Iowa Sports Betting Alarms Minnesota Lawmakers

Iowa recently launched sports betting, sending some Minnesota legislators into a panic. State Senator Roger Chamberlain, whose sports betting bill stalled in committee, said he'll try again next session. State Rep. Pat Garofalo (l.), has bewailed “a steady stream” of Minnesotans heading to Iowa to bet on sports.

Iowa Sports Betting Alarms Minnesota Lawmakers

With sports betting recently legalized in Iowa, Minnesotans simply can drive a few miles over the state line to place their bets. But now state Senator Roger Chamberlain said he’ll meet with colleagues and sports betting supporters to plan a strategy for the next legislative session.

In the last session, Chamberlain sponsored a measure that would have allowed sports wagering at tribal casinos and the state’s two horseracing tracks, as well as mobile sports betting. Chamberlain, chairman of the Senate Tax Committee, estimated sports betting could generate more than $2 billion a year. His bill would have taxed sports wagering net revenue at 6.75 percent. But it stalled in committee. “Iowa is doing it, for God’s sake. That should be embarrassment enough for us to start doing it up here,” he said.

State Rep. Pat Garofalo, sponsor of the House sports betting bill, added, “As we see a steady stream of vehicles driving down Interstate 35, and we see more Minnesotans going to Iowa spending their hospitality and tourism dollars, it’s natural that Minnesotans would be more interested in trying to duplicate or replicate the regulatory structure in Iowa here in our state with regards to sports gambling.”

Sports betting is opposed by the Minnesota Indian Gaming Association. In a letter to Governor Tim Walz and state legislators earlier this year, Chairman Charles Vig wrote the association “continues to oppose the expansion of off-reservation gambling, including the legalization of sports betting.” Tribes view sports wagering as a threat to their casinos’ business.

Other opponents include groups like the Joint Religious Legislative Coalition. Executive Director Anne Krisnik said expanded gaming would increase unemployment and create additional pressure on the criminal justice system. She said lawmakers should not be concerned about Iowa. “We really believe that Minnesota should be looking on its own merits—is this a good thing for the state or not—and not look at what other states are doing. We can certainly look to other states to get some assessment of how changes have impacted them. But we believe that legislators should be looking at what’s best for Minnesotans.”