A Minnesota bill that would legalize online sports betting and fantasy contests stalled in committee on Thursday despite enjoying what its sponsor called an unprecedented level of support.
Sen. Matt Klein‘s SB 757 received a split 6-6 vote from the Senate State and Local Government Committee with bipartisan opposition.
Klein’s bill would allow Minnesota’s 11 sovereign tribes to partner with an online sportsbook and DFS operator. He said his proposal had support from all tribes, both state horse tracks, all charitable gaming operators and Minnesota sports teams, as well as majority support from Minnesotans in polls and bipartisan political backing.
“There are other sports wagering bills before this committee this year; none of them enjoys the support of the coalition I have described,” he said.
Last year, efforts to legalize sports betting stalled in large part because the tracks and state tribes could not reach consensus, which Klein has done with his measure.
Bringing tribes and tracks on board
Klein proposed a 22% tax on operators’ gross gaming revenue, but that tax would not apply to wagers placed on tribal land. The bill would dedicate 15% of tax revenue to Minnesota’s two tracks and another 15% to tribal aid, which he said had “answered concerns” from both corners.
One of the biggest impediments to Minnesota moving wagering legislation has been tribes, tracks, charities and operators all on the same page.
Andy Platto, executive director of the Minnesota Indian Gaming Association (MIGA), told the room that Klein’s bill “respects tribal sovereignty.” Canterbury Park horse track CEO Randy Sampson added that “it has taken a long time to build the trust necessary to get to this compromise position.”
“A win-win-win result has always been possible with a bill that works for the tribes, charities and racetracks,” added Sampson. “SB 757 meets that goal.”
Senators push back on “safest bill in the nation”
Klein also positioned SB 757 as “the safest sports wagering bill in the nation” due to its focus on safeguards and player protection. Among other things, the bill would ban pop-up marketing and advertising at educational facilities, prohibit college prop bets, restrict deposits and ban push notifications while users are inactive.
Despite that, lawmakers slammed the brakes on Thursday.
Sen. Erin May Quade voiced fears about online wagering and argued that betting stakeholders are hoping to incite gambling addiction.
“I loathe that,” May Quade said. “I have no problem with people betting on sports, I do it all the time. What I have a problem with is introducing a predatory industry that can use things like algorithm to manipulate our behavior to get people to do things they otherwise wouldn’t do.”
Another sticking point was, as Klein noted in response to a question from Sen. Steve Drazkowski, the fiscal note for the bill “is not ready yet.”
“I think you’re right: the bill’s not ready yet,” the senator retorted. He later suggested that a comprehensive study needs to happen before the bill is considered.
Bill stuck, but not dead
The vote left SB 757 stuck in the mud but not dead, as it can be revived at any time in committee. But it’s evident that this committee’s members need a lot more convincing.
In a short epilogue to Thursday’s hearing, Sen. John Marty spoke on his own sports betting bill, SB 978. Some key difference are that Marty’s bill does not include DFS and would levy a 40% tax rate. It would also ban in-game betting and put extreme advertising restrictions in play.
Marty noted he is “not a proponent” of sports betting but acknowledges legalization can be important to protect players. His legislation was tabled.
