Optimism rising for Minnesota sports betting chances

Could this actually be the year Minnesota lawmakers bring sports betting over the finish line? One head lawmaker believes the odds of passage are on the rise.

Minnesota House of Representatives Speaker Melissa Hortman (DFL-34B) shared some positive news with reporters about the state’s sports betting chances for this legislative session.

It’s an interesting turn, as hope for Minnesota sports betting had all but died at the end of April.

According to Axios reporter Torey Van Oot on X, Hortman met with reporters Thursday and discussed the chances that sports betting is legalized this session. Hortman said negotiations have been going well and put the odds of a bill being passed at 60-40.

Discussions have gone well, she said, which has increased optimism that a sports betting bill may be approved prior to the state’s final day of session on May 20.

Historical horse racing, a form of electronic gaming that state racetracks have pushed for in recent weeks, will not be part of any potential bill, she said.

It’s welcome, but surprising, news from the leader of the House. Several House of Representative members expressed doubt at a recent taxes committee meeting that any sports betting bill would have any chance of approval in the Senate.

The Minnesota House of Representatives Taxes Committee approved Rep. Zack Stephenson’s (DFL-Coon Rapids) sports betting bill, HF 2000, by a 12-9 vote, re-referring the bill to the House Ways and Means Committee on April 30. Despite the approval, members expressed doubt that the bill would move further than the House.

“It may pass the House, but it will not pass the Senate,” Rep. Greg Davids (R-26B) said at the meeting.

Despite the negativity, Hortman’s public comments should lend themselves to a sense of optimism. Minnesota has debated sports betting for the last several years and the fact that the lines of communication are still open.

Stephenson’s bill provides exclusive control of retail and online sports betting to the following 11 state tribes:

Minnesota professional sports franchises also support the bill.

Moreover, it specifically prohibits historical horse racing (HHR) machines in Minnesota’s state racetracks. Earlier this month, the Minnesota Racing Commission voted to allow 500 HHR machines in the state’s two racetracks, Canterbury Park and Running Aces.

There are currently two other additional sports betting bills in the Senate. Sen. Matt Klein’s (DFL-53) sports betting bill, SF 1949, provides similar sports betting exclusivity to the tribes as Stephenson’s bill, but includes a complete prohibition on in-game sports betting. No other state in the country has a prohibition on in-game sports betting.

Klein’s bill includes a 20% sports betting tax rate.

Sen. John Marty (DFL-40) also introduced his own sports betting bill, SF 5330, last month. It provides exclusivity to state tribes, as other bills do, but earmarks a vast majority of sports betting revenue to combat problem gaming in the state and will require operators pay at least a 40% sports betting tax on gross revenue.

The bills distributes sports betting tax revenues as follows: