Minnesota lawmakers to amend sports betting bill to gain tribal support

Sports betting legalization in Minnesota is again gaining momentum as senators renew their commitment to passing legislation to that end this year. During a news conference on Wednesday, several lawmakers in the Gopher State announced plans to rewrite an existing proposal to include licensing for in-person and online betting for local tribes and two horse racing tracks.

“This proposal is good for tribes, it’s good for tracks, and most importantly, it gives Minnesotans gaming options at brick and mortar locations and online vendors,” said Assistant Senate Majority Leader Roger Chamberlain, R-Lino Lakes, according to Duluth News Tribune.

According to Chamberlain, the proposed legislation respects Minnesota’s Tribal Nations, while providing a new revenue stream to the state. “There is no reason we shouldn’t start with this proposal and see it through to the end,” the lawmaker added.

Legalization backers claim that as neighboring states start regulating their own markets, it is now more pressing than ever for the Land of 10,000 Lakes to do the same. A sports betting legislation would put Minnesota on a level playing field with South Dakota, Wisconsin and Iowa, which have all gone live with their own sports gaming markets.

Minnesota Legislature

The push to pass legislation is not a new one. In fact, there are already bills in the Senate and House, and more had been introduced in past years, although to no avail. A number of impediments, including opposition from tribes, which have shown concern their casinos could lose profit to non-tribal sportsbook operators, have frustrated efforts thus far. 

But now, lawmakers are showing confidence the odds could shift this year. At a Wednesday news conference, a bipartisan group of senators announced their fresh efforts to legalize the vertical. Under current plans, the market could launch by fall 2023, with a piece of the sports pie available for each player in the industry.

According to Chamberlain, the rewritten legislation would include retail sports betting for the state tribes and two Twin Cities area racetracks: Canterbury Park in Shakopee, and Running Aces in Columbus.

The bill would also contain language for the creation of online sports gaming licenses, with bets subjected to a tax rate yet to be determined by lawmakers. Rep. Zack Stephenson, DFL-Coon Rapids, a long-time legalization supporter, had already said mobile wagering would most likely be included. 

Minnesota Rep. Zack Stephenson

“It’s become clear to me that mobile is pretty essential to this enterprise,” he said earlier this week, as most states that feature online betting are more successful than those that don’t. He further claimed that while details are still being negotiated, there’s momentum for both on-site sportsbooks and internet wagering.

“This is not a big cash cow; this is about consumers and customers and having some fun and legalizing a legitimate form of entertainment for the state of Minnesota and its consumers,” Chamberlain argued. In addition to Stephenson, he is joined in the legalization effort by Rep. Pat Garofalo, R-Farmington, with the proposal now counting with key backers of both parties.

However, agreement from American Indian tribes in the state remains a hurdle to overcome for the legalization efforts to move forward, says Twin Cities Pioneer Press. It is still unclear as of now if they will ultimately back the proposed legislation.

Stephenson, who held conversations with the state’s pro sports team, the University of Minnesota, sports gaming companies and all 11 Minnesota tribes, hopes things will be different this time around. Past efforts were opposed by the Minnesota Indian Gaming Association (MIGA), a key player lawmakers want on their side.

Minnesota Gov. Tim Walz

While on legal terms tribal support isn’t strictly needed -the state hasn’t given them exclusive rights to gambling-, on political terms they play a crucial role, and both legislators and the government are seeking to include them in the conversation. Tribal casinos are a major source of revenue for the state’s nations, and they could put on a fight for their piece of the pie.

Moreover, Gov. Tim Walz has gone on record stating he wouldn’t sign any sports bill unless it counts with full support of tribal parties. So far, throughout the last few years, they’ve opposed gambling expansions off tribal lands. In a statement released on Wednesday, tribes did not offer specific input on the new legislation, instead referring to sports betting in general terms.

“The tribal governments making up MIGA have been examining the various ways sports betting has been implemented across the country and its impacts on tribal communities,” the gaming association said. “As gaming experts, tribes stand ready to share this expertise with lawmakers considering the future of sports betting in Minnesota.”