Lawmakers in Minnesota have introduced new legislation proposing to legalize sports betting in the state. At the same time, efforts in Mississippi and Wisconsin have suffered setbacks, making it unlikely that either state will launch online sports betting in the near future. 

In Minnesota, Senate Bill 4139 was introduced on Wednesday and has been referred to the Senate State and Local Government Committee. 

Despite repeated attempts over the past several years, Minnesota remains one of the handful of major U.S. states without any legal sports betting. Though the rise of sports prediction markets does offer residents the opportunity to effectively wager on events, including esports. 

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Minnesota may look to legalize sports betting. Image Credit: Unsplash/Baishampayan Ghose

The latest effort would allow the state to issue up to 11 licenses for companies to launch mobile sports betting. Operators would be taxed at a rate of 22%, which is around the national average. 

The Sports Betting Alliance (SBA) claims legal sports betting would generate $80 million in revenue for the state. 

The sportsbook lobby group says hundreds of thousands of Minnesotans are already engaging in sports betting, but doing so either on unregulated platforms or across the border in neighboring Iowa. 

Opinion Divided Among Lawmakers

Despite bipartisan support for the bill, strong opposition to legalization persists. Sen. Erin Maye Quade called it a “predatory industry” and said maintaining the illegal status of sports gambling is protecting the integrity of sports in the state. 

In comments to WCCO – CBS Minnesota, Quade said Minnesota has not seen any sports gambling scandals because “the culture of sports betting is not as prevalent as it is in other states where they’ve legalized sports betting.”

She added, “I think we’ve kept this very predatory industry from being injected into sports in Minnesota.”

Rep. Nolan West, however, is backing efforts to legalize. The Republican stated, “I don’t disagree that there aren’t costs and problems related to any sort of gambling, but it’s already happening, and we have zero benefit and zero control over ameliorating it.”

Efforts To Legalize Stall In Mississippi, Again

Lawmakers in Mississippi are similarly divided on the issue. The state’s House approved legislation that proposed legalizing online sports betting, only for the Senate to reject the bill. 

The House also approved a second bill this week, voting 100-11 in favor of HB4074. Like Minnesota, the bill proposes a tax rate of 22% on sportsbooks’ revenue. 

The bill would see esports betting approved, as it includes “electronic sports event” and “competitive video game event” in its definition of sporting events. 

Sen. David Blount, chair of the Senate Gaming Committee, has blocked efforts to legalize in the past. He said he will only consider approving legislation if requested by the Mississippi Gaming Commission. 

Blount cited concerns that online betting does not create any economic benefit for the state, commenting, “The reason we have gaming in Mississippi is to encourage investment, to create jobs, and to grow tourism to bring other people from other places to Mississippi. Mobile sports betting doesn’t do that.”

Rep. Casey Eure, who has sponsored both bills proposing legalization, disagreed, stating that allowing online sports gambling could bring as much as $100 million in annual tax revenue. 

Wisconsin Also Faces Opposition

In Wisconsin, the state’s Assembly approved legislation that proposes launching an online sports betting market last month. The bill is now in the Senate for consideration, but the SBA is opposing the efforts.

In a hearing on Monday, SBA President Joe Maloney said the bill would give tribes an unfair monopoly in the new market. He said the terms of the legislation mean sportsbooks would have to surrender as much as 60% of revenue to tribes. 

Instead, Maloney wants Wisconsin to adopt similar models as Minnesota or Mississippi lawmakers are proposing. He stated, “We have been very forthright in our communications with legislative leaders that we prefer a competitive, regulated framework that resembles a number of other state-regulated frameworks throughout the country.”

Tribal leaders voiced support for the bill, saying it will generate funds for the state and protect consumers from wagering on unregulated platforms. 

Residents, however, have said they do not want online gambling. According to a new Marquette Law School poll, 64% of voters oppose it. 

With strong opposition in all three states, residents might all have to find other ways to place online bets for the foreseeable future.