1.1 	A bill for an act
1.2 	relating to gambling; authorizing and providing for sports betting; establishing 
1.3 	licenses; prohibiting local restrictions; providing for taxation of sports betting; 
1.4 	providing civil and criminal penalties; providing for amateur sports grants; requiring 
1.5 	reports; appropriating money;amending Minnesota Statutes 2020, sections 245.98, 
1.6 	subdivision 2; 260B.007, subdivision 16; 609.75, subdivisions 3, 4, 7, by adding 
1.7 	a subdivision; 609.755; 609.76, subdivision 2; proposing coding for new law in 
1.8 	Minnesota Statutes, chapters 240A; 299L; 609; proposing coding for new law as 
1.9 	Minnesota Statutes, chapter 297J.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	LAWFUL SPORTS BETTING

1.13 	Section 1. [299L.10] DEFINITIONS.
1.14 		Subdivision 1.Terms. For the purposes of this chapter, the following terms have the 
1.15 	meanings given them.
1.16 		Subd. 2.Athletic event. "Athletic event" means a sports game, match, or activity, or 
1.17 	series of games, matches, activities, or tournaments involving the athletic skill of one or 
1.18 	more players or participants. Athletic event does not include any of the following:
1.19 	(1) horse racing as defined in section 240.01, subdivision 8;
1.20 	(2) an esports or athletic competition, demonstration, activity, or tournament organized 
1.21 	by an elementary, middle, or high school, or by any youth activity sports program, league, 
1.22 	or clinic; or
1.23 	(3) a fantasy sports contest in which participants assemble teams of athletes or individuals 
1.24 	and the winning outcome reflects the relative knowledge and skill of the participants and 
2.1 	is determined predominantly by the accumulated statistical results of the performance of 
2.2 	athletes or individuals in an actual event.
2.3 		Subd. 3.Authorized participant. "Authorized participant" means an individual who 
2.4 	has a valid mobile sports betting account with a mobile betting operator and is at least 21 
2.5 	years of age.
2.6 		Subd. 4.Casino. "Casino" means an establishment in which gaming is lawfully conducted 
2.7 	by an Indian Tribe in the state of Minnesota pursuant to the Indian Gaming Regulatory Act 
2.8 	and in accordance with a Tribal gaming ordinance and applicable Tribal-state compacts.
2.9 		Subd. 5.Class III gaming. "Class III gaming" has the meaning given in United States 
2.10 	Code, title 25, section 2703.
2.11 		Subd. 6.College sports. "College sports" means a sporting event in which at least one 
2.12 	participant is a team or individual from a public or private institution of higher education.
2.13 		Subd. 7.Compact.  "Compact" means a Tribal-state compact governing the conduct of 
2.14 	Class III gaming on Indian Lands that is negotiated under section 3.9221, any other state 
2.15 	law, or pursuant to the Indian Gaming Regulatory Act, Public Law 100-497, and future 
2.16 	amendments to it.
2.17 		Subd. 8.Esports event. "Esports event" means a competition between individuals or 
2.18 	teams using video games in a game, match, contest, or series of games, matches, or contests, 
2.19 	or a tournament, or by a person or team against a specified measure of performance which 
2.20 	is hosted at a physical location or online that meets the following conditions:
2.21 	(1) the video game does not simulate the play of a game classified as Class I, II, or III 
2.22 	under the Indian Gaming Regulatory Act, Public Law 100-497, and future amendments to 
2.23 	it;
2.24 	(2) spectators are allowed to watch the competition in real time in person or online; and
2.25 	(3) the video game is approved by the commissioner to be an event eligible for wagering 
2.26 	under sections 299L.10 to 299L.80.
2.27 		Subd. 9.Indian Tribe. "Indian Tribe" means the following federally recognized Tribes 
2.28 	and any instrumentality, political subdivision, legal entity, or other organization through 
2.29 	which any of them conducts business:
2.30 	(1) the Fond du Lac Band;
2.31 	(2) the Grand Portage Band;
2.32 	(3) the Mille Lacs Band;
3.1 	(4) the White Earth Band;
3.2 	(5) the Bois Forte Band;
3.3 	(6) the Leech Lake Band;
3.4 	(7) the Red Lake Nation;
3.5 	(8) the Upper Sioux Community;
3.6 	(9) the Lower Sioux Indian Community;
3.7 	(10) the Shakopee Mdewakanton Sioux Community; and
3.8 	(11) the Prairie Island Indian Community.
3.9 		Subd. 10.In-game betting. "In-game betting" means placing a mobile sports betting 
3.10 	wager after a sporting event has started but before the outcome of the wager is determined.
3.11 		Subd. 11.Mobile application. "Mobile application" means an application on a mobile 
3.12 	phone or other device through which an individual is able to place an internet sports betting 
3.13 	wager.
3.14 		Subd. 12.Mobile sports betting. "Mobile sports betting" means operating, conducting, 
3.15 	or offering for play sports betting through the Internet.
3.16 		Subd. 13.Mobile sports betting account. "Mobile sports betting account" means an 
3.17 	electronic ledger in which all of the following types of transactions relative to an authorized 
3.18 	participant are recorded:
3.19 	(1) deposits and credits;
3.20 	(2) withdrawals;
3.21 	(3) mobile sports betting wagers;
3.22 	(4) monetary value of winnings;
3.23 	(5) service or other transaction related charges authorized by the authorized participant, 
3.24 	if any;
3.25 	(6) adjustments to the account;
3.26 	(7) promotional activity; and
3.27 	(8) responsible gaming parameters.
3.28 		Subd. 14.Mobile sports betting master licensee. "Mobile sports betting master licensee" 
3.29 	means an entity comprised of Indian Tribes located in Minnesota that is licensed pursuant 
4.1 	to a master sports betting license and enters into operational agreements with mobile sports 
4.2 	betting operators that operate, conduct, or offer mobile sports betting.
4.3 		Subd. 15.Mobile sports betting operator. "Mobile sports betting operator" means an 
4.4 	Indian Tribe or entity comprised of multiple Indian Tribes that receives a license from the 
4.5 	commissioner to operate, conduct, or offer for play mobile sports betting under sections 
4.6 	299L.10 to 299L.80.
4.7 		Subd. 16.Mobile sports betting platform. "Mobile sports betting platform" means an 
4.8 	integrated system of hardware, software, or applications, including mobile applications and 
4.9 	servers, through which a mobile sports betting operator operates, conducts, or offers sports 
4.10 	betting through the Internet.
4.11 		Subd. 17.Mobile sports betting platform provider. "Mobile sports betting platform 
4.12 	provider" means a sports betting supplier that contracts with a mobile sports betting operator 
4.13 	to provide a mobile sports betting platform.
4.14 		Subd. 18.Participant in a sporting event. "Participant in a sporting event" means a 
4.15 	person engaging in a sporting event as a player, coach, or official, or who is an owner or 
4.16 	officer of a team engaging in a sporting event or the league or organization organizing the 
4.17 	sporting event.
4.18 		Subd. 19.Sporting event. "Sporting event" means an athletic event, esports event, 
4.19 	college sports event, or other event approved by the commissioner to be an event eligible 
4.20 	for wagering under sections 299L.10 to 299L.80.
4.21 		Subd. 20.Sports betting. (a) "Sports betting" means wagering on the outcome of a 
4.22 	sporting event or portions thereof or individual performance statistics therein that is:
4.23 	(1) organized by a professional sports organization, internationally recognized sports 
4.24 	organization, amateur sports organization, or a postsecondary educational institution or 
4.25 	group of postsecondary educational institutions; and
4.26 	(2) approved by the commissioner to be an event eligible for wagering under this act.
4.27 	(b) Sports betting includes, but is not limited to single-game bets; futures bets; teaser 
4.28 	bets; parlay bets; over-under bets; money line bets; in-game betting; proposition bets; straight 
4.29 	bets; exchange wagering; futures bets placed on end of the season standings, awards, or 
4.30 	statistics; and any other bets approved by the commissioner.
4.31 	(c) A contract for insurance on the life or health of a participant in a sporting event is 
4.32 	not sports betting regulated under sections 299L.10 to 299L.80.
5.1 	(d) A private social bet as described in section 609.75, subdivision 3, clause (5), is not 
5.2 	sports betting regulated under sections 299L.10 to 299L.80.
5.3 	(e) A sports-themed tipboard, as described in section 349.12, subdivision 34, is not sports 
5.4 	betting regulated under sections 299L.10 to 299L.80.
