In the immediate aftermath of the last-minute failure of Minnesota lawmakers to cobble a deal together for sports betting, stakeholders seem to agree the analysis bodes well for next year.
The Indian Gaming Association (IGA) also acknowledged that potential success next year would be a learning experience for other states, especially California.
Optimists say the state seemingly has tribal nations, two horse racing tracks, charities, and professional sports teams in agreement on the issues.
“There’s no doubt that sports betting would be popular throughout the state,” IGA Executive Director Jason Giles said in a webinar, according to Covers. “And now you’re being surrounded by Wisconsin and everybody else. Minnesotans love their teams.”
A potential legal issue could derail the whole thing, said Victor Rocha, IGA conference chair. Running Aces, which operates a harness track, filed suit against executives of three tribal casinos who they say offer illegal card games in violation to state laws.
“Maybe the lawsuits were what they needed, but if you’re not going to drop them, this has the potential to go back into the toilet very fast,” Rocha told Covers. “I can’t imagine the tribes backing down. They are very powerful tribes. Very smart tribes and they’re not going to be taken advantage of.
“Whenever these kind of things can be done successfully it’s a lesson for anyone in this country. There are no hills that are insurmountable, no type of relationships, just negotiations. More importantly, making sure that the tribes aren’t sliding back.”
Another issue could be the tax rate, given the penchant for raising taxes in state legislatures. Rocha said he’s heard of 50 percent to 60 percent tax rates on sports betting in some jurisdictions, which could force certain operators out of those markets.
“I don’t know how it’s even workable at those kind of rates,” Rocha told Covers. “I think that more time is not a friend to the industry. I think a lot of people are reevaluating. That’s the reason for the big push.”
