Sports Betting is Still a Legal Battleground in Minnesota

Minnesota Sports Betting Battleground

Some states breezed through the sports betting legalization process shortly after the Supreme Court ruling in 2018. Then there are states that are seemingly in an endless circle of debate among government officials and stakeholders.

The Minnesota sports betting situation is the latter as the state is still sorting out how to move forward with passing a bill.

This is not the first time that Minnesota has attempted to legalize sports betting. In fact, lawmakers hoped to have legal sports betting in time for football season in 20181. Five years later, there is still a fight over sports betting in the state.

Will 2023 finally be the year that we see Minnesota online gambling and legal sports betting in the state? Let’s breakdown what went wrong in 2022 and where the battleground for legal sports betting in Minnesota currently stands.

Minnesota Sports Betting Fails to Launch In 2022

Minnesota Failed Sports Betting 2022

Last year, there was plenty of optimism in The Gopher State that sports betting would be legalized. Unfortunately, state leaders and vested parties are still trying to get this legal sports betting framework off the ground.

The Minnesota House of Representatives voted on a sports betting bill on May 12, 2022. The House gave the go-ahead with a vote in favor of 70-57. HF778 would have made it legal for citizens of Minnesota over 21 to bet on sports online through a Native American sportsbook2.

The House vote paved the way for legal Minnesota sports betting. However, the indigenous tribes were not ecstatic over the details of the bill.

According to the Minnesota Indian Gaming AssAccording to the Minnesota Indian Gaming Association, there are 11 federally recognized tribes in the state. They combine to own and operate 19 major casinos in Minnesota3.

As a result of their rights as a gambling entity in the state, the indigenous tribes wield considerable power.

With the tribes disinterested in the proposal last year, the Minnesota sports betting bill was not able to gain enough traction. Sports bettors were left frustrated following false hope as a result of the bill passing in the House.

Initially, the Tribe’s issues focused on exclusivity for licensing and whether racetracks should earn a cut from the net revenue. Unfortunately, the battles over these issues continue to plague this endeavor and could lead to another year without sports betting. 

Tribes Want Ultimate Authority Over Sports Betting in MN

The tribal casinos want to be the ultimate authority for sports betting in Minnesota. From what we gather, they want as little government intrusion as possible.

Furthermore, the tribes do not want to compete with commercial gambling operators that could be granted licenses. Most notably, racetracks in the state want to get in on the sports betting action.

The proposed legislation last year invited tribal casinos to create their own sportsbook or partner with a third-party operator4. Aligning with another online gambling operator is not going to work for the tribal casinos in Minnesota.

As the Executive Director of the Minnesota Indian Gaming Associated stated:

But to be clear, MIGA has consistently opposed the expansion of non-tribal commercial gaming and will continue to do so.”5

The message is loud and clear to the state: hand us the keys to legal sports betting in Minnesota and don’t allow outside influence. Keep other hands out of the cookie jar while allowing us to maintain our tribal sovereignty.

If this were to happen, all of the tribes in Minnesota will gladly sign off on a sports betting bill. Fortunately, there might be a solution on the horizon that would get approval from all 11 tribes in the state.

A potential Rep. Zack Stephenson-backed bill in 2023 may be the best hope to please the Minnesota Indian Gaming Association. However, there is also a competing bill being pushed by State Senator Jeremy Miller that is taking shape as well.

Exclusive Sports Betting Rights in Minnesota

Stephenson is making it clear to the tribal casinos that their needs are of utmost importance. Democrats, who have full control of the Legislature, indicated Native American tribes should be in charge of sports betting operations6.

State Rep. Stephenson asserts that “I think that our best bet for such a big expansion of gaming in Minnesota is to stick with our trusted partners. The tribes have been operating gaming in Minnesota for longer, more successfully, and at a more sophisticated level than any other entity. They’re the most regulated gaming operator in the state of Minnesota.”7

This statement must be well-received by the tribal gambling operators. Keep in mind, though, that Stephenson’s bill is going to be similar to what was introduced last year. One of the primary roadblocks of the bill in 2022 was racetracks being involved in sports betting.

Republicans, who controlled the Senate in Minnesota last year, did not want to exclude racetracks from being a part of sports betting. Specifically, the Senate wished to provide Running Aces and Canterbury Park with sports betting licenses8.

Stephenson’s most recent comments did not allude to the friction between the racetracks and tribal casinos, though. There is a chance that a sports betting bill in 2023 stalls again if this issue isn’t rectified.

