The Outlook on Minnesota Sports Betting Legalization May be Deteriorating

Not so long ago, the legalization of Minnesota sports betting was considered a formality. Fast forward to the second half of 2024, though, and much is apparently changing.

After yet another attempt to legalize sports betting in Minnesota failed during the last round of legislative sessions, the outlook on future measures is no longer considered hunky-dory. This is a far departure from 2023. While sports wagering (obviously) didn’t make it through then, optimism surrounding its trajectory reached an all-time high. Some officials painted that year’s push as coming incredibly close. 

So, what has changed in 2024? 

Apparently, three issues stand out above all else.

Latest Minnesota Sports Betting Push Faces a Familiar Obstacle

When last year’s Minnesota sports betting initiative fell short, a stalemate between local casinos and racetracks was portrayed as the determining factor. This time around, it seems little headway is being made on that issue. In fact, there’s a chance it’s getting worse. 

Initially, tribal casinos and racetracks were split over who could receive Minnesota sports betting licenses. Tracks want to operate sportsbooks of their own. However, the tribes, who have a gaming compact with The North Star State, won’t endorse this request. Their argument, presumably, rests on the competition for Minnesota’s gambling market share. Certain bills will authorize online sportsbooks in the United States for operations inside the market. Adding racetracks on top of them theoretically eats into the casinos’ business even further. Tracks, meanwhile, maintain their own livelihood could be in jeopardy if they aren’t able to reap the benefits of legal sports wagering.

For their part, tribes have expressed a willingness to direct a portion of Minnesota sports betting revenue toward racetracks. This allows the latter to take part in the profits without having the license to operate sportsbooks.

Proposals built around this idea failed in 2023. It doesn’t seem like they gained much traction in 2024, either.

And guess what? This may be just a tip of the iceberg.

Tracks are Unhappy with Push-Back on Request to Implement Historical Racing Options

Earlier this year, racetracks apparently asked the Minnesota Racing Commission about offering historical racing options. Their inquiry received plenty of push-back. As Kyle Eve writes for The Sports Geek:

“In January, the racetracks inquired to the Minnesota Racing Commission about approving historical horse racing. Last month, there was pushback from Rep. Zack Stephenson regarding the form of gambling. ‘You pick what horse you want to bet on without knowing what the race you’re betting on is,’ said Rep. Stephenson. ‘The computer randomly selects a race that you are betting on. And then if you picked the horse that won the random race that was selected, you win.’ 

“The Alcohol and Gambling Enforcement Division compared it to slot machines, though horse tracks argued that it isn’t completely random. With the horse tracks growing frustrated, in March, the Senate approved an amended sports betting bill, SF1949, with a revenue-sharing model proposed by the tribes.”

While it isn’t clear whether tribes played a direct hand in the tracks’ historical racing request getting kiboshed, the denial itself doesn’t help matters. Tracks clearly feel as if they’re getting the short shrift of Minnesota sports betting options. 

The tribes to some extent understand as much. Otherwise, why would not just approve but propose a revenue-sharing model. It makes you wonder if the tracks would have been more on board with the final plan if they were granted the opportunity to offer historical racing options.

One of Minnesota’s Racetracks Filed a Lawsuit Against Local Casinos

Perhaps none of the aforementioned issues completely upended Minnesota sports betting efforts. But if they didn’t, a recent lawsuit most likely did. Let’s (briefly) throw it back to Eve:

“The final blow to HF2000 may have been the federal racketeering (RICO Act) lawsuit filed by Running Aces against Grand Casino and Treasure Island. On April 17, the horse racing track claimed in a suit that three casinos are offering games in violation of state and federal gambling laws. Per the lawsuit, Grand Casino Hinckley, Grand Casino Mille Lacs, and Treasure Island Resort & Casino have illegal card games in their casinos.”

With so much legal and anecdotal animosity brewing between casinos and racetracks, it’s no wonder Minnesota sports betting isn’t yet legalized. What’s more, the list of curveballs technically goes. 

The bizarre arrest of state Senator Nicole Mitchell during legislative meetings threw the process for yet another whirl. Mitchell, a Democrat, is among the primary drivers of the latest Minnesota sports betting bill. Her absence from part of the proceedings may not have been the ultimate difference-maker, but it definitely had an impact. After all, pushing sports betting legislation through the Senate has long loomed as the initiative’s greatest challenge. Losing a key figurehead involved with the proposal for any stretch of time is only a bad thing.

Where Does All of This Leave Minnesota Sports Betting?

Forgive us for not offering a concrete answer to this question. But the fact of the matter is we don’t have one.

Last year, we would have wagered dollars to donuts that Minnesota sports betting would be legalized no later than 2025. Now, however, it feels as if it might be years away.

Supporters can take solace in knowing sports betting will remain top of mind at legislative sessions to come. There is clearly enduring interest. 

Whether that interest transforms into actual legalization, though, is more debatable than ever.

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