Minnesota Sports Betting

Minnesota permits several forms of online betting, including daily fantasy sports apps and horse racing betting sites. In addition, lawmakers and tribal gaming operators are seriously considering proposals to authorize retail sportsbooks and online sports betting in Minnesota.

Bringing legal sportsbooks to Minnesota will require aligning the interests of a varied group of stakeholders, particularly tribal groups that operate numerous casinos across the state. Pro sports betting lawmakers have made significant progress by getting tribal casino operators on board, but difficulties remain in reaching an agreement regarding tribal exclusivity or the lack thereof.

Other forms of legal gambling in Minnesota include tribal casinos, cardrooms, the state lottery, and charitable gaming.

Legal Minnesota Betting Sites

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Minnesota Sports Betting Outlook

The 2024 Minnesota legislative session opened with a theme that’s become familiar to anyone following the state’s efforts to legalize online sports betting: a sense of optimism tempered by the knowledge that significant challenges lie ahead.

The good news for legalization proponents is that online sports betting has bipartisan support in the Minnesota legislature. There are enough lawmakers who support legalizing online sports betting to pass a bill into law if they can agree on the details.

However, lawmakers have expressed similar sentiments in each of the past few years only to see their Minnesota online sports betting efforts crumble due to friction between tribal casino operators, race track owners, and charitable gaming organizers.

Three online sports betting bills emerged in 2024, again indicating widespread support of legalization. There’s no question most lawmakers want to legalize online sports betting in Minnesota, but the big question is if they can reach a compromise that satisfies the state’s various stakeholders.

  • HF 2000 / Senate File 1949: House and Senate companion bills that authorize up to 11 Minnesota online sports betting licenses for tribal gaming operators. Both bills also permit retail sportsbooks at tribal casinos, formally legalize daily fantasy sports, establish a 10-20% tax on net revenue, and formally legalize daily fantasy sports.
  • SF 5330: Permits Minnesota’s eleven tribes to apply for sports betting licenses, seeks a 40% tax on revenue, and earmarks 75% of tax revenue for problem gambling resources.

Minnesota looked like a contender to legalize sports betting in 2023, but lawmakers failed to reach a compromise before the end of the legislative session. The sticking point was the same as in years past: whether tribal operators should have exclusivity over sports betting in Minnesota or whether race tracks should be included.

A bipartisan effort to legalize retail sportsbooks and online sports betting in Minnesota failed in 2022 over the same question. Most signs points to Minnesota legalizing online sports betting and retail sportsbooks sooner or later. The biggest hurdle Minnesota online betting faces today is getting lawmakers and tribal gaming groups on the same page regarding the finer points.

Minnesota’s 2022 sports betting effort originated from similar but competing bills introduced in the House and Senate the previous year:

  • SF 574: Authorize online sports betting and retail sportsbooks at casinos and race tracks
  • HF 778: Authorize online sports betting and retail sportsbooks at casinos only

SF 574 died without much action early in 2021, but HF 778 carried over into 2022 and passed a full House vote. Briefly, there were hopes that Minnesota online sports betting could begin as early as Fall 2023, but talks broke down in the Senate over the question of tribal exclusivity.

The good news for proponents is Minnesota’s influential gaming tribes no longer oppose legalizing sports betting. In November 2021, the Minnesota Indian Gaming Association (MIGA) said this in a press release:

“The tribal governments making up MIGA have been examining the various ways sports betting has been implemented across the country and its impacts on tribal communities. As gaming experts, tribes stand ready to share this expertise with lawmakers considering the future of sports betting in Minnesota.”

Pro-sports betting lawmakers are optimistic, but they acknowledge any effort will face challenges. Here’s how Representative Zack Stephenson, Chair of the MN House Commerce Committee explained it near the end of 2021:

“The legalization of sports betting will be the most significant change to Minnesota’s gaming laws in many years. The issue is very complex. There are countless different ways that we could structure sports betting. Thirty-two states have legalized sports betting in the United States, and I think it’s fair to say each one of them has taken a different approach.”

State Rep. Pat Garofalo was one of the first lawmakers to voice support for legalizing sports betting in Minnesota. Even before the Supreme Court overturned PASPA in 2018, he pointed to offshore sportsbooks that offer sports betting to Minnesotans absent any oversight or regulation.

Here’s how he explained his rationale for legalization in February 2018:

What we want to do is allow sports gambling in Minnesota that is safe, regulated and fair, unlike the current process, which is unregulated and unfair to consumers. There’s no consumer protections, especially with all these websites – these overseas websites. We don’t know where this money is going and how it’s going to be used.

Garofalo correctly predicted Minnesota would see the introduction of legislation to legalize sports betting, but those efforts faced significant headwinds. Some lawmakers opposed sports betting over concerns it would burden families, while tribal gaming operators initially opposed any expansion of gambling in Minnesota.

In 2019, Rep. Josh Heintzeman explained his concerns in simple terms:

My concern is accessibility. It’s one more challenge families face.

However, the biggest obstacle to legal online sports betting Minnesota lawmakers faced at the time was tribal resistance. The Minnesota Indian Gaming Association (MIGA) initially approached sports betting with a large degree of skepticism.

In a statement issued following the Supreme Court ruling, MIGA said this:

The Minnesota Indian Gaming Association has long opposed the expansion of gambling. Whenever new forms of gambling are proposed, Indian tribes must carefully consider how these changes could affect the enterprises that serve as our tax base to support our sovereign government operations, the tribal communities where we provide services and the broader communities that are impacted by the jobs that have been created to support our enterprises.

ln several instances, MIGA opposed specific proposals to legalize sports betting apps Minnesota lawmakers supported.

