The Minnesota Senate has introduced an amended sports betting bill that is significantly different from the previous version. These changes are expected to have a major impact on the amount of revenue generated for the state. One of the most significant changes is the prohibition of “in-game” wagering, aimed at preventing compulsive gambling behavior. This means that bets must be placed before the start of the game and no additional bets can be made during the game.
In addition to this prohibition, the amended bill includes a provision that allows gamblers to set their own limits on how much they can bet in a day. These changes have caused revenue projections to drop from $40 million annually to $18 million. The revenue generated from sports betting would be divided among various entities, including the state’s general fund, Native American tribes, horse racing tracks, compulsive gambling programs, and grants for sports and events in Minnesota.
To make up for the revenue shortfall, Senator Matt Klein has proposed doubling the tax on sports wagers from 10% to 20%. However, Republicans have raised objections to the higher taxes, advocating for more funds to be allocated to charitable gambling organizations. The distribution of revenue to horse racing tracks is also a point of contention, with some senators pushing for more support to enhance the horse racing industry in Minnesota.
Despite these challenges, Governor Tim Walz has expressed his support for a sports betting bill and has indicated that he plans to sign it into law if it reaches his desk. However, there are still several steps that need to be taken before both bills can be voted on by their respective chambers.
Overall, while these changes may impact revenue projections negatively in the short term, they could ultimately lead to greater transparency and control over gambling activities in Minnesota in the long run.
