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Sports Betting Bill to Be Reintroduced in Minnesota Legislature; Tribes Are Still Against It

Article by : Helen Feb 2, 2021

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Despite failing to legalize sports betting in Minnesota in 2019, some state lawmakers are willing to give it another chance. Two state legislators, Sen. Karla Bigham (D) and Rep. Pat Garofalo (R), have announced that they are planning to introduce a new sports wagering bill, which they have co-sponsored.

According to this new legislation (should it get adopted by Minnesotan lawmakers), sports betting would become legal on-site in tribal casinos in the first year after entering into force. After that, anyone who got registered at a tribal casino would be able to place bets on mobile sports wagering platforms. The bill also proposes taxing on-site sports betting revenues at 6% while setting an eight-percent tax for mobile sports betting. An additional 0.5% tax will be transferred to a fund for “compulsive gambling assistance programs.”

But it’s not all about the potential tax revenue from an untapped opportunity. According to Sen. Bigham, the bill would also protect consumers who are gambling anyway, sometimes on illicit betting platforms: “It’s already done flagrantly, and it’s time to shine some light on it, put some guardrails around it, protections around it, and quite honestly we need to legalize it. If the state makes a few bucks while we’re at it, good for us.”

While there is always hope sports betting will become legal in the state on the second try, the bill’s chances to get passed are not that great. Native American tribes still oppose the idea, even though it may bring tribal casinos additional revenues. The Minnesota Indian Gaming Association went as far as reaching out to the state legislators with a letter stating that the organization “continues to oppose the expansion of off-reservation gambling, including the legalization of sports betting.”

According to Associated Press, other top legislative leaders remain “disinterested” in the bill, even though legalizing sports wagering will add one more income source to the state’s budget. And Minnesota’s budget requires additional revenues – it is estimated to have to deal with a deficit of $1.3 billion this year.

The sports betting bill is unlikely to be considered this year, given the complexities of holding a legislative session during the pandemic and trying to pass a new two-year state budget. It could be more likely on the agenda for next year.

Minnesota governor Tim Walz went on record saying he wouldn’t mind discussing legalizing sports betting, although he would rather see lawmakers focus on legalizing cannabis as it would be more profitable for the state budget.

In 2019, the sports betting bill got as far as being advanced by the Senate committee – but it never got a hearing in the House. Back then, Native American tribes played their part in shooting down the idea, especially because mobile sports betting could become the first step to an open market for online casinos. In that case, tribal casinos would lose their monopoly.

For now, Minnesotans who would like to indulge in sports betting can easily drive to Iowa or South Dakota – or opt for offshore gambling without leaving their homes, which is more convenient amidst the pandemic and all the restrictions that come with it. And, as Sen. Bigham put it, “It is a very popular idea. People are sick and tired of driving to Iowa, and now we’ve got South Dakota. If Wisconsin beats us to this…I don’t even know what to think.”