.
“I’ve left a lot on the table (to discuss) and have given very few redlines, but this is one,” he added.
Tribal Concerns
Another concern was voiced by committee member Tim O’Driscoll when he wondered if the smaller tribes’ share of the sports betting proceeds would be diminished significantly with the larger tribes benefitting the most.
Stephenson responded that the smaller tribes would have as much right to partner with major commercial operators (i.e. DraftKings, FanDuel, Caesars, etc.) as the larger tribes would. Because mobile sports betting operates in a digital realm, physical location makes no difference. But Stephenson also emphasized that Indian Country is sovereign and as such needs to make these decisions for themselves, not the Minnesota legislature.