5.5 		Subd. 21.Sports betting supplier. "Sports betting supplier" means a person that, either 
5.6 	directly or indirectly, provides mobile sports betting operators with services, goods, software, 
5.7 	or any other product or information necessary to conduct sports betting or determine the 
5.8 	outcome of wagers, including a person who provides data feeds and odds services, risk 
5.9 	management providers, and integrity monitoring providers. Sports betting supplier does not 
5.10 	include a sports governing body that provides raw statistical match data.
5.11 		Subd. 22.Wager. "Wager" means a transaction between an individual and a licensed 
5.12 	mobile sports betting operator in which an individual pays, deposits, or risks cash or a cash 
5.13 	equivalent during sports betting on an uncertain outcome of a sporting event.

5.14 	Sec. 2. [299L.11] SCOPE.
5.15 		Subdivision 1.Lawful mobile sports betting. A person 21 years of age or older may 
5.16 	participate in mobile sports betting within the state provided the person places all wagers 
5.17 	with an entity licensed under sections 299L.10 to 299L.80 and is not disqualified, prohibited, 
5.18 	or excluded from placing a wager on a sporting event.
5.19 		Subd. 2.Unlawful sports betting. It is unlawful to wager on a sporting event, or engage 
5.20 	in sports betting except in compliance with the terms, conditions, limitations, and restrictions 
5.21 	of sections 299L.10 to 299L.80 or the rules adopted under those sections, other than Class 
5.22 	III sports betting conducted by an Indian Tribe pursuant to a Tribal-state compact.
5.23 		Subd. 3.Inapplicability to sports betting on Indian Lands. Sections 299L.10 to 
5.24 	299L.80, except for any provisions authorizing the negotiations of Tribal-state compacts, 
5.25 	do not apply to sports betting conducted exclusively on Indian Lands by an Indian Tribe 
5.26 	conducted pursuant to a Tribal gaming ordinance approved by the National Indian Gaming 
5.27 	Commission and a Tribal-state compact.

5.28 	Sec. 3. [299L.15] POWERS AND DUTIES OF COMMISSIONER.
5.29 		Subdivision 1.Regulate sports betting. The commissioner has the power and duty to 
5.30 	regulate mobile sports betting authorized under sections 299L.10 to 299L.80. In making 
5.31 	rules, establishing policy, and regulating mobile sports betting, the commissioner shall:
5.32 	(1) ensure that mobile sports betting is conducted in a fair and lawful manner;
6.1 	(2) promote public safety and welfare; and
6.2 	(3) ensure that mobile sports betting is conducted in a manner that is transparent to 
6.3 	authorized participants.
6.4 		Subd. 2.Rulemaking. (a) The commissioner must adopt and enforce rules that are 
6.5 	consistent with sections 299L.10 to 299L.80 and address the following subjects:
6.6 	(1) the manner in which wagers are accepted and payouts are remitted;
6.7 	(2) the manner in which betting lines are communicated to the public;
6.8 	(3) the calculation of gross sports betting revenue and standards for daily counting and 
6.9 	recording of cash and cash equivalents received in the conduct of sports betting;
6.10 	(4) the method of accounting to be used by mobile sports betting operators;
6.11 	(5) the types of records that shall be kept by master mobile sports betting licensees, 
6.12 	mobile sports betting operators, mobile sports betting platform providers and service 
6.13 	providers, and sports betting suppliers;
6.14 	(6) the testing and auditing requirements for licensees, including requirements related 
6.15 	to mobile sports betting accounts;
6.16 	(7) the creation, funding, and use of mobile sports betting accounts, debit cards, and 
6.17 	checks by authorized participants provided that the rules permit an authorized participant 
6.18 	to fund a mobile sports betting account through a bonus or promotion, electronic bank 
6.19 	transfer, an online or mobile payment system that supports online money transfers, a 
6.20 	reloadable or prepaid card, and any other appropriate means approved by the commissioner 
6.21 	other than the use of credit cards;
6.22 	(8) the appropriate standards and practices to prevent and address compulsive and 
6.23 	problem gambling;
6.24 	(9) the appropriate standards and practices to prevent and address sports betting by 
6.25 	individuals who are not authorized participants or who are otherwise disqualified, prohibited, 
6.26 	or excluded from placing a wager on a sporting event;
6.27 	(10) the sporting events on which wagers are authorized to be placed;
6.28 	(11) the requirements for obtaining and retaining master mobile sports betting licenses, 
