HF 767

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/04/2021 03:10pm

A bill for an act
relating to state government; authorizing a Sports Wagering Commission to regulate
wagering on sporting events; establishing crimes related to certain wagering on
sporting events; taxing sporting events; requiring reports; amending Minnesota
Statutes 2020, sections 15A.0815, subdivision 3; 290.0131, by adding a subdivision;
290.0132, by adding a subdivision; 290.0133, by adding a subdivision; 290.0134,
by adding a subdivision; 297E.02, subdivision 3; 609.75, subdivision 3, by adding
a subdivision; 609.755; 609.76, by adding a subdivision; proposing coding for
new law in Minnesota Statutes, chapter 609; proposing coding for new law as
Minnesota Statutes, chapters 240B; 297J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

WAGERING ON SPORTING EVENTS

Section 1.

new text begin [240B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Casino. new text end

new text begin "Casino" means a gaming establishment operated under an agreement
between the state and a tribe under section 3.9221.
new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Sports Wagering Commission
established under section 240B.05.
new text end

new text begin Subd. 4. new text end

new text begin Esport. new text end

new text begin "Esport" means the play of a competitive video game in a game, match,
contest, or series of games, matches, or contests, or a tournament between or amongst people
or teams, or by a person or team against a specified measure of performance that meets the
following conditions:
new text end

new text begin (1) the video game does not simulate the play of a game classified as class I, II, or III,
under the Indian Gaming Regulatory Act, Public Law 100-497;
new text end

new text begin (2) a majority of participants are 18 years old or older;
new text end

new text begin (3) spectators are allowed to watch the competition in real time in person or online, for
free or at no cost; and
new text end

new text begin (4) the video game is approved by the Sports Wagering Commission to be an event
eligible for wagering under this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Licensed bookmaker. new text end

new text begin "Licensed bookmaker" means a person licensed as a
bookmaker under section 240B.30.
new text end

new text begin Subd. 6. new text end

new text begin Participant in a sporting event. new text end

new text begin "Participant in a sporting event" means a
person participating in a sporting event as a player, coach, or official, or who is an owner,
employee, or officer of a team participating in a sporting event or of the league or
organization organizing a sporting event.
new text end

new text begin Subd. 7. new text end

new text begin Racetrack. new text end

new text begin "Racetrack" means a racetrack licensed under chapter 240.
new text end

new text begin Subd. 8. new text end

new text begin Sporting event. new text end

new text begin (a) "Sporting event" means a physical game, match, contest,
or series of games, matches, or contests, or a tournament between or amongst people or
teams, or by a person or team against a specified measure of performance, that is approved
by the Sports Wagering Commission to be an event eligible for wagering under this chapter.
new text end

new text begin (b) An esport, activity, sport, athletic event, or tournament organized by an elementary,
middle, or high school, or by any youth activity sports program, league, or clinic, is not a
sporting event. Horse racing as defined in chapter 240 is not a sporting event.
new text end

new text begin Subd. 9. new text end

new text begin Wager. new text end

new text begin "Wager" means a transaction between two people in which a first
person pays or promises something of value in exchange for a promise from a second person
that the second person will pay the first person something of value if an event, specified by
the two people, occurs.
new text end

new text begin Subd. 10. new text end

new text begin Wager on a sporting event. new text end

new text begin "Wager on a sporting event" means a wager on
the ultimate outcome of a sporting event or on a proposition related to the sporting event.
A contract for insurance on the life or health of a participant in a sporting event is not a
wager for purposes of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [240B.02] SCOPE.
new text end

new text begin This chapter sets forth the exclusive means by which the wagering on sporting events
or on propositions involving sporting events may be lawfully conducted, other than
pari-mutuel wagering on horse racing conducted under chapter 240. It is unlawful to wager
on sports except in compliance with the terms, conditions, limitations, and restrictions of
this chapter or the rules adopted under this chapter, other than pari-mutuel wagering on
horse racing conducted under chapter 240.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [240B.05] SPORTS WAGERING COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership; terms; vacancies. new text end

new text begin The Sports Wagering Commission
consists of nine members as follows:
new text end

new text begin (1) the commissioner of public safety or the commissioner's designee;
new text end

new text begin (2) the chair of the Racing Commission or the chair's designee;
new text end

new text begin (3) five members appointed by the governor according to section 15.0597, with the
advice and consent of the senate; and
new text end

new text begin (4) two members appointed by the governor, after considering advice of the Indian
Affairs Council, who are each a representative of a Minnesota reservation or a tribal
community and who are authorized by tribal resolution to serve on the commission.
new text end

new text begin Subd. 2. new text end

new text begin Chair. new text end

new text begin The governor shall designate one member of the commission to serve
as chair of the commission.
new text end

new text begin Subd. 3. new text end

new text begin Qualifications. new text end

new text begin A member of the commission must have been a resident of
Minnesota for at least five years before appointment and must have a background and
experience that qualifies for membership on the commission. No commissioner, nor any
member of the commissioner's immediate family residing in the same household, may hold
a license issued by the commission or have a direct or indirect financial interest in a
corporation, partnership, or association that holds a license issued by the commission.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin The compensation of commission members for each day spent
on commission activities, when authorized by the commission, shall be the same as
compensation provided for other members of boards and commissions under section 15.0575,
subdivision 3, plus expenses in the same manner and amount as provided in the
commissioner's plan adopted under section 43A.18, subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Removal; vacancies. new text end

new text begin The removal of commission members is as provided in
section 15.0575.
new text end

new text begin Subd. 6. new text end

new text begin Director. new text end

new text begin (a) The governor must appoint a director of the commission. The
director has the duty to operate and manage the day-to-day functions of the commission;
to execute the authority delegated to the director by the commission, statute, or rule; and to
advise the commission on policy, rule, or legislative changes. The director serves in the
unclassified service at the pleasure of the governor and is compensated subject to section
15A.0815.
new text end

new text begin (b) The director shall perform the following duties:
new text end

new text begin (1) take and preserve records of all proceedings before the commission, maintain its
books, documents, and records, and make them available for public inspection as directed
by the commission;
new text end

new text begin (2) if so designated by the commission, act as a hearing officer in hearings that need not
be conducted under the Administrative Procedure Act to conduct hearings, receive testimony
and exhibits, and certify the record of proceedings to the commission;
new text end

new text begin (3) act as the commission's chief personnel officer and supervise the employment,
conduct, duties, and discipline of commission employees; and
new text end

new text begin (4) perform other duties as directed by the commission.
new text end

new text begin Subd. 7. new text end

new text begin Additional staff. new text end

new text begin Subject to applicable laws, the commission shall employ and
assign duties to other officers, employees, and agents as it deems necessary to discharge its
functions. The compensation of all commission employees, other than the director, shall be
as provided in chapter 43A.
new text end

