Tribal Casinos Still Opposing Minnesota Sports Betting Efforts
SF 11894 would permit sports betting at racetracks and tribal casinos in MN.- Sports betting revenue would be taxed at 6.75%.
- The tribes, who are undecided on offering, want full exclusivity to sports betting.
SAINT PAUL, Minn. – Sports fans around the Land of 10,000 Lakes are still waiting for any information about the possibilities of legal sports betting in the near future.
After being referred to the State Government Finance and Policy and Elections Committee on March 11, S.F. 1894 has yet to be put on the agenda. The committee meets three times over the course of Tuesday, Wednesday, and Thursday next week but have yet to release their Wednesday and Thursday agenda.
S.F. 1894 would permit sports wagering at tribal casinos, at the state’s two horse racing tracks, and through an online mobile platform.
The bill was introduced by Senator Roger Chamberlain (R- Lino Lakes). Chamberlain is also the chair of the Taxes Committee, who was responsible for amending the bill and referring it to the State Government Committee earlier in March.
While most states are quick to begin discussions with the hope of legal sports betting helping the budget with tax contributions, Minnesota legislators, even Chamberlain, are happily taking a slower approach.
“We’re not in this to raise a whole lot of revenue. We want people to take part in the business and have some fun doing it,” said Chamberlain.
States with a large casino population have reported strong numbers since launching their legal sportsbooks; however, Pennsylvania, for example, reported earning just over $1.5 million in tax revenue over the last two months. While the number is profitable, it came at a sports wagering tax rate of 36%.
Pennsylvania is an extreme case as their tax rate and initial licensing fee ($10,000,0000) are on the much higher end of the spectrum. However, Minnesota is looking to tax in-state sportsbooks at a rate of only 6.75% and have yet to assign a license fee amount.
Even without much money projected to come into the state, that isn’t stopping legislators like Chamberlain from attempting to advance it. But, the issue of the tribal casinos still remains the largest problem.
Minnesota Sports Betting Vs The Tribes
With gambling currently only allowed at the tribal casinos and state-operated horse racing tracks, tribal casinos feel like they will lose a part of their exclusivity with legal sports wagering.
According to John McCarthy, the Executive Director of the Minnesota Indian Gaming Association, the tribes have invested billions of dollars in not only their facilities. This investment has come with the positive return of funding schools, emergency services, clinics, and more in their communities.
“Because these operations are essential to the ability of tribal governments to meet the needs of their people, MIGA has had a longstanding position opposing the expansion of off-reservation gambling in Minnesota,” McCarthy said.
Without any hurry to add sports betting to their casinos, the tribes are also nervous about the possibility of mobile betting.
Mobile wagering would allow citizens to bet on sporting events at any moment, from anywhere located within Minnesota. The ease of accessibility would reject many peoples’ inclinations to visit the casino.
McCarthy noted that if mobile sports betting were to pass it would “create the largest expansion of gambling in Minnesota in more than a quarter-century.” With the livelihood of the tribes at stake, McCarthy explained that the tribes, per the Minnesota Indian Gaming Commission, “respectfully oppose SF 1894”.
SF 1894 is still in its infancy stages and has much amending and approval to gain before it will be a serious consideration. However, with an effective date set at the Fall of 2020, the state would still have the ability to renegotiate tribal compacts, should it be requested from the Minnesota Indian Gaming Commission.
The state also has a similar bill in the legislature but it has yet to make any advancement since its first reading a month ago. HF 1278 would keep sports betting exclusive to the tribal casinos and does not permit the racetracks to offer a sportsbook.
SportsBettingMinnesota.com hopes citizens will be able to enjoy the College Basketball Final Four and National Championship, which will be played in U.S. Bank Stadium. Maybe next time the city hosts a major championship event, sportsbooks will be all over the state accepting action on the games.
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