Minnesota Sports Betting Bill Gains Editorial Support

The tribes and now the charities seem to have come onboard in support of the sports betting legislation in Minnesota. So has the Star Tribune, and maybe the racetracks. Could the state finally get its ducks all in a row?

Minnesota Sports Betting Bill Gains Editorial Support

The quest to approve sports betting in Minnesota has picked up media support.

CBS News Minnesota told listeners that HF 2000 and SF 1949 had support from most of the stakeholders, including the state’s tribes and Allied Charities Minnesota. The charities group receives some $40 million a year from pull tab games, which were on the chopping block last year, a factor in the lack of support from the organization. Backing from the charities depends in large measure on retaining the pull tabs or providing an alternative source of income.

”Well, I think momentum is building, I think we have a great chance,” Rep. Zack Stephenson, HF 2000’s primary sponsor, told CBS. “It’s a difficult bill because gambling bills by their nature have to be bipartisan. There are Democrats and Republicans who will never vote for it.”

The Star Tribune’s editorial board also threw its weight behind the push, recently writing an opinion piece in support of legal sports betting. Under the current makeup of the proposed law, the 11 tribes each receive a license for retail and online sports wagering.

The fate of the racetracks remains undecided, although a portion of the tax revenue generated would be earmarked for the tracks. In the end, will that be enough to keep the bill afloat? The legislative session ends May 20.

SF 1949 prohibits in-game betting, which operators aren’t too happy about, according to Sports Handle.

The bill also taxes betting at 20 percent of net revenue. The tax revenue funds a variety of causes, including problem gaming and 5 percent to the tracks. SF 1949 next heads to the Senate Finance Committee.

HF 2000 will go before the House State and Local Government Finance and Policy Committee. Under the bill, the 11 tribes could each receive one license to offer retail sports betting and one online betting license. Tax would be 10 percent of net revenue.

The Star Tribune editorial board referred to opposition as both noble and naïve.

“We didn’t allow a state lottery, until we did, or electronic pull tabs, until we did, or parimutuel betting on horses, until we did,” the board wrote. “We didn’t allow casinos until our state’s tribes took the initiative.

“Now it appears torn about whether to join the growing majority of states that permit commercial gambling on sports. Reluctant or not, Minnesota’s leaders should acknowledge that it is time to join the club and approve sports betting during this legislative session.

“In our view, the reluctance suggests that Minnesotans are wise to the dangers that come with a further expansion of gambling in our state.”

The sports betting infrastructure has to develop to minimize the dangers, especially to those vulnerable to gambling addiction, the board argued.

“Can our state avert the kind of personal catastrophe that has engulfed Ippei Mizuhara, interpreter for the L.A. Dodgers star Shohei Otani? It’s worth noting that sports betting is still illegal in California. The example may be extreme, involving the apparent theft of millions of dollars to cover Mizuhara’s gambling debts, but the case is unique only in scale. Theft, fraud, embezzlement, lying to conceal one’s losses—all of these are the kinds of consequences that routinely damage families due to gambling addiction.”

The editorial board opposed an amendment from Senator Jordan Rasmussen that would stop bets once the game begins. The media giant stands to realize some of the benefits of sports gambling. Media organizations have generated revenue through relationships with companies that deal with sports betting.

“It is not the job of the Star Tribune Editorial Board to advance the company’s business objectives. Nor should we oppose an initiative merely because our employer favors it. We think commercial sports betting offers benefits as well as risks. We look to our state government to manage the risks and allow Minnesotans to enjoy the benefits.”

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