new text begin Subd. 8. new text end

new text begin Actions. new text end

new text begin The commission may sue and be sued in its own name, but no action
may be brought against the commission or any of its members for actions taken in good
faith in the performance of their duties. Suits and actions may be commenced against the
commission or any of its members in any court of competent jurisdiction in this state by
service, in the manner provided in Minnesota rules of court, of any summons, process, or
pleadings authorized by the laws of this state. The attorney general is the legal counsel for
the commission.
new text end

new text begin Subd. 9. new text end

new text begin Annual report. new text end

new text begin By February 15 of each year, the commission shall submit a
report to the governor and legislature on its activities, receipts and disbursements, and
recommendations for changes in the laws relating to sports wagering. Recommendations
for changes in the laws must be accompanied by draft legislation to effect the recommended
changes.
new text end

new text begin Subd. 10. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit, or the commission may contract for
an audit of, the books and accounts of the commission annually or as often as the legislative
auditor's resources permit. The commission shall transfer to the general fund the total cost
of the audit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [240B.15] POWERS AND DUTIES OF SPORTS WAGERING
COMMISSION; WAGERING AT RACETRACKS AND ONLINE.
new text end

new text begin Subdivision 1. new text end

new text begin Regulate sports wagering. new text end

new text begin The commission has the power and duty to
regulate sports wagering to ensure that sports wagering is conducted in a fair and lawful
manner and to take all necessary actions sufficient to administer and enforce this chapter,
except for enforcing criminal penalties under sections 240B.97 and 609.5551.
new text end

new text begin Subd. 2. new text end

new text begin Rulemaking. new text end

new text begin The commission must adopt and enforce rules consistent with
this chapter, to ensure that sports wagering is conducted in a manner that is fair and
transparent to wagerers, on the following subjects:
new text end

new text begin (1) the manner in which wagers are accepted and payouts are remitted;
new text end

new text begin (2) the manner in which betting lines are determined and communicated to the public;
new text end

new text begin (3) in consultation with the commissioner of revenue, the calculation of gross sports
wagering revenue and standards for the daily counting and recording of cash and cash
equivalents received in the conduct of wagering on sporting events;
new text end

new text begin (4) the method of accounting to be used by bookmakers;
new text end

new text begin (5) the types of records that shall be kept by bookmakers;
new text end

new text begin (6) the use of wager accounts, credit cards, and checks by wagerers;
new text end

new text begin (7) the minimum and maximum wagers;
new text end

new text begin (8) the standards and practices to prevent and to address compulsive and problem
gambling;
new text end

new text begin (9) the sporting events on which wagers are authorized to be placed, including
professional and National Collegiate Athletic Association Division I sporting events;
new text end

new text begin (10) the requirements for a bookmaker license, at application, on renewal, and on an
ongoing basis, including criminal and financial background checks, financial disclosure
and auditing requirements, data practices and security requirements, bonding or other surety
requirements, and the conduct of inspections;
new text end

new text begin (11) the requirements for equipment and distributor licenses to provide equipment and
supplies used in wagering on sporting events;
new text end

new text begin (12) the registration requirements for employees of bookmakers and racetrack employees,
including criminal background checks;
new text end

new text begin (13) the license requirements for vendors of equipment and software used to facilitate
wagering on sporting events;
new text end

new text begin (14) the restraints on advertising and marketing of wagering on sporting events; and
new text end

new text begin (15) any other rules necessary to facilitate wagering on sporting events under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Orders. new text end

new text begin The commission may order any person subject to its jurisdiction who
has violated this chapter or rule to take appropriate action to correct the violation.
new text end

new text begin Subd. 4. new text end

new text begin Court orders. new text end

new text begin In the event of a refusal to appear by or refusal to obey a subpoena
issued to any person under this chapter, the district court may on application of the
commission issue to the person an order directing the person to appear before the commission
and to produce documentary evidence if so ordered, or to give evidence relating to the matter
under investigation or in question. Failure to obey such an order may be punished by the
court as contempt of court.
new text end

new text begin Subd. 5. new text end

new text begin Delegation. new text end

new text begin The commission may delegate any of its authority under this chapter
to the director if, in the judgment of the commission, doing so would promote the efficient
administration of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [240B.30] BOOKMAKER LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Bookmaker license. new text end

new text begin The commission may issue one or more bookmaker
licenses that authorize the bookmaker to accept wagers on sporting events under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a bookmaker license must be on a form the
commission prescribes and must be accompanied by detailed plans and specifications of
the implementation of sports wagering in Minnesota. The application must contain:
new text end

new text begin (1) the name and address of the applicant and, if it is a corporation, the names of all
officers, directors, and shareholders of the corporation and any of its holding corporations;
new text end

new text begin (2) if required by the commission, the names of any person holding directly, indirectly,
or beneficially an interest of any kind in the applicant or any of its holding corporations,
whether the interest is financial, administrative, policy making, or supervisory;
new text end

new text begin (3) a statement of the assets and liabilities of the applicant;
new text end

new text begin (4) an affidavit executed by the applicant setting forth that no officer, director, or other
person with a present or future direct or indirect financial or management interest in the
applicant, to the best of the applicant's knowledge:
new text end

new text begin (i) is in default in the payment of an obligation or debt to the state;
new text end

new text begin (ii) has ever been convicted of a felony in a state or federal court or has a state or federal
felony charge pending;
new text end

new text begin (iii) is or has been connected with or engaged in any illegal business;
new text end

new text begin (iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;
or
new text end

new text begin (v) has ever knowingly violated a rule or order of the commission or a law of Minnesota
relating to wagering or taxes;
new text end

new text begin (5) an irrevocable consent statement, to be signed by the applicant, which states that
suits and actions relating to the subject matter of the application or acts or omissions arising
from it may be commenced against the applicant in any court of competent jurisdiction in
this state by the service on the secretary of state of any summons, process, or pleadings
authorized by the laws of this state. If any summons, process, or pleadings is served upon
the secretary of state, it must be by duplicate copies. One copy must be retained in the Office
of the Secretary of State and the other copy must be forwarded immediately by certified
mail to the address of the applicant, as shown by the records of the commission; and
new text end

new text begin (6) an affirmative action plan establishing goals and timetables consistent with the
Minnesota Human Rights Act, chapter 363A, and in conformity with the goals established
by the commission by rule.
new text end

new text begin Subd. 3. new text end

new text begin Bookmaker license requirements. new text end

new text begin (a) The commission shall issue or renew
a bookmaker license valid for one year to an applicant who:
new text end

new text begin (1) submits a complete application in the form required by rule adopted under subdivision
1;
new text end

