There are many stakeholders in the Minnesota sports betting landscape, some with similar interests while others have vastly different agendas. Needless to say, the legislature has been cobbling together a compromise package that will hopefully allow everyone to agree even if no one is getting exactly what they want.
Tax Hike
The latest round of compromise saw the taxes on sportsbook operators adjusted gross revenue double from 10% to 20% in the last legislative session. But that was just one amendment that made its way through to Representative Zack Stephenson’s House File 2000, which was sent to the State and Local Government Finance and Policy Committee, which then advanced the package to the Taxes Committee.
Legalizing daily fantasy sports and electronic pull-tabs are two more of the amendments that will revamp the groundbreaking sports betting legislation. Even Stephenson commented on the additions to get the bill over the finish line with as few objections as possible.
“It is a sizable amendment that reflects a number of discussions we’ve had to improve the legislation,” Stephenson said. “As we continue to have discussions, this bill has continued to evolve … it gets a little broader.”
This is certainly not Stephenson’s first rodeo as he has gone to bat several times to get sports betting legalized in the North Star State. This is merely the latest in a series of attempts dating back to 2018, shortly after the landmark verdict in which the U.S. Supreme Court ruled PASPA unconstitutional, paving the way for sports betting in the United States.
Minnesota Sports Betting Update. We are making progress, but not there yet. It’s time to get this done! pic.twitter.com/kt6FHbQKJx
— Jeremy Miller (@jeremyrmiller) March 20, 2024
Pick’em Props Approved
Pick’em games, which are actually player prop parlays, offered by many DFS operators like Underdog and PrizePicks have been getting the cold shoulder from many states with mobile sports betting like Michigan, Florida, and New York, to name a few.
The online sportsbook operators don’t like them as they believe they are virtually identical to player prop parlays which means they are crossing the line from fantasy sports to sports betting and eating into their area of business. The DFS sites don’t even disguise it as they have the customer playing against the house and not another player as DFS is normally intended.
The American Gaming Association (AGA) has spoken out about the influx of sports betting props masquerading as DFS options. Chris Cylke, senior vice president of government relations at the AGA, said, “The AGA’s position on ‘faux fantasy’ has been clear. DFS and sports betting are different products and most states that regulate [them] differently, tax [them] differently, and have different minimum age requirements. With the regulatory and licensing requirements for sports betting operators generally significantly higher, it’s problematic that companies are intentionally blurring the line between those two categories.”
Cylke also added, “It’s not our role to make those determinations but we continue to encourage regulators to be vigilant to ensure DFS products don’t cross the line into sports betting. It’s been encouraging to see regulators in almost a dozen states look at this issue and determine that actions are warranted to protect the integrity of their marketplaces.”
The DFS Amendments
But that’s in stark contrast to one of the many recent amendments to HF2000, which now allows the DFS pick’em games to appease another faction whose support he is trying to win.
The language in the amendment reads as follows: “Fantasy contests may include both contests wherein authorized participants compete against each other and contests wherein only a single authorized participant competes against a target score set by the fantasy contest operator.”
As frustrating as it has been for those who want sports betting in Minnesota, things could be worse as there are five states like Utah that are still without a lottery. As an aside, there is currently a resolution in Utah, HJR24, that is trying to bring a lottery to Mormon Country, but those prospects appear dim.
Digital Wager Wire will continue to monitor this story and update our readers as events unfold.
