Minnesota to ‘probably’ legalize sports betting soon
Minnesota has seen its neighbors legalize sports betting and avail themselves of several monetary benefits, including, but not limited to, higher state revenue and increased tax collection. Minnesota, for one, is looking to do the same, but with a difference in transitioning the market from its illicit existence to its legitimate existence.
Legalizing sports betting in the state is, therefore, back on the agenda with the backing of all the major Democratic representatives. They are seeing support coming from even a few opposition representatives. If passed by the House and Senate, the bill would become law and give more control to the indigenous tribes over in-person casinos and remote wagering through mobile devices.
The Democratic proposal was defeated during last year’s legislative session. This year, it will require 34 votes to pass, and representatives are optimistic that they will have the required support. For instance, Democratic Senator Matt Klein has acknowledged the requisite minimum number of votes and expressed confidence that he will receive the necessary support.
I cannot say I have 34 votes right now, said Klein, adding that it is only because the word has just gotten out everywhere. He, however, remains optimistic about legalizing sports betting in Minnesota.
House Author Democratic Rep Zack Stephenson believes that the people of the state deserve the same opportunity as the people of the neighboring state.
The state, too, deserves a chance to transform its market into a legitimate one. While the monetary benefits are secondary, Minnesota will seek a 10% cut of net wagers placed over the internet. This would be later directed toward crafting programs for the protection of customers and problem gamblers. A 10% cut is estimated to generate approximately $10 million to $12 million in revenue.
The same cut would not apply to wagers placed at tribal casinos, which could very well consider entering into a partnership with FanDuel and DraftKings.
Two racing tracks are being excluded at the moment, namely Running Aces and Canterbury Park. This comes as a result of not being able to pass the votes unless they’re exclusively going to the tribes. There is an alternative way in which Running Aces and Canterbury Park can continue their participation, this would give rise in the odds placement on many top online sportsbooks.
Jeremy Miller, a Republican senator, has said that the alternative approach would not affect the 10% cut. It would instead be widely distributed while managing tax relief for charitable gambling operations. Excluding sportsbooks could have a negative effect because it would send a message that there is nothing for every track in the industry.
Sports betting returns to the agenda for Minnesota with optimism all around the Senate that it will pass the bill to legalize sports betting. The state would have sufficient revenue to manage necessary programs despite not seeking monetary gains from them. Additionally, the market will move on to gain legitimate status.