MN Lawmaker Files Latest Sports Betting Legalization Bill

Hopes that sports betting will be legalized in Minnesota in 2025 have been raised by the introduction of a second bill to the state’s Senate.

The latest bill, SB 757, was launched by Sen. Matt Klein. It would authorize sports betting in the North Star State in partnership with the 11 federally recognized tribes that operate casino gaming there.

Each of the tribal nations would be eligible for one online wagering license. Klein’s bill also envisages the tribes partnering with Daily Fantasy Sports (DFS) operators – again, 11 licenses would be available.

This would specifically legalize DFS games in Minnesota, which is one of many states where fantasy operators currently run games in a legal gray area.

If the bill is successful, sports betting operators would be subject to a 22% tax on net revenue. Wagers placed on tribal lands would not be considered taxable. This is despite vast tax revenues on offer, which is tempting other states, like Indiana, to relax gambling laws.

Under the terms of SB 757, 10% of that tax revenue would go towards the push to bring major sports events to Minnesota. Another 10% would go to the Commissioner of Human Services, while 5% would be allocated to sports programs for young people. 

Fantasy contests, meanwhile, would be taxed at 15% on adjusted gross receipts. 

The Senate in Saint Paul is already due to consider a bill launched in January by Sen. Jeremy Miller, the Minnesota Sports Betting Act 3.0. This is Miller’s third attempt at bringing legal sports betting to the North Star State. 

It is similar to Sen. Klein’s proposal, in that it envisages 11 sports betting licenses for tribes and their partners to offer in-person and online sports wagering. 

Miller’s bill would impose a 20% tax rate on net revenue from online sports betting. Among his proposals for distribution of the proceeds are that 25% would go towards bringing major sports events to the state, with 2.5% allocated to youth sports. 

Miller said: “This updated proposal combines ideas from the last two versions of my Minnesota Sports Betting Act, along with proposals from other sports betting bills that have made progress in the legislature.

“The goal of this proposal is to bring folks together to work toward a bipartisan solution to legalize sports betting in Minnesota.”

However, even though Miller estimates that the state would generate $80 million in annual revenue, the spirit of bipartisanship is in short supply in the state House right now.   

The 134-seat chamber has been deadlocked for weeks at 67-67 after the November election left the House evenly split for the first time in decades. 

The impasse may not be resolved until a special election can be held, which may not take place until March. Until then, the prospects of any legislation moving forward are slim. 

If that stalemate can be unpicked, there are hopes that Minnesota might join the list of states where sports betting has been legalized.

Much of that optimism comes from events in 2024, when the push for legalization made some late headway before running out of time at the end of the legislative session.

At that time, Rep. Zack Stephenson said: “We proved that we could find a deal that all the major stakeholders could live with. Tribes, tracks, charities… that’s meaningful progress that can be a foundation for the future.”

This could mean that legal online wagering on sports, esports and DFS comes to Minnesota in 2025.

However, opponents are reportedly concerned about problem gambling. States that have legalized mobile betting have seen bankruptcies increase 25-30%.