Minnesota Sports Betting Further Complicated by Legislature Uncertainty

Minnesota sports betting legalization won't come easily. A legislature that can't agree to convene doesn't simplify this effort.

Ryan Butler - Senior News Analyst at Covers.com
Ryan Butler • Senior News Analyst
Jan 16, 2025 • 15:41 ET • 4 min read
The Minnesota State Capitol is seen. Mandatory Credit: Hannah Gaber-USA TODAY
Photo By - Imagn Images.

The Minnesota House of Representatives is set to be one of the first legislative bodies in U.S. history with even division between the two major parties. Minnesota is also one of a dwindling number of states with split control between the two parties in the House and Senate.

And that’s just the beginning of the chaos.

Minnesota was set to begin its legislative session earlier this week but divides between control of the House of Representatives has left the lower chamber unable to operate. This makes passing any legislation, including sports betting legalization, even more complicated.

Minnesota legislature background

Minnesota’s House had a 67-67 split between the Republican and Democrat-affiliated Democratic-Farmer-Labor parties after the 2024 elections, a rare tie for control. The GOP took a 67-66 lead in the following weeks after a judge ruled that DFL Rep. Curtis Johnson did not live in the district he represented and could not hold office.

A special election to fill Johnson’s seat was scheduled for the end of January. The DFL is expected to gain a 67th seat on Jan. 28, but until then, Republicans have argued they have the right to elect a speaker and take control of the legislature through the duration of the session.

To prevent Republican control, Democrats have boycotted the first days of the legislative session to prevent a quorum. Republicans believe they have enough members to present to conduct daily legislative business without any DFL members physically present.

Republicans are also challenging a separate House race that went to the DFL by less than 20 votes. Several absentee ballots were reportedly improperly thrown away without being counted, a number that the GOP believes could swing the race in their favor.  

The state Supreme Court is expected to rule on both cases in the coming weeks.

In the meantime, the state Senate is also tied, 33-33. The special election to fill the 67th seat is also scheduled in the coming weeks, where the DFL is expected to take control. The two parties have reached a power-sharing agreement before the race allowing the Senate to proceed with standard business.

Sports betting impact

The partisan mess in the narrowly divided statehouse comes after similar battles for party control helped tank a 2024 Minnesota sports betting bill.

Though the legislature’s sports betting proponents believed they had reached a compromise that would bring statewide mobile sports betting to the state, that proposal fell short after the two sides couldn’t agree on party control of the Senate following Sen. Nicole Mitchell's arrest on burglary charges. The GOP argued Mitchell shouldn’t be seated and Republicans withdrew support for all DFL proposals.

The sports betting bill didn't have unanimous DFL support so it wasn't brought up for a vote. 

Mitchell is facing a trial next month, which could also alter the makeup of the legislature if she is forced to give up her seat.

In 2025, advocates are hoping that the groundwork laid in 2024 can finally bring legal sports betting to the Land of 10,000 Lakes. That deal is still not a sure bet.

If the parties resume “normal” business, there’s still no guarantee that the bill will pass. DFL State Sen. John Marty, chair of the powerful Senate Finance Committee, held a hearing earlier this month denouncing gambling. He represents a bipartisan block of voters that are unlikely to support any gambling expansion.

Though the majority of Minnesota lawmakers still seem amenable to sports betting, the would-be proprietors of the state’s legal sportsbooks may not agree to its structure.

The state’s Native American gaming tribes have said they will only support a sports betting expansion that gives them exclusive rights to any retail or mobile sportsbooks, arguing that the compacts signed with the state prevent any other entity from having access to legal gambling. The state’s two horse tracks as well as charitable gaming businesses both want a piece of the potential sports betting market.

Minnesota charitable gaming entities are a multibillion-dollar industry and the nation’s highest-grossing such organizations, primarily generating revenues from pull-tab games at bars, restaurants, and other businesses. The state’s two remaining horse tracks, like most other U.S. tracks, have seen dwindling revenues and are facing a larger fee on advance deposit wagering in Governor Tim Walz’s proposed budget for the upcoming fiscal year.

Walz made no mention of sports betting revenues in his budget released Thursday. This doesn’t mean sports betting won’t be legalized, but it indicates the government isn’t projecting any new revenue for the coming months and years.

Walz and Lt. Gov. Peggy Flanagan have been lauded by tribal gaming stakeholders during their time in office. DFL members in the legislative and executive branches seem positioned to back the tribal gaming stakeholders in a potential sports betting arrangement.

Arizona, Michigan, and Connecticut are among states that approved mobile sports betting as part of a compromise between tribes and outside gaming interests. A similar deal could be made in Minnesota, but it is far from a certainty.

And that’s only possible if Minnesota lawmakers can agree to operate the legislature.

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Ryan Butler - Covers
Senior News Analyst

Ryan is a Senior Editor at Covers reporting on gaming industry legislative, regulatory, corporate, and financial news. He has reported on gaming since the Supreme Court struck down the federal sports wagering ban in 2018. His work has been cited by the New York Daily News, Chicago Tribune, Miami Herald, and dozens of other publications. He is a frequent guest on podcasts, radio programs, and television shows across the US. Based in Tampa, Ryan graduated from the University of Florida with a major in Journalism and a minor in Sport Management. The Associated Press Sports Editors Association recognized him for his coverage of the 2019 Colorado sports betting ballot referendum as well as his contributions to a first-anniversary retrospective on the aftermath of the federal wagering ban repeal. Before reporting on gaming, Ryan was a sports and political journalist in Florida and Virginia. He covered Vice Presidential nominee Tim Kaine and the rest of the Virginia Congressional delegation during the 2016 election cycle. He also worked as Sports Editor of the Chiefland (Fla.) Citizen and Digital Editor for the Sarasota (Fla.) Observer.

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