Minnesota state Rep. Pat Garofalo recently introduced a sports betting bill that would allow betting on professional and collegiate sports only at the state’s 19 gaming establishments operated by 11 federally recognized tribes. The measure also would establish a new 5-member Minnesota Sports Wagering Commission to draft rules and regulations for the tribal casinos. Garofalo said, “The primary benefits to Minnesotans from legalizing sports gambling is that you defund the criminal enterprises of the nation. You eliminate a revenue stream for potential money laundering.”
The measure would allow sports books at the casinos plus on-site mobile wagering. “Right now, the easiest way to get a law passed is to limit it to certain sites. And then we can address the issue of mobile and other platforms at some point in the future,” Garofalo said.
The legislation does not spell out the licensing fee, but states that handle would be taxed at 0.5 percent, which translates to about 10 percent of revenue assuming a typical hold of about 5 percent. If the measure passes, it would make Minnesota the first state to calculate sports betting tax on wagers instead of revenue.
Garofalo said he showed the bill to “multiple tribal entities” but added, “We’ve taken this as far as we can go privately.” However, recently Minnesota Indian Gaming Association Chairman Charles Vig wrote to Governor Tim Walz that tribal nations were not interested in offering sports betting. In fact, Vig wrote, tribes would oppose any sports betting legislation. He said tribe eventually may want to add sports betting but asked legislators not to rush into it.