6.29 	mobile sports betting operator licenses, mobile sports betting platform provider and service 
6.30 	provider licenses, and sports wagering supplier licenses, including requirements for criminal 
6.31 	and financial background checks, financial disclosure and auditing requirements, data 
7.1 	practices and security requirements, bonding or other surety requirements, and the conduct 
7.2 	of inspections;
7.3 	(12) the requirements for mobile sports betting platform provider and service provider 
7.4 	licensees to provide equipment and supplies used in sports betting;
7.5 	(13) the requirements for sports wagering supplier licensees to provide services, goods, 
7.6 	software, or any other product or information necessary to conduct sports betting or determine 
7.7 	the outcome of wagers;
7.8 	(14) the requirements for employees of master mobile sports betting licensees and mobile 
7.9 	sports betting operators whose exclusive or primary responsibilities involve mobile sports 
7.10 	betting, including minimum age requirements, criminal background checks, and retention 
7.11 	of documents related to the employees;
7.12 	(15) the appropriate limits, requirements, standards, and regulations related to marketing 
7.13 	and advertising, developed in consultation with the state affiliate recognized by the National 
7.14 	Council on Problem Gambling, including rules to address the time, place, and manner of 
7.15 	marketing and advertising, the types of wagers that may be marketed or advertised, and the 
7.16 	types of mobile sports betting accounts that may be marketed or advertised;
7.17 	(16) the limits and requirements related to advertising, including:
7.18 	(i) rules that prohibit depicting an individual under age 21 engaging in sports betting;
7.19 	(ii) rules that prohibit advertisement in any print publication or on radio, television, or 
7.20 	any other medium if the targeted audience of that medium is reasonably expected to be 
7.21 	individuals who are under age 21;
7.22 	(iii) rules that establish what warnings and other information an advertisement must 
7.23 	contain; and
7.24 	(iv) rules that limit the frequency of advertisements;
7.25 	(17) the appropriate standards for limiting the total number of wagers an individual can 
7.26 	place within a specified period of time and any required waiting period between placing 
7.27 	wagers, in order to reduce the addictive impact of mobile wagering applications;
7.28 	(18) the requirements for monitoring patterns of wagering to identify behaviors consistent 
7.29 	with problem gambling and the appropriate actions to take when problem gambling is 
7.30 	suspected, including pausing or suspending activities from an identified mobile sports betting 
7.31 	account; and
8.1 	(19) the appropriate limits, standards, and requirements necessary to prevent excessive 
8.2 	wagering by an individual whose ability to control impulsive wagering is impaired in any 
8.3 	way.
8.4 	(b) Rules for which notice is published in the State Register before January 1, 2023, 
8.5 	may be adopted using the expedited rulemaking process in section 14.389.
8.6 	(c) The commissioner shall regularly review and update rules designed to prevent and 
8.7 	address compulsive and problem gambling to incorporate advances in the understanding of 
8.8 	compulsive and problem gambling and updated best practices in the area.
8.9 		Subd. 3.Delegation. The commissioner may delegate any of its authority under this 
8.10 	chapter to the director if, in the judgment of the commissioner, doing so would promote the 
8.11 	efficient administration of this chapter.
8.12 		Subd. 4.Requests for restrictions on wager types. (a) A sports governing body may 
8.13 	request that the commissioner prohibit wagers on a particular sporting event, or prohibit or 
8.14 	restrict particular types of wagers.
8.15 	(b) Requests from a sports governing body shall be made in the form and manner 
8.16 	established by the commissioner.
8.17 	(c) Upon receipt of a request made under this subdivision, the commissioner shall send 
8.18 	written notice to every mobile sports betting operator, provide mobile sports betting operators 
8.19 	with an opportunity to respond to the request, and consider any timely response submitted 
8.20 	by a mobile sports betting operator. The commissioner may not take action without providing 
8.21 	mobile sports betting operators with an opportunity to respond, but may establish reasonable 
8.22 	deadlines for the response based on the nature of the request and any exigent circumstances 
8.23 	that exist.
