As Minnesota legislators push for legalizing sports betting, the state’s 11 tribes are pushing back—but with fewer objections than before. State Senator Roger Chamberlain said the tribes want to collectively split revenue over just two or three online sports wagering platforms, and they want exclusive rights to mobile sports betting.
However, Chamberlain said since some of the smaller tribes aren’t interested in sports betting, his Senate File 574 will include a total of four to six mobile licenses, with two for Minnesota horse racetracks. “We can’t just operate on two mobile licenses and give them just to the tribes. From my conversation with sportsbooks and those representing books, that doesn’t work. The odds probably won’t be good, and I don’t think they’ll end up making the money for it to be viable. More licenses get people interested in the market. If not, they’ll continue betting in Iowa and Wisconsin,” Chamberlain said.
He added, “We have to make the market competitive and open while still protecting the interests of the tribes. No one wants to destroy their business model. I’ve been told they made an internal deal and want to get something done this year. So we all want sports wagering and now just have to come up with some agreement. I believe we can get to an agreement and bring it across the finish line.”
Andy Platto, executive director of the Minnesota Indian Gaming Association, said the tribes are ready to work with legislators on sports betting. He said, “The Minnesota Indian Gaming Association and its 10-member tribal nations support state efforts to authorize sports wagering both at tribal gaming properties and through online/mobile platforms and believe tribes are best positioned to offer this new market to the state’s consumers. As gaming experts, tribes stand ready to share this expertise with lawmakers considering the future of sports betting in Minnesota.”
Two years ago, Chamberlain proposed offering a mobile license to each tribe and racetrack, for a total of 13 licenses. He said, “That was my original idea and I think that’s still a good idea. Tribes don’t want 11 licenses. They want only a couple and to share the revenue. That’s their position from what I understand.”
In the House, state Rep. Zack Stephenson introduced a sports wagering bill to allow wagering on college and professional sporting events at tribal casinos or online; it would not allow sportsbooks at Minnesota racetracks or in stadiums.
Stephenson said the bill will be heard in the House Commerce Committee, which he chairs. Stephenson said in the past several months he’s met with leaders of all 11 of Minnesota’s Ojibwe and Dakota bands to develop a “Minnesota-specific model that works with the dynamic that we have here in Minnesota, that’s designed for Minnesotans.”
The House measure calls for a 10 percent tax on net profits from mobile wagers; bets placed at tribal sportsbooks would not be taxed. Stephenson and state Rep. Pat Garofalo estimated the state would receive $20 million a year, with 40 percent directed toward problem gambling services, 40 percent to youth sports, particularly in areas with high juvenile crime, and 20 percent to regulatory oversight and ensuring athletic integrity.
Garofalo said the House bill would transition Minnesota “from the black market of unregulated activity to a regulated market with consumer transparency, consumer protections, as well as defunding organized crime and money laundering.”
In response to the House bill, Chamberlain said, “The House offer in its current form will not give the consumer a good product. We need to expand the options for consumers to have the best possible experience. We’ll have two opposing pieces, and we’ll find out what we can live with and what we can’t. Hopefully we can find a compromise in conference committee.”
Both the Senate and House bills must pass in their respective committees by March 25, although lawmakers can revive a bill that doesn’t pass. A spokesman for Governor Tim Walz said he will sign a sports betting bill into law if it passes the legislature.
