S.F. No. 4556 - Sports Betting Bill Summary

• Authorizes mobile sports betting in Minnesota through licensed operators, with two master licenses allocated to Ojibwe and Dakota tribes respectively, plus up to 11 additional mobile sports betting operator licenses and up to two racetrack operator licenses.

• Establishes regulatory framework under the Commissioner of Public Safety, including licensing requirements, background checks, financial responsibility standards (minimum $25,000 cash reserves), integrity monitoring requirements, and enforcement mechanisms for violations.

• Imposes an 8% tax on online/mobile sports betting wagers and 6% tax on racetrack wagers, with revenue distributed to Division of Alcohol and Gambling Enforcement (10%), compulsive gambling programs (1.5%), sports marketing grants (25%), film production jobs (5%), mental health initiatives (25%), and general fund (remainder).

• Prohibits sports betting by individuals under 21, athletes/coaches/team officials, and those with nonpublic event information; establishes felony penalties for unauthorized wagering and acceptance of prohibited wagers, ranging from misdemeanor to felony based on wager amounts and circumstances.

• Prohibits local taxes or fees on sports betting and exempts Indian Lands sports betting from state taxation, while preserving existing Tribal-state compacts and requiring negotiation of new compacts for Class III sports betting.