Minnesota House of Representatives Taking Up Sports Betting Bill After Early Session Strife

• A coalition of Minnesota House of Representatives members have introduced a sports betting bill
• The legislation is a companion piece to a Senate bill that stalled out earlier this year
• The bill legalizes online and retail sports betting, allowing full tribal control

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Minnesota’s sports betting demise, it seems, may have been reported prematurely.

A coalition of nine Minnesota House of Representatives Democratic-Farmers-League (DFL) members recently introduced HF 1842, a bill to legalize online and retail sports betting in the state. The legislation is a companion piece to Sen. Matt Klein’s (DFL-53) bill, SF 757, which stalled out in Senate committee earlier this year.

However, with the Minnesota House of Representatives recently returning to a 67-67 tie between Republicans and DFLs, a pathway forward for sports betting may now be a reality.

House Bill Mirrors a Defeated Senate Bill

The new House bill mirrors Klein’s legislation, which failed to be moved out of the Senate State and Local Government committee last month.

The legislation officially gives control over Minnesota sports betting to the state’s 11 tribes, a point of contention in years past. However, it provides numerous concessions for state racetracks and charitable gaming organizations, and is supported by both groups.

The following tribes will be eligible to offer retail and/or 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

In exchange for providing the tribes control over sports betting, each organization licensed to conduct lawful charitable gambling in the state will qualify for tax relief payments. Payments will be mad on a “pro rata basis according to the organization’s combined net receipts.”

The bill will also establish a new racing economic development account, providing payments to the state horse tracks. The first $12.5 million in revenue will be earmarked as follows:

• 40% to a licensed racetrack that primarily conducts standardbred horse racing
• 60% to a licensed racetrack that primarily conducts thoroughbred and quarter horse racing

Any amount exceeding $12.5 million in the fund will be distributed as follows:

• 28% to a licensed racetrack that conducts standardbred horse racing
• 72% to a licensed racetrack that primarily conducts thoroughbred and quarter horse racing

The tribes, charitable organizations, and Canterbury Park, one of the two state racetracks, supports the legislation. It’s the first time in the state’s sports betting history that the three separate factions have all been in favor of one particular bill.

The bill includes a 22% sports betting tax rate and sets the legal age to participate at 21.

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Is the Time Right for Sports Betting?

Earlier this week, the Minnesota DFLs won a special election and restored a 67-67 representative tie in the House of Representatives.

House Majority Leader Rep. Harry Niska (R-31A) expressed his optimism that the rest of the session will be much smoother than the start. The session ends on May 19.

“Everybody has always known since the election, even before the election, that regardless of the outcome … there’s a Democrat governor, there’s a Democrat majority in the Senate. Republicans are going to have to work with Democrats in order to get the work done that we need to get done for the people of Minnesota,” Niska said.

However, House caucus leader Melissa Hortman (DFL-34B) said this week that bills must have bipartisan support to be brought up for a committee hearing. It’s unknown of HF 1842 has enough Republican support to be brought up for a hearing.

Bills will have to receive 68 votes to be approved in the House, so bipartisan support will be necessary for legislation to be moved over to the Senate.