- Minnesota will again discuss legalized sports betting when the 2025 legislative session begins in January
- Last year, the state came very close to passing a bill to legalize retail and online sports betting
- Does a deal still remain between tribes, racetracks, and charities?
The sun always rises in the east, the swallows always come back to San Juan Capistrano in the spring, and hope always springs eternal for legalized Minnesota sports betting during each legislative session.
The North Star State came as close as it ever has in 2024 to passing a bill to legalize online and retail sports betting, with state tribes, racetracks, and charities coming to a deal for the first time in history as to the best way to distribute tax revenues amongst the three parties.
Despite the historic agreement, legislators simply ran out of time and the bill died on the very last day of the 2024 session. However, with inroads already made between the three parties, is 2025 the year something finally gets done in Minnesota?
Reasons for Sports Betting Optimism
For years, the main roadblock to legalized Minnesota sports betting was a fundamental disagreement between Minnesota tribes, Minnesota racetracks, and Minnesota charitable gaming organization as to the proper way to distribute sports betting revenues.
Tribes wanted full control of sports betting, the tracks wanted to be cut into the action, and the charitable gaming organizations were hoping for something in return, such as tax breaks, if the new form of gaming was legalized.
An agreement could not be reached for years, until Rep. Zack Stephenson (DFL-35A) announced late last session that a deal between the tribes, tracks, and charities was agreed upon to institute sports betting. No details were provided on the agreement, but it was confirmed that something had been worked out and a bill was being moved forward.
However, the agreement came at the tail end of the session, and despite fevered work on the last day of the session to broker a deal, it eventually fell flat.
Despite the shortcomings, a deal between the tribes, tracks, and charities still seems to be in place as legislators prepare for the Jan. 14, 2025 start date.
Peter Callaghan, a staff writer for the Minnesota Post, reported on Tuesday, Nov. 5, that Taro Ito, President and CEO of Running Aces, one of the largest horse tracks in Minnesota, sent a letter to the Minnesota Indian Gaming Association pledging to work through any differences to get a sports betting deal on the table for state legislators.
“Running Aces understands the importance of tribal gaming in Minnesota and the economic support that it provides to each of the sovereign tribal nations in this state. We also believe that racetracks, tribal casinos and charitable gaming all provide important and distinct benefits to the communities we each serve and broad benefits to all Minnesotans. Minnesota has demonstrated that all three types of gaming can be successful. We believe it is possible to work through any disagreements and arrive at successful compromises,” Ito wrote.
Legislators Ready to Work
The issue is still fresh in the minds of several state legislators. Sen. Jeremy Miller (R-26) has already pledged on social media to continue to work towards a sports betting deal. Miller has introduced several pieces of sports betting legislator, including last year’s “Minnesota Sports Betting Act 2.0” bill. The bill called for retail and online sports betting licensing opportunities to Minnesota’s 11 tribal nations, but also allowed state racetracks and/or professional sports stadiums to operate retail sports betting on their premises.
It would have set the state’s tax rate at 15% on sports betting revenue and provided for charitable gaming tax relief for local charities.
Miller recently took to social media to pledge that he’ll be working towards passing a bill this year.
“There’s one thing that’s certain, it is time to pass a sports betting bill here in Minnesota. Of course the primary focus for the 2025 legislative session will be the budget, but I remain committed to working together to get a sports betting bill passed here in Minnesota as quickly as possible. We made tremendous progress last year, we almost got there, but we didn’t quite get across the finish line,” he said.
Still Disagreements in Several Key Areas
Despite the progress towards legalization, Minnesota lawmakers still need to come to agreements on several key sports betting issues. During last year’s session, several bill were proposed with wildly different frameworks for sports betting in the state.
At one point, Minnesota politicians were considering an outright ban on in-game sports betting, which would have been the first of its kind of any state with legalized sports betting. The prohibition came as an amendment, proposed by Sen. Jordan Rasmusson (R-9), to an already existing sports betting bill.
Rasmusson explained the changes to the bill would allow regulators to take a “product safety approach” and add common sense tools to “mitigate some of the harms that can come from problem gaming.”
“Problem gambling experts have identified in-game betting as some of the most problematic for problem gamblers because it can take a single sports event and turn it into hundreds of betting opportunities for consumers. It can lead to loss chasing and other concerning factors,” he said.
The amendment also included a requirement for sports betting users to set a limit on how much they could deposit or lose from an account in a single day. Users would be able to opt out of this requirement, Klein said.
The amendment was supported by several in the legislature and could find its way back into discussion during the upcoming session.
Additionally, overall sports betting tax rates, how revenues will be distributed in the state, and a potential ban on college sports betting are likely tripping points for state lawmakers during the process this year.
As of now, legalized sports betting in Minnesota is not a reality, but there is growing momentum and speculation that it could become a possibility by 2025. Several factors are contributing to this potential shift in the state’s stance on sports betting.
One of the main reasons for the optimism surrounding legalized sports betting in Minnesota is the success of neighboring states that have already implemented it. Iowa, for example, has seen a significant increase in revenue since legalizing sports betting in 2019. This success has caught the attention of lawmakers in Minnesota who see the potential economic benefits that legalized sports betting could bring to the state.
Additionally, the COVID-19 pandemic has put a strain on state budgets across the country, making the potential tax revenue from legalized sports betting even more appealing to lawmakers. With many states facing budget shortfalls, legalizing sports betting could be a way to generate much-needed revenue without raising taxes.
Another factor that could influence the legalization of sports betting in Minnesota is the changing attitudes towards gambling in general. As more states legalize sports betting and online gambling, the stigma surrounding these activities is starting to fade. This shift in public perception could make it easier for lawmakers in Minnesota to pass legislation legalizing sports betting.
However, there are still obstacles that stand in the way of legalized sports betting in Minnesota. One of the main concerns is opposition from tribal casinos, which have a monopoly on gambling in the state. Any legislation legalizing sports betting would need to address the concerns of tribal casinos and ensure that they are not negatively impacted by the new regulations.
Overall, while legalized sports betting in Minnesota is not guaranteed by 2025, there is reason to be optimistic about its potential. With neighboring states seeing success and the potential economic benefits for the state, it is possible that we could see legalized sports betting in Minnesota within the next few years. It will ultimately depend on how lawmakers navigate the various obstacles and concerns surrounding this issue.