new text begin (2) submits documents required by rule adopted under section 240B.15;
new text end

new text begin (3) is not disqualified under section 240B.40;
new text end

new text begin (4) passes the financial and criminal background checks under section 240B.40;
new text end

new text begin (5) pays an application fee of $....... with submission of an application;
new text end

new text begin (6) pays a license fee after the application is approved in the amount of $....... or a license
renewal fee of $.......; and
new text end

new text begin (7) meets other conditions required by rule adopted under section 240B.15.
new text end

new text begin (b) A license under paragraph (a) is annually renewable under conditions required by
rule adopted under section 240B.15.
new text end

new text begin Subd. 4. new text end

new text begin Responsibility for satisfying winning wagers. new text end

new text begin A wager on a sporting event
placed with a licensed bookmaker is an enforceable contract. A bookmaker who accepts a
wager bears all risk of loss to satisfy winnings on the wager. A wager that is not redeemed
within ten years of the outcome that is the subject of the wager may be canceled by the
bookmaker.
new text end

new text begin Subd. 5. new text end

new text begin Cash reserves. new text end

new text begin (a) A licensed bookmaker shall maintain cash reserves in an
amount specified by the commission that is not less than the greater of $25,000 or the sum
or the following amounts:
new text end

new text begin (1) amounts held by the bookmaker for the accounts of wagerers;
new text end

new text begin (2) amounts accepted by the bookmaker as wagers on contingencies whose outcomes
have not been determined; and
new text end

new text begin (3) amounts owed but unpaid by the bookmaker on winning wagers through the period
established by the bookmaker, subject to time limits set by the commission, for honoring
winning wagers.
new text end

new text begin (b) Notwithstanding the reserve requirement in paragraph (a), before beginning operation
and for a period of one month after beginning operation, a bookmaker must establish a
reserve of at least the greater of $25,000 or the amount the commission projects will at least
equal the sum of the following amounts:
new text end

new text begin (1) amounts held by the bookmaker for the account of patrons;
new text end

new text begin (2) amounts accepted by the bookmaker as wagers on contingencies whose outcomes
have not been determined; and
new text end

new text begin (3) amounts owed but unpaid by the bookmaker on winning wagers through the period
established by the bookmaker for honoring winning wagers.
new text end

new text begin Subd. 6. new text end

new text begin Bond. new text end

new text begin A bookmaker shall post a bond, securities, or an irrevocable letter of
credit, in an amount as the commission deems necessary, to protect the financial interests
of the state and of people wagering on sporting events. If securities are deposited or an
irrevocable letter of credit filed, the securities or letter of credit must be of a type or in the
form provided under section 349A.07, subdivision 5, paragraphs (b) and (c).
new text end

new text begin Subd. 7. new text end

new text begin Contracting with casinos and racetracks. new text end

new text begin (a) A licensed bookmaker may
contract with the following to accept wagers on behalf of the bookmaker:
new text end

new text begin (1) the owner of a casino to accept wagers on sporting events at a casino; and
new text end

new text begin (2) the owner of a racetrack licensed under section 240B.35 to accept sports wagers on
behalf of a licensed bookmaker.
new text end

new text begin (b) The bookmaker shall be responsible for actions of officers or employees of the casino
or racetrack that constitute a violation of this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Reporting. new text end

new text begin A licensed bookmaker must report to the commission monthly on
wagers placed and redeemed during the reporting month and outstanding at the time of the
report.
new text end

new text begin Subd. 9. new text end

new text begin Changes in ownership or management. new text end

new text begin If a change in the officers, directors,
shareholders, or other persons with a present or future direct or indirect financial or
management interest in the bookmaker licensee, or a change of ownership of more than five
percent of the licensee's shares is made after the bookmaker license application is filed or
the license issued, the applicant or licensee must notify the commission of the changes
within five days of their occurrence and submit a new affidavit as required by subdivision
2, clause (4).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [240B.35] AFFILIATE LICENSES FOR RACETRACKS.
new text end

new text begin Subdivision 1. new text end

new text begin Affiliate license. new text end

new text begin An affiliate license is required to accept wagers on
sporting events on behalf of a licensed bookmaker.
new text end

new text begin Subd. 2. new text end

new text begin Issuance; renewal. new text end

new text begin (a) The commission shall issue or renew a sports wagering
affiliate license to accept wagers on sporting events on behalf of a licensed bookmaker, to
an applicant who meets the following conditions:
new text end

new text begin (1) the owner of a racetrack who holds a class A license under chapter 240;
new text end

new text begin (2) is not disqualified under section 240B.40;
new text end

new text begin (3) submits an application in the form required by rule adopted under section 240B.15;
new text end

new text begin (4) submits documents required by rule adopted under section 240B.15;
new text end

new text begin (5) passes criminal and financial background checks as described in section 240B.40
and as required by rule adopted under section 240B.15;
new text end

new text begin (6) pays an application fee of $....... with submission of an application;
new text end

new text begin (7) pays a license fee after the application is approved in the amount of $....... or a license
renewal fee of $.......; and
new text end

new text begin (8) meets other conditions required by rule adopted under section 240B.15.
new text end

new text begin (b) A license under paragraph (a) is annually renewable under conditions required by
rule adopted under section 240B.15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [240B.40] LICENSE DISQUALIFICATIONS; BACKGROUND CHECKS;
NOTICE OF DENIAL OF APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Disqualifications. new text end

new text begin The commission must reject an application, refuse to
renew a license, or revoke a license if the applicant or licensee, or a director, officer, partner,
member of a governing body for the applicant or licensee, person in a supervisory or
management position of the applicant or licensee, or direct or indirect holder of more than
a five percent financial interest in the applicant or licensee, has engaged any of the following:
new text end

new text begin (1) has ever been convicted of a felony or a crime involving gambling;
new text end

new text begin (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use of
a firearm, or (iii) making terroristic threats;
new text end

new text begin (3) is or has ever been connected with or engaged in an illegal business;
new text end

new text begin (4) owes $500 or more in delinquent taxes as defined in section 270C.72;
new text end

new text begin (5) had a sales and use tax permit revoked by the commissioner of revenue within the
past two years;
new text end

new text begin (6) after demand, has not filed tax returns required by the commissioner of revenue; or
new text end

new text begin (7) has been convicted of a felony or gross misdemeanor involving theft or fraud.
new text end

new text begin Subd. 2. new text end

new text begin Background investigation. new text end

new text begin The commission shall perform a background
investigation of applicants for a license under this chapter. The commission may request
the director of alcohol and gambling enforcement and the commissioner of revenue to assist
in investigating the background of an applicant for a license under this section. The
commission may charge an applicant an investigation fee to cover the cost of the
investigation, and shall from this fee reimburse the Division of Alcohol and Gambling
Enforcement for its share, and the Department of Revenue for its share, of the cost of the
investigation. The commission is authorized to have access to all data compiled by the
Division of Alcohol and Gambling Enforcement on licensees and applicants.
new text end

