Minnesotans could bet on sporting events online, at casinos and horse racing tracks under a new proposal that would bring the state in line with its neighbors.
A bipartisan state Senate proposal would allow in-person sports betting at tribal casinos and racetracks, and online gaming through vendors that the tribes oversee. If signed into law, it could go into effect in fall 2023, marking one of the largest expansions of for-profit gambling in state history.
"This is something that people in Minnesota want to see happen — that they're, quite frankly, traveling across the border to make happen," said Sen. Julia Coleman, R-Waconia. "This is a win-win scenario for the people of Minnesota and for the state of Minnesota."
Pressure is building on Minnesota as legalization spreads across the country. But there is also opposition grounded in concerns including addiction, religious views and consumer protection, said Jake Grassel of Citizens Against Gambling Expansion (CAGE). A key concern is the proliferation of online gambling, which allows users to place bets anytime, anywhere.
"We fully anticipate, as in years past, that it will have vigorous opposition," Grassel said.
Federal law largely prohibited commercial sports betting until 2018, when the U.S. Supreme Court ruled the ban unconstitutional. Sports betting is now legal in 33 states and Washington, D.C.
It's a lucrative market: Last year, Americans set a commercial sports betting record of more than $57 billion, according to the American Gaming Association (AGA), an industry advocacy group. States get some of that money through taxes.
Details of the Senate proposal are still being finalized, but the plan would allow the state to tax revenue from online gaming. The proposal would direct tax revenue into the state's general fund, and set aside money to address problem gambling.
"There's a lot of places people want this money to go," said Sen. Roger Chamberlain, R-Lino Lakes, who sponsored a sports betting bill last session. "I've been saying from the first day, this is not a big cash cow — this is about consumers and customers and having some fun."
In Iowa, a popular sports betting destination for Minnesotans, wagers totaled $2 billion last year, according to the AGA. Iowa collects a 6.75% tax on sports betting revenue.
"We just came off a very exciting weekend, right? Millions of dollars was sports wagered throughout this state, but it was done having to go to Iowa, and that needs to stop," said Sen. Karla Bigham, DFL-Cottage Grove, who sponsored another sports betting bill last session.
State Rep. Zack Stephenson, DFL-Coon Rapids, is also expected to introduce a sports betting bill this session.
Opposition to legalizing sports betting has come in part from Minnesota tribes that have gaming compacts with the state. Minnesota has 22 compacts with all 11 of the state's federally recognized tribes.
"This obviously has to be bipartisan, and the tribes need to be involved," Bigham said. "And it is important that their voice is honored and heard, and that is the intent, I believe, of how we are going to move forward."
It's unclear what role, if any, the tribes have had in crafting the current proposal. In a statement Wednesday, Minnesota Indian Gaming Association Executive Director Andy Platto said tribal governments "have been examining the various ways sports betting has been implemented across the country and its impacts on tribal communities."
"As gaming experts, tribes stand ready to share this expertise with lawmakers considering the future of sports betting in Minnesota," he said.
Implementing the Senate proposal would likely require an additional tribal compact in order for betting to take place on tribal land, Chamberlain said — though he added that the state could legalize sports betting without buy-in from the tribes.
"I want to protect their interests — we're going to negotiate with them," he said. "But I've said this more than once: In the reality of things, we do not need the tribes to do this."
