Minnesota Sports Betting Legalization Likely in 2025 as 40th State
Minnesota is poised to become the 40th state to legalize sports betting in 2025, with State Sen. Matt Klein (DFL-Dakota County) planning to introduce new legislation when the Minnesota Legislature convenes on January 14.
Minnesota pro sports team logos
The proposed legislation aims to create a regulated market that would:
- Grant exclusive sports betting rights to tribal nations with Class III gaming compacts
- Share 22% of online sportsbook revenue with the state
- Implement strong responsible gaming safeguards
Revenue distribution from the state's share would be:
- 45% to General Fund
- 15% to horse racetracks
- 15% to tribal equalization fund
- 10% to problem gambling programs
- 10% to sporting event recruitment
- 5% to youth sports
The Minnesota Legislative Budget Office projects annual state tax revenue of approximately $90 million from legal online sports betting. The state's market is particularly attractive due to its population of 5.8 million and presence of teams in all five major professional sports leagues.
Previous efforts to legalize sports betting in 2024 stalled due to political complications, but supporters argue regulation is necessary to combat illegal offshore betting. Opposition primarily centers on concerns about gambling addiction, which Klein addresses with enhanced safeguards in the new proposal.
The legislation would allow tribal nations to partner with commercial sportsbooks, following successful models in Arizona, Michigan, Washington, and Wisconsin. Minnesota's experience hosting major sporting events, including Super Bowl LII and the 2019 NCAA Final Four, demonstrates the state's strong sports market potential.
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