Minnesota’s long-stalled online sports betting legalization prospects could be even more complex after the state’s Democrat-affiliated party lost control of the state House of Representatives. With two recounts pending, unofficial results show a 67-67 tie between the Democratic-Farmer-Labor (DFL) party and Republicans.
The DFL had held a four-seat advantage going into the 2024 elections. The party has narrow leads in both House seats that will see recounts. If either one flips to the GOP, Republicans will take control of the House.
In the election for the lone seat on the ballot, DFL candidate Ann Johnson Stewart defeated Republican nominee Kathleen Fowke in a Democratic-leaning seat in the Twin City suburbs. The DFL maintains a 34-33 edge in the upper chamber.
Split control of the two chambers could complicate what has been a politically fraught issue. The logistics of a tied lower chamber adds more questions to not just sports betting legislation but the day-to-day operations of the House.
The two parties largely support mobile sports betting authorization but have been divided over how to structure the legal market. The DFL has tended to back a tribal-exclusive model that gives the state’s 11 Indian gaming tribes sole rights to mobile sports betting. Republicans back a more expansive model that also gives sports betting license access to Minnesota’s two horse tracks as well as charitable gaming organizations.
Minnesota's 2025 sports betting hopes will be shaped not just by Gov. Tim Walz and this year's presidential election but the state's down-ballot races; the lone Senate district race up for election will determine control of the chamber; all 134 House seats are also on the ballot
— Ryan Butler (@ButlerBets) August 7, 2024
The state’s tribes have opposed any Minnesota sports betting model that doesn’t give them exclusive sports betting rights, which they argue is mandated by their existing gaming compacts.
Both parties agree sports betting will require bipartisan support, but the divided control could make future efforts more difficult. The narrow difference in party make up of both chambers means the two parties will have to reach a compromise that garners majority support from both – something the sides have been unable to achieve – or Minnesota’s mobile sports betting prohibition will remain.
Minnesota is set to begin its 2025 legislative session in January and conclude by May.
Should any entity earn the right to partner with a mobile sportsbook, most major national operators would likely be interested in securing market access. That would include major national brands such as FanDuel, DraftKings, BetMGM, Caesars, Fanatics, and bet365.
Election could improve prospects
Donald Trump’s return to the presidency means Minnesota Gov. Tim Walz will not resign to serve as vice president alongside Kamala Harris.
Lt. Gov. Peggy Flanagan would have been set to take over as governor. Flanagan, who would have been the first female Native American to serve as a state governor in U.S. history, is a member of Minnesota’s White Earth Nation. The tribe operates a casino in the state.
Flanagan would have likely backed and reinforced the Native American-centered proposal supported by her fellow DFL party members. Her background and previous political positions also make it even less likely she would support any sports betting or other gaming expansion without the tribes’ support.
Flanagan’s ascension to the governor’s office would have likely improved the chances of a tribal-backed sports betting market but it may not be a significant departure from Walz’s administration. Walz has been lauded by tribal gaming stakeholders in Minnesota and across the nation for his strong relationships in Indian Country. He appointed two tribal members to the state’s racing commission, a move seen as a boost to Native American gaming interests in the state.
