Sports betting proponents are already having a hard enough time getting it legalized in Minnesota, but an additional roadblock surfaced in the North Star State legislature this week.
While the Minnesota Racing Commission voted Monday to legalize historic horse racing (HHR) machines at two tracks, some lawmakers called the approval illegal after the Alcohol and Gambling Enforcement Division ruled that HHR machines are essentially slot machines.
There was pushback from other legislatures on this idea when it was presented during Wednesday’s legislative discussions, but Rep. Zack Stephenson, the lead sponsor of the currently debated House sports betting bill, made it clear HHR machines will not be included in his push for sports wagering.
“There is no universe in which any bill that leaves this committee is going to authorize historical horse racing at the tracks,” said Stephenson, the chairman of the House Commerce and Policy Committee. “That's a total non-starter. Will not happen. Will not be part of a sports betting deal. Bright red line in the sand.”
Support won’t come easy
HF 2000 would legalize sports betting and daily fantasy sports. Online and retail sports betting would be run exclusively by Minnesota’s 11 tribes with a 10% tax on operator revenue going to the state.
The bill did not receive a vote during Wednesday’s discussion, which got heated when HHR machines were brought up.
Pro-sports betting legislators are walking a difficult line as they have fought hard to receive support from other lawmakers and North Star State charities previously opposed to sports wagering, which could hurt the race tracks’ revenue streams.
To adopt legal sports betting in Minnesota, the legislature may also need to provide financial backing for the race tracks, which aren’t going to like the current stance on HHR machines, which are expected to be operational by May 21, that are projected to bring in $6 million in revenue by the second year, according to a Star Tribune report.
A new hope?
Minnesota now has a sports betting bill in the Senate, but this one comes with some difficult caveats to get past.
SF 5330 was introduced by Sen. John Marty on Wednesday and calls for at least a 40% tax on gross revenue, which would make it one of the highest in the country.
The bill wants 75% of the state’s cut to go toward problem gambling, which is a huge focus in general. Bettors would be prohibited from placing in-game wagers and would have a set amount they could lose in a day and a 30-day window as well as deposit limits.
SF 5330 had its first reading on Wednesday and was referred to the State and Local Governments and Veterans Committee.
