Purpose of the Bill

The bill proposes an amendment to the Minnesota Constitution to legalize and regulate sports betting. The goal is to allow sports betting under specific conditions and to allocate tax revenue from sports betting for various funding purposes.

Main Provisions

• Sports Betting Authorization: The bill would allow sports betting in Minnesota but restricts operations to federally recognized Indian Tribes with class III gaming rights under a Tribal-state gaming compact, and licensed racetracks conducting pari-mutuel horse racing.

• Taxation: A tax rate of 20 percent would be applied to sports betting. This tax is calculated on the amount wagered minus any winnings paid out.

• Revenue Allocation: The revenue generated from the sports betting tax would be divided equally to support:

  • Substance use disorder programs
  • Local charitable organizations funded by lawful gambling organizations
  • Purses for horse racing
  • The state's general fund

Significant Changes

• This amendment, if passed, would change the legal status of sports betting in Minnesota, which is currently prohibited. It establishes who can conduct sports betting and outlines a specific regulatory and taxation framework.

• The bill stipulates that the Minnesota Legislature is responsible for creating a system to regulate the sports betting activities conducted by the authorized entities.

Relevant Terms

sports betting, Indian Tribe, horse racing track, constitutional amendment, Tribal-state gaming compact, taxation, pari-mutuel horse racing, substance use disorder programs, charitable organizations, state general fund