Minn. Senate committee endorses legalized sports gambling, including money for horse tracks

A plan to legalize sports gambling advanced Wednesday out of a Minnesota Senate committee, with its sponsor expressing optimism about negotiations to win the support of the state's two horse tracks.

"We've got to find a way to make the tracks at least not openly oppose it," said Sen. Matt Klein, DFL-Mendota Heights, after the mostly party-line vote in the state and local government committee. But time is short with the Legislature's deadline to adjourn in less than two weeks.

Klein introduced his change to the bill last week, but the committee didn't vote until now. The bill's next stop is the Rules Committee followed by the Taxes Committee. The question remains, however, whether Klein can find more money for the two tracks and get more Republican votes.

The DFL has a 34-33 edge in the Senate, but the bill would need bipartisan support to pass because some Democrats oppose an expansion of gambling. In the revised proposal, Klein said sports gambling would be taxed at 10% with 30% of that going to an economic development fund for the tracks capped at $20 million. After that initial infusion, the two tracks would split $3 million a year.

Under Klein's proposal, each of the state's 11 American Indian tribes would be able to get one license to partner with a sports gambling platform such as FanDuel, DraftKings and BetMGM. The platforms get most of the revenue, he said, but the state is expected to receive $30 million annually.

Of the state money, Klein said some would go to the Department of Human Services to address problem gambling and some would go toward youth sports and addressing juvenile crime.

Minnesota Indian Gaming Association executive director Andy Platto said because geography doesn't factor into where people play, smaller tribes outside the Twin Cities metro area could benefit more from sports gambling than they do in brick-and-mortar casinos.

"Mobile sports betting levels the playing field among tribes which we see as a positive development," Platto said.

Republican Sen. Andrew Lang of Olivia voted for the bill, which advanced on an 8-5 vote. But Lang said he also hoped to see more for the tracks in the bill before it gets to the floor.

Sen. John Jasinski, R-Faribault, voted against the bill in committee, but left open the prospect of voting for it if more money goes to the tracks. "I do think it's something Minnesotans want and are doing anyway so why not capture that," Jasinski said.

The vote was the first substantial movement for sports betting this session. It has not advanced in the House. Even with the May 22 adjournment deadline, Klein was optimistic: "We've got plenty of time."

He said there are active negotiations with the tracks.

Running Aces in Columbus, Minn., and Canterbury Park in the south metro both spoke against the bill last week, saying they need more money.

Gov. Tim Walz said on Tuesday that he'll support a final deal if both chambers agree on a bill, but he's not involved in negotiations. "We've said if they can get a bill to my desk, I'll certainly sign it," Walz said.