Minnesota Senate hearing spotlights harms of sports betting ahead of new legalization debate
ST. PAUL, Minn. — No matter the outcome of the Vikings-Rams game next Monday in the NFL playoffs, when the legislature convenes the following day legalizing sports gambling will still be a wild card.
A new bill to set up a regulatory structure for legalization is a sure bet, but its fate is unclear. The issue has had both bipartisan support and opposition for years. On Wednesday, some of the fiercest critics held a Senate hearing to highlight the dangers, particularly of online gambling.
"We intend to continue working against the whole issue of allowing a predatory industry to come in and profit off of people's harm," said Sen. John Marty, DFL-Roseville, a longtime opponent of legalization.
Marty, who chairs the Senate Finance Committee, had researchers share their findings when they studied the impact of sports gambling on social and financial health in states that have given legal bets the greenlight.
Minnesota is the only state in the region where it is not legal and is in a minority of states without a regulated market. Thirty eight states have approved it, according to the American Gaming Association.
Brett Hollenbeck, a professor at the University of California, Los Angeles, testified that in the states that have legalized online sports betting, the likelihood of bankruptcy increased by 28%. Others highlighted the negative impact on behavior.
"This is a bipartisan coalition that is seeing what's happening across the country and do not want to bring the harms here," said Sen. Erin Maye Quade, DFL-Apple Valley.
Legislation to approve sports betting has been discussed for years. The latest versions would allow Minnesotans to play bets online through apps or in person at the state's tribal casinos, and would establish regulations and allocate revenues.
Marty told reporters Wednesday he wants lawmakers to put the brakes on any plans for legalization, but at minimum prohibit online gambling. Sen. Matt Klein, DFL-Mendota Heights, will introduce another bill this year and vows strong consumer protections to assuage concerns.
One of the unique safety features to stem problem gambling is a three-hour delay in accessing funds after they've been deposited to a person's account, he said.
"One thing I would ask people who are opposed to it because of the public health risk is: Is it better that we currently have an illicit thriving market where there are no safeguards whatsoever about problem use or underage use? Or is it better that we legalize and regulate it and put in barriers to problem gambling and fund some treatment services for gambling?" Klein said in a WCCO interview. "I think legalization is better, similar to how we approached things with alcohol and cannabis."
Klein's bill last year also added a ban on in-game bets that drew the ire of major sportsbooks like FanDuel and DraftKings. In his new proposal, there will be wagering limits, advertising restrictions and a new helpline for problem gambling, among other provisions.
Lawmakers in the House are expected to put forward their own plan.
A group of Republican and DFL lawmakers said late last session they had come to an agreement that satisfied all stakeholders but ran out of time.
The coalition across party lines will be necessary once again if lawmakers want to have better luck this year to get it over the finish line, but a partisan power struggle is already threatening the work of the legislature before session even begins.
