Supporters of legal sports betting in Minnesota suffered a blow this week as a key Senate committee failed to push forward a bill that would have marked the state’s biggest gambling expansion in decades. Despite backing from professional sports teams, bipartisan lawmakers, and major gaming industry players, the measure stalled on a tie vote, throwing its future into question.
A Coalition of Support, But No Clear Path Forward
The proposal, introduced by Sen. Matt Klein (DFL-Mendota Heights), aimed to give Minnesota’s tribes exclusive rights to operate both in-person and mobile sports betting. Horse racing tracks, though barred from offering sports wagers, were set to receive a cut of the revenue.
Klein highlighted the rare political unity behind the measure. “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,” Klein told WCCO. “It should’ve been easy. But it was hard.”
Opposition within the Senate committee prevented the bill from advancing, leaving Klein unsure about its next steps. “People have legitimate concerns and they weren’t ready to move forward,” he admitted.
Licensing Fees and Operator Access Raise Concerns
One of the most hotly debated aspects of the bill was its licensing fees. Under the plan, applicants would have paid $250,000 upfront and $83,000 for renewals.
Sen. Steve Drazkowski argued that these fees favored large gambling operators, making it difficult for smaller players to compete. “Only the big guys are going to get in,” he warned. Klein, however, countered that fees in other states are significantly higher, making Minnesota’s proposal relatively modest by comparison.
There was also debate over a provision penalizing harassment of athletes, with Drazkowski questioning why the bill preemptively created new criminal offenses.
Fears of Gambling Addiction Loom Large
Beyond financial considerations, concerns about gambling addiction became a major sticking point. Opponents of the bill warned that legalizing sports betting—particularly through mobile apps—could lead to increased problem gambling.
Jack Meeks, chairman of Citizens Against Gambling Expansion, didn’t mince words. “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,” he told CBS News.
Minnesota is currently one of the last states without legalized sports betting, even as 38 states have already moved forward with it, according to the American Gaming Association. Klein and other supporters argue that Minnesotans are already placing bets through unregulated platforms, and bringing sports gambling under state oversight would add consumer protections.
Proposed Safeguards and Rival Legislation
To address concerns, Klein’s bill included several protections:
- Banning gambling apps from sending push notifications
- Restricting advertisements at schools and college campuses
- Prohibiting in-game betting on college sports
- Allocating part of the gambling tax revenue to addiction services
However, some lawmakers felt these measures didn’t go far enough. Sen. Jon Marty (DFL-Roseville), a longtime gambling critic, introduced a competing bill in the same committee session, arguing that his proposal offered stronger protections.
Marty’s bill would allocate 50% of gambling tax revenues to addiction services—far more than the 8.5% in Klein’s bill. He also called for banning gambling ads in public buildings and venues.
His proposal managed to pass committee and could be included in a larger legislative package later this session. But it remains unclear whether either bill has enough votes to pass in the full Senate or House.
What Happens Next?
For now, Minnesota’s sports betting future remains murky. With the legislative session moving forward, lawmakers may still find a way to revive negotiations. But with no consensus in sight, Minnesotans may have to wait longer before legal sports betting becomes a reality.
