Minnesota continues to deliberate over mobile sports betting, and a recent series of amendments, including banning in-game betting, could be another hurdle too high to climb to get the legislation passed.
Consumer Protection
Getting sports betting over the finish line has become a challenge in the North Star State, and the two parties that urgently need to agree on a compromise are the state’s horse racing tracks and the Native American tribes, both of whom are major stakeholders in the future of Minnesota sports betting.
Before this legislative session began, one political insider spoke on the condition of anonymity and stated, “It’s really how are the tribes and the tracks going to come to some sort of agreement. That’s off the legislation books and an agreement between them. [Minnesota is the] frontrunner for getting legislation done on sports betting next session.”
The Amendments
Although there are companion sports betting bills emanating from the House and Senate, the latter has just received a dose of amendments that may not sit well with those who ultimately count. In-game betting is now off the table, a wildly popular feature in many states that have legalized sports betting, if the amendment sticks to Senator Matt Klein’s Senate File 1949, which advanced through the Senate Commerce and Consumer Protection Committee.
Another amendment that was eagerly adopted was allowing users to set limits on their daily deposits and losses. Customers also have the option of opting out of this feature, but the default will force bettors to at least contemplate those possibilities.
Although safeguard proposals and amendments dominated the committee discussion, a prohibition on college sports betting did not receive the same warm reception. That proposal did not garner approval and the bill currently sits in the Senate Committee on Taxes.
“I am proud of the work we continue to do to get this legislation in the best form possible for Minnesotans,” stated Senator Klein. “Our work continues in future committees to create a safe and trustworthy market for sports betting in our state.”
Will the Bill Pass?
The prohibition on in-game betting could be a dealbreaker as it could drive Minnesotans away from their home state to bet in neighboring states that allow the practice. It could also make the unregulated market look more appetizing, as most of those sites allow live betting on many different markets.
“The MN Senate change to sports gambling bill to eliminate in-game wagering is unworkable,” tweeted Rep. Pat Garofalo (R), a long-time Minnesota sports betting supporter. “No state in the country has this type of ban. If sports gambling is going to happen this session, this poison pill will need to be removed.”
SBA’s Argument
The Sports Betting Alliance (SBA), whose members include FanDuel, DraftKings, Fanatics and BetMGM, was also vocal about eliminating the prohibition on in-game wagering. SBA representative Jeremy Kudon told the committee that in-game wagers account for 50% of sports betting in the US and that could increase to as high as 75% by 2030.
The tribes were in support of the bills but now that the in-game betting ban has been added, their enthusiasm has waned.
Andy Platto, Minnesota Indian Gaming Association executive director, expressed concern from the nine member tribes saying, “We continue to evaluate. Some of the policy changes are of serious concern. However, tribal leaders ask for committee support as amended today so it can continue its progress.”
