New sports betting proposal would give horse racing tracks gives share of revenue in effort to move bill forward
ST. PAUL, Minn. -- Legal sports betting is still out of Minnesota's league, even as a growing number of states take that step. But there's a revived effort at the State Capitol with some key changes to push the bill over the finish line.
In February, authors of the legislation vowed to finish the work after the House passed a bill off the floor last year allowing Minnesotans 21 and older to place bets at casinos and through a mobile app. That plan gives the state's Native American tribes, which own casinos, exclusive access to state licenses for operation.
Since then, the issue has largely taken a back seat at the Capitol with just weeks left until adjournment.
But in Senate State Government committee Wednesday, Sen. Matt Klein introduced an amendment that would give the state's horse racing tracks a slice of the sports gambling revenue since they are left out of the deal to operate sportsbooks, calling it a "best faith effort" to accommodate them.
Their participation in a sports gambling market is a sticking point for some Republicans whose support may be necessary to get the bill passed.
"It's important that we establish it to be safe and have guard rails around problem gambling and underage gambling," Klein said in an interview with WCCO News. "And also not to stand in the way of legitimate wishes by the people of Minnesota."
The amendment would allocate $20 million in revenue from mobile betting to a special fund to support racing, which would get an annual contribution of $3 million annually thereafter. Other revenues would support gambling addiction treatment and youth sports.
"We will continue to work with tracks to try to satisfy their concerns, that's not out of the question. But at the end of the day each individual legislator needs to decide if they're willing to vote against a bill that is what Minnesotans are demanding," Klein said.
The bill is still far from a sure bet. Randy Sampson, CEO of Canterbury Park, told lawmakers Wednesday he appreciates the effort, but said the plan isn't sufficient to cover loses the racetrack would face if it can't offer sports betting, too.
"We believe this amendment provides a short-term solution to a long-term concern and problem," Sampson said.
Andy Plato, executive director of the Minnesota Indian Gaming Association, testified that the casinos would still support the bill if racetracks received some of the revenue.
The proposed changes to the bill come as Minnesota becomes is an island in the Midwest, as more states vote to legalize sports gambling. Right now, it is legal in 37 states and Washington D.C., according to the American Gaming Association.
Data shared with WCCO News by GeoComply, a company that does geolocation checks to ensure bets are placed legally, show Minnesotans tried nearly one million times to access sportsbooks in legal states during this year's NFL season and March Madness.
A poll from the Star Tribune last fall found 48% of Minnesotans believe sports gambling should be legal, compared to 33% who think the state shouldn't allow it.
The window of time to pass a bill is also shrinking, but Klein was optimistic lawmakers could find a deal in the final days.
"Time's getting short, but when legislators are motivated things can move quickly around here, so I think we have a chance," Klein said.