Minnesota Sports Betting Bill Steadily Moving Through House Committees

• Rep. Zach Stephenson’s (DFL-Coon Rapids) sports betting bill has moved through two House committees
• The Minnesota House Judiciary Finance and Civil Law Committee voted in favor of the bill this morning
• The bill has moved to the House Public Safety and Finance Committee

A bill to legalize Minnesota sports betting for state tribes has moved through two House committees so far and is slowly making its way to the chamber floor.

The Minnesota House Judiciary Finance and Civil Law Committee voted in favor of Rep. Zack Stephenson’s (DFL-Coon Rapids) bill, HF 2000, which seeks to legalize retail and online sports betting for state tribes. The piece of legislation now moves forward to the House Public Safety and Finance Committee.

The legislation gives Minnesota tribes sports betting exclusivity, allowing each tribe to have a retail sportsbook location and one digital skin to offer online sports betting.

Using Sports Betting Data for Responsible Gaming Safeguards?

The committee heard several pieces of testimony on the bill from interested parties. David Prestwood, Government Affairs Manager for DraftKings, spoke again in favor of the bill and noted that sports betting is currently taking place in Minnesota through illegal sports betting markets.

Prestwood said estimates have shown that more than 1.17 million Minnesota residents participate in illegal sports betting, placing more than $2.5 billion in illegal bets a year.

One suggestion floated during the committee hearing seemed to catch the interest of lawmakers. Susan Sheridan Tucker, Executive Director of the Minnesota Alliance on Problem Gaming, asked that language be inserted into the bill to allow a neutral establishment, such as a Minnesota college or university, to examine the state’s sports betting data and see how it’s affecting vulnerable Minnesota populations.

Tucker noted that the Minnesota Alliance on Problem Gaming is neither for nor against the legalization of sports betting, but wants to ensure that safeguards are included to protect problem gamblers and responsible gambling messages are prominently heard if the bill is approved.

Stephenson said he would examine the possibility of the idea and could potentially add language to the bill to make it happen. Sports betting is a data intensive enterprise, he said, and HF 2000’s sports betting cultivation is in line with other state sports betting bills.

Not all testimony was in favor of the bill. Leah Patton, executive director of the Joint Religious Legislative Coalition, said the coalition is in opposition of the bill that will allow 24-hour a day access to a new form of gambling. Underage residents and college students are most vulnerable to sports betting, she said, and this bill will only exacerbate the problem.

Patton did note that Stephenson has been more than willing to hear the coalition’s concerns and improve the bill for group’s interests.

“This is a pretty good version of something we just don’t like,” she aid.

Minnesota Sports Betting Bill  Details

Stephenson’s bill has been moved forward to its third House committee in two weeks. Earlier this week the bill received approval from the Minnesota House Commerce, Finance, and Policy Committee.

The legislation will allow each of the 11 Minnesota tribes to be granted a sports betting license. Each tribe will be able to partner with an operator to run their sports betting services.

• Fond du Lac Band
• Grand Portage Band
• Mille Lacs Band
• White Earth Band
• Bois Forte Band
• Leech Lake Band
• Red Lake Nation
• Upper Sioux Community
• Lower Sioux Indian Community
• Shakopee Mdewakanton Sioux Community
• Prairie Island Indian Community

Tribes can procure an online sports betting license for an annual fee of $2,125. Tribes will be able to partner with one online sports betting platform provider, that will pay a $38,250 fee for a three-year license, plus a $6,000 application fee.

While Minnesota sports teams would not be able to offer sports betting in this legislation, the franchises have publicly supported the bill.

The law includes a 10% sports betting tax rate, with the first $2.7 million collected from taxes appropriated to the commission of public safety to regulate online sports betting in the state. The next $1.353 million will be appropriated to the commissioner of revenue to administer the tax. After these appropriations, the remaining tax revenues will equally fund compulsive gambling treatment programs and support youth sports.

Stephenson said previous financial estimates have shown the state can expect to bring in about $12 million in sports betting taxes a year.