Minnesota lawmakers have moved forward with a new effort to approve sports betting. Democrats and Republicans in both chambers have found renewed interest, according to the Associated Press.
Republican Senator Roger Chamberlain, is leading the effort in the GOP-controlled Senate while Democratic Rep. Zack Stephenson, will introduce his own bill in the House.
“We are an island in the Midwest,” Chamberlain said at a news conference “The proposal here is good for the tribes, it’s good for the tracks and most importantly, it’s good for the consumers.”
The Senate bill would allow mobile betting and brick-and-mortar locations at tribal casinos and the state’s two racetracks, which would pay a licensing fee to the state. Tribal nations would control mobile licensing and issue sub-licenses to other online gaming vendors, who would be taxed by the state on each transaction outside of tribal lands.
Chamberlain said a bill will be ready within a week, and sports betting statewide would go live in the fall of 2023 if the bill is signed into law by Governor Tim Walz this year, he said.
A bill introduced last legislative session by Democratic Senator Karla Bigham, and Republican Rep. Pat Garofalo, would have allowed on-site sports wagering at tribal casinos for the first year, then mobile betting for those who sign up for an account at a casino. Revenue would have been taxed at 6 percent for on-site betting and 8 percent for mobile, with the proceeds going to the state’s general fund.
Stephenson said his bill is coming together after conversations with the state’s professional sports teams, the University of Minnesota, sports gaming companies and all 11 of Minnesota’s tribes. Past efforts were opposed by the Minnesota Indian Gaming Association, which represents tribes.
Stephenson’s bill would keep taxes on revenue generated from sports betting much lower than states like New York, which went live last month and taxes revenue at 51 percent. He said revenue would be taxed just enough to fund the state’s regulatory model to encourage bettors to stop using illicit underground operations and offshore websites.
Chair of the House Commerce Committee said he expects a hearing for the bill in his committee in March.
“We are an island in the Midwest and not the tropical kind,” Assistant Senate Majority Leader Roger Chamberlain, said. “This proposal is good for tribes, it’s good for tracks, and most importantly, it gives Minnesotans gaming options at brick-and-mortar locations and online vendors. It respects the tribal nations and provides a revenue stream to the state.”
The Minnesota Indian Gaming Association (MIGA), the state’s tribal casino lobbying group, has historically opposed efforts to legalize sports betting, but late last year signaled potential willingness to support a bill this year.
MIGA has not yet offered any specific comment on legal sports betting proposals since Stephenson announced his new push on the issue in November 2021.
“The tribal governments making up MIGA have been examining the various ways sports betting has been implemented across the country and its impacts on tribal communities,” MIGA Executive Director Andy Platto said in a statement.
Chamberlain said even though the tribes have not yet openly supported sports betting legislation, the new Senate proposal seeks to protect their interests.
Stephenson said he will hold a hearing on a bill in the commerce committee next month and that he’s been having “very positive” conversations with stakeholders, including the state’s 11 tribes.
