Minnesota Senate Committee Stalls Sports Betting Bill SB 757

Minnesota’s efforts to legalize sports betting have once again hit a roadblock. The Senate’s government and local affairs committee ended in a deadlock (6-6) over SB 757, a bill designed to introduce legal digital wagering through the state’s tribes. The stalemate effectively halted progress, leaving sports betting in limbo for another legislative session.

Despite these efforts, concerns among lawmakers stalled the bill. Brendan Bussmann, managing partner at B Global, criticized lawmakers for failing to move forward while Minnesotans continue to bet in neighboring states where sports betting is already legal.

Extensive Discussions

The committee engaged in extensive discussions, hearing testimony from gambling industry representatives, responsible gambling advocates, and lawmakers in Minnesota. Bill sponsor Matt Klein defended the proposal in a rigorous question-and-answer session, where concerns about gambling addiction, licensing costs, and college sports betting took center stage.

His proposal would have linked 11 sports betting licenses to Minnesota’s tribes, directing 45% of tax revenue to charitable gambling and another 15% to horse tracks, addressing previous legislative hurdles.

Lawmakers Debate In-Game Betting and Licensing Fees

One of the most contentious debates during the hearing was over in-game betting, which Senator Erin Maye Quade called the “most predatory” form of gambling. She also questioned the logic behind allowing bets on college sports when the legal gambling age is 21, arguing that young athletes are vulnerable due to their limited financial security and accessibility.

Quade suggested that Klein amend the bill to remove in-play betting and college sports betting, stating that such restrictions would offer more protection. However, industry representatives argued that prohibiting these bets would drive players to unregulated offshore markets, reducing potential state revenue.

Licensing fees were another major concern. Senator Steve Drazkowski criticized the $250,000 application fee and $83,000 annual renewal cost, calling them a barrier to entry that favors large operators.

He compared these fees to those in other states, including $25 million application fee in Illinois. Klein countered that Minnesota’s proposed costs were reasonable compared to national standards.

Another point of contention was a section of the bill that outlined penalties for harassing athletes over betting-related grievances. Drazkowski opposed the inclusion of new penalties, arguing that the bill was anticipating crimes that do not yet exist and suggesting that government intervention in such matters was unnecessary.

Legislative Challenges and the 2024 Bill Collapse

A second bill, HB 978, was also tabled after Senator John Marty withdrew it from discussion. Marty previously held a one-sided anti-gambling hearing in January, which industry stakeholders dismissed as a “media stunt.” He claimed his bill provided stronger protections than Klein’s, including stricter advertising restrictions and a ban on gambling promotions at state-owned venues.

collapsed under legislative chaos, partisan disputes, and session delays.

At that time, Representative Zack Stephenson had brokered a deal to legalize sports betting, but it never reached a vote. With no new legislation expected in the near future, Minnesota remains surrounded by legal sports betting jurisdictions in the U.S. and Canada, leaving residents to look elsewhere for wagering options.

Source:

“Legal sports betting all but dead after Minnesota senate committee hearing”, igamingbusiness.com, February 14, 2025.