Minnesota House passes sports betting bill

The Minnesota House of Representatives has passed a bill that would legalize both retail and online sports betting in the North Star State, with the 70-57 vote coming after multiple amendments.

Under HF 778, complete control of sports betting in Minnesota would be granted to the state’s 11 federally-recognized tribes that operate casinos.

The bill would provide two master sports betting licenses that would go to a coalition of tribes, with the state effectively being divided into two zones for licensing purposes.

One would be awarded to a group of tribes headquartered above Interstate 94 – which runs southeast from Fargo to Minneapolis – and the other to a group below it.

The two master license holders would be permitted to partner with mobile sports betting operators, so long as those operators are also tribally-owned and go through the requisite licensing process.

The master licensee to the north would be able to partner with up to seven tribes, while the southern licensee could have up to four partners.Wagers physically placed on tribal land would not be subject to taxes, while online bets would be taxed at a 10% rate.

Despite the bill getting through the House, its prospects in the Senate are not looking favorable on account of the tribal exclusivity stipulation. Senate lawmakers have indicated they want racetracks and professional sports teams included as operators.

“[This] vote is an important step forward in bringing legalized sports betting to Minnesota,” Rep. Pat Garofalo said. “However, it is clear that the current version of the bill does not have the support needed to pass in the Senate.

“Now is the time to bring stakeholders together to work on legislation that can pass with broad, bipartisan support in both legislative chambers.”

In addition to any sports betting bill needing to clear both chambers, Minnesota Gov. Tim Walz would also have to negotiate new compacts with the tribes as part of the legislative process.