8.24 	(d) If the commissioner determines that the sports governing body has shown good cause 
8.25 	to support the requested prohibition or restriction, the commissioner shall adopt the 
8.26 	prohibition or restriction and send notice of the prohibition or restriction to every mobile 
8.27 	sports betting operator. If the commissioner determines that the sports governing body has 
8.28 	not shown good cause to support the requested prohibition or restriction, the commissioner 
8.29 	shall provide the sports governing body with notice and an opportunity for a hearing to offer 
8.30 	further evidence in support of its request. The commissioner shall provide the master mobile 
8.31 	sports betting licensees and mobile sports betting operators with notice of the hearing and 
8.32 	an opportunity to participate.

9.1 	Sec. 4. [299L.20] LICENSE TYPES; TRANSFERS PROHIBITED.
9.2 	(a) The commissioner shall issue the following licenses for mobile sports betting:
9.3 	(1) two master mobile sports betting licenses;
9.4 	(2) up to 11 mobile sports betting operator licenses;
9.5 	(3) mobile sports betting platform provider and service provider licenses; and
9.6 	(4) sports betting supplier licenses.
9.7 	(b) Licenses issued under sections 299L.10 to 299L.80 may not be transferred.

9.8 	Sec. 5. [299L.25] GENERAL LICENSING REQUIREMENTS; 
9.9 	DISQUALIFICATIONS; BACKGROUND INVESTIGATIONS.
9.10 		Subdivision 1.General requirements. (a) A licensee or applicant must meet each of 
9.11 	the following requirements, if applicable, to hold or receive a license issued under sections 
9.12 	299L.10 to 299L.80:
9.13 	(1) have completed an application for licensure or application for renewal;
9.14 	(2) have paid the applicable application and licensing fees;
9.15 	(3) not be employed by any state agency with regulatory authority over mobile sports 
9.16 	betting;
9.17 	(4) not owe $500 or more in delinquent taxes, as defined in section 270C.72;
9.18 	(5) not have had a sales and use tax permit revoked by the commissioner of revenue 
9.19 	within the past two years; and
9.20 	(6) not have, after demand, failed to file tax returns required by the commissioner of 
9.21 	revenue.
9.22 	(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director, 
9.23 	officer, partner, member of the governing body for the applicant or licensee, person in a 
9.24 	supervisory or management position of the applicant or licensee, or any direct or indirect 
9.25 	holder of more than ten percent financial interest in the applicant or licensee.
9.26 		Subd. 2.Criminal offenses; disqualifications. (a) No person may hold or receive a 
9.27 	license issued under sections 299L.10 to 299L.80 if the person has been convicted of, or 
9.28 	received a stay of adjudication for, a violation of a state or federal law that:
9.29 	(1) is a felony, other than any act that would be a violation of section 152.025 under 
9.30 	Minnesota law;
10.1 	(2) is a crime involving gambling; or
10.2 	(3) is a crime involving theft or fraud that would be a gross misdemeanor or felony under 
10.3 	Minnesota law.
10.4 	(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director, 
10.5 	officer, partner, member of the governing body for the applicant or licensee, person in a 
10.6 	supervisory or management position of the applicant or licensee, or any direct or indirect 
10.7 	holder of more than ten percent financial interest in the applicant or licensee.
10.8 		Subd. 3.Background investigation. The commissioner shall perform a background 
10.9 	investigation on applicants for a license or license renewal and on each director, officer, 
10.10 	partner, member of the governing body for the applicant or licensee, person in a supervisory 
10.11 	or management position of the applicant or licensee, or any direct or indirect holder of more 
10.12 	than ten percent financial interest in the applicant or licensee. The commissioner may request 
10.13 	the director and the commissioner of revenue to assist in investigating the background of 
10.14 	an applicant or a licensee under this section. The commissioner may charge an applicant 
10.15 	an investigation fee to cover the cost of the investigation and shall from this fee reimburse 
10.16 	the Division of Alcohol and Gambling Enforcement and the Department of Revenue for 
10.17 	their respective shares of the cost of the investigation. The commissioner is authorized to 
10.18 	have access to all data compiled by the Division of Alcohol and Gambling Enforcement on 
10.19 	licensees and applicants.