new text begin Subd. 3. new text end

new text begin Criminal history. new text end

new text begin The commission must perform a criminal history records
check on each officer, director, or stakeholder with more than 15 percent interest in the
licensee or applicant. The records check must include a criminal history check of the state
and federal criminal records. The applicant or licensee must provide signed consent for the
national and international criminal history records check and fingerprints for each person
subject to a check under this subdivision. The director of alcohol and gambling enforcement
shall assist in performing the criminal history records check. The director may charge an
applicant a fee to cover the cost of the criminal history records check, and shall from this
fee reimburse the Division of Alcohol and Gambling Enforcement for its share of the cost
of the investigation. The commission or the director of alcohol and gambling enforcement
must submit the signed informed consent, fingerprints, and Bureau of Criminal Apprehension
and Federal Bureau of Investigation fees to the superintendent of the Bureau of Criminal
Apprehension who is authorized to exchange the fingerprints with the Federal Bureau of
Investigation to obtain the applicant's national criminal history data. The superintendent of
the Bureau of Criminal Apprehension shall retrieve Minnesota criminal history data and
shall provide the results of the state, federal, and international criminal history check to the
director. The commission is authorized to have access to all criminal history data compiled
on licensees and applicants by the Division of Alcohol and Gambling Enforcement.
new text end

new text begin Subd. 4. new text end

new text begin Notice of denial of issuance or renewal of bookmaker license. new text end

new text begin If the
commission determines that a license application or renewal under this chapter shall be
denied, or that a license shall be revoked, suspended, or a licensee censured, the commission
shall promptly give a written notice to the licensee or applicant stating grounds for the action
and giving reasonable notice of the rights of the licensee or applicant to request a hearing.
A hearing must be held not later than 30 days after the commission receives the request for
the hearing, unless the licensee or applicant and the commission agree on a later date. If the
applicant or licensee do not request a hearing within 30 days of the service of the notice,
the denial becomes final. Hearings under this subdivision must be conducted according to
chapter 14. After the hearing, the commission may enter an order making such disposition
as the facts require. If the applicant or licensee fails to appear at the hearing after having
been notified of it under this subdivision, the applicant is considered in default and the
proceeding may be determined against the person on consideration of the written notice of
denial, the allegations of which may be considered to be true. All fees accompanying the
license or renewal application are considered earned and are not refundable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

new text begin [240B.45] WAGERING.
new text end

new text begin Subdivision 1. new text end

new text begin Wager type. new text end

new text begin A licensed bookmaker may only accept wagers of a type
previously approved by the commission. Wager types that the commission may approve
include but are not limited to the following:
new text end

new text begin (1) a wager that a participant or participating team will win a sporting event or will win
by a specified number of points;
new text end

new text begin (2) a wager as to whether the total points scored in a sporting event will be higher or
lower than a number specified;
new text end

new text begin (3) a wager on an outcome of a contingency or proposition incidental to a sporting event
for which the outcome is published in newspapers of general circulation or in records made
publicly available by the league or governing body for the event; and
new text end

new text begin (4) a wager on the outcome of a series of three or more sporting events or a series of
three or more contingencies incidental to a sporting event.
new text end

new text begin Subd. 2. new text end

new text begin Consideration; wager account. new text end

new text begin (a) A licensed bookmaker must not accept a
wager unless the wagerer provides consideration at the time of making the wager.
new text end

new text begin (b) Consideration must be in the form of withdrawal from a wager account maintained
by the bookmaker for the benefit of and in the name of the wagerer.
new text end

new text begin (c) A bookmaker may only accept deposits into the wager account that are made by the
wagerer in person at a casino or racetrack.
new text end

new text begin (d) A person shall have the right to withdraw the balance of the wager account in the
person's name at any time with proof of identity, as determined by rules adopted under
section 240B.15.
new text end

new text begin Subd. 3. new text end

new text begin Wager location. new text end

new text begin Wagers on sporting events may only be accepted from a person
placing a wager in the following manner:
new text end

new text begin (1) in person at a casino operated under a tribal-state compact under section 3.9221
authorizing wagers on sporting events;
new text end

new text begin (2) in person at a racetrack licensed under chapter 240; or
new text end

new text begin (3) beginning 12 months after the commission issues a first bookmaker license under
section 240B.30 online through a website or mobile application, while the person placing
the wager is physically within the state. The website or application must be hosted by a
licensed bookmaker under a contract with a tribe that operates a casino under a tribal-state
compact under section 3.9221 that authorizes wagers on sporting events.
new text end

new text begin Subd. 4. new text end

new text begin Information provided at the time of wager. new text end

new text begin A bookmaker must disclose the
betting line and the terms of a wager prior to accepting a wager. Terms of the wager include
the ratio of the amount to be paid for winning to the wagered amount.
new text end

new text begin Subd. 5. new text end

new text begin Outcome determined. new text end

new text begin A bookmaker must not accept a wager on the outcome
of an event that has already been determined.
new text end

new text begin Subd. 6. new text end

new text begin Receipt. new text end

new text begin A bookmaker must provide the person who has placed a wager with
a receipt at the time of sale that contains the following information:
new text end

new text begin (1) the sporting event that is the subject of the wager;
new text end

new text begin (2) the outcome of the sporting event that will constitute a win on the wager;
new text end

new text begin (3) the amount wagered;
new text end

new text begin (4) the payout in the event of a winning wager;
new text end

new text begin (5) identification of the wagerer;
new text end

new text begin (6) the name and address of the bookmaker; and
new text end

new text begin (7) other information required by rule.
new text end

new text begin The bookmaker must offer the receipt on paper or electronically, or both, at the wagerer's
option.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin [240B.55] DEPOSIT AND APPROPRIATION OF FEES.
new text end

new text begin (a) Application fees are deposited into a special revenue account and are appropriated
annually to the commission for administering review of license applications and renewals.
new text end

new text begin (b) License and renewal fees are deposited in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

new text begin [240B.60] ENFORCEMENT; LICENSE VIOLATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Schedule of penalties. new text end

new text begin The commission must adopt rules that provide a
graduated schedule of penalties for violation of license requirements under statute or rule.
The schedule must specify penalties that may range from warnings and probationary periods
to civil fines, temporary suspension of a license, and revocation of a license.
new text end

