Minnesota sports betting act proposed for upcoming legislative session

SAINT PAUL, Minn. (KTTC) – Minnesota State Senator Jeremy Miller (R-Winona) has announced an updated sports betting bill ahead of the 2024 legislative session.

The Minnesota Sports Betting Act 2.0 builds on previous legislative efforts, including Miller’s Minnesota Sports Betting Act proposal last year, to legalize sports betting in Minnesota in 2024.

“Minnesota continues to miss out on what is now a $100 billion industry,” Senator Miller said. He went on to say the bill is an attempt to “bring folks together to work toward a bipartisan solution to legalize sports betting in Minnesota...So far, 38 other states, plus Puerto Rico and Washington, DC, have already legalized sports betting.”

Thirty-eight states have legalized sports gambling since 2018 when the Supreme Court struck down a federal law that attempted to ban most states from sports gambling. Sen. Miller says Minnesota is the only state in our region that does not currently support sports betting.

The proposed bill would include licensing opportunities for Minnesota’s 11 tribal nations to offer retail and mobile sports betting. License holders would also have the option to operate retail betting on the premises of horse racing tracks or professional sports stadiums in Minnesota.

The bill also proposed a 15% tax rate on sports betting revenue, which is broadly in line with the national average. The tax proceeds are suggested to provide charitable gaming tax relief for local charities, attract major sporting events to the state, boost horse racing, provide problem gambling resources, support youth sports, and facilitate athlete education programs.

The bill also aims to restore some of the charitable gaming options that were eliminated by the 2023 tax bill, including free plays and bonus games on electronic pull-tabs. “Changes made to electronic pull-tabs last session raised significant concerns from charities across the state,” Senator Miller added. “Restoring some of the functions that were eliminated in last year’s omnibus tax bill would address some of their concerns.”

The bill has garnered a substantial amount of support among MN lawmakers including Rep. Pat Garofalo, and Rep. Zack Stephenson. Garofalo was a big proponent for betting in Minnesota and worked alongside Stephenson to build a bipartisan coalition that has pushed for legislation for several years.

However, Garofalo informed his caucus on Jan. 16 that he will not be running for reelection. His departure from the House could hurt Sen. Miller’s efforts in passing his bill.

The most recent proposal, which fell short of approval in 2023, would have allowed sports betting in the state’s tribal casinos and mobile Minnesota sports betting apps. Stephenson attempted to introduce companion bills in 2023, claiming that $2 billion a year was leaving the state in black market wagering. Stephenson’s bills, which were supported by The Minnesota Indian Gaming Association and Garofalo, was not passed by MN lawmakers before the year’s session adjourned on May 23, 2023.

Americans are now gambling on sports in massive numbers. In 2023, legal sports wagering revenue surpassed $100 billion.

With Minnesota being the only upper Midwest state without legalized sports gambling, Minnesotans must cross state lines to bet on games or find illegal workarounds with online vendors to currently place bets.

The bill will be introduced on February 12, 2024 – the first day of the 2024 legislative session.