MIGA opposed legislation in 2019 that sought to authorize retail sports betting at casinos and race tracks plus online sportsbook apps. MIGA singled out online and mobile betting provisions included in that bill as a potential pathway to financial ruin for tribal casinos.

John McCarthy, Executive Director of MIGA said the group feared that mobile betting would keep people at home and therefore away from casinos. MIGA also came out against a different bill that year, HF 1278, that would have authorized mobile sports betting and retail sportsbooks operated exclusively by tribal gaming operators.

Senator Roger Chamberlain introduced legislation (SF 1894) again in 2020, and again tribal groups came out strongly against the bill to halt all progress on the effort.

Minnesota Daily Fantasy Sports

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Daily fantasy sports betting is offered in Minnesota thanks to an exemption found in the UIGEA and favorable state laws. Federal law considers fantasy sports games a contest of skill and fundamentally different than fixed-odds sports betting.

That being said, the Gopher state has also never gotten around to formally legalizing daily fantasy sports in Minnesota. This leaves the main DFS sites in a big of a legal grey area, although they do operate openly in Minnesota and have done so for years without any trouble.

State lawmakers have made several attempts to formally legalize and regulate Minnesota daily fantasy sports sites and apps but have been unable to get a bill passed into law.

In 2017, lawmakers introduced companion bills HF1415 and SF1402 to give the Minnesota DFS industry official legal status and implement a number of consumer protection regulations. The bills would have established a minimum age of 18, prohibited customers who would have a conflict of interest (such as athletes playing in contests involving sports events in which they participate), required operators to segregate customers’ funds from operational funds and devise voluntary self-exclusion measures for problem gamblers.

Unlike bills introduced in other states, these did not require expensive operating licenses. Daily fantasy sports sites in MN would only have had to register with the Department of Public Safety and pay a registration fee of $500. The bills also did not call for any additional taxes.

Both bills failed to advance in 2017 and were shelved the following year. Additional bills to regulate DFS in Minnesota were introduced in 2018 and 2019 but also failed to advance. Currently, DFS in MN remains unregulated but available to sports fans.

Minnesota Horse Racing Betting

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Online and in-person horse racing betting are legal and regulated in Minnesota. The Minnesota Racing Commission regulates pari-mutuel wagering throughout the state and requires all online racebooks to apply for licenses before offering their services to residents. In addition, fans can visit two race tracks to watch and wager on live races or visit the simulcasting room to bet on races held nationwide and abroad.

See BettingUSA’s Minnesota horse racing betting guide below for more information and a list of licensed racebook apps:

Minnesota Online Gambling

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Online casinos and poker sites are prohibited under Minnesota law and the legalization of those activities do not appear high on the state’s list of priorities. Lawmakers have declined to enact legislation to legalize online gambling in Minnesota and there are no indications they are planning to introduction such legislation anytime soon.

Minnesota does not appear to have legalizing online gambling sites high on its priority list. The state would have to enact new legislation to bring online casinos and poker sites to residents, and lawmakers have declined to introduce legislation to that effect.

Note: Online horse racing betting, Sweepstakes casinos, and daily fantasy sports remain the closest alternatives to full-fledged online gambling in Minnesota under current law.

MN Stat § 609.75-763 prohibits all gambling not authorized by the state, including the conduct of online gambling. State law also treats participation in unauthorized gambling as a misdemeanor offense. The law does not specifically mention participation in online gambling, but it could easily be interpreted as such due to the broad language of the law. MN Stat § 609.755 reads:

Whoever does any of the following is guilty of a misdemeanor:

(1) makes a bet;

(2) sells or transfers a chance to participate in a lottery;

(3) disseminates information about a lottery, except a lottery conducted by an adjoining state, with intent to encourage participation therein;

(4) permits a structure or location owned or occupied by the actor or under the actor’s control to be used as a gambling place; or

(5) except where authorized by statute, possesses a gambling device.

Clause (5) does not prohibit possession of a gambling device in a person’s dwelling for amusement purposes in a manner that does not afford players an opportunity to obtain anything of value.

Under some interpretations of the law, merely participating in unauthorized online gambling as a player could be considered a criminal act. There are no known cases of players being charged for gambling online, but the MN Division of Gambling Enforcement states that it is a crime to participate.

From the Division’s website:

Online sports betting and online casinos that take your money and offer prizes via the web are illegal in Minnesota. There are websites available that operate outside of the United States to purposefully avoid laws and enforcement. Not only is it a crime to participate, there are consumer protection concerns as well. When you send money, you are giving your personal financial and banking information to unknown persons that are not licensed or regulated in handling it. If you do win, there is no recourse if they do not pay you.

Minnesota Online Lottery

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Minnesota was one of the first states to take its lottery online, but the experiment was short-lived as lawmakers later took it into their own hands to shut down online purchases of instant win lottery games.

For a short time, MN residents could visit the official lottery website to buy individual tickets or subscriptions online. The state even sold instant scratch tickets that could be scratched and redeemed online instantly.

The addition of online lottery scratch tickets in Minnesota caused quite a bit of controversy when the new games were unveiled in February of 2014. State lawmakers immediately drafted a bill to end the scratch tickets and enact future limitations on what the state lottery may offer online.

The measure to end scratch tickets was supported by a group of lawmakers who oppose online gambling altogether, tribal casino groups and charity gambling groups. Eventually, the bill was presented to Governor Mark Dayton who decided against a veto.

Online scratch card games such as the one pictured below are no longer available for purchase in Minnesota.

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Minnesota Sports Betting FAQ

Not yet. However, lawmakers are working on the issue and have committed to introducing legislation that will legalize online sports betting and retail sportsbooks.

Minnesota could legalize sports betting sometime within the next couple of years, but there are no guarantees. That said, it seems increasingly likely lawmakers will successfully pass a bill to legalize sports betting apps and retail sportsbooks.

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