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Optimism about sports betting odds in Minnesota is rising

Could this actually be the year that Minnesota lawmakers get sports betting over the finish line? A leading lawmaker believes the chances of passage are increasing.

Minnesota House Speaker Melissa Hortman (DFL-34B) shared some positive news with reporters about the state's sports betting prospects this legislative session.

It's an interesting twist, one hopes Sports betting in Minnesota was as good as dead at the end of April.

Sports betting momentum in Minnesota is increasing

According to Axios reporter Torey Van Oot on X, Hortman met with reporters Thursday and discussed the chances of sports betting being legalized this session. Hortman said negotiations have gone well and there is a 60-40 chance of a bill being passed.

Discussions went well, she said, bolstering optimism that a sports betting bill could be approved before the state's final day of session on May 20.

Historic horse racing, a form of electronic gambling that state racetracks have been pushing for in recent weeks, will not be part of any potential bill, she said.

It's welcome but surprising news from the leader of the House of Representatives. Several House members expressed doubts at a recent Tax Committee meeting that a sports betting bill would have a chance of winning approval in the Senate.

The Minnesota House of Representatives Taxation Committee approved Rep. Zack Stephenson's (DFL-Coon Rapids) sports betting bill HF 2000 by a vote of 12-9 and referred the bill back to the House Ways and Means Committee on April 30. After the approval, the Members doubted the bill would go beyond the House of Representatives.

“It may pass the House, but it won’t pass the Senate,” Rep. Greg Davids (R-26B) said at the meeting.

Despite the negativity, Hortman's public comments should provide cause for optimism. Minnesota has been debating sports betting for several years and the fact that the lines of communication are still open.

Details about HF 2000 sports betting

Stephenson's bill grants the following 11 state tribes exclusive control over retail and online sports betting:

  • Bois Forte Band of Chippewa
  • Fond du Lac Band of Lake Superior Chippewa
  • Grand Portage Band of Chippewa
  • Leech Lake Band of Ojibwe
  • Lower Sioux Indian Community
  • Mille Lacs Band of Ojibwe
  • Prairie Island Indian Community
  • Red Lake Nation
  • Shakopee Mdewakanton Sioux Community
  • Upper Sioux Community
  • White Earth Nation

Minnesota professional sports franchises also support the bill.

Additionally, Historic Horse Racing Machines (HHR) are specifically prohibited on Minnesota state race tracks. Earlier this month, the Minnesota Racing Commission voted to allow 500 HHR machines at the state's two tracks, Canterbury Park and Running Aces.

Stephenson has also proposed a standalone bill, HF 5274, that would formally ban HHR in the state.

The Minnesota Senate is debating its own sports betting bills

There are currently two additional bills related to sports betting in the Senate. Senator Matt Klein's (DFL-53) SF 1949 sports betting bill provides tribes with sports betting exclusivity similar to Stephenson's bill, but includes a complete ban on in-game sports betting. No other state in the country has a ban on in-game sports betting.

Klein's bill calls for a sports betting tax rate of 20%.

Senator John Marty (DFL-40) also introduced his own sports betting bill, SF 5330, last month. Like other bills, they grant exclusivity to state tribes but allocate a majority of sports betting revenue to combat gambling problems in the state and require operators to tax at least 40% of gross sports betting revenue.

The bills distribute sports betting tax revenue as follows:

  • 50% of human services commission. Half of the proceeds will be used to fund compulsive gambling treatment programs and the other half will be used for a grant to the National Council of Problem Gambling-approved state affiliate to be used to increase public awareness and education about problem gambling to offer training
  • 25% to the Education Commission for grants for substance abuse prevention and mental health services in public schools and charter schools
  • 25% to the general fund

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