Latest Minnesota Sports Betting Efforts Hit A New Snag

The push to legalize Minnesota sports betting has run into a new snag. And it is an obstacle that may derail talks altogether. 

During previous attempts to legalize sports betting in Minnesota, opposing views between tribal casinos and racetracks have registered as the primary roadblock. The tribal casinos argue that their gaming exclusivity should extend to sports gambling. Racetracks, on the other hand, believe they should be entitled to Minnesota sports betting licenses, since on-site wagering elsewhere threatens to upend their business model.

Many have wondered whether this would again become the issue in 2025. Past sports betting bills have proposed revenue sharing. In these cases, racetracks receive cuts of profits from sports gambling without getting licenses to operate sportsbooks themselves. 

However, as things currently stand during Minnesota legislature meetings, this previous problem no longer commands most of the attention. It is another dilemma that’s now taking center stage. 

Opposing Minnesota Sports Betting Bills are Now the Problem

The primary issue now facing The Land of 10,000 Lakers: separate sports betting initiatives. One bill allows Minnesota online sports betting as part of its language. The other…does not. 

Senator Matt Klein is sponsoring the bill that legalizes online sports betting in Minnesota. Senator John Marty is the author of the competing initiative, which disallows Minnesota sports betting apps.

Here is Alex Derosier of the Pioneer Press with more:

“As in the past, Klein and other advocates argue people are already making online bets in Minnesota, and that regulating the marketplace will be the best way to reduce harm. ‘Sports wagering is already growing and flourishing in Minnesota through unregulated offshore platforms with no protections for problem or underage use,’ Klein told the Senate State and Local Government Committee on Thursday. ‘This bill would address that practice.’

“Opponents such as the Minnesota Catholic Conference and DFL Sen. John Marty of Roseville —who is sponsoring a more restrictive sports betting bill —say there’s evidence that states that have legalized sports betting have seen rates of problem gambling rise, such as an increase in calls to problem gambling hotlines. ‘It’s highly addictive and doing it on a mobile phone which is available 24-7 makes it far more accessible,’ Marty said.”

Both sides of the fence have valid points in this case. As Senator Klein notes, Minnesotans are already wagering on sports. And it is easier than ever for them to partake. The rise of online sports betting in the United States means that plenty of Minnesota’s neighbors offer a workaround if residents cross state lines.

Yet, Senator Marty is correct as well. Multiple studies show a correlation between problem gambling upticks and the legalization of sports betting.

Another Issue May Block the Legalization of Sports Betting, Too

Warring views on how Minnesota sports betting should be offered are not the only threat to this year’s efforts. As it turns out, the legalization of cannabis is playing a role, too.

There is pending legislation that would allow the sale of cannabis products outside tribal reservations. Not all state officials are happy about it. House Representative Nolan West, in fact, has said he will pull his support for Minnesota sports betting if the cannabis legislation makes it through.

It is not immediately clear how many policymakers share West’s sentiments. But he cannot be the only one in this boat. And that potentially complicates the sports betting agenda.

Support from the House of Representatives is considered the lock. If their approval rating for any form of Minnesota sports betting begins to dwindle, it could upend the entire effort.

Senator Klein’s Bill is Considered the Best Shot Minnesota Has at Sports Betting Legalization

While it remains too early to tell how this plays out, most believe that Senator Klein’s sports betting bill represents the happy medium. His proposal legalizes Minnesota online sports betting—but only for tribes. This should somewhat curtail the overexposure concerns shared by Senator Marty and others.

Senator Klein’s bill also provides a resolution to the racetrack licensing issue. Tracks would apparently receive a 15 percent share of Minnesota sports betting revenue. Both tribes and racetracks are reportedly in lockstep with this structure.

The same cannot be said for state officials. Increasing numbers of policymakers are worried that Senator Klein’s bill doesn’t generate enough outright revenue for the state, in part because of the share going to the racetrack. On top of that, another 15 percent of sports betting revenue in the initiative is allocated toward rural tribes. These tribes, the thinking goes, will not receive nearly the same amount of business as casino sportsbooks in more populated areas. 

There is still time for both bills on the table to be restructured. But it does not sound like Senator Marty or those who share his concerns are prepared to concede much, if anything. Senator Klein’s initiative does include some advertising constraints, just like the proposal from Senator Marty. Perhaps including further restrictions could tip the scales toward a middle ground.

Unfortunately, the previous optimism surrounding the legalization of Minnesota sports betting, appears to be subsiding. Experts inside and outside the state almost universally agree it is unlikely to happen this year. It will be fascinating to see whether they are right—and what happens moving forward if that’s the case.

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