New Sports Betting Bill Introduced into Minnesota Senate

The Land of 10,000 Lakes is going to take another crack at legalizing mobile sports betting.

Minnesota Senators Nick Frentz and Matt Klein have introduced bill SB 3414 into the legislative body. The bill would allow residents aged 21 and older to wager on sports and legalize daily fantasy sports. These two industries would both be tied to the state’s federally recognized tribes.

If passed, SB 3414 would set the Minnesota Gambling Control Board (MGCB) as the industry regulator. The MGCB can issue up to 11 mobile licenses, each good for 20 years. All operators would be taxed at a rate of 22%.

The bill would create strict rules around how sportsbooks are allowed to advertise. Operators would not be allowed to use terms like “free bets” or offer any form of personalized promotions. This is meant to help protect bettors and curb the expected spike in problem gambling.

SB 3414 would send the bulk of tax revenue from sports betting to the gaming commissioner for tax relief payments. Unlike many other states, none of these funds would be used to support Minnesota’s education system.

A similar measure is being considered in the House, but both have many hurdles ahead.

Tribal Control Remains Controversial

While support for sports betting and DFS remains strong among Minnesota residents, past bills to legalize the industry have not gained much momentum. That is primarily due to a debate over who should have the right to apply for operator licenses.

SB 3414 proposes that the state’s tribes should be the only groups allowed to acquire these licenses. However, several commercial operators and horse tracks are fighting hard to be included. They have banded together to kill any bills attempting to cut them out of the sports betting industry, and this proposal won’t be an exception.

Until the state can find a compromise, it's unlikely any sports betting legislation will make much headway.