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Minnesota lawmakers are once again debating whether to legalize sports wagering. A bipartisan bill introduced in the state Senate would allow online sports betting across the state, primarily through Native American tribal operators.
Good to Know
The bill, S.F. 4139, entered the Senate on Wednesday and was sent to the Commerce and Consumer Protection and Rules and Administration committees for review. Sponsors include DFL Sen. Nick Frentz and Republican Sen. Jeremy Miller, showing bipartisan interest in restarting the conversation around legal sports betting.
Minnesota lawmakers have debated sports wagering for several years without passing a bill. Even so, several factors could push the discussion forward this year. Minnesota now stands out in the Midwest because neighboring states already offer some form of legal sports betting, including Wisconsin where lawmakers are exploring statewide mobile wagering.
The bill would allow up to 11 mobile sportsbook licenses, each tied to a Native American tribe that operates Class III gaming at a casino in Minnesota. Those licenses would last for 20 years, and each tribe could partner with a single online sportsbook platform provider to operate the digital service.
Tribal operators would pay an annual license fee of $2,125, while sportsbook platform providers would pay a $250,000 initial licensing fee plus $83,000 renewal fees every two years. The Minnesota commissioner of public safety would oversee regulation of online sports betting.
Net revenue from sports betting would face a 22 percent tax. State law would define net revenue as total wagers minus winnings paid to players and the fair market value of noncash prizes awarded during the month.
The bill also includes rules meant to address concerns raised in past debates. Online sportsbooks would be banned from offering college player prop bets, and betting apps could not send push notifications unless they relate to fraud alerts, responsible gambling tools, or identity verification.
Lawmakers also added language stating that peer to peer wagers on betting exchanges would not qualify as legal sports wagering in Minnesota, a provision that appears tied to the growth of federally regulated prediction markets.
If the bill becomes law, Minnesota would join most surrounding states with regulated sports wagering, ending years of debate over how the market should operate.