Minnesota Sports Betting Legalization Debate Heats Up In House Committee
· 2024-04-03

Minnesota Sports Betting Legalization Debate Heats Up In House Committee

The Minnesota House Commerce and Policy Committee met Wednesday and held a roughly 35-minute discussion on HF 2000, which would legalize online sports betting in Minnesota. There was no vote Wednesday, and the bill is awaiting a vote in the House Taxes Committee.

The bill, which legalizes both sports betting and daily fantasy sports sites, would allow the state’s 11 tribes to offer both retail and online sports wagering. The bill would bring up to 11 betting apps to Minnesota.

Sports betting revenue would be taxed at 10% of net revenue, and betting revenue would benefit several measures, including responsible gambling funding.

Wednesday’s discussion was led by Zack Stephenson, the bill sponsor and chairman of the House Commerce and Policy Committee.

There were debates Wednesday about including historical horse racing in the bill, but Stephenson was adamant the bill won’t include the legalization of HHR machines.

“There is no universe in which any bill that leaves this committee is going to authorize historical horse racing at the tracks,” Stephenson said. “That’s a total non-starter.”

Rep. Anne Brindley pushed back against Stephenson’s assertion that HHR should be banned, and suggested the state’s horse racing tracks aren’t being adequately included in the bill.

She also argued that the sports betting model, as proposed, might only benefit a couple of tribes, rather than all 11, depending on which tribes partner with that major operators that dominate other markets. She brought up the idea of profit sharing between the tribes.

“Have you considered that (profit sharing) as a way to ensure some equity and fairness among the tribes to ensure that they’re not left out by not having one of those couple vendors?” Brindley asked.

Stephenson didn’t entertain that idea and said that the tribes are sovereign nations and that he wouldn’t want to control their spending.

“I am tickled to hear a Republican concerned about income disparity,” Stephenson shot back.

The back-and-forth between Stephenson and Brindley was contentious.

Debates about how to balance tribal and horse track control over sports betting have caused major holdups in the past. Working through those discussions is critical to the state’s possible legalization of sports wagering.

Minnesota’s legislative session lasts through May 20, giving legislators more than a month to come to terms on the best path forward for sports betting.

There’s also a bill, SF 1949, working its way through the Senate that would legalize sports betting in Minnesota.

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