The effort to legalize sports betting in Minnesota has hit a significant roadblock. Despite initial optimism, the bill failed to pass during a tumultuous legislative session. Lawmakers had hoped to join other states in legalizing sports betting, but the process was fraught with difficulties from the start. Lengthy and contentious debates in both the House and Senate highlighted the deep divisions among lawmakers.
Last-Minute Efforts Fall Short
In a last-ditch effort, lawmakers attempted to incorporate sports betting into an omnibus bill addressing various issues. However, this measure ultimately failed to secure inclusion. This left sports betting advocates disappointed and the future of legalized sports wagering in Minnesota uncertain. The lack of consensus among key stakeholders, including the state’s tribes and horse racing tracks, played a significant role in the bill’s failure.
Stakeholders at Odds
One of the primary reasons for the bill’s failure was the lack of agreement among key stakeholders. The proposed bill would have given tribes a monopoly on digital sports wagering, tethering betting platforms to tribal casinos. This arrangement did not sit well with other parties, particularly the state’s two horse tracks, which were excluded from offering sports betting. The disagreement among these groups made it difficult to reach a consensus.
Legislative Deadlock
Representative Zack Stephenson has championed legal sports betting for four legislative sessions. However, he faced significant challenges in bridging the divides among stakeholders. The arrest and subsequent suspension of DFL Senator Nicole Mitchell left the Senate evenly split with 33 Democrats and 33 Republicans. This even split made it even more challenging to pass the bill, as it required bipartisan support.
Additional Measures Included
The proposed bill also included measures to legalize daily fantasy sports, taxing it at 10%. Despite these additional measures, the bill failed to gain the necessary traction. Lawmakers were unable to reach an agreement, and the bill did not move forward.
Future Prospects for Sports Betting
For now, Minnesota will not join other states with legal sports betting. However, continued interest and efforts from lawmakers like Stephenson suggest that the issue may resurface in future legislative sessions. The progress made in finding a deal acceptable to major stakeholders indicates that there is still hope for the future.
National Context and Comparisons
This year marks the first since the US Supreme Court overturned PASPA in 2018 that no state has legalized sports betting through legislation. Other states have also faced challenges in their efforts to legalize sports betting. For example, Alabama stripped sports betting from a comprehensive wagering bill, which ultimately did not pass. Georgia passed a bill in the Senate, but it stalled in the House without debate. Missouri’s attempt to tie legal wagering to video lottery terminals failed again, and the state’s sports teams may push for a voter decision in November.
Challenges in Minnesota’s Legislative Process
State Representative Zack Stephenson led efforts for sports betting in the House, while Matt Klein championed it in the Senate. Long-standing issues included tribal exclusivity for retail and digital wagering, which was opposed by racetracks seeking more benefits than offered. Charitable gaming groups also wanted changes to pull-tab machines to increase revenue, but they faced opposition from tribes who feared the machines would resemble slot machines too closely.
Reactions from Key Figures
Rep. Zack Stephenson announced on social media that sports betting would not move forward in 2024. He highlighted the meaningful progress made in reaching a deal acceptable to all major stakeholders, including tribes, tracks, and charities. Randy Sampson, Chairman and President of Canterbury Park, expressed disappointment over the failure to pass a gaming bill that would allow racetracks to increase purses using Historical Horse Racing (HHR). He acknowledged the hard work by legislators over several weeks to expand the benefits of the sports betting bill for racetracks, tribal casinos, and charities.
Historical Horse Racing Bill Passed
While the sports betting bill did not pass, Stephenson successfully passed a bill prohibiting state tracks from authorizing HHR games. HHR is an electronic gambling game that allows bets on previously run horse races. The bill was approved in the Senate on May 17 by a vote of 71-58 and in the House by a vote of 36-25.
Conclusion
The failure of the Minnesota sports betting bill highlights the complexities and challenges of legalizing sports wagering. Despite significant efforts and progress, the lack of consensus among key stakeholders and political turmoil ultimately led to the bill’s demise. However, the continued interest and efforts from lawmakers suggest that the issue may resurface in future legislative sessions. For now, Minnesota remains among the minority of states that have not legalized some form of sports betting.
