Future of sports betting in Minnesota uncertain after bill fails to advance through key committee

The proposal would've allowed for sports betting at the state's casinos and through mobile apps. Under the plan, the tribes — which run the casinos — have exclusivity over both in-person wagers and contracting with online platforms. The state's horse racing tracks were set to get a slice of the revenue pie, since there wouldn't be sports gambling allowed at their locations. 

The state's professional sports teams were also on board, creating what the bill author, DFL Sen. Matt Klein, called a "rare phenomenon": legislation backed by all stakeholders, whose uneven support for earlier iterations had unraveled previous efforts to get it over the finish line. 

But that buy-in wasn't enough to advance the measure forward. On a tie, it didn't advance through its first test in the Senate, creating a roadblock on the quest to get the measure passed this session. 

"That particular bill had the support of all interested parties. It had bipartisan support. It had the support of both me and [GOP] Sen. Jeremy Miller who has worked on this issue on the other side of the aisle for years and so it should've been easy," Klein told WCCO after the hearing. "But it was hard. People have legitimate concerns and they weren't ready to move forward in committee today. I'm not sure where we go from here." 

Opponents have deep concerns about how the expansion would impact problem gamblers who are addicted, particularly when it comes to online bets. Last month, they had a hearing spotlighting those harms.

"To think that we can legalize sports gambling but not suffer the consequences lived by citizens around the world where sports gambling is legal is a foolish bet," Jack Meeks, chairman of Citizens Against Gambling Expansion, told the Senate State and Local Government Committee Thursday. 

Right now, Minnesota is an outlier in the country. Thirty-eight states have given sports betting the green light, according to the American Gaming Association.
 
Klein and other supporters make the point that Minnesotans are already betting on sports — just without safeguards and regulations in place.

Under his proposal, there would be certain consumer protections, like a ban on push notifications from any gambling app and prohibiting sportsbooks from providing promotions or incentives that might drive a problem gambler to bet even more. 

No sportsbook could advertise at schools or college campuses, and the law wouldn't allow in-game bets on college athletics.

Only Minnesotans 21 and older could bet. Addiction services were also set to get a share of gambling revenues.

Sen. Jon Marty, DFL-Roseville, a longtime opponent of sports gambling, put forward his own bill in the same committee Thursday, which would allocate half of all revenues to addiction support services — compared to 8.5% in the Klein bill. 

The panel approved that proposal for possible consideration in a larger package at the end of session, but it may not have the votes to pass either chamber. 

There is a coalition of sports betting supporters that cuts across party lines, but it's a delicate balance. Even the smallest changes could derail its chances.