A new bill in the Minnesota Senate proposes a tribal-led online sports betting market that would allow Native American tribes to partner with one licensed mobile sportsbook platform provider for statewide wagering.
The legislation, Senate File 4139 (S.F. 4139), was introduced on Wednesday in the Minnesota Senate. According to the state legislature’s website, the measure was referred to the Senate Commerce and Consumer Protection Committee and the Rules and Administration Committee.
The proposal carries bipartisan sponsorship. Supporters include DFL Sen. Nick Frentz and Republican Sen. Jeremy Miller, lawmakers who have previously supported sports betting legislation in the state.
Under the bill, the Minnesota commissioner of public safety would oversee the regulation of mobile sports wagering.
The commissioner could issue up to 11 online sports betting operator licenses to Native American tribes. Each license would remain valid for 20 years and would only be available to tribes that legally conduct Class III gaming at a brick-and-mortar casino in Minnesota.
Each tribe could partner with one licensed mobile sportsbook platform provider for its online sportsbook.
Tribes would pay an annual licensing fee of $2,125. Platform providers partnering with tribes would pay a one-time licensing fee of $250,000 and renewal fees of $83,000 every two years.
Residents would need to be at least 21 years old to place wagers through online sportsbooks.
The bill proposes a 22% tax on net revenue from online sports betting. Net revenue would be calculated through total wagers minus winnings paid out and “the fair market value of noncash prizes paid out as winnings in the month.”
Tax proceeds would be allocated through the following distribution:
- 50% to offset taxes on charitable gambling revenue
- 15% for the horse racing industry
- 15% for Native American tribes without sportsbook partners holding more than a 10% market share
- 15% for grants supporting major sporting events in Minnesota and programs intended to “increase access to sports and events for greater Minnesota residents”
- 4% for responsible and problem gambling programs
- 1% for funding “amateur sports integrity and participation” efforts
Tribes could also offer in-person sports betting at their casinos if they negotiate updated gaming compacts with the state. Wagers placed on tribal land would not face state taxes.
The legislation includes several restrictions on sportsbook operations. Online sportsbooks would not be allowed to offer college prop bets. Sportsbook apps would also face limits on push notifications. Notifications could only be sent to inform users about “potentially fraudulent activity” tied to their account or for responsible gambling or identity verification purposes.
Funding sportsbook wagering accounts through credit cards would also be prohibited. The legislation also states that “a peer-to-peer wager placed on a betting exchange” would not qualify as legal sports wagering in Minnesota.
The proposal requires the commissioner of public safety to conduct a study on gambling activity in Minnesota before the start of legal sports betting. The study would measure how widespread wagering already is in the state and assess the level of problem gambling. Data collection must occur before the launch of mobile sports wagering, and the study would be updated every three years.
Another study would review “the impact of sports betting on the prevalence of gambling disorders, suicide related to gambling disorders, and risks to youth of developing gambling disorders, based on any research available on how sports betting has impacted these problems in jurisdictions where sports betting is occurring.”
Minnesota lawmakers have debated sports betting authorization for several years without passage. Other issues are likely to take priority during the current legislative session, including alleged fraud connected to government services and proposals for new firearms restrictions following last year’s assassination of former House Speaker Melissa Hortman.
DFL House Leader Zack Stephenson recently told Axios that sports betting is “issue No. 27 on the agenda this year.” Despite those priorities, lawmakers introduced S.F. 4139 with a framework intended to address concerns from multiple sectors of Minnesota’s existing gambling industry, including tribal gaming, charitable gaming, and horse racing interests.
Original article: https://www.yogonet.com/international/news/2026/03/05/117904-minnesota-senate-bill-renews-online-sports-betting-push-with-triballed-framework
