Minnesota Treading Back Into Online Sports Betting Discussions

• Minnesota lawmakers will once again be discussing online sports betting legislation
• Four Senators today introduced SF 4139 to allow Minnesota tribes to offer online sports betting
• Eleven tribes will be eligible for an online sports betting license and will be able to partner with one sports betting company

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Stop me if you’ve heard this one before, but lawmakers will once again be evaluating a bill to legalize Minnesota online sports betting.

Four Senators today introduced SF 4139, a bill to legalize online sports betting in the Great Lakes State. The bill will provide for 11 licenses for all eligible Minnesota tribes, who will be able to partner with up to one sports betting company to use their sports betting platform.

Online sports betting tax revenues will be earmarked for charitable gaming, the horse racing industry, and tribes not participating in the market.

Tax Revenues Dedicated For Charitable Gaming, Horse Racing

The framework of SF 4139 does not differ much greatly than other previously introduced Minnesota sports betting bills. Sens. Nick A. Frentz (DFL-18), Jeremy R. Miller (R-26), Eric R. Pratt (R-54), and Julia E. Coleman (R-48) have proposed a state tribal-led online sports betting market, with 11 of Minnesota’s tribes being eligible for a license.

Miller has long been a proponent of Minnesota sports betting. Miller has introduced several piece of sports betting legislation, including last year’s Minnesota Sports Betting Act 3.0. The bill gave sports betting control to state tribes and would have taxed the new form of gaming at a 20% rate. The legislation was referred to the Senate state and local government committee and never received a hearing.

The new legislation allows for the following tribes to hold a sports betting license:

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

Online sports betting platform providers will be required to hold a license to operate in the state. Operators will be required to pay a licensing fee of $250,000, with license renewal fees coming in at $83,000.

The legislation sets the state online sports betting tax rate at 22% of sports betting revenue. The bill earmarks sports betting revenues as follows:

• 50% to the commissioner of revenue for charitable gaming purposes
• 15% to racing economic development for the state horse racing industry
• 15% to the sports betting equalization fund for tribes who do not participate in the online sports betting industry
• 15% for grants to promote tourism, sports, and events, such as large-scale sporting events, to the state
• 4% to the commissioner of human services for responsible gaming purposes
• 1% for grants promoting integrity and participation in amateur sports

The bill currently sits in the Senate Commerce and Consumer Protection Committee and has yet to receive a hearing date.

Minnesota Bill Details

The bill establishes that only those 21 year of age or older will be able to participate in Minnesota online sports betting. If approved, the following bet types will be allowed in the state.

“Sports betting includes but is not limited to single-game bets; future bets; teaser bets; parlay bets; over-under bets; money line bets; in-game betting; proposition bets; straight bets; exchange wagering; future bets placed on end-of-the-season standings, awards, or statistics; and any other bets approved by the commissioner.”

The bill will allow for bets on college sports, but prohibits any and all college prop bets.