Tribal opposition to outside concerns taking a piece of the gaming pie in Minnesota has derailed previous attempts to bring sports betting to the masses. However, there is more gaming legislation on the docket again this session and some are hopeful the time is right for passage of these bills.
Let’s delve into the latest updates behind this next attempt and analyze its potential implications for top-rated sportsbooks.
Tribal Monopoly
The issue pro-gambling legislators are having in Minnesota is the same as those in California: the tribes in their states have enjoyed a gaming monopoly and are concerned their profits will erode if national operators are allowed to bring sports betting to the same market they serve.
Senator Jeremy Miller is sponsoring SF 3803, dubbed the Minnesota Sports Betting Act 2.0, which would permit in-person betting at professional sports venues and horse tracks.
Meanwhile, Representative Zach Stephenson has resurrected his bill, HF 2000, which was derailed in 2022. The former has been assigned to the Senate State and Local Government and Veterans Committee, while the latter has advanced to the House Human Services Finance Committee.
Senator Miller’s bill would allow tribal casinos to have retail sportsbooks in their facilities. However, the sticking point could be allowing sports betting “on the physical premises of a racetrack or sports facility” or a location within half a mile of the premises, specifically designed to take sports bets.
The bill would also include mobile betting consisting of up to 11 platform providers, with each tribe allowed to partner with one of those operators. Online or mobile sports betting would be taxed at 15% of the adjusted gross revenues.
“My preference would be to give the tribes a license, as well as the tracks, the [professional] teams, and even the charities,” Miller said. “The reality is, the votes aren’t there in the legislature right now to make that happen, so instead of focusing or complaining on what’s not possible, with the 2.0 proposal I really wanted to focus on what is possible.”
Sen. Jeremy Miller filed SF 3803, the Minnesota Sports Betting Act 2.0. This won’t be the vehicle in Minnesota as Miller is in the minority party. But Miller spoke to me about his hope that DFL colleagues adopt his language to help charitable gaming.https://t.co/B4aqnNxj3k
— Matthew Kredell (@MatthewKredell) February 15, 2024
Tribes Wait and See
In the previous sports betting bill sponsored by Representative Stephenson two years ago, the Minnesota Indian Gaming Association (MIGA) supported his bill but the Senate amended it to allow two horse tracks to also allow sports betting. That change caused MIGA to withdraw their support, which ultimately killed the bill.
As for this time around, it appears the tribes are willing to listen and ultimately determine if this bill would be friendlier to their interests.
Andy Platto, Executive Director of the Minnesota Indian Gaming Association, released a statement that said, “The Minnesota Indian Gaming Association (MIGA) supports state efforts to authorize sports wagering both at tribal gaming properties and through online/mobile platforms. Tribes are best positioned to provide this new offering to the state’s consumers. MIGA and its members will be closely following the progress of state legislation and look forward to working with other stakeholders to develop an approach that benefits Minnesotans while protecting the Indian gaming operations that tribal and rural communities rely on for jobs and economic health.”
Retail and mobile sports betting may be a possibility if the legislators can assuage any concerns the tribes have about maintaining their gaming exclusivity while expanding it to include mobile gaming even if commercial operators must be part of that equation.
Digital Wager Wire will continue to monitor this story and update our readers as events unfold.
