Published on: January 3, 2025, 08:20h.
Updated on: January 3, 2025, 08:20h.
The prospects are positive for Minnesota to follow the lead of 39 other states and Washington, D.C., in legalizing sports betting in 2025.
The Minnesota Legislature begins its 2025 session on Jan. 14. State Sen. Matt Klein (DFL-Dakota County), who spearheaded the sports betting bill in the upper chamber last year, plans to introduce new legislation to establish legal sports betting in Minnesota.
“The point I always emphasize is that people are already engaging in it in illegal and unregulated markets, usually offshore,” Klein told the Minnesota News Network. “That’s only going to increase. If we want a responsible, safe, and taxable sports wagering process in Minnesota, we need to pass a bill.”
There are still opponents, primarily those concerned that sports gambling may lead to gambling addiction and the associated social issues. Klein assures that his bill will incorporate more responsible gaming protections than his 2024 proposal.
“There are individuals who are genuinely worried about gambling addiction, families going bankrupt, and devastation,” Klein added. “I have included significant safeguards in the bill to address those concerns. If the bill is passed as I have introduced it, it will be the safest sports wagering bill in the country.
2024 Attempt
Lawmakers at the Saint Paul Capitol came close last year to legalizing sports betting in the Gopher State. State senators and House representatives compromised on Klein’s Senate File 1949 and its House counterpart, House File 2000.
The proposed legislation implied that tribal nations with Class III gaming compacts with the state would have exclusive rights to retail and online sports betting. While the tribes would keep their profits from in-person sports betting, they would share 22% of their online sportsbook revenue with the state.
Under the bill, 45% of the state’s tax revenue from online sports betting would go to the General Fund, 15% to Minnesota’s two horse racetracks, 10% to programs for problem gambling, 10% to attract major sporting events to the state, and 5% to support youth sports. The remaining 15% would contribute to a “tribal equalization fund” aimed at benefiting smaller tribes partnered with online third-party sportsbooks that produce less revenue than larger tribes associated with industry leaders like FanDuel and DraftKings.
Minneapolis Market
Although Minnesota lacks commercial casinos, commercial sportsbooks collaborate with Native American tribes in various states, including Arizona, Michigan, Washington, and Wisconsin. With nearly 5.8 million residents, Minnesota is an attractive market, particularly due to its sports enthusiast population and franchises in all five major professional sports leagues – the NFL, MLB, NBA, NHL, and MLS.
U.S. Bank Stadium, the home venue for the Minnesota Vikings, hosted Super Bowl LII in February 2018 and the NCAA Final Four in April 2019.
The Minnesota Legislative Budget Office estimates that legalizing online sports betting could generate close to $90 million in annual state tax revenue.