In an effort to get sports betting passed in Minnesota, some lawmakers are planning an amendment that would allow the horse racing industry to share in the profits.
As it stands right now, the Native American tribes in Minnesota have the exclusive rights to licenses needed to operate both retail and mobile betting.
That was a huge step just to get sports betting to be considered by the legislature. Now that they have the support of the tribes, the state’s five professional sports teams and key lawmakers, it looked like wagering on sports might become a reality.
But some members of the Legislature wanted horse racing tracks to be included. While there was resistance in letting the tracks have a sports betting license, one compromise might be able to get the current legislation passed.
Senate bill sponsor Sen. Matt Klein presented a Horse Racing Economic Development Fund that would earmark 30 percent of revenue from taxes on sports betting would go to the tracks. The state would put an initial $20 million in the fund.
“We have worked hard throughout the session to try to garner (their) support and honor the fact that those are destinations in Minnesota,” Klein told the Duluth News Tribune.
Representatives from the horse racing tracks have given tepid support. Running Aces Casino, Hotel and Racetrack president and chief executive Taro Ito told Axios that the company “remains committed to finding a sports betting solution that is fair and works for the state’s two racetracks and the Native American casinos.”
Klein said this is “our best effort to try to make this work,” but said he isn’t sure if he has the votes needed for it to pass.
With about three weeks remaining in the 2023 legislative session, there are still doubts that it can get passed before the session ends.
Minnesota residents aren’t waiting for the Legislature. They have been fleeing over the border to Iowa to make wagers. A good number, however, are trying to access Iowa mobile sportsbooks from their state and seeing their efforts blocked.
It was estimated that nearly one million out-of-state bets were attempted to be placed during the NFL season and the NCAA Men’s basketball tournament. The geolocation company GeoComply monitored wagers in the North Star State.
