Minnesota Sports Betting Prospects Sinking
Legislature Adjourns on May 20
There was some optimism about passing a Minnesota sports betting bill several months ago. Several sports betting bills were introduced, with one making it out of committee after amendments. Lawmakers are trying to appease as many different groups as possible in crafting the legislation.
However, it’s almost impossible to make everybody happy with any proposed new law. Minnesota lawmakers are seeing that first hand, as sports betting bills are being met with opposition within the sponsor’s own party.
To further complicate matters, Running Aces Casino, Hotel & Racetrack has filed a lawsuit against three tribal casinos. It claims the tribal casinos are offering illegal card games.
The lawsuit was filed under the Racketeer Influenced and Corrupt Organization (RICO) Act. It claims the tribal casinos have an “illegal and unfair competitive advantage” by offering games not included in the state’s tribal compact.
There has been contention between the Minnesota Racing Commission and the tribal casinos. After the racing commission approved historical horse racing earlier this year, Democrat-Farmer-Laborer party Rep. Zack Stephenson unleashed a bill to prevent the state’s two horse racing tracks from having historical horse machines.
He introduced the bill after tribal lawyers said the machines are too close to slot machines. Only the tribes have the exclusive right to offer slot gaming.
That likely played a part in the Running Aces lawsuit, which is seeking treble damages – triple the amount of money lost – and calls the losses suffered by Running Aces as “substantial.”
Tribes and Horsemen Link to Sports Betting
The Democrat-Farmer-Laborer party controls both the House and Senate in Minnesota. Stephenson and others in the party want to offer tribes the exclusive right to offer sports betting in the state. The Republicans want the state’s horse racing tracks to share in the profits from sports betting.
There’s a catch when it comes to passing a Minnesota sports betting bill. That is not everybody in the DFL party believes it should be exclusive to the tribes.
To appease those members, some money is slated to go to the horsemen in several of the bills, but it’s not much. Stephenson’s bill proposed $625,000 be taken out of taxes and given to the horsemen, although that money will be split five ways.
That won’t do much for the tracks, especially since they’re likely to see a revenue decline in sports betting is legalized. Horse racing will have a tough time competing against the best sports betting app.
The tracks want sports betting licenses and you can’t blame them. They’ve seen the amount of money generated in other states. With the Minnesota Timberwolves having a great season, NBA betting interest would be high. Not to mention the Minnesota Vikings and their rabid fan base.
The Republicans also want the tracks to have licenses and won’t give Stephenson’s bill the support it needs to pass. That has this legislative session looking similar to the last two when Minnesota sports betting failed to get approval.
For a Minnesota sports betting bill to pass there is going to have to be compromise. Not everybody will be happy with the concessions made, but it needs to be done. It’s likely the only way anything passes before the legislative session ends May 20.
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