A sports betting bill took another step forward in Minnesota on Thursday, with bill HF 778 passing through the House Judiciary, Finance and Civil Law Committee with a 9-6 vote. The bill is sponsored by Rep. Zack Stephenson will now be headed to the Taxes Committee.
Sports Betting Would Happen Through the State Tribes
The bill would allow sports betting to take place through the state’s tribes, and it would ultimately create up to 11 mobile licenses. Rep. Stephenson knows that bettors across the state wager illegally through offshore sportsbooks or local bookies, which means the state will miss out on a ton of revenue.
During a virtual hearing, he stated;
“Let’s be clear from the onset that sports betting is already happening here in Minnesota,… We have a robust black market here with estimates over $2 billion in black market activity. People just use shady websites or digital workarounds and other means to place bets.”
The bill would provide customer safety as it is safe to put one’s information when signing up on reputable sportsbooks. It would also limit illegal activity like money laundering and ensure the integrity of the game.
He has stressed the idea of keeping the taxes low on these operators that want to conduct business in the state in the future to promote competition. He also wants to raise the age requirement for sports betting from 18 to 21. Many jurisdictions offer sports betting to their residents who are 21 and older.
What’s Next For Minnesota Sports Betting
Neighborhood Youth Academy’s Donnell Bratton and Stop Predatory Gambling’s Les Bernal expressed his concerns that revolve around the bill as he believes the bill could negatively affect the children across the state.
During a committee meeting last week, Electronic Gaming Group Executive Director Sam Krueger stated that he wants protections for the nearly $3 billion charitable gaming sector.
Kruger supports the inclusion of the sports betting industry as he wants it to include bingo, raffles, and electronic pull tabs through nonprofit entities. He also wants these gaming locations to be recognized under the expanding gaming bill.
Rep. Stephenson has worked hard to get to this point of gaining the tribe’s support. In the past, Minnesota tribes were against any type of bill that promoted the expansion of the gaming market. Minnesota Indian Gaming Association Executive Director Andy Platto is another important figure that supports the bill.
Under the bill, the tribes would keep all of the profits generated from their casinos and other gaming facilities. They would also receive five percent of the total amount from the wagers placed on a mobile platform.
The tribes would also be able to partner with sportsbook operators like DraftKings, FanDuel, and others that want to enter the state once the state establishes a legalized sports betting market.
This is the Best Opportunity Minnesota Has Had Up to this Point
Rep. Stephenson has announced his intentions of leading the charge to push for sports betting in the state since last fall and unveiled his plan earlier this month. A group of senators have announced an effort in February but hasn’t moved the needle as of yet.
There are still many challenges ahead, but progress was made. Minnesota has many professional teams that call the state home and a strong collegiate program known as the Gophers.
Many neighboring states that border Minnesota has been pushing for sports betting. South Dakota offers its residents retail sports betting, while sports wagering is illegal in North Dakota.
Wisconsin is also pushing for sports betting as the governor has been renegotiating tribal compacts.
Iowa has enjoyed success in the sports betting industry as the state no longer requires bettors to go to casinos to sign up to use mobile platforms. To the north of the Canadian border, Ontario is getting to launch its online sports betting market.