Sports betting apps, casino wagering would come to Minnesota under gambling proposal

Christopher Magan, Pioneer Press
Updated ·3 min read
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Democrats unveiled a plan Tuesday to legalize sports betting in Minnesota that they say will garner enough support to pass despite previous Republican skepticism.

“Last year, legalized sports betting passed the House with a bipartisan majority, but stalled out in the Senate,” said Zach Stephenson, DFL-Coon Rapids, the chief sponsor of the bill in the House. “We are back this year and intend to finish the job.”

Under Stephenson’s bill, which will be heard in House Commerce Committee on Wednesday, Minnesota’s nine Native American tribes would operate sports wagering at their casinos across the state as well as online, likely through partnerships with large smartphone gambling companies. Minnesota’s major professional sports teams also back the bill, Stephenson said.

Revenue from sports gambling, estimated at about $12 million a year from a 10 percent tax per wager, would be used to police the industry, to address problem gamblers and to bolster youth sports in underserved communities.

“”Legalization is the only responsible way to address the phenomenon of sports betting,” Stephenson said during a Tuesday morning news conference. “Only through legalization can we provide consumer protection. Only through legalization can we honestly deal with the terrible issue of problem gambling.”

‘I wouldn’t count us out’

Last month, Sen. Jeremy Miller, R-Winona, introduced a sports gambling bill that would also allow the state’s horseracing tracks and professional sports teams to take bets. He reiterated Tuesday that he thought it was unlikely Democrats had enough votes to pass a tribes-exclusive bill in the Senate where they have a one seat majority.

“I could be wrong,” Miller acknowledged. He added that it would be disappointing for Democrats to pass a bill without bipartisan support.

Sen. Matt Klein, DFL-Mendota Heights, who chairs the Senate Commerce and Consumer Protection Committee, acknowledged that he had not secured the votes as of Tuesday, but he was confident the proposal could win bipartisan support.

“I wouldn’t count us out,” said Klein, who is the chief sponsor in the Senate.

Stephenson said the tribes current gambling operations are highly regulated and they are best positioned to offer sports betting in casinos and online.

Rep. Pat Garofalo, R-Farmington, who has long pushed to legalize sports betting, expressed support and concern for Stephenson’s legislation.

“While I am encouraged by today’s developments, it is important that the concerns of all stakeholders, including horse racing tracks, are addressed as we move forward on this historic legislation,” Garofalo said.

Garofalo added that the legal age for sports wagering should be 21 not 18 as the bill proposes.

“Legalized sports betting presents great opportunities for Minnesota, and we need to make sure we do this right,” he said.

Sports betting in other states

More than half the states have legalized sports gambling in some way, including all of Minnesota’s neighbors. Democrats say their plans to legalize sports wagering is not intended to be a revenue generator, but to move the state from an illicit market to a legal one.

The proposal will likely need to be heard in at least six committees in both chambers of the Legislature and likely wouldn’t come up for a full floor vote until April.

“We are not going to short change the process,” Stephenson said. “It is a serious issue and it deserves a full and complete conversation.”

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