Is Sports Betting Legal in Minnesota? Everything You Need to Know

Legislative Efforts

Efforts to legalize sports betting in Minnesota date back to 2019. Notable legislative initiatives include:

• HF 1278 (2019): Aimed to regulate online sports betting but failed to gain traction.
• HF 778 (2021): Proposed a comprehensive framework for sports betting, including licensing and taxation. This bill passed the House but stalled in the Senate.
• HF 2000 (2023): Advanced through several committees but did not receive a full vote.
• May 2024 Agreement: A bipartisan deal was reached to grant tribal nations exclusive rights to sports betting while allocating a portion of revenues to racetracks and charities. Despite optimism, the legislative session ended before a vote could be finalized.

Recurring disagreements over market control and revenue allocation have been major obstacles to progress. However, proponents remain optimistic that these hurdles can be addressed in future sessions.

Minnesota’s Professional Sports Teams

Sports are a cornerstone of Minnesota’s culture, with the state boasting representation in all major professional leagues. From record-breaking attendance figures to historic achievements, Minnesota’s teams have carved their place in the hearts of fans:

Minnesota Twins (MLB): As the state’s only team with a professional championship, the Twins hold a unique place in local sports lore. They clinched World Series titles in 1987 and 1991, creating unforgettable moments for Minnesota fans.

Minnesota United FC (MLS): Since entering Major League Soccer in 2017, the “Loons” have drawn crowds to Allianz Field with their spirited performances and commitment to the sport.

Minnesota Timberwolves (NBA): Founded in 1989, the Timberwolves may lack the championships of their MLB counterparts, but their dedicated followers pack the Target Center to cheer them on, season after season.

Minnesota Vikings (NFL): Known for their passionate fanbase, the Vikings consistently fill U.S. Bank Stadium, drawing nearly 67,000 fans per game. While the team has yet to secure a Super Bowl victory, their storied history and competitive spirit make them a beloved institution.

Minnesota Wild (NHL): Joining the NHL in 2000, the Wild quickly became a fan favorite. Known for their electrifying gameplay and consistent playoff appearances, they are a symbol of hockey’s deep roots in the state.

Beyond professional sports, Minnesota is home to thriving collegiate programs, such as the Minnesota Golden Gophers and St. Thomas Tommies, which add to the state’s vibrant sports landscape.

Neighboring States and Cross-Border Betting

Minnesota’s stance on sports betting contrasts sharply with its neighboring states, most of which have embraced some form of legal wagering:

• Iowa: Sports betting has been legal in Iowa since 2019, with both online and retail options available. Many Minnesotans cross the border to place bets at Iowa’s casinos, such as Diamond Jo Worth Casino near the state line.
• Wisconsin: Sports betting is permitted exclusively at tribal casinos, such as St. Croix Casino in Turtle Lake. However, Wisconsin does not offer online sports betting.
• South Dakota: Legal sports betting is limited to Deadwood casinos and certain tribal properties, with no online options available.
• North Dakota: Tribal casinos offer in-person sports betting, but the state has yet to legalize online or statewide betting.
• Illinois: Both online and retail sports betting have been legal since 2019, making Illinois a convenient option for Minnesotans willing to travel.

The success of sports betting in these states puts added pressure on Minnesota lawmakers to consider legalization to prevent the loss of potential revenue to neighboring jurisdictions.

Legislative Efforts

Efforts to legalize sports betting in Minnesota date back to 2019. Notable legislative initiatives include:

• HF 1278 (2019): Aimed to regulate online sports betting but failed to gain traction.
• HF 778 (2021): Proposed a comprehensive framework for sports betting, including licensing and taxation. This bill passed the House but stalled in the Senate.
• HF 2000 (2023): Advanced through several committees but did not receive a full vote.
• May 2024 Agreement: A bipartisan deal was reached to grant tribal nations exclusive rights to sports betting while allocating a portion of revenues to racetracks and charities. Despite optimism, the legislative session ended before a vote could be finalized.

Recurring disagreements over market control and revenue allocation have been major obstacles to progress. However, proponents remain optimistic that these hurdles can be addressed in future sessions.

Proposed Legislation: What Could Change

A new sports betting bill aims to strike a balance between Minnesota’s diverse stakeholders, offering a blueprint for a regulated betting market. The proposal grants exclusive rights to operate sports betting to the state’s 11 tribal nations, each of which oversees casinos. Under the plan, tribes could acquire licenses to operate both online and retail sportsbooks, with up to 11 licenses available.

The legislation outlines a tax framework ranging from 10% to 20% on sports betting revenue, a significant compromise compared to earlier proposals suggesting rates as high as 40%. Revenue generated would be allocated to various public initiatives, including youth sports programs, addiction prevention services, and efforts to attract national sporting events like the NCAA Final Four.

Consumer protection measures also feature prominently in the bill, with restrictions on advertising, a minimum age requirement of 21, and dedicated resources for problem gambling assistance. Additionally, a unique provision—dubbed the “Iowa Plan”—allows sportsbooks licensed in Iowa to launch operations swiftly in Minnesota through partnerships with tribal operators, expediting market readiness.

This legislation reflects years of negotiation and compromise among tribes, racetracks, charities, and policymakers, though its final form remains subject to legislative adjustments. If passed, it could reshape Minnesota’s gambling landscape and provide a structured path to a legalized sports betting market.

Future Prospects

The future of sports betting in Minnesota is cautiously optimistic. Several factors suggest that legalization may be inevitable:

Bipartisan Support: Both Democratic and Republican lawmakers have expressed support for sports betting legalization, recognizing its potential economic benefits.

Economic Incentives: Legal sports betting could generate an estimated $30 million annually in tax revenue for Minnesota. These funds could support education, healthcare, and other public programs.

Tribal Collaboration: The May 2024 agreement represents a significant step toward resolving long-standing disputes between tribal nations and racetracks, paving the way for future legislation.

Public Demand: With all surrounding states offering some form of sports betting, Minnesota residents are eager for local options to avoid traveling out of state.

Despite these positive signs, challenges remain. Concerns about gambling addiction and the complexity of stakeholder negotiations could delay progress. However, with growing public and political momentum, it seems likely that Minnesota will eventually join the majority of U.S. states in legalizing sports betting.

FAQs About Sports Betting in Minnesota

Is sports betting legal in Minnesota?

No, sports betting is currently illegal in Minnesota, though efforts to legalize it have been ongoing since 2019.

What gambling options are legal in Minnesota?

Minnesota residents can legally engage in pari-mutuel horse race betting, play the state lottery, and participate in daily fantasy sports (DFS) on platforms like DraftKings and FanDuel.

What is the main obstacle to legalizing sports betting in Minnesota?

The primary issue is deciding who will control the sports betting market, with debates between tribal nations and racetracks causing delays.

How much revenue could sports betting generate for Minnesota?

Experts estimate that sports betting could bring in approximately $30 million annually in tax revenue.

Are neighboring states allowing sports betting?

Yes, most surrounding states, including Iowa, Wisconsin, and Illinois, have legalized some form of sports betting, putting pressure on Minnesota to follow suit.