Legislators in Minnesota will have a difficult time getting sports betting legislation passed as the 2024 legislative session enters its last week. Lawmakers, who have been called to require a “Hail Mary pass,” are under pressure to adopt legislation pertaining to online and retail gambling before the session ends.
Last Monday, lawmakers combined a horse track regulatory measure with the sports betting language from HF2000 in an effort to increase the likelihood that sports betting would be legalized in 2024. The Ways and Means Committee of the House gave the measure a big boost on May 10 when they adopted amendments to HF5274.
Despite the progress, the path to sports betting legalization remains precarious. Senator Jeremy Miller emphasized the need to find a solution benefiting both tribal nations and horse racing tracks. HF2000 and HF5274, sponsored by Representative Zack Stevenson, aim to combat offshore wagering and transition individuals into a regulated marketplace.
Stevenson’s bill seeks to prohibit historical horse racing machines at Minnesota’s two horse tracks, likening them to slot machines restricted to tribal casinos. The incorporation of HF2000’s language into HF5274 outlines provisions for online sports betting licenses, imposing a 20% tax rate on operators partnering with tribal nations. Retail sportsbooks would operate at tribal casinos and race tracks, with provisions for legalizing fantasy contests as well.
“It is unlawful to engage in sports betting in Minnesota today, and it happens every single day in extreme amounts,” Stevenson said. “We will be transitioning people from the black market into a legitimate marketplace.”
As HF5274 moves forward, other legislation are still pending. The companion measure to HF2000, SF1949, was referred to the Finance Committee on March 18 by the Tax Committee, but it never moved further in the Senate. The companion measure to HF5274, SF5354, emphasizes how difficult it is to get a legislative agreement on important issues.
In order to establish a workable solution, Senator Miller reiterated his commitment to working together with tribes, tracks, and stakeholders. The will to move Minnesota’s sports betting laws forward is unwavering, despite the difficulties.