Minnesota: Time is Running Out to Pass Sports Betting Legislation

Minnesota has few obstacles against the legalization of online sports betting, but one obstacle has interfered with it again and again. The Native American tribes of Minnesota don't want the racetracks to participate without agreeing more in their favor. Those behind the horse racing industry and the tribes can't reach an agreement over online sports betting.

Time is Running Out

Unfortunately, we have arrived at a point where the clock approaches the deadline. Minnesota legislature only has so much time to pass sports betting legislation. You have two factions of Minnesota senators who oppose the online sports betting legislation. First, you have the people who support the horse racing industry. Second, you have individuals who oppose the legalization of online sports betting based on moral grounds, and they do not want gambling to expand further.

Ongoing Issues in the Senate

The issue has become so problematic that Jeremy Miller, the Senate majority leader, put an onus on sports betting and left the decision up to the 13 tribes. The Senate has had less support than the Minnesota House. Under the bill that they want to pass, the Native American tribes would have control over online sports betting. They would have the option to allow for either gambling online via smartphone, or they could gamble at their establishments, but it would ruin their exclusivity.

The Ojibwe and Dakota tribes have been opposed to it mostly. Traditionally, Native American tribes haven't wanted to legalize online gambling because they believe that it would harm their casino revenue. Under the new agreement, the tribes could keep all profits from in-person betting, and they would keep five percent of the profits from mobile betting.

The Pandemic: Changing Minds

Before the start of COVID-19, Native American tribes were highly opposed to online gambling, but some have switched their position after the intense lockdowns that hurt their physical business. They suddenly couldn't bring in customers to gamble at their establishments because of social distancing, which led to some changing their position.

Racetrack Gambling: Would It Hurt Minnesota Tribes?

Minnesota has 13 active tribes in the state, and most people believe that allowing racetrack betting wouldn't hurt the tribes. Since only two racetracks operate in the state—one in Canterbury and one in Running Aces Casino & Racetrack, allowing two more sports betting apps than the current 13 wouldn't be a groundbreaking amount of competition. What they dislike is giving up the grounds of exclusivity to competitors, which has made them fight harder for it.

Focus in the Senate Turned

The focus in the Senate has turned as they want to focus more on the education budget rather than online sports gambling. Anyone could arguably say that that has greater importance. That was one of the reasons that the Senate majority leader gave his onus on this bill. They will have to arrive at a conclusion soon or risk that the bill would be dead in the water. Currently, 30 states allow for sports betting and 18 allow for online sports betting. Minnesota would join the ranks if the online sports betting bill passes.