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Serving Northern St. Louis County, Minnesota

Don’t bet the house on sports betting, yet

David Colburn
Posted 3/8/23

REGIONAL- Bills in the Minnesota Legislature that would allow sports betting have the support of the Minnesota Indian Gaming Association (MIGA) and the state’s professional sports teams, but …

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Don’t bet the house on sports betting, yet

Posted

REGIONAL- Bills in the Minnesota Legislature that would allow sports betting have the support of the Minnesota Indian Gaming Association (MIGA) and the state’s professional sports teams, but passage of the measures are anything but a sure bet.
Minnesota is somewhat of a Johnny-come-lately to the fray, as 35 states have approved sports betting since the 2018 U.S. Supreme Court decision that struck down a federal law limiting sports betting to Nevada. Prior bills in Minnesota haven’t garnered enough support to pass, primarily because of differences over who should be able to offer sports betting.
As currently crafted, the bills this session would give licenses to operate sports betting programs exclusively to the 11 Native American tribes with casinos.
“We have had a system of tribal exclusivity around gambling for 30 years, and it’s worked well,” House Commerce Committee chair Zack Stephenson, DFL-Coon Rapids, said when the House version of the bill was announced.
Tribes would be limited to having physical sports books only at their casinos but would be allowed to contract with national sports books to offer the games on mobile devices as well. Mobile app betting would be taxed at ten percent, while in-house betting would be tax-free. Individuals using either form of sports betting must be 21 or older. The Commissioner of Public Safety would determine what kinds of wagers would be allowed.
In a Feb. 15 letter to Stephenson, MIGA Executive Director Andy Platto expressed his organization’s support of the plan.
“Were your bill to become law, MIGA Tribes believe the resulting mobile and retail markets operated by Minnesota’s Tribal Nations would not only support Tribes, but would also provide a well-regulated and accessible market for the state’s sports bettors and a competitive market that is important to our state’s professional sports teams and market partners,” Platto said.
Platto noted how the tribes rely on gaming revenues to fund essential services for tribe members, and that they must consider whether sports betting proposals strengthen or threaten tribal sovereignty.
In another letter supporting the bill, the CEOs of the state’s professional sports teams signaled their agreement with Native exclusivity for sports betting.
“We are happy to report that the state’s professional sports teams, including the Loons, Timberwolves/Lynx, Twins, Wild, and Vikings have come to an agreement with the Minnesota Indian Gaming Association in support of the draft sports betting bill,” they wrote. “As you know, the Tribes and teams have worked together for many months to find alignment on a bill that will create a vibrant market while providing for consumer protections. The teams have a strong desire to work with the Tribes as fellow stakeholders to help establish a vibrant market that features as many betting brands as possible. As such, the teams support tribal sports betting exclusivity, and empowering all tribes to offer statewide mobile sports betting.”
Teams don’t get any direct revenue from sports betting, but the CEOs also said that if there are any modifications to the bill that would open sports betting to entities other than tribes, they should also be granted licenses.

Other entities
While there’s obvious support for tribal exclusivity when it comes to sports betting, there are some who believe the state’s two horse tracks, Running Aces in Columbus and Canterbury Park in Shakopee, should also be given licenses to conduct sports betting. This dispute has sunk prior attempts to pass sports betting legislation, and it could be a roadblock again. While sports betting has supporters and detractors on both sides of the aisle, Republicans are the ones most outspoken about non-exclusivity, and that could come into play in the Senate, where the DFL has a razor thin one-vote majority.
In fact, former Republican Senate Majority Leader Jeremy Miller has introduced his own bill that would include the two tracks.
“I don’t believe tribal exclusivity without something for the tracks has the votes to pass in the Senate,” Miller said recently. “We have two of the three major stakeholders that have an agreement. Now we just have to figure out a way to work in the racetracks. We’re not there yet, but I’m optimistic we can get it done this year.”
Miller hangs his hopes on the fact that some DFL members oppose any expansion of gambling, which could have greater negative effects on those with low incomes and on communities of color. If they remain opposed, then the DFL would need to find swing votes among Republicans, votes that would come with the string attached of including the racetracks. But Miller’s bill would likely face opposition from the pro sports teams if they were left out.
“You have to think about that if we’re going to go beyond tribal exclusivity, it’s not just a question of the tracks,” Stephenson said. “There are other stakeholders who would want licenses, and expanding gambling to that level probably is the area that would give a lot of legislators in both parties significant concerns.”
As of Tuesday, both the House and Senate versions of the sports betting bill, as well as Miller’s alternative, are awaiting additional committee hearings.
MINNPOST contributed to this article.