new text begin Subd. 2. new text end

new text begin Imposition of penalty. new text end

new text begin After adjudication, the commission may impose a
penalty from the schedule of penalties that is commensurate with the violation. The
commission may suspend or revoke a license prior to adjudication when conduct of a
licensee, or anticipated failure of a licensee to fulfill an obligation, requires immediate action
to protect the public from harm. The commission may summarily suspend the license of a
licensee:
new text end

new text begin (1) if the licensee has not timely filed a tax return or paid the tax required under chapter
297J;
new text end

new text begin (2) if doing so is necessary in the commission's judgment to ensure the fairness,
lawfulness, and integrity of sports wagering; or
new text end

new text begin (3) if the licensee has not timely paid all fees due under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Criminal penalty. new text end

new text begin (a) Commission of a crime under section 240B.97 is a
violation of a license issued under this chapter.
new text end

new text begin (b) A penalty may be imposed by the commission under this chapter in addition to any
criminal penalty imposed for the same conduct under section 240B.97.
new text end

new text begin Subd. 4. new text end

new text begin Fines paid to the commission. new text end

new text begin Fines collected by the commission must be
transferred to the commissioner of management and budget for deposit in the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Contested case. new text end

new text begin A fine in excess of $2,000 is a contested case under the
Administrative Procedure Act.
new text end

new text begin Subd. 6. new text end

new text begin Appeal. new text end

new text begin An appeal from a decision of the commission must be made in a manner
prescribed by sections 14.63 to 14.69.
new text end

new text begin Subd. 7. new text end

new text begin Referral to the Department of Public Safety. new text end

new text begin When the commission determines
that a person has engaged in, or is about to engage in, an act or practice that is in violation
of section 240B.97, the commission shall report the information to the director of the
Department of Public Safety's Division of Alcohol and Gambling Enforcement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

new text begin [240B.65] AUDITING AND INSPECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Annual audit. new text end

new text begin To ensure compliance with this chapter and rules adopted
under this chapter, a licensed bookmaker must contract with an independent third party to
perform a financial audit, consistent with the standards established by the Public Company
Accounting Oversight Board or using the Statements on Accounting standards issued by
the Audit Standards Board of the American Institute of Certified Public Accountants. The
bookmaker must submit the audit to the commission for examination and inspection by
November 1 of each year.
new text end

new text begin Subd. 2. new text end

new text begin Inspection. new text end

new text begin The commission, the commissioner of revenue, the commissioner
of public safety, and the director of the Division of Alcohol and Gambling Enforcement,
are authorized to inspect the accounting records for a licensed bookmaker at any time without
notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

new text begin [240B.70] REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Financial report. new text end

new text begin By February 15 each year, the commission must submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over state government finance and policy, taxes, and of the committee in the
house of representatives with jurisdiction over ways and means, and the committee in the
senate with jurisdiction over finance. The report must describe the commission's activities
with respect to wagering on sporting events and include summary and detailed financial
information on sports wagering. The report must not include private data on individuals, as
classified under section 240B.80.
new text end

new text begin Subd. 2. new text end

new text begin License activity report. new text end

new text begin By February 1 of each year beginning in 2021, the
commission shall submit a report to the chairs and ranking minority members of the
committees in the house of representatives and the senate with jurisdiction over sports
wagering and state government finance and policy, on the following:
new text end

new text begin (1) the status of applications for licenses issued by the commission, including the number
of applications for each type of license, the number of licenses of each type issued, and the
average time between receipt of a complete application and issuance of each type of license;
new text end

new text begin (2) an overview of the sports wagering market, including but not limited to the actual
and anticipated demand;
new text end

new text begin (3) the amount of revenue generated to the state by sports wagering and the expenses
incurred by the commission and the Department of Public Safety in enforcing restrictions
on lawful sports wagering; and
new text end

new text begin (4) the commission's enforcement actions taken against persons licensed under this
chapter for violations of this chapter or the rules adopted under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

new text begin [240B.75] EXCLUSION LIST AND PROHIBITION ON WAGERING.
new text end

new text begin Subdivision 1. new text end

new text begin Exclusion list. new text end

new text begin The commission shall maintain a list of persons who are
not eligible to wager on sporting events. The list shall include the names of:
new text end

new text begin (1) persons who have themselves requested to be on the exclusion list; and
new text end

new text begin (2) persons whose names have been submitted, for their protection, by their legal
guardians.
new text end

new text begin The information contained on the list is private data on individuals, as defined in section
13.02, subdivision 12, except the commission is permitted to share the list with licensed
bookmakers as needed to prevent persons on the exclusion list from wagering on sporting
events.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition on wagering. new text end

new text begin A licensed bookmaker shall not accept a wager from
a person on the exclusion list. Acceptance of a wager from a person on the exclusion list is
a license violation, subject to a penalty established by the commission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [240B.80] DATA PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Data classification. new text end

new text begin Data in which an individual who has wagered on
sporting events is identified by name, account number, Social Security number, or any other
uniquely identifying indicia, is private data on individuals, as defined in section 13.02,
subdivision 12. Data on individual casino earnings is nonpublic data, as defined in section
13.02, subdivision 9.
new text end

new text begin Subd. 2. new text end

new text begin Sale of private data on individuals. new text end

new text begin The commission shall revoke any license
issued under this chapter of a person who sells private data on individuals collected through
the practice of wagering on sporting events.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

new text begin [240B.95] LOCAL RESTRICTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin No local taxes or fees. new text end

new text begin No political subdivision may require a local
license to offer wagering on sports or impose a tax or fee on the business of sports
bookmaking.
new text end

new text begin Subd. 2. new text end

new text begin Local ordinances. new text end

new text begin A statutory or home rule charter city or township may by
law preclude wagering within its jurisdiction on sporting events.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

new text begin [240B.96] AUTHORITY OF COMMISSIONER OF PUBLIC SAFETY TO
ENFORCE SPORTS WAGERING CRIMES.
new text end

new text begin The commissioner of public safety shall investigate and enforce crimes related to sports
wagering under this chapter. The commissioner of public safety must notify the commission
of investigations into and enforcement actions against a person holding a license or
registration issued under this chapter. The commission has no authority to investigate and
enforce crimes. The commission is required to report to the commissioner of public safety
any activity that the commission determines indicates a crime, or an attempt to commit a
crime, under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.
new text end

new text begin The governor or the governor's designated representatives shall negotiate in good faith
tribal-state compacts regulating the conduct of wagering on sporting events on the tribal
lands of a tribe requesting negotiations, under Minnesota Statutes, section 3.9221, and
consistent with Minnesota Statutes, chapter 240B.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

TAXATION OF SPORTS WAGERING

Section 1.

Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Nontaxable sports wagering losses. new text end

new text begin Losses from the business of conducting
wagering on a sporting event under chapter 240B that are not subject to tax under this chapter
are an addition.
new text end

Sec. 2.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 30. new text end

new text begin Exempt sports wagering income. new text end

new text begin Income or gains from the business of
conducting wagering on a sporting event under chapter 240B that are not subject to tax
under this chapter are a subtraction.
new text end

Sec. 3.

Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Nontaxable sports wagering losses. new text end

new text begin Losses from the business of conducting
wagering on a sporting event under chapter 240B that are not subject to tax under this chapter
are an addition.
new text end

Sec. 4.

Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Exempt sports wagering income. new text end

new text begin Income or gains from the business of
conducting wagering on a sporting event under chapter 240B that are not subject to tax
under this chapter are a subtraction.
new text end

Sec. 5.

Minnesota Statutes 2020, section 297E.02, subdivision 3, is amended to read:

Subd. 3.

Collection; disposition.

(a) Taxes imposed by this section are due and payable
to the commissioner when the gambling tax return is required to be filed. Distributors must
file their monthly sales figures with the commissioner on a form prescribed by the
commissioner. Returns covering the taxes imposed under this section must be filed with
the commissioner on or before the 20th day of the month following the close of the previous
calendar month. The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30. The proceeds, along with the revenue
received from all license fees and other fees under sections 349.11 to 349.191, 349.211,
and 349.213, must be paid to the commissioner of management and budget for deposit in
the general fund.

(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
the organization is exempt from taxes imposed by chapter 297A and is exempt from all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8.

(c) One-half of one percent of the revenue deposited in the general fund under paragraph
(a), new text begin and one-half of one percent of the revenue deposited in the general fund under section
297J.05, must be transferred to the special revenue fund, and new text end is appropriated to the
commissioner of human services for the compulsive gambling treatment program established
under section 245.98. One-half of one percent of the revenue deleted text begin deposited in the general deleted text end new text begin
transferred to the special revenue new text end fund under paragraph (a), is appropriated to the
commissioner of human services for a grant to the state affiliate recognized by the National
Council on Problem Gambling to increase public awareness of problem gambling, education
and training for individuals and organizations providing effective treatment services to
problem gamblers and their families, and research relating to problem gambling. Money
appropriated by this paragraph must supplement and must not replace existing state funding
for these programs.

Sec. 6.

new text begin [297J.01] DEFINITIONS.
new text end

new text begin Unless otherwise defined in this chapter, or unless the context clearly indicates otherwise,
the following terms have the meanings given:
new text end

new text begin (1) "Internal Revenue Code" means the Internal Revenue Code as defined in section
289A.02, subdivision 7;
new text end

new text begin (2) "casino" has the meaning given in section 240B.01, subdivision 2;
new text end

new text begin (3) "licensed bookmaker" has the meaning given in section 240B.01, subdivision 5;
new text end

new text begin (4) "racetrack" has the meaning given in section 240B.01, subdivision 7;
new text end

new text begin (5) "wager" has the meaning given in section 240B.01, subdivision 9;
new text end

new text begin (6) "wager on a sporting event" has the meaning given in section 240B.01, subdivision
10;
new text end

new text begin (7) "commissioner" means the commissioner of revenue; and
new text end

new text begin (8) "sports wagering net revenue" means the total of all cash received by a licensed
bookmaker from wagers on a sporting event, less cash paid out as winnings and cash
equivalent of noncash prizes paid out as winnings. Sports wagering net revenue does not
include other cash received by a licensed bookmaker for activities other than sporting event
wagering. The cash received by a licensed bookmaker as part of the sports wagering net
revenue calculation does not include the value of cash received as a result of promotional
credits, free bets, or other incentives.
new text end

Sec. 7.

new text begin [297J.02] TAX ON SPORTS WAGERING NET REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin A tax is imposed on sports wagering net revenue equal
to:
new text end

new text begin (1) six percent on wagers placed at a casino or racetrack; and
new text end

new text begin (2) eight percent on wagers placed online through a website or mobile application, as
allowed under section 240B.45, subdivision 3, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Sports wagering net revenue tax is in lieu of other taxes. new text end

new text begin Income derived
by a licensed bookmaker from the conduct of wagering on a sporting event is not subject
to the tax imposed in chapter 290. Wagers accepted by a licensed bookmaker are not subject
to the tax imposed in section 297A.62 or 297E.03.
new text end

new text begin Subd. 3. new text end

new text begin Personal debt. new text end

new text begin The tax imposed by this section, and interest and penalties
imposed with respect to the tax, are a personal debt of the person required to file a return
from the time the liability for the tax arises, irrespective of when the time for payment of
the liability occurs. The debt must, in the case of the executor or administrator of the estate
of a decedent and in the case of a fiduciary, be that of the person in the person's official or
fiduciary capacity only, unless the person has voluntarily distributed the assets held in that
capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which
event the person is personally liable for any deficiency.
new text end

new text begin Subd. 4. new text end

new text begin Public information. new text end

new text begin All records concerning the administration of taxes under
this chapter are classified as public information.
new text end

new text begin Subd. 5. new text end

new text begin Refunds. new text end

new text begin A person who has, under this chapter, paid to the commissioner an
amount of tax for a period in excess of the amount legally due for that period may file with
the commissioner a claim for a refund of the excess. The amount necessary to pay the refunds
under this subdivision is appropriated from the general fund to the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Extensions. new text end

new text begin If in the commissioner's judgment good cause exists, the
commissioner may extend the time for filing tax returns, paying taxes, or both under this
section for not more than six months.
new text end

new text begin Subd. 7. new text end

new text begin Distribution of funds. new text end

new text begin All amounts collected by the commissioner under this
chapter must be deposited in the general fund.
new text end

Sec. 8.

new text begin [297J.03] LICENSED BOOKMAKER REPORTS AND RECORDS.
new text end

new text begin Subdivision 1. new text end

new text begin Reports. new text end

new text begin A licensed bookmaker must file with the commissioner, on a
form prescribed by the commissioner, a report showing all sporting event wagering activity
conducted by the licensed bookmaker for each month. Sporting event wagering activity
includes the amounts of all wagers received, payouts, and all sports wagering taxes owed
or paid to the commissioner. The report must be filed with the commissioner on or before
the 20th day of the month following the month in which the sporting event wagering activity
takes place. The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30.
new text end

new text begin Subd. 2. new text end

new text begin Business records. new text end

new text begin A licensed bookmaker must maintain records supporting
the sporting event wagering activity reported to the commissioner. Records required to be
kept in this section must be preserved by the licensed bookmaker for at least 3-1/2 years
and may be inspected by the commissioner of revenue at any reasonable time without notice
or a search warrant.
new text end

new text begin Subd. 3. new text end

new text begin Audits. new text end

new text begin The commissioner may require a financial audit of a licensed
bookmaker's sporting event wagering activities if the licensed bookmaker has failed to
comply with this chapter. Audits must be performed by an independent accountant licensed
according to chapter 326A. The commissioner of revenue must prescribe standards for an
audit required under this subdivision. A complete, true, and correct copy of an audit must
be filed as prescribed by the commissioner.
new text end

