Legalizing Sports Betting and Regulating Horse Racing Tracks in Minnesota
Legalizing Sports Betting
In a bold move to combat the illicit black market and generate much-needed revenue, Minnesota is poised to legalize sports betting. Led by Rep. Zack Stephenson (DFL-Coon Rapids), the bill proposes a comprehensive framework that will allow residents to wager on a wide range of athletic events, including the thrilling world of esports.
To ensure responsible gambling, the legislation grants exclusive licenses to 11 Minnesota tribal nations. These entities will oversee the operation of online sportsbooks, providing a safe and regulated environment for bettors.
With a minimum betting age of 21, Minnesotans will have access to a variety of wagers, including moneylines, point spreads, and over/unders. However, horse racing, youth sports, and certain fantasy contests are notable exclusions from the legalized activities.
To encourage responsible gambling, the bill allocates a portion of the tax revenue generated from online wagers to fund problem gambling programs. This proactive measure aims to minimize the potential negative impacts of legalized sports betting.
Regulating Gambling at Horse Racing Tracks
In a bid to protect the integrity of horse racing in Minnesota, the bill proposes a strict prohibition on historical horse racing machines (HHRMs). These electronic gambling devices, which bear striking similarities to slot machines, are currently only permitted on tribal lands.
HHRMs operate by utilizing replays of past races, with hidden race information that gives players an unfair advantage. To ensure a level playing field and preserve the authenticity of horse racing, the bill rightly excludes HHRMs from the state’s gambling landscape.
Sports Betting and Horse Racing Regulation in Minnesota
Sports Betting Legislation
Legalizing sports betting in Minnesota aims to curb the illicit black market, generate tax revenue, and fund problem gambling programs. The bill authorizes 11 Minnesota tribal nations to offer sports betting licenses, allowing wagers on various athletic events, including esports, with a minimum age requirement of 21. Excluded from the bill are horse racing, youth sports, and certain fantasy contests. Net revenue from online wagers will be taxed at 20%.
Horse Racing Track Regulation
The bill prohibits historical horse racing machines due to their resemblance to slot machines, which are only permitted on tribal lands. These electronic gambling devices utilize replays of past races with hidden race information.
Sports Betting Regulation Funding
The bill allocates $8.32 million to the Department of Public Safety for sports betting regulation in fiscal year 2025, with ongoing funding of $5.49 million in FY2026 and $5.47 million annually from FY2027 onwards.
Impact on Horse Racing Tracks
To mitigate the impact of the sports betting legalization on horse racing tracks, the bill provides purse supplements of $625,000 annually, with 72% allocated to Canterbury Park and 28% to Running Aces. However, concerns remain regarding the adequacy of this support.
Legislative Timeline
The House Ways and Means Committee approved the bill on Friday, May 10, 2024. With six legislative days and 10 calendar days remaining before the end of the session, the bill’s future is yet to be determined.
Conclusion
The legalization of sports betting and regulation of horse racing tracks in Minnesota is a complex and multifaceted issue. While the bill aims to address concerns about illicit gambling and generate revenue for the state, it also raises questions about the impact on horse racing tracks and the adequacy of support measures. As the legislative session draws to a close, the fate of this bill remains uncertain, and its potential effects on the state will be closely monitored.