Legalize Sports Betting

 

To legalize sports betting for Minnesotans over the age of 18 through Minnesota tribes that are recognized as a class

III tribal nation under the Federal Indian Gaming Regulatory Act, or through sports betting apps/websites that have

obtained a sports betting license from the MN Gambling Control Board. The MN Gambling Control Board is authorized to

issue only one commercial license for each Class III tribal nation in Minnesota.

 

Sports gambling is already indirectly legal through sports trading. Sports trading already allows Minnesotans to place

bets on sports through various apps, even though direct sports betting is illegal in Minnesota. In 1992, the

Professional and Amateur Sports Protection Act prohibited sports betting in most states, and the act was ruled

unconstitutional by the Supreme Court in 2018 in Murphy v. National Collegiate Athletic Association. Ever since then,

Minnesota politicians have made many strong pushes to legalize sports gambling, but have failed to compromise on which

establishments could offer sports betting. Politicians don’t want to give Tribal nations monopolies on sports betting in

Minnesota, but also don’t want to just let anyone establish their own sports betting company. This bill finds a healthy

middle ground where Tribal nations have some competition against only the top sports betting apps on the market. The

reality is that Minnesotans are already gambling their money on sports, whether or not this bill is passed. A NerdWallet

survey in January 2025 found that 1 in 5 Americans (20%) had bet on sports in the past 12 months, up from 12% in

December 2023.

Minnesota cannot force a tribal nation to legalize sports betting, still this bill allows for state-tribe negotiations

to result in the tribal nation legalizing sports betting for 18-year-olds and up on its land. This bill would also

expand the MN Gambling Control Board to oversee and control sports betting to ensure sports betting is as fair and safe

as possible.

 

Federal Indian Gaming Regulatory Act: A federal law that authorizes gambling on Tribal nations based on 3 different

classes. Class 1 tribes can only gamble for ceremonial and social purposes. Class 2 tribes can regulate small games like

bingo and pull tabs. Class 3 tribes allow tribes to have casinos overseen by both the tribe and the state.

Professional and Amateur Sports Protection Act (PASPA): Prevented states from legalizing sports betting unless states

already made sports gambling legal

Murphy v. National Collegiate Athletic Association: In 2018, the Court ruled in a 6-3 decision that PASPA violated the

Tenth Amendment's anti-commandeering doctrine by prohibiting states from authorizing sports gambling. This decision

struck down the federal ban, paving the way for states to legalize and regulate sports betting themselves

Sports gambling: The activity of wagering money or something of value on the outcome of a sports event.

Sports trading: the process of buying and selling event contracts on a yes-or-no outcome, with prices that fluctuate

based on probability. Sports trading is not against a bookie but against other sports traders, and can be bought or sold

at any time.

MN Gambling Control Board: A state agency responsible for regulating Minnesota's charitable gambling industry and shall

regulate sports betting as established in this act.

Tribal nation: a sovereign government that existed before the United States and has an inherent right to self-govern its

land and people. These nations have a government-to-government relationship with the U.S. federal government, are

subject to treaties, and have the authority to determine their own laws, citizenship, and justice systems.

 

A $100,000 upfront fee will be placed on a sports betting license, and the license will be renewed every other year for

$25,000. 20% of the fees will be reserved for gambling addiction services and programs

 

The MN Gambling Control Board will oversee and enforce sports betting in Minnesota.

 

January 1st, 2027