Sen. Jeremy Miller’s Bill Includes Racetracks and Sports Teams

The Republican State Senator is not hiding from the fact that he believes Running Aces and Canterbury Park should be allowed to offer sports betting. Along with these two racetracks, Miller wants to grant on-site sports betting at sports team arenas.

Under Miller’s Minnesota Sports Betting Act, the 11 federally recognized Native American tribes will be able to offer sports betting in-person and the option for an online gambling license. There is also a provision that will allow the tribes to partner with a racetrack or sports team for mobile betting opportunities9.

It follows that taxes generated from sports betting would be applied evenly throughout the state. A 25% split between grants to support youth sports; tax relief and charities; mental health and problem gambling support; and major sporting events in the state.

Miller contends that a Minnesota sports betting bill has to include the racetracks or it will not get through the Senate. While the tribes want exclusivity over sports betting in Minnesota, Miller holds that it is not a realistic option.

In this sense, the proposal from the state regarding racetracks has not wavered much from what they introduced last year.

Will The State or Tribes Soften Their Stance?

Something has to give between the tribes, racetracks, and government. For a sports betting bill to pass in Minnesota, the state or tribes will have to compromise.

The tribes are adamant that they do not want to run sports betting with the racetracks involved. However, the bill expected to be proposed by State Senator Jeremy Miller is going in the opposite direction.

State Rep. Stephenson is trying to appease the tribes with his recent comments. At the same time, his new sports betting bill is not expected to vary much from the bill that failed last year. We will have to wait for the details of Stephenson’s new Minnesota gambling bill.

So, what is going to happen with sports betting in Minnesota in 2023?

More than likely, it will be a continuation of the same back and forth rhetoric. There’s a strong chance that Minnesota is in the same position next year as it is now.  

Minnesotans Can Still Participate in Sports Betting Online

Just because the state of Minnesota can’t agree on a legal sports betting framework doesn’t mean that residents of the Land of 10,0000 Lakes can’t still wager on sports. There are plenty of safe online casinos for Minnesotans to successfully place bets at.

All it takes, before placing wagers, is a few minutes to sign-up and a first deposit. Additionally, these online casinos offer impressive bonuses for first time users which are perfect for Minnesotans to take advantage of.

Sources

1.  SCOTUS sports betting: How soon could MN legalize gambling? Retrieved From https://www.twincities.com/2018/05/14/how-soon-will-we-see-sports-betting-legalized-in-minnesota-one-lawmaker-hopes-before-nfl-season/

2.  House OKs legislation legalizing sports betting. Retrieved From https://www.house.mn.gov/SessionDaily/Story/17445

3.  Minnesota Indian Gaming Tribes and Casinos. Retrieved From https://www.house.mn.gov/SessionDaily/Story/17445

4.  Lawmakers, gambling interests to make another push for legal sports betting in 2023. Retrieved From https://minnesotareformer.com/2023/01/06/lawmakers-gambling-interests-to-make-another-push-for-legal-sports-betting-in-2023/

5.  MIGA Letter on HF778. Retrieved From https://www.minnpost.com/wp-content/uploads/2022/05/MIGA-Letter-on-HF778-5-18-22.pdf

6.  DFL says 2023 sports betting push will put Minnesota’s tribes in charge. Retrieved From https://www.fox9.com/news/dfl-says-2023-sports-betting-push-will-put-minnesotas-tribes-in-charge

7.  DFL says 2023 sports betting push will put Minnesota’s tribes in charge. Retrieved From https://www.fox9.com/news/dfl-says-2023-sports-betting-push-will-put-minnesotas-tribes-in-charge

8.  Minnesota House passes sports betting bill; GOP-controlled Senate continues to be at odds. Retrieved From https://www.kare11.com/article/news/politics/minnesota-lawmakers-remain-at-odds-over-house-sports-betting-bill/89-91d09b1f-3c79-44f8-aa3d-2a218f8ed18b

9.  Place your bets, another sports gambling bill to be introduced at State Capitol. Retrieved From https://www.kare11.com/article/news/politics/place-your-bets-another-sports-gambling-bill-to-be-introduced-at-state-capitol-minnesota/89-316a0bed-2381-41a1-81ea-b7120bdf2dc4

About the Author
Rick Rockwell profile picture
Rick Rockwell
Sports and Casino Writer
Rick has been a professional writer for over 14 years with an extensive resume spanning projects and clients from around the world. But, his passions have always been sports and sports betting. Whether it’s being a credentialed media member to major sporting events, climbing into a racecar or a pro wrestling ring, Rick’s sports and sports betting knowledge, passion and versatility is on display with each article he writes for TSG.

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