Complex Political Landscape Delays Action on Minnesota’s Revamped Tribal Sports Betting Bill

Key components of the Minnesota Sports Betting Act 3.0 include:  

• The bill would allow Minnesota’s 11 tribes to have a license for on-site and/or mobile sports betting.    

• 20% revenue tax on license holders, which after fully implemented, would generate about $80 million per year of state tax revenue.

• Tax revenue from Minnesota’s sports betting program would be split as follows: 50% for tax relief on charitable gambling, 25% to bring major sporting events to Minnesota, 20% to enhance horse racing in the state, 2.5% for mental health and problem gambling support, and 2.5% for grants to support youth sports.

The Minnesota Legislature continues to be in an unusual position. There are upcoming special elections for open seats in each chamber due to the death of a Senator and the disqualification of a House lawmaker. These special elections will determine the balance of power in each chamber. Democrats are favored in each race.

Further complicating things, there is an on-going debate on how many members are needed for a quorum in the House. The Republicans currently have a one-seat, 67 to 66 majority (until the special election for the vacant House seat is held). The Republicans believe that due to the vacant seat, 67 members present is enough for a quorum and the Republicans have elected a Speaker and been holding session.

The Democrats have argued that 68 members is required for a quorum. They have been boycotting session in an effort to prevent a quorum from being achieved.

This dispute has ended up before the Minnesota Supreme Court, who heard oral arguments earlier this week about the quorum issue.

Due to these issues, we expect substantive discussions around sports betting to be delayed until much later in the session, which ends in May.