Minnesota Government Setbacks Stall Sports Betting Progress

Efforts to legalize sports betting in Minnesota hit a significant roadblock this month after lawmakers removed a proposal for a study on the issue from the Senate’s budget bill. The move dims prospects for legal sports wagering in the state this year and signals a broader reluctance to even explore potential gambling expansion.

The original draft of the Senate budget included a provision to study the legalization of sports betting and fantasy sports, aiming to evaluate options and offer policy recommendations. That language was stripped out in committee, halting momentum for what advocates see as a necessary first step.

Senator Matt Klein, a vocal supporter of legalization, expressed deep frustration over the decision during a May 8 committee meeting. “I don’t think sports wagering is necessarily over this year,” Klein said, “but the fact that we in the taxes committee cannot take a stand on a study… is deeply disappointing.”
Legislative Reluctance Reflects Deeper Resistance

Klein’s comments point to more than just budget maneuvering. Observers say the refusal to even study sports betting reflects a deeper discomfort within the legislature toward gambling in general. While other states have debated gambling expansion through commissions and economic reviews, Minnesota lawmakers appear unwilling to even start that conversation.

This hesitation stands in contrast to national trends. Since a 2018 U.S. Supreme Court decision cleared the way for legalized sports betting, 40 states have embraced some form of it. Only a few states, including Minnesota, remain holdouts.

Gambling Ban Has Real Costs, Critics Say

Klein argues that continued resistance to legal sports betting has consequences. Without a regulated option, Minnesotans are turning to offshore sites, which are unregulated and potentially exploitative.

“Once again this year, we are going to abandon Minnesotans who feel they have a legitimate right to sports wager… on platforms that are unregulated, unsafe and predatory,” he said.

Beyond the consumer risks, the state is also missing out on substantial revenue. A 2023 study from the Council for Fairer Gambling and YieldSec found that 860 illegal betting operators generated more than $2.4 billion in gross gaming revenue in Minnesota. Legalization could allow the state and its 11 federally recognized tribes to capture a portion of that revenue through taxes and licensing.

Tribal Nations Lose Out on Funding

For Minnesota’s tribal governments, the stakes are particularly high. While tribal casinos currently operate in the state, their offerings are limited, with blackjack as the only approved table game. Mobile sports betting, if legalized, could provide a critical new revenue stream.

Klein emphasized that the tribes view sports betting legalization as a top priority.

“We are once again this year abandoning the… 11 sovereign nations of this state who have declared to us this is their top priority,” he said. “These proceeds are essential for healthcare, education, housing and the sustenance of their members.”

 

Once again this year, we are going to abandon Minnesotans who feel they have a legitimate right to sports wager on their mobile devices… on platforms that are unregulated, unsafe and predatory.

Outlook

While the budget amendment decision significantly weakens the chance of sports betting passing this year, Klein believes the issue isn’t completely dead. However, without a formal study or a clear legislative path, supporters face long odds.

The Minnesota legislature’s resistance to even exploring the impacts of gambling may continue to stall not just sports betting, but other forms of gaming expansion as well. And for now, Minnesotans remain on the outside of a growing national trend—leaving money on the table and consumers exposed to unregulated markets.