Minnesota’s latest attempt towards legal sports betting took a step forward on Monday.
The Gopher State’s House Commerce Finance and Policy Committee voted 10-6 in favor of moving House Bill 2000 to the Judiciary Finance and Civil Law Committee.
The bill calls for the Minnesota Gaming Association (MIGA), which is run by the state’s tribal nations, to oversee and regulate legal online sports betting sites and retail wagering locations.
The Democrat-led bill was introduced last week by Rep. Zach Stephenson (D-Coon Rapids) and is largely unchanged from a bill last year that made it through the House but fell apart in the Senate.
Supporting the state
“MIGA (Minnesota Gaming Association) tribes believe that the resulting mobile and retail markets operated by Minnesota’s tribal nations would not only support tribes but also provide well-regulated and accessible options for the state’s sports bettors and a competitive market that’s important to our professional sports teams and market partners,” MIGA Executive Director Andy Platto said.
This year’s version alters the licensing structures to allow 11 direct licenses to the tribal nations. There is a belief that this bill could be the one that finally makes Minnesota sports betting legal.
The bill calls for a 10% tax on mobile sports betting that would fund several state-run programs. Committee members had some issues with how the revenue would be split up and also whether or not charitable gaming and horse racing tracks should be lumped into this bill. However, they decided to discuss those issues outside of this particular bill for now.
Out of the shadows
Several representatives testified before the committee Tuesday to argue HB 2000 one way or the other. DraftKings' David Prestwood endorsed the bill and asked the committee to pass it to help end illegal sports betting and bring it “out of the shadows.”
The dissenters included Citizens Against Gambling Expansion and the Joint Religious Legislative Coalition. Both asked the House committee to oppose the new bill.
Meanwhile, a pair of spokespeople representing the horse industry argued in favor of adding race tracks to the list of legal retail sportsbooks. They didn’t want just the tribal nations to control sports betting in a state that’s allowed part-mutual betting on horses for 40 years.
Running Aces, a race track and casino, argued that the horse industry is already well-equipped to regulate sports betting.
However, the bill still made it through this committee without an amendment to add more operators.
Joining Minnesota’s neighbors
When it comes to legal sports betting, Minnesota is surrounded. Iowa, North Dakota, South Dakota, and Wisconsin all have some form of legal sports betting.
That is one of the primary selling points from Rep. Stephenson, and he directly mentioned Iowa as a state that’s taking tax revenue away from the Gopher State.
“Thirty states, including every state that borders Minnesota, have legalized sports betting in some form or fashion,” Rep. Stephenson said. “Minnesotans deserve the same opportunity that all of our neighbors have to bet in a legal, safe marketplace with consumer protections.”
