Minnesota lawmakers have introduced a new bill aimed at regulating mobile sports betting and daily fantasy sports in the state. The bill, spearheaded by U.S. Senator Nick Frentz, seeks to allow individuals over 21 to legally place bets on sports events.
One of the unique aspects of this bill is the prohibition on mobile betting operators from sending push notifications to users. The legislation also proposes linking mobile sports betting and daily fantasy sports to federally recognized tribes in the state.
Under this bill, the Minnesota Gambling Control Board would be authorized to issue up to 11 licenses to mobile sports betting operators, with tribes required to engage in Class III casino gaming to qualify for these licenses. The regulatory body would oversee the licensing process, with tribes granted licenses expected to pay an annual fee of $2,125.
In addition to licensing requirements, the bill includes strict marketing regulations to protect against problem gambling. License holders would be prohibited from marketing their services as “risk-free” or targeting individuals under 21. They must display problem gambling helpline numbers prominently and provide access to support services round the clock.
While many states have similar measures in place, Minnesota is set to implement a unique ban on push notifications. Lawmakers are concerned that such notifications could potentially encourage users to engage in betting activities impulsively rather than by their own volition.
This bill shares similarities with a previous proposal put forward by Senator Matt Klein earlier in the year. Both bills focus on mobile sports betting and DFS, with a set number of licenses available and specific tax rates on revenue.
However, the earlier bill did not advance beyond the state and local government committee due to a tied vote. Meanwhile, Hawaii is poised to potentially join other states in offering sports wagering, with indications that the Governor may not veto its passage.
Amidst these legislative developments, prediction market platforms like Kalshi continue to face regulatory challenges in certain states. Despite their potential to offer sports event contracts nationwide, legal hurdles have prompted clashes with state regulators and operational restrictions in multiple states.
As the landscape of sports betting continues to evolve across different states, the Minnesota bill represents a significant step towards establishing a regulated framework for mobile sports betting and DFS within the state, with a focus on responsible gambling practices and tribal partnerships.