Purpose of the Bill

This bill aims to propose an amendment to the Minnesota Constitution to legalize sports betting. The goal is to regulate and tax sports betting activities, providing a legal framework within which sports betting can be operated by certain authorized organizations, while also generating tax revenue for specific causes.

Main Provisions

• Authorization: Sports betting will be permitted in Minnesota if it is conducted by a federally recognized Indian Tribe engaged in class III gaming under a Tribal-state gaming compact or by a racetrack licensed by the state to conduct parimutuel horse racing.
• Regulation: The legislature is required to create a regulatory system for sports betting to ensure it is conducted legally and appropriately.
• Taxation: A 20 percent tax will be imposed on sports betting, calculated on the amounts wagered minus the winnings paid out to bettors.
• Revenue Allocation: The tax revenue collected from sports betting will be used equally to fund:
  • Substance use disorder programs
  • Local charitable organizations funded by lawful gambling donations
  • Parimutuel horse racing purses
  • The state general fund

Significant Changes

• This bill represents a significant change as it introduces the legalization of organized sports betting in Minnesota, which is currently not permitted under state law. By allowing specific entities to conduct sports betting, it formalizes and controls the market through regulation and taxation.

Relevant Terms

• Sports betting
• Indian Tribe
• Horse racing track
• Parimutuel
• Tax
• Substance use disorder programs
• Charitable organizations