Another Sports Betting Bill Introduced in Minnesota
After Senator Jeremy Miller brought in the updated version of his Minnesota Sports Betting Act, Senator Matt Klein introduced a slightly different view on the state’s sports betting with SB 757. Klein’s bill would give the state’s 11 tribal nations exclusive rights to mobile sports betting while also regulating daily fantasy sports and esports wagering.
Tribes May Oppose the Tax Structure
Klein’s bill lets tribes partner with sportsbook operators while maintaining full control. It also applies a 22% tax on wagers placed outside tribal lands, with the revenue going to horse racing tracks, social programs, and charities.
To operate, sportsbooks would pay a $250,000 licensing fee, an $83,000 annual renewal fee, and a $16,500 application fee.
A major issue in SB 757 is how it defines where bets are placed. The bill states that a bet is placed where received, not where processed.
This means Minnesota could tax wagers even if they pass through tribal servers, a stance that conflicts with the Seminole case in Florida, which protected tribal gaming revenue from state taxation. Tribal leaders are expected to fight back, arguing this move threatens their sovereignty.
Miller’s Competing Proposal
Introduced earlier this month, Senator Jeremy Miller’s Sports Betting Act 3.0 takes a different approach. His bill sets a lower 20% tax rate and avoids taxing bets processed through tribal servers, making it more favorable to tribes.
The act also proposes allocating 50% of tax revenue to charities and 20% to horse racing tracks, while Klein’s bill spreads funds across multiple programs.
A long road ahead of Minnesota sports betting. Last year’s legislative session already highlighted how divided the legislature is and how difficult it could be to proceed with OSB bills.
The hearing hosted by the Minnesota Senate Finance Committee on January 8th with gambling addicts’ testimonials showed that OSB bill opponents have something to hit with.
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