Minnesota lawmakers to debate sports betting in 2025
Minnesota legislators are set to tackle the contentious issue of legalizing sports betting in early 2025, with pre-session discussions already underway. The debate will center on balancing potential revenue with concerns about gambling addiction and ensuring a responsible market.
Mobile betting tax proposed at 22 percent
Before the debate on sports betting gains momentum, there will be a pre-session information hearing on the effects of gambling addiction. Senator John Marty has invited experts to get the full picture.
The proposed legislation includes a 22% state tax on net winnings from mobile sports betting. This tax would not apply to wagers placed at tribal casinos, reflecting the current trend of mobile platforms dominating the sports betting landscape in the U.S. This approach aims to capture revenue from the most active segment of the market.
Senator Matt Klein, the author of the sports betting bill, emphasizes the safeguards built into his proposal. He is determined to reintroduce the bill on the first day of the session, which is scheduled for 14 January 2025.
“There are people, Democrats, who are really concerned about gambling addiction, and family bankruptcy and devastation. I’ve put some real safeguards in the bill to try and answer those concerns. If we pass the bill as I’ve introduced it, it will be the safest sports wagering bill in the nation”, Klein told KFGO.
Illegal market drives need for regulation
Klein argues that the prevalence of illegal sports betting necessitates the passage of his bill.
“The argument I always make is that people are already doing it in illegal and unregulated markets, usually offshore markets. If we want a responsible and safe and taxable sports wagering process in Minnesota, we need to pass a bill”, he noted.
Opposition and regulatory challenges
Despite the growing momentum for sports betting across the U.S., Minnesota faces unique challenges. Opposition comes from both political parties and advocacy groups, such as the Joint Religious Legislative Coalition, which has voiced its concerns about expanded gambling.
The previous bill proposed granting exclusive control of sports betting to Minnesota’s casino tribes, with provisions for smaller tribes and contributions to horse tracks and charitable gambling.
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