Minnesota Takes Another Swing at Sports Betting with Updated Bill

Key Features of the Sports Betting Act 3.0

The bill focuses on legalizing retail and mobile sports betting, granting Minnesota’s 11 tribal nations exclusive rights to operate sportsbooks. A 20% tax on gross gaming revenue is expected to generate around $80 million annually.

One of the bill’s focal points is how the tax revenue will be allocated. Specifically, the funds would be distributed across multiple initiatives:

• 50% for tax relief on charitable gaming.
• 25% to attract large-scale sports events to Minnesota.
• 20% for supporting the state’s horse racing industry.
• 2.5% for mental health services and assistance for problem gamblers.
• 2.5% for grants to support youth sports programs.

Licensing Details

The proposal outlines a clear licensing framework. Only tribal operators running Class III gaming facilities would be eligible for 20-year licenses for mobile sportsbooks. Platform providers and other vendors could apply for one-year renewable licenses.

The legislation requires operators to maintain adequate reserves for payouts and implement monitoring systems to detect irregular betting patterns.

Responsible Gambling Measures

To prioritize consumer protection, the act mandates several responsible gambling measures. For instance, participants must be at least 21 years old and physically present in Minnesota to place bets. Additionally, the legislation includes tools for players to:

• Set personal limits on deposits, wagers, and time spent on platforms.
• Opt into self-exclusion programs to curb problematic gambling behavior.

The proposal also imposes strict data privacy requirements, explicitly prohibiting the sale of player information. Furthermore, marketing is restricted from targeting schools, college campuses, and individuals on exclusion lists.

Expanding Minnesota’s Sports Betting Market

The Minnesota Sports Betting Act 3.0 builds on previous attempts to legalize sports betting in the state, with adjustments made to address earlier concerns.

According to Senator Miller, the act’s aim is to provide economic benefits while ensuring protections for consumers and support for local industries.

With 39 states, Washington, D.C., and Puerto Rico already legalizing sports betting, Minnesota could potentially join the growing trend as early as 2025.