Local Tracks and Tribes Reportedly Support Deferred Minnesota Sports Betting Bill

Momentum is building for a push to legalize Minnesota sports betting in 2025. 

Do not bother stopping us if you have heard some variation of this before. You have. We know you have. Because we have written extensively about it in this space. 

Each year, the imminent future of sports betting in Minnesota is portrayed in rosy terms. And every time, without fail, the initiative that generates all that buzz falls short. Then, at the end of it all, policymakers wax poetic about the progress they made and how it will translate to the next round of discussions. 

Given the pattern at hand, we should all be asking: What makes this time any different?

In this case, there seems to be a material change. Both local tracks and tribes reportedly support the deferred Minnesota sports betting proposal that came up short last year. 

“I’ve been in close communication with the tribes and tracks, and all parties still support the end-of-session deal,” Senate Commerce Committee Chair Matt Klein recently told the Minnesota Post’s Peter Callaghan. “It’s my hope that we can get bipartisan authorship on a bill that reflects that deal. I’ve reached out to GOP legislators in the House and Senate with that offer, which I think would smooth the path for the bill and avoid the end-of-session scramble we’ve historically experienced.”

Getting both tribes and racetracks on board with any proposal would be a big deal. The two sides have operated at odds, seemingly, for the past couple of sessions. But again: We have seen this movie before. Healthy skepticism should be the default. And that means it is time to dig deeper. 

Why Tribes and Tracks Co-Signing the Same Minnesota Sports Betting Initiative is a Big Deal

Despite persisting doubts, we can’t deny that getting tribes and tracks on the same page carries serious weight. In the past, they have struggled to find common ground.

Tribes holds exclusive gaming rights in Minnesota. They correctly argue that this should apply to Minnesota sports betting operations. 

Racetracks, however, maintain that they should be able to afford sports gambling licenses. The rise of online sports betting in the United States continues to eat into brick-and-mortar business models. Minnesota’s tracks correctly presume that the legalization of sports wagering would disincentivize people from coming to their establishments. They wish to keep space with the shifting industry by operating sportsbooks of their own.

This pitch has not flown with the tribes. They point out that any expansion of sports betting services will adversely impact their market share. And they are correct. 

As a counter, certain stakeholders have previously proposed a revenue split. In other words, racetracks will not offer Minnesota sports betting options, but they will receive a cut of the profits. Theoretically, this allows them to offset any in-person business they concede without directly knifing into tribal operations.

Yet, as recently as last session, racetracks did not appear on board with that setup. It isn’t clear whether that opposition is a hardline stand. It could just be an attempt to drive up the revenue split. Whatever the case, if both they and tribe have hammered our preliminary framework to which the public isn’t yet privy, it effectively clears one of the biggest hurdles facing Minnesota sports betting. Of course, this is not the only obstacle in play. Like Klein maps out in his above comments, the state needs ample bi-partisan support. Whether they can get it in time to pass legislation is the question.

Does the Deferred Sports Betting Bill Have Enough Bi-Partisan Support?

Bi-partisan support is almost always important in sports betting negotiations. For Minnesota sports betting in particular, though, it is crucial. 

Senator Klein’s own DFL party is the primary sponsor of the tabled bill. However, there is plenty of opposition to it inside their own ranks. That is why gaining the stamp of approval from GOP members is a must. On top of that, any Minnesota sports betting push will face staunch counter-lobbying from the Joint Religious Legislative Coalition. They have already publicly denounced the bill. 

Complicated still, the setup of the Minnesota legislature remains in flux following 2024 elections. As Callaghan writes:

“The wild card is the Minnesota House. How will it be organized, assuming it remains tied after a pair of recounts? Who will replace longtime sports betting advocate Rep. Pat Garofalo as the House GOP lead? And will Running Aces join the agreement, or remain neutral as it was last spring? Garofalo, who resigned from his House seat in June, will hand House GOP leadership on the issue to Rep. Nolan West, R-Blaine. But rather than be in the minority trying to influence majority DFLers, West will be in a caucus that gained a tie in the House. He said he thinks the tie could make it more likely a sports betting bill could finally pass.”

Most of what Callaghan writes can be considered good news. After all, it appears there was more GOP support for Minnesota sports betting last year than initially reported. But plenty of questions remain.

The Road to Sports Betting in Minnesota Will Almost Assuredly be a Rocky One

What if GOP support has wavered? Or the DFL Party has actually gained anti-gambling stances? What if tracks or tribes end up balking at the details of the current bill? Equally possible: Could the initiative lose support if amendments are made in response to other concerns? 

These are just a few of the questions still facing the Minnesota sports betting push. 

Make no mistake, the preemptive dialogue between everyone ahead of 2025 legislative meetings is a good thing. As we have seen in the past, though, they may not mean anything. Or they could mean everything.

Once more, the interest in legalized sports betting is clear. Intrigue has never been the issue. Checking enough boxes to gain the necessary support from key stakeholders is the problem. And even with these latest developments, it is a dilemma Minnesota must continue to iron out.

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