Sec. 9.

new text begin [297J.04] OTHER PROVISIONS APPLY.
new text end

new text begin Except for those provisions specific to distributors, gambling products, or gambling
equipment, sections 297E.11 to 297E.14 apply to this chapter.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective for wagers placed on or after ......
new text end

ARTICLE 3

CRIMES RELATED TO WAGERING ON SPORTING EVENTS

Section 1.

new text begin [240B.97] CRIMES RELATING TO WAGERING ON SPORTING
EVENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section:
new text end

new text begin (1) "accepts a wager" includes receiving, recording, or forwarding a wager or an offer
to wager on a sporting event, and attempts to do so;
new text end

new text begin (2) "nonpublic information" means information regarding a participant's ability or
likelihood to perform in a sporting event that:
new text end

new text begin (i) is not available to the general public;
new text end

new text begin (ii) is derived from a personal or professional relationship with the participant; and
new text end

new text begin (iii) if the information was disseminated, would likely affect the odds of the participant
or the participant's team in achieving a particular outcome in the event; and
new text end

new text begin (3) "places a wager" includes an offer or attempt to place a wager on a sporting event.
new text end

new text begin Subd. 2. new text end

new text begin General prohibition. new text end

new text begin Except as provided in this section, it is a crime for a
person to place or accept a wager on a sporting event unless the wager is authorized under
this chapter, and:
new text end

new text begin (1) the wager is accepted:
new text end

new text begin (i) at a casino;
new text end

new text begin (ii) at a racetrack; or
new text end

new text begin (iii) online through a website or mobile application hosted by a licensed bookmaker if
the person placing the wager is physically present in the state and made more than 12 months
after the commission issues a first bookmaker license under section 240B.30; or
new text end

new text begin (2) the wager is placed:
new text end

new text begin (i) at a casino;
new text end

new text begin (ii) at a racetrack; or
new text end

new text begin (iii) online through a website or mobile application hosted by a licensed bookmaker if
the person placing the wager is physically present in the state and made more than 12 months
after the commission issues a first bookmaker license under section 240B.30.
new text end

new text begin Subd. 3. new text end

new text begin Misdemeanor. new text end

new text begin (a) Except as otherwise provided in subdivision 4 or 5, the
following persons are guilty of a misdemeanor:
new text end

new text begin (1) a person who places a wager on a sporting event with a person or entity who is not
licensed or authorized to accept wagers under this chapter;
new text end

new text begin (2) a person who is not licensed or authorized to accept wagers under this chapter and
who accepts a wager on a sporting event;
new text end

new text begin (3) a person who is under 18 years of age and who places a wager on a sporting event;
new text end

new text begin (4) a person who is under 18 years of age and who misrepresents the person's age as
being 18 or older for the purposes of placing a wager on a sporting event;
new text end

new text begin (5) a person who is a participant in a sporting event and who places a wager on that
event or who induces another to place a wager on the event on behalf of the person;
new text end

new text begin (6) a licensed bookmaker or employee of a licensed bookmaker, or an official or employee
of a casino or racetrack authorized to accept wagers under this chapter, who places a wager
on a sporting event at the casino, racetrack, or online website or mobile application with
which the person is affiliated;
new text end

new text begin (7) an officer, director, member, or employee of the commission or the Department of
Public Safety's Division of Alcohol and Gambling Enforcement who places a wager on a
sporting event;
new text end

new text begin (8) a person who possesses nonpublic information on a sporting event and who places
a wager on that event;
new text end

new text begin (9) a person or entity who is licensed or authorized to accept wagers under this chapter,
if the person or entity knowingly accepts a wager on a sporting event:
new text end

new text begin (i) from a participant in the event or someone placing a wager on the event on behalf of
the participant;
new text end

new text begin (ii) from a licensed bookmaker or employee of a licensed bookmaker, or an official or
employee of a casino or racetrack authorized to accept wagers under this chapter, at the
casino, racetrack, or online website or mobile application with which the person is affiliated;
new text end

new text begin (iii) from an officer, director, member, or employee of the commission or the Department
of Public Safety's Division of Alcohol and Gambling Enforcement;
new text end

new text begin (iv) from someone who possess nonpublic information about the event; or
new text end

new text begin (v) of a type or in a manner that is not authorized under this chapter; and
new text end

new text begin (10) a person who sells or transfers private data on individuals collected through the
practice of wagering on sporting events.
new text end

new text begin (b) Paragraph (a), clause (10), does not apply to transfers of data between any of the
following persons, if the transfer of data is necessary to perform duties prescribed by law
relating to wagering on sporting events: a licensed bookmaker and the director or chair of
the commission, the commissioner of public safety, the director of alcohol and gambling
enforcement, and the commissioner of revenue.
new text end

new text begin Subd. 4. new text end

new text begin Gross misdemeanor. new text end

new text begin Except as provided in subdivision 5, a person is guilty
of a gross misdemeanor if:
new text end

new text begin (1) the person accepts a wager on a sporting event placed by someone under the age of
18 years; or
new text end

new text begin (2) the person accepts or places a wager on a sporting event and the wager is prohibited
under subdivision 3, paragraph (a), clause (1), (2), (5), (6), (7), (8), or (9), and:
new text end

new text begin (i) the person has previously been convicted of a violation of this section; or
new text end

new text begin (ii) the amount of the wager is more than $500 but not more than $1,000.
new text end

new text begin Subd. 5. new text end

new text begin Felony. new text end

new text begin (a) Except as provided in paragraph (b), a person who accepts or places
a wager prohibited under subdivision 3, paragraph (a), clause (1), (2), (5), (6), (7), (8), or
(9); or 4, clause (1) or (2), item (i), is guilty of a felony and may be sentenced to
imprisonment for not more than two years or to payment of a fine of not more than $4,000,
or both; if the amount of the wager is more than $1,000 but not more than $5,000.
new text end

new text begin (b) A person who:
new text end

new text begin (1) accepts or places a wager prohibited under subdivision 3, paragraph (a), clause (1),
(2), (5), (6), (7), (8), or (9); or 4, clause (1) or (2), item (i); where the amount of the wager
is more than $5,000; or
new text end

new text begin (2) accepts or places within any 30-day period more than five wagers on any one or
more sporting events that total more than $2,500 and are prohibited in subdivision 3,
paragraph (a), clause (1), (2), (5), (6), (7), (8), or (9); or 4, clause (1) or (2), item (i);
new text end