10.20 		Subd. 4.Criminal history record check.  The commissioner must perform a criminal 
10.21 	history record check on each officer, director, or stakeholder with more than ten percent 
10.22 	interest in the licensee or applicant. The records check must include a criminal history check 
10.23 	of the state and federal criminal records. The applicant or licensee must provide signed 
10.24 	consent for the national criminal history records check and fingerprints for each person 
10.25 	subject to a check under this subdivision. The director shall assist in performing the criminal 
10.26 	history records check. The director may charge an applicant a fee to cover the cost of the 
10.27 	criminal history record check, and shall from this fee reimburse the Division of Alcohol 
10.28 	and Gambling Enforcement for its share of the cost of the investigation. The commissioner 
10.29 	or the director must submit the signed informed consent, fingerprints, and Bureau of Criminal 
10.30 	Apprehension and Federal Bureau of Investigation fees to the superintendent of the Bureau 
10.31 	of Criminal Apprehension who is authorized to exchange the fingerprints with the Federal 
10.32 	Bureau of Investigation to obtain the applicant's national criminal history data. The 
10.33 	superintendent of the Bureau of Criminal Apprehension shall retrieve Minnesota criminal 
10.34 	history data and shall provide the results of the state and federal criminal history record 
10.35 	check to the director. The commissioner is authorized to have access to all criminal history 
11.1 	data compiled on licensees and applicants by the Division of Alcohol and Gambling 
11.2 	Enforcement, including criminal history data on each officer, director, or stakeholder with 
11.3 	more than ten percent interest in the licensee or applicant.

11.4 	Sec. 6. [299L.26] LICENSE APPLICATION AND RENEWAL; GENERAL 
11.5 	REQUIREMENTS; PROCEDURE.
11.6 		Subdivision 1.Application; contents. An application for a license under sections 
11.7 	299L.10 to 299L.80 must be submitted on a form prescribed by the commissioner. At a 
11.8 	minimum, the application must include:
11.9 	(1) the name and address of the applicant and, if it is a corporation, the names of all 
11.10 	officers, directors, and shareholders with more than ten percent interest in the corporation 
11.11 	and any of its holding companies;
11.12 	(2) the type of license being sought;
11.13 	(3) if required by the commissioner, the names of any person holding directly, indirectly, 
11.14 	or beneficially an interest of any kind in the applicant or any of its holding corporations, 
11.15 	whether the interest is financial, administrative, policy making, or supervisory, provided 
11.16 	that this provision does not extend to individual Tribal members whose only relation to the 
11.17 	applicant is their membership in their respective Tribal Nations;
11.18 	(4) an affidavit executed by the applicant setting forth that, to the best of the applicant's 
11.19 	knowledge, no officer, director, or other person with a present direct or indirect financial 
11.20 	or management interest in the applicant:
11.21 	(i) is in default in the payment of an obligation or debt to the state;
11.22 	(ii) has ever been convicted of a crime listed in section 299L.25, subdivision 2, paragraph 
11.23 	(a), or has a state or federal charge for one of those crimes pending;
11.24 	(iii) is or has been convicted of engaging in an illegal business;
11.25 	(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering; 
11.26 	or
11.27 	(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota 
11.28 	relating to wagering;
11.29 	(5) an irrevocable consent statement, signed by the applicant, which states that suits and 
11.30 	actions limited to the enforcement of this chapter may be commenced against the applicant 
11.31 	by the commissioner in any court of competent jurisdiction in this state by the service on 
11.32 	the secretary of state of any summons, process, or pleadings authorized by the laws of this 
12.1 	state. If any summons, process, or pleadings is served upon the secretary of state, it must 
12.2 	be by duplicate copies. One copy must be retained in the Office of the Secretary of State 
12.3 	and the other copy must be forwarded immediately by certified mail to the address of the 
12.4 	applicant, as shown by the records of the commissioner;
12.5 	(6) a declaration that the laws of the state of Minnesota will be followed, including any 
12.6 	applicable provisions of the Minnesota Human Rights Act, chapter 363A; and
12.7 	(7) any additional information required for the specific license the applicant is seeking.
12.8 		Subd. 2.Application; process. (a) Applicants must submit all required information to 
12.9 	the commissioner on the forms and in the manner prescribed by the commissioner.
12.10 	(b) If the commissioner receives an application that fails to provide the required 
12.11 	information, the commissioner shall issue a deficiency notice to the applicant. The applicant 
12.12 	shall have ten business days from the date of the deficiency notice to submit the required 
12.13 	information.
12.14 	(c) Failure by an applicant to submit all required information will result in the application 
12.15 	being rejected.
12.16 	(d) Within 90 days of receiving a completed application, the commissioner shall issue 
12.17 	the appropriate license or send the applicant a notice of rejection setting forth specific 
12.18 	reasons why the commissioner did not approve the application.
