Minnesotans may not have access to the top U.S. sports betting sites, but this hasn’t stopped lawmakers in the Gopher State from introducing new sports betting legislation that would allow residents over the age of 21 to access mobile sports betting sites.
Key Takeaways
- Senate Bill 3414 would regulate mobile sports betting and DFS
- Legalization would require new tribal-state compacts
- A ban on the use of push notifications by sportsbooks is proposed
Senate Bill 3414, introduced by Sen. Nick Frentz, contains detailed proposals for the practicalities of legalized sports betting in the state, including specifics on licensing. It would also likely require the Governor of Minnesota, Tim Walz, to renegotiate the existing tribal-state compacts, as the bill ties sports betting to federally recognized tribes.
Under the bill, the Minnesota Gambling Control Board would be able to issue up to 11 sports betting operator licenses, each valid for 20 years. The operator licenses would attract an annual fee of $2,125, but the platform licensing fee would be set at $250,000.
Significantly, the bill proposes that the sportsbook licenses can only be issued to a tribe in Minnesota that already operates Class III casino gaming. However, tribes that successfully apply for a sports betting license can only have one at a time. All licensed operators would pay a 22% tax on net sportsbook revenue.
Ban on push notifications and rival bills
The bill also contains details on responsible gambling measures. All advertising relating to mobile sportsbook betting would have to display gambling helpline information, and marketing would be strictly controlled.
The most notable element is the proposed ban on sportsbooks using push notifications, which has not been introduced in any other regulated U.S. market. This ban would stop sportsbooks and daily fantasy contests from enticing players to return and continue betting.
SB 3414 is not the only proposal being considered by Minnesota lawmakers. Sen. Matt Klein introduced SB 757 in January, which also ties sportsbook licenses to recognized tribes, proposes 20-year licenses, and proposes a 22% tax rate for net sportsbook revenue. The only significant difference between the two bills is how sports betting tax revenue would be divided.
Yet, the bill failed to advance back in February, being left in legislative limbo after receiving a 6-6 vote in the Minnesota Senate’s State and Local Government Committee.
Legislators are also considering a third bill, the Minnesota Sports Betting Act 3.0. Proposed by Sen. Jeremy Miller, this is Miller’s third try at legalizing sports betting in Minnesota. It differs from the other two bills by proposing a 20% tax on sportsbook revenue.
