Will Minnesota become the 40th state to legalize sports betting?

Posted: January 3, 2025, 08:20 pm.

Last updated: January 3, 2025, 08:20 pm.

Chances are good that Minnesota will join 39 other states and Washington, DC in passing legislation authorizing gambling in sports in 2025.

The Minnesota Legislature convenes for its 2025 session on January 14. State Senator Matt Klein (DFL-Dakota County), who supported the upper chamber's sports betting bill last year, stalled in May due to the state senator's arrest and partisan politics. There are plans to file new legislation to bring legal sports betting to Minnesota.

I always argue that people are already doing this in illegal and unregulated markets, usually offshore markets,” Klein said. minnesota news network“It's only going to increase. If we want a responsible and safe and taxable sports betting process in Minnesota, we need to pass a bill.

Opponents remain, primarily those who think that sports gambling will result in gambling addiction and the social problems that come with such a disorder. Klein says his measure would include additional responsible gaming safeguards compared to his 2024 bill.

“There are people who are really concerned about gambling addiction, family bankruptcy and ruin,” Klein said. “I have put some real safeguards into the bill to try and answer those concerns. If we pass the bill as I have introduced it, it will be the safest sports betting bill in the country.

2024 effort

Lawmakers in the St. Paul Capitol nearly found common ground last year on bringing legal sports betting to the Gopher State. State senators and House representatives reached agreement on Klein's Senate File 1949 and its House counterpart, House File 2000.

Language suggested that tribal nations that hold Class III gaming compacts with the state would receive special privileges for retail and online sports betting. While tribes would have retained their individual sports gambling income, they would have shared 22% of their online sportsbook revenues with the state.

Of the state's tax income from online sports betting, 45% of the money was to be directed to the general fund, 15% to Minnesota's two horse racetracks, 10% to problem gambling programs, 10% to funding major sporting events in the state. , and 5% to support youth sports. The remaining 15% will go to a “Tribal Equalization Fund”, which will benefit smaller tribes whose partnered online third-party sportsbooks have generated less revenue than the larger, wealthier tribes that partner with the industry's major leaders – FanDuel and DraftKings. Can do partnership.

minnesota market

There are no commercial casinos in Minnesota, but commercial sportsbooks have relationships with Native American tribes in several states, including Arizona, Michigan, Washington and Wisconsin. Minnesota is attractive with approximately 5.8 million residents, many of whom are passionate about sports as the state is home to franchises in all five professional sports leagues – NFL, MLB, NBA, NHL, and MLS.

U.S. Bank Stadium, home of the Minnesota Vikings, hosted Super Bowl LII in February 2018 and the NCAA Final Four in April 2019.

The Minnesota Legislative Budget Office estimates that legal online sports betting could generate approximately $90 million annually in state tax revenues.