12.19 	(e) An applicant whose application is not approved may reapply at any time, but must 
12.20 	submit a new application and pay an additional application fee.

12.21 	Sec. 7. [299L.27] DUTY TO UPDATE.
12.22 	(a) During the pendency of an application and at any time after a license has been issued, 
12.23 	an applicant or licensee shall notify the commissioner of any changes to the information 
12.24 	provided under section 299L.25 or 299L.26.
12.25 	(b) If a change in the officers, directors, shareholders, or other persons with a present 
12.26 	or future direct or indirect financial or management interest in a licensee, or a change of 
12.27 	ownership of more than ten percent of the shares of the licensee is made after the application 
12.28 	for a license is filed or a license is issued, the applicant or licensee must notify the 
12.29 	commissioner of the changes within ten days of their occurrence and submit a new affidavit 
12.30 	as required by section 299L.26, subdivision 1, clause 4.

13.1 	Sec. 8. [299L.28] MASTER MOBILE SPORTS BETTING LICENSE.
13.2 		Subdivision 1.Issuance. (a) The commissioner shall issue two master mobile sports 
13.3 	betting licenses that are valid for 20 years as follows:
13.4 	(1) one master mobile sports betting license to a Tribal entity that may only be comprised 
13.5 	of the following Ojibwe Indian Tribes or an entity wholly owned by the Indian Tribe:
13.6 	(i) the Bois Forte Band;
13.7 	(ii) the Red Lake Nation;
13.8 	(iii) the White Earth Band;
13.9 	(iv) the Grand Portage Band;
13.10 	(v) the Leech Lake Band;
13.11 	(vi) the Fond du Lac Band; and
13.12 	(vii) the Mille Lacs Band; and
13.13 	(2) one master mobile sports betting license to a Tribal entity that may only be comprised 
13.14 	of the following Dakota Indian Tribes or an entity wholly owned by the Indian Tribe:
13.15 	(i) the Lower Sioux Indian Community;
13.16 	(ii) the Upper Sioux Community;
13.17 	(iii) the Shakopee Mdewakanton Sioux Community; and
13.18 	(iv) the Prairie Island Indian Community.
13.19 	(b) The commissioner may not issue a master mobile sports betting license under this 
13.20 	section unless an operational agreement signed by both the Tribal entities identified in 
13.21 	paragraph (a), clauses (1) and (2), has been filed with the commissioner. An operational 
13.22 	agreement executed pursuant to this paragraph is not subject to section 13.05, subdivision 
13.23 	6 or 11.
13.24 	(c) A master mobile sports betting license issued under this subdivision is renewable 
13.25 	every 20 years under conditions required by rule adopted pursuant to section 299L.15.
13.26 		Subd. 2.Authorized actions. (a) A master mobile sports betting license entitles the 
13.27 	licensee to coordinate mobile sports betting in Minnesota and contract through an inter-Tribal 
13.28 	compact with a mobile sports betting operator.
13.29 	(b) A master mobile sports betting licensee licensed under subdivision 1, clause (1), 
13.30 	may contract with up to seven mobile sports betting operators. A master sports betting 
14.1 	licensee licensed under subdivision 1, clause (2), may contract with up to four mobile sports 
14.2 	betting operators.
14.3 	(c) A master mobile sports betting licensee may contract with a mobile sports betting 
14.4 	operator before the mobile sports betting operator is licensed, but may not coordinate or 
14.5 	facilitate the acceptance of wagers through an unlicensed mobile sports betting operator.
14.6 		Subd. 3.Licensing requirements. A master mobile sports betting licensee must:
14.7 	(1) be an organization comprised of two or more Indian Tribes;
14.8 	(2) submit a completed application and all required documents or other materials pursuant 
14.9 	to sections 299L.25 and 299L.26 and any relevant rules;
14.10 	(3) not be disqualified under section 299L.25 or any relevant rules; and
14.11 	(4) meet any other conditions required by rule adopted pursuant to section 299L.15.

14.12 	Sec. 9. [299L.29] MOBILE SPORTS BETTING OPERATOR LICENSE.
14.13 		Subdivision 1.Issuance. The commissioner may issue up to 11 mobile sports betting 
14.14 	operator licenses that are valid for one year. A mobile sports betting operator license may 
14.15 	be renewed under conditions required by rule adopted pursuant to section 299L.15.
