Sports gambling proposal by Republican senator kicks off issue for 2024

A new proposal to legalize sports gambling from a prominent state Republican senator is a sign that lawmakers will be wrestling with the issue anew in the upcoming legislative session.

Sen. Jeremy Miller, R-Winona, said Wednesday that he's attempting to satisfy all involved: the state's Indian tribes, the professional sports teams and the two horse-racing tracks. "I believe this type of proposal could get the bipartisan support it needs in the Legislature to pass," Miller said in an interview.

He intends to introduce a bill detailing his proposal on the first day of session Feb. 12. Extensive public and private debate on various options are likely, as initial reaction to Miller's plan was tempered.

In Miller's proposal, the state's 11 tribes retain exclusive licensing rights at casinos and on cellphones. He would allow them to partner with the two racetracks to offer sports betting at their tracks in Shakopee and Columbus. He would also roll back recent changes to electronic pulltabs.

Miller would tax sports betting at 15%, which the senator estimates would bring in $60 million annually. Half of that, an estimated $30 million, would go toward Allied Charities of Minnesota, which runs pulltab operations at bars throughout the state.

A quarter would go toward Minnesota Sports and Events, the relatively new organization created to try to bring major events to town. The tracks would split 15%, and the remainder would go toward addressing problem gambling, supporting youth sports and educating athletes about integrity.

Near the end of the 2023 session, Sen. Matt Klein, DFL-Mendota Heights, attempted to revive a bill to legalize sports gambling. That proposal would have taxed sports gambling at 10% with 30% of that initially going to an economic development fund for the tracks capped at $20 million. After the initial infusion, the two tracks would have split $3 million annually.

Republicans were cool to the Klein plan and the DFL will likely need GOP support for passage. The DFL controls the Senate 34 to 33, but two DFLers have expressed opposition to expanded gambling options.

Of Miller's proposal, Klein said, "There's some red flags in there that the tribes would not be happy with and our Democratic caucus would not be happy with but I'm hopeful."

Klein's been working on his own gambling bills for 2024 and was encouraged by Miller's offering. "This is an opening statement with what I hope will be a rapid negotiation early in the session," Klein said.

Miller argued that Minnesota is missing out. Since a 2018 U.S. Supreme Court ruling cleared the way for legalized sports betting, 38 states have done so. All of Minnesota's neighboring states offer some version of sports gambling.

But in Minnesota, it's been tough to find an arrangement that satisfies all the players.

In a statement, Canterbury Park said sports gambling licenses should be authorized for both tribal casinos and racetracks. "We know from public polling that a majority of Minnesotans agree with that, and we are confident that both racetracks and tribal casinos will be responsible managers of sports betting," the statement said.

Running Aces Casino, Hotel & Racetrack CEO Taro Ito said he appreciates Miller's "constructive proposal" and looks forward to continuing to work on a bill.

The Minnesota professional sports teams have been working together on the issue. On their behalf, Minnesota Twins President Dave St. Peter said the teams applaud Miller's passion and commitment to legal sports betting, but he didn't take a position.

"We need time to review and understand the full proposal before re-engaging with our tribal partners and other stakeholders with hopes of shaping the best possible sports betting outcome for our state," he said in a statement.

Andy Platto, executive director of the Minnesota Indian Gaming Association (MIGA), didn't respond to a request for comment.

Complicating the discussion are changes the 2023 Legislature made to electronic pulltabs, something the tribes had sought for years. The tribes argued that the electronic tabs legalized in 2012 had become so dynamic they mimicked slot machines.

The tribes said the dynamic pulltabs violated their exclusive right to operate casinos.

The changes approved last year would ban the "open-all" feature on electronics, meaning each line must be opened individually. Also banned are spinning reels and representations that mimic video slot machines, including free plays, bonus games, screens or features triggered after the initial symbols are revealed.

The changes go into effect in January 2025. Republicans and charitable organizations have denounced the change, saying it would slow players, reduce the pulltabs' popularity and depress revenue.

Miller's bill would address that change by restoring some of those functions, including free plays and bonus screens.

Klein said he's aiming for a quick fix. "We've got to get this done early," he said. "This remains a priority for our caucus."