2024 had plenty of promise for widespread sports betting legalization across the country. One state, North Carolina, did launch its online sports betting industry in March. However, other legislative sessions have seen lawmakers table sports betting legislation or strike relevant language from other bills.
Now, only two states, Minnesota and Missouri, could legalize sports betting in 2024. Will Minnesota sports betting and/or Missouri sports betting become a reality? Let’s take a look.
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Minnesota sports betting: Four bills, many hurdles
Lawmakers expressed optimism that Minnesota sports betting would be legalized during the 2024 legislative session. There’s still time, as the session runs through most of May. However, a bill passing is far from a done deal.
Four different pieces of legislation have been introduced in the House and Senate. They vary wildly on everything from tax rates for operators to where revenue from those taxes will go. Stakeholders within the state, including tribes, casinos, and horse racing venues, have been vocal in wanting pieces of the action.
Perhaps the biggest hurdle, for some, is a proposed ban on in-game betting. Rep. Pat Garofalo posted on X several weeks ago that the inclusion of such a ban would be a “poison pill.” He deleted the initial post but confirmed his sentiments when reached by Winners and Whiners Thursday:
“It still is a poison pill. No state in the country has a prohibition on in-game wagering. Requiring inclusion of that provision will kill the bill.”
More on Minnesota’s sports betting bills
Three bills have been proposed in the Senate, with a fourth coming in the House. Most recently, Sen. John Marty introduced SF 5330, which directs half of all Minnesota sports betting revenue to programs addressing problem gambling treatment. It also raises the potential tax rate of the industry to 40%, which would be the second-highest such rate in the country (behind only New York’s 51% tax rate).
Bills introduced earlier in the legislative session are probably more likely to pass. The Senate had previously considered two bills. Of note, SF 1949 passed out of committee last month, but not without several key changes. In addition to the live betting ban, the proposed tax rate was doubled, from 10% to 20%.
The House bill, HF 2000, was co-authored by Rep. Zack Stephenson, who has since added a polarizing amendment to that legislation. It now includes a ban on historical horse racing systems, ones approved by the Minnesota Racing Commission Monday in a 5-1 vote.
No matter which bill becomes law (if any do), Minnesota sports betting will almost certainly require a long runup ahead of its launch. It’s unlikely the industry will get off the ground ahead of the 2024 NFL season, which kicks off less than four months after the end of the legislative session. If approved by lawmakers, Minnesota sports betting would probably launch in early-2025.
Missouri sports betting: Working around an obstructionist
Missouri, meanwhile, is facing a very familiar adversary. However, after years of that adversary and his colleagues stonewalling Missouri sports betting legislation, proponents may have found a way around him.
Sen. Denny Hoskins has long insisted that any Missouri sports betting legislation must also address video lottery terminals (or VLTs). This opinion isn’t shared by most of his colleagues, who tend to see VLTs as a separate issue. However, Hoskins has used his position (and the power it holds) to essentially block any sports betting bills that come through his chamber.
This has led to considerable frustration around the Show-Me State. That anger boiled over ahead of Super Bowl LVIII. The Kansas City Chiefs won their third Lombardi Trophy in five seasons, but once again, many of their fans were unable to bet on the big game.
Owners of several professional sports franchises in the state, though, have taken matters into their own hands. That coalition, named Winning for Missouri Education, has launched several petition drives in an effort to put the decision to legalize in the hands of Missouri voters this Election Day.
Will there be a vote?
Early returns on the petition drives appear promising. By the end of February, Winning for Missouri Education reported that petitions had garnered 100,000 signatures. That’s more than half the required total for a ballot initiative to go up for a vote.
Those signatures must be collected by Sunday, May 5, the deadline set by Missouri’s Secretary of State. If a ballot initiative is passed by voters on Election Day, Missouri sports betting could launch in mid-2025 (possibly just before the start of the 2025 NFL season that September).
