Inside Sources Express Optimism for Minnesota Sports Betting

Is 2025 the year that Minnesota sports betting legislation finally gets over the hump? People close to the conversation certainly seem to think so. 

A source recently told Babs Santos of FOX 9 that “a deal was done in the final week of the last legislative session, and now, many of the involved parties would like to see negotiations pick up from where they were left off.”

This is a pretty big revelation if accurate. We know that an agreement to legalize sports betting in Minnesota last year came close. We also know that state legislators ran out of time to amend the proposal and garner the requisite support. But FOX 9’s source saying a “deal was done” is news to our ears. 

Truthfully, it seems a little misleading. If a deal was done, then, uh, why isn’t Minnesota sports betting legal? Does the source simply mean the framework of a bill was agreed to but was never put to a vote?

Either way, the framing suggests that the next Minnesota sports betting proposal will have serious legs.

Racetracks Now Sound Willing to Collaborate on Minnesota Sports Betting

Previous iterations of Minnesota sports betting bills have failed in part because of a disconnect between tribes and racetracks. The latter wants to be a licensed sports betting operator. Tribes, meanwhile, argue their gaming exclusivity prohibits that.

Certain concessions have been made on the tribal end to help bridge the disconnect. Most recently, a stipulation was put in place ensuring that racetracks would receive a share of Minnesota sports betting revenue. This way, they capitalize off its legalization without infringing upon the tribal gaming market share. 

“As far as we know, though, tracks are not thrilled with that setup. And they have instead contributed to blocking Minnesota sports betting legislation. But the Running Aces Casino, a hotel and racetrack, has released a statement that suggests they’re position has changed. Here is what they have to say:

“"Running Aces understands the importance of tribal gaming in Minnesota and the economic support that it provides to each of the sovereign tribal nations in this state. We also believe that racetracks, tribal casinos and charitable gaming all provide important and distinct benefits to the communities we each serve and broad benefits to all Minnesotans. Minnesota has demonstrated that all three types of gaming can be successful. We believe it is possible to work through any disagreements and arrive at successful compromises. We are hopeful that legislators and the gaming industry can all work together to ensure passage of a bill that benefits all three of these entities and the communities they serve.”

Now, this could all be lip service. We will not know for sure until the Minnesota state legislature convenes in 2025.

However, relative to where racetracks stood just a year ago, this statement feels like a step in the right direction.

Will There Be Enough Support for Sports Gambling in Minnesota to be Legalized?

As sports betting in the United States continues growing in popularity, it gets harder to find states in which the voting population would not support it. Minnesota apparently isn’t an exception. 

Running Aces says “numerous public polls” show that “90 percent or more Minnesotans support a sports betting bill that is beneficial for the horse industry, tribal communities and local charities.” This is some specific language. And while it bodes well for public approval of any Minnesota sports betting initiative, it also raises another question: Is Running Aces voicing their intention to collaborate or defer to tribes? Or are they merely trying to win the court of public opinion themselves?

Releasing the previous statement is almost a win-win for Running aces. If Minnesota sports betting succeeds in 2025, they will be credited for extending an olive branch and shifting course. If it fails, they can point to the statement as evidence they were willing to play ball.

To be sure, we are not trying to imply one intent over the other. The release of this statement at the very least suggests racetracks are open to further negotiations. And that is a start. But the language isn’t nearly definitive enough to assume that Minnesota will have the support required to legalize sports betting in 2025.

Uncertainty Remains, But Minnesota Sports Betting May Be Closer Than Ever

So many questions must still be answered in order to hash out the future of Minnesota sports betting. Even if we assume tracks and tribes are on the same page, that is just one hurdle.

Many remain unsure whether Minnesota sports betting has enough support among state legislators. After all, last year’s attempt did not fail exclusively because of differences of opinion between tracks and tribes. 

Select members of congress have taken exception to how sports betting gets legalized. Most versions of an initiative prioritize retail sports betting legalization with limited online elements. Others, however, would like to see top online sportsbooks in the United States enter the market with independent licenses.

The latter prospect feels unlikely. If tribes do not want to compete with local race tracks, why would they co-sign competitions with mobile betting sites like FanDuel, DraftKings, Caesars, etc.? In the event this becomes a sticking point, we will probably see yet another attempt to legalize Minnesota sports wagering come up short.

Still, the same FOX 9 source told Santos that “stakeholders are as close as they have ever been” to reaching a bi-partisan agreement. That matters. Because if it’s true, sports betting in Minnesota may just launch within the next year.

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