Minnesota’s Sports Betting Plans Thwarted by Tribes and Politics

Minnesota’s Sports Betting Plans Thwarted by Tribes and Politics

There are states in the US where you don’t need to be told that there isn’t legal sports betting provided by the government. The likes of Alabama, Utah, and Alaska not providing legal sports betting is not a surprise. However, there are other states you’d be surprised about. For instance, Minnesota sports betting still hasn’t taken off the ground.

Unless you are from Minnesota or following the legal sports betting discussion, no sports betting in Minnesota might be surprising.

Most states with a Democratic government are quickly pushing legal sports betting. California is the big one that doesn’t have legal sports betting, with Prop 26 and Prop 27 going to a vote in November. Massachusetts is scheduled to launch its sports betting platform in time for the 2023 NCAA Tournament.

What about Hawaii, though? Hawaii has always been anti-gambling regardless of the government in office. Nevada is likely a big reason, as Las Vegas is a popular gambling destination for Hawaiian residents. Las Vegas would take a significant dive without Hawaiian dollars.

WHERE DOES MINNESOTA SPORTS BETTING STAND?
Minnesota is another one of the blue states that is an exception to the rule. There is currently no legal sports betting in Minnesota. While the sports betting bill in Minnesota went in front of a legislative session in the House this year and passed, there was resistance before getting the bill to the Senate floor.

It isn’t like the state of Minnesota wouldn’t like to pass a legal gambling bill. They are losing out on millions of dollars to neighboring states with legal sports betting. There is one giant elephant in the room that isn’t allowing the process to go smoothly, though, with another looming in the background, as well.

The Native American tribes in the state of Minnesota are not content with the current framework and they have an ultimate veto because of their political influence in the state. Unlike sports betting in Maine, the indigenous tribes in Minnesota are not on board with the state at this current moment.

Let’s get into the Minnesota sports betting picture in 2022 and what the future looks like for sports betting in Minnesota.

Minnesota Sports Betting In 2022

There were high hopes that Minnesota was going to pass legislation to legalize sports betting in Minnesota. The best-case scenario last year was that Minnesota was going to have some form of sports betting available for football season this year.

That of course didn’t happen.

The worst-case scenario ended up happening and the Minnesota sports betting picture in 2022 has looked gloomy. Minnesota seems to be almost at the beginning of the entire process. The first big step is getting the House on board, but in Minnesota, this isn’t the largest obstacle to get past before sports betting is live in the state.

Minnesota House of Representatives Passes Sports Betting Legislation

The first step was getting the necessary votes in the Minnesota House of Representatives. This came to fruition on May 12, 2022. The House voted in favor of legal sports betting, with the vote finalized at 70-57.

The House of Representatives vote was expected to go that way. There weren’t any surprises with what happened in the House. What happened next wasn’t the most outlandish and unpredictable move, either.

If you aren’t up on what is happening in Minnesota, the most difficult obstacle isn’t the lawmakers, but instead, the Native American tribes in the state. They carry a lot of weight when it comes to gambling in Minnesota.

Minnesota State Senate Bill

The Senate has to be in line with the House or the law is not going into effect. Along with horse tracks in the state, the federally-recognized Native American tribes can throw their muscle around in the Senate.

The matter didn’t even reach the Senate floor because this was on the fast track to nowhere. Without the tribes in agreement with the state, sports betting in Minnesota will continue to be in a stalemate. The Senate wasn’t going to waste anyone’s time.

Executive director of the Minnesota Indian Gaming Association, Andy Platto, has made it very clear that his group is not interested in playing ball with the state under their conditions.

“MIGA has consistently opposed the expansion of non-tribal commercial gaming and will continue to do so,”. Platto adds that “This opposition seeks to protect the gaming industry that today serves as the essential tax base tribal governments and communities rely on”. (MIGA Letter On HF778)

So, there you have it. Unless the government at the state level in Minnesota isn’t going to bend to the Native American tribes, then this will continue to go in circles.

Is There A Future For Legalized Minnesota Sports Betting?

The crux of the issue worrying the MIGA is that independent operators are going to enter Minnesota and suck up all of the revenue. They don’t want competition from outsiders and thus are pushing back against legalizing sports betting. If 100% of the revenue went to the Native American tribes, then this wouldn’t be a problem.

These independent operators, such as FanDuel, DraftKings, and Caesars, would threaten their tax base.

Minnesota isn’t the only state that had to work with ingenious tribes before a sports betting law came into effect. TheSportsGeek recently discussed what is happening in Maine and their legalized sports betting outlook.

WILL MINNESOTA FOLLOW MAINE’S LEAD?
Maine gave the keys to the Native American tribes for online sports betting. Any sports bets that are made online go through four indigenous tribes. The independent gambling organizations are permitted to open land-based sportsbooks, but can’t offer online betting.

The start date for legal sports betting in Maine appears to be early 2023. In other words, Minnesota has a long road ahead. Maine is still a ways off and they’ve worked out the details with the Native American tribes.

In the case of Minnesota, the stakeholders are still trying to agree on important details. Who gets the biggest size of the pie and how it’s split is undoubtedly the problem here.

So what’s the future of sports betting in Minnesota? It would appear that Minnesota will likely go down the same path as Maine. The state and MIGA will probably end up working out their differences, but it may not be as fluid and easy to strike a deal.

Conclusion

The other issue plaguing legal sports betting from moving ahead in Minnesota is the horse tracks. They are scared of the independent sportsbooks and indigenous tribes competing, with no room for the horse tracks.

In other words, the Minnesota sports betting stalemate isn’t only about the tribes and state. The horse tracks have to be considered, too, or the Senate isn’t going to pass anything.

When there’s a lot of money to be had in any industry, there are usually multiple parties fighting for their interests. Sports betting is a goldmine right now and they’re all fighting for a big position at the table.

In the case of Minnesota sports betting, we are confident that there will ultimately be legalized sports betting. When? Minnesota sports bettors may need to be patient.

For legal sports betting in 2022, Minnesota residents can go to one of their neighbors with sports betting. South Dakota, Wisconsin, and Iowa currently have legal sportsbooks in their states.

Visit our online gambling Minnesota page for more information regarding Minnesota gambling in the state.

Kyle Eve profile picture
Kyle Eve

Role: Sports/Casino Writer

Content covered on TSG: Blog and News

Kyle is a seasoned pro of TheSportsGeek. Since the native of Windsor, Ontario, Canada, joined the team in 2011, he has covered some of the biggest sporting events in the world. From the Super Bowl and World Series to March Madness, the NBA Finals, Kentucky Derby, and many more, Kyle has provided reliable analysis for millions of readers. After dedicating himself to hockey and football in high school, Kyle placed his first sports bet on his 18th birthday. Since then, he has spent his entire adult life devoting himself to becoming the best sports bettor and casino gambler possible.

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