Minnesota Senate Reviewing Bill to Legalize Sports Betting

Will this finally be the year the North Star State legalizes sports betting?

The Minnesota Senate is considering recently introduced SF 4139, which would create a legal online market in the state. The bill was introduced last Wednesday by a bipartisan group of lawmakers. Proponents hope the focus on protecting bettors will help this year’s version of the bill finally gain the support to become law.

If passed, 11 tribes would be able to apply for licenses and could partner with commercial operators.

The bill is currently under review by the Minnesota Senate Commerce and Consumer Protection Committee.

Minnesota Charitable Gaming, Racing to Benefit

Unlike most markets, Minnesota would not use tax revenue from sports betting to fund its education system. Instead, the majority would go towards funding charitable gaming programs and the local horse racing industry.

The language in SF 4139 allocates tax revenue from legal sports betting to support the following causes.

• 50% to support charitable gaming programs
• 15% to help further develop local horse racing
• 15% to be split between the state’s non-gaming tribes
• 15% to promote tourism and attract large events to the state
• 4% to help fund problem gambling programs
• 1% to help support and protect the integrity of amateur sports

Restrictions on Ads, Prop Bets

This year’s attempt to legalize mobile sports betting focuses on protecting bettors by addressing two key concerns.

The first is how and when sportsbooks can advertise. The bill bans the use of certain terms, such as "free bets," and leaves the door open for lawmakers to restrict ads to air only during specific windows each day. This would help protect those vulnerable to problem gambling, as well as players under the age of 21.

The bill also proposes banning player prop bets in college athletics. A surge in athlete harassment and betting scandals prompted the NCAA to urge states to ban the controversial betting type. While the recently-launched Missouri market rejected the request, it appears Minnesota lawmakers are complying.

Sports Betting Already in Minnesota

While mobile sports betting remains illegal in Minnesota, residents now have a legal alternative. Sports prediction markets continue to operate across all 50 states, thanks to their classification as a form of commodity trading rather than gambling. This also allows prediction platforms to be excluded from paying the same state taxes as sportsbooks.

Prediction markets saw impressive volume during this year’s Super Bowl, and expect similar results for March Madness. The lack of a legal betting market is sending residents to prediction platforms for these events, where they create accounts and deposit funds. 

That means the longer states like Minnesota wait to legalize sports betting, the harder it will be to lure bettors away from prediction markets.