new text begin is guilty of a felony and may be sentenced to imprisonment for not more than five years or
to payment of a fine of not more than $10,000, or both.
new text end

new text begin Subd. 6. new text end

new text begin Aggregation; venue. new text end

new text begin In any prosecution under subdivision 4 or 5, the amount
of money wagered within any six-month period may be aggregated and the accused charged
accordingly in applying the provisions of those subdivisions. In addition, when two or more
offenses are committed by the same person in two or more counties, the accused may be
prosecuted in any county in which one of the offenses was committed for all of the offenses
aggregated under this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Exception; certain private social bets. new text end

new text begin Subdivisions 3, clauses (1), (2), (3),
and (7); and 4, clause (1), do not prohibit private social bets on sporting events that are not
part of or incidental to organized, commercialized, or systematic gambling.
new text end

new text begin Subd. 8. new text end

new text begin Proof of age; defense; seizure of false identification. new text end

new text begin (a) Proof of age for
placing a wager under this chapter on a sporting event may be established only by one of
the following:
new text end

new text begin (1) a valid driver's license or identification card issued by Minnesota, another state, a
tribal government, or a province of Canada, and including the photograph and date of birth
of the person;
new text end

new text begin (2) a valid military identification card issued by the United States Department of Defense;
new text end

new text begin (3) a valid United States passport;
new text end

new text begin (4) a valid instructional permit issued under section 171.05 that includes a photograph
and the date of birth of the person; or
new text end

new text begin (5) in the case of a foreign national, a valid passport.
new text end

new text begin (b) In a prosecution for accepting a wager on a sporting event from a person under the
age of 18, it is an affirmative defense for the defendant to prove by a preponderance of the
evidence that the defendant reasonably and in good faith relied upon representations of
proof of age authorized in paragraph (a).
new text end

new text begin (c) A licensed bookmaker or employee of a licensed bookmaker, or an official or
employee of a casino or racetrack authorized to accept wagers on sporting events under this
chapter, may seize a form of identification listed under paragraph (a) if the person has
reasonable grounds to believe that the form of identification has been altered or falsified or
is being used to violate any law. A person who seizes a form of identification under this
paragraph must deliver it to a law enforcement agency within 24 hours of seizure.
new text end

Sec. 2.

new text begin [609.5551] SPORTING EVENTS; FRAUD; BRIBERY.
new text end

new text begin (a) As used in this section:
new text end

new text begin (1) "participant in a sporting event" has the meaning given in section 240B.01, subdivision
6; and
new text end

new text begin (2) "sporting event" has the meaning given in section 240B.01, subdivision 8, and applies
to sporting events that may be legally wagered on under chapter 240B.
new text end

new text begin (b) A person is guilty of a felony and may be sentenced to imprisonment for not more
than five years or to payment of a fine of not more than $10,000, or both, if the person:
new text end

new text begin (1) offers, gives, or promises to give, directly or indirectly, to a participant in a sporting
event any benefit, reward, or consideration to which the participant is not legally entitled
as compensation or a prize, with intent to influence the performance of the participant, or
the outcome of the event or a component of the event; or
new text end

new text begin (2) as a participant in a sporting event, requests, receives, or agrees to receive, directly
or indirectly, a benefit, reward, or consideration to which the participant is not legally entitled
to intentionally lose, cause to lose, or attempt to lose or cause to lose, the event, or to
intentionally perform below abilities to adversely affect the outcome of the event or a
component of the event.
new text end

Sec. 3.

Minnesota Statutes 2020, section 609.75, subdivision 3, is amended to read:

Subd. 3.

What are not bets.

The following are not bets:

(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance;

(2) a contract for the purchase or sale at a future date of securities or other commodities;

(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest
for the determination of skill, speed, strength, endurance, or quality or to the bona fide
owners of animals or other property entered in such a contest;

(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;

(5) a private social bet not part of or incidental to organized, commercialized, or
systematic gambling;

(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22,
by an organization licensed by the Gambling Control Board or an organization exempt from
licensing under section 349.166;

(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240;
deleted text begin and
deleted text end

(8) the purchase and sale of State Lottery tickets under chapter 349A new text begin ; and
new text end

new text begin (9) a wager on the outcome or any aspect of a sporting event, as defined in section
240B.01, subdivision 8, and that may be legally wagered on under chapter 240B new text end .

Sec. 4.

Minnesota Statutes 2020, section 609.75, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Sporting event. new text end

new text begin "Sporting event" means any professional or amateur sporting
event except a sporting event as defined in section 240B.01, subdivision 8. The term does
not include sporting events that may be legally wagered on under chapter 240B.
new text end

Sec. 5.

Minnesota Statutes 2020, section 609.755, is amended to read:

609.755 GAMBLING; MISDEMEANOR.

Whoever does any of the following is guilty of a misdemeanor:

(1) makes a bet;

(2) sells or transfers a chance to participate in a lottery;

(3) disseminates information about a lottery, except a lottery conducted by an adjoining
state, with intent to encourage participation therein;

(4) permits a structure or location owned or occupied by the actor or under the actor's
control to be used as a gambling place; or

(5) except where authorized by statute, possesses a gambling device.

Clause (5) does not prohibit possession of a gambling device in a person's dwelling for
amusement purposes in a manner that does not afford players an opportunity to obtain
anything of value.

new text begin This section does not apply to wagering on sporting events as defined in section 240B.01,
subdivision 8, and that may be legally wagered on under chapter 240B.
new text end

Sec. 6.

Minnesota Statutes 2020, section 609.76, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Wagering on sporting events. new text end

new text begin This section does not apply to wagering on
sporting events, as defined in section 240B.01, subdivision 8, that may be legally wagered
on under chapter 240B.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day that wagering on sporting events becomes lawful
under article 1, and apply to crimes committed on or after that date.
new text end

ARTICLE 4

MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 15A.0815, subdivision 3, is amended to read:

Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's website. This subdivision applies to
the following positions:

Executive director of Gambling Control Board;

Commissioner of Iron Range resources and rehabilitation;

Commissioner, Bureau of Mediation Services;

Ombudsman for mental health and developmental disabilities;

Ombudsperson for corrections;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing;

new text begin Executive director of the Sports Wagering Commission; new text end and

Commissioner, Public Utilities Commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin REVISOR INSTRUCTION.
new text end

new text begin The Sports Wagering Commission must notify the revisor of statutes of the date of issue
of the first bookmaker license issued under Minnesota Statutes, section 240B.30, within 30
days of issuance. The revisor of statutes shall amend Minnesota Statutes, section 240B.45,
to specify the date certain in place of the references to a time calculated from the date of
the issuance of the first bookmaker license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end