14.16 		Subd. 2.Authorized actions. A mobile sports betting operator license entitles the licensee 
14.17 	to:
14.18 	(1) contract through an inter-Tribal compact with a master mobile sports betting licensee 
14.19 	to operate, conduct, or offer for play mobile sports betting in Minnesota;
14.20 	(2) contract with licensed mobile sports betting platform providers and service providers 
14.21 	to facilitate the acceptance of wagers on behalf of the mobile sports betting operator;
14.22 	(3) contract with licensed sports betting suppliers; and
14.23 	(4) perform any other actions approved by the commissioner to ensure that mobile sports 
14.24 	betting is conducted in a fair, lawful, and transparent manner.
14.25 		Subd. 3.Licensing requirements. A mobile sports betting operator must:
14.26 	(1) be an entity wholly owned and controlled by an Indian Tribe or an entity wholly 
14.27 	owned and controlled by multiple Indian Tribes;
14.28 	(2) submit a completed application and all required documents or other materials pursuant 
14.29 	to sections 299L.25 and 299L.26 and any relevant rules;
15.1 	(3) submit a detailed plan and specifications for the implementation of mobile sports 
15.2 	betting;
15.3 	(4) include mechanisms on its mobile sports betting platform that are designed to detect 
15.4 	and prevent the unauthorized use of internet sports betting accounts and to detect and prevent 
15.5 	fraud, money laundering, and collusion, or require a contracted mobile sports betting platform 
15.6 	provider to include those mechanisms;
15.7 	(5) submit a statement of the assets and liabilities of the mobile sports betting operator 
15.8 	to the commissioner;
15.9 	(6) have entered into an inter-Tribal compact with a master mobile sports betting licensee 
15.10 	to operate, conduct, or offer for play mobile sports betting in Minnesota;
15.11 	(7) not be disqualified under section 299L.25 or any relevant rules;
15.12 	(8) pay an annual licensing fee in the amount of $2,125; and
15.13 	(9) meet any other conditions required by rule adopted pursuant to section 299L.15.
15.14 		Subd. 4.Reporting. A mobile sports betting operator must report to the commissioner 
15.15 	monthly on wagers placed and redeemed during the reporting month and outstanding at the 
15.16 	time of the report.

15.17 	Sec. 10. [299L.30] MOBILE SPORTS BETTING PLATFORM PROVIDER AND 
15.18 	SERVICE PROVIDER LICENSE.
15.19 		Subdivision 1.Issuance. The commissioner may issue mobile sports betting platform 
15.20 	provider and service provider licenses that are valid for one year. A mobile sports betting 
15.21 	platform provider and service provider license may be renewed under conditions required 
15.22 	by rule adopted pursuant to section 299L.15.
15.23 		Subd. 2.Authorized actions. A mobile sports betting platform provider or service 
15.24 	provider license entitles the licensee to provide sports betting platforms, sports betting 
15.25 	technology, sports betting applications, or associated mobile sports betting hardware, 
15.26 	software, or equipment to mobile sports betting operators.
15.27 		Subd. 3.Licensing requirements. A mobile sports betting operator must:
15.28 	(1) submit a completed application and all required documents or other materials pursuant 
15.29 	to sections 299L.25 and 299L.26 and any relevant rules;
15.30 	(2) not be disqualified under section 299L.25 or any relevant rules;
15.31 	(3) pay an application fee of $6,000 with submission of an application;
16.1 	(4) pay a licensing fee after the application is approved in the amount of $38,250 or a 
16.2 	license renewal fee of $8,500; and
16.3 	(5) meet any other conditions required by rule adopted pursuant to section 299L.15.

16.4 	Sec. 11. [299L.31] SPORTS BETTING SUPPLIER LICENSE.
16.5 		Subdivision 1.Issuance. The commissioner may issue sports betting supplier licenses 
16.6 	that are valid for one year. A sports betting supplier license may be renewed under conditions 
16.7 	required by rule adopted pursuant to section 299L.15.
16.8 		Subd. 2.Authorized actions. A sports betting supplier license entitles the licensee to 
16.9 	either directly or indirectly provide mobile sports betting operators with information and 
16.10 	support necessary to offer mobile sports betting. Information and support may be provided 
16.11 	in the form of services, goods, or software, and may include data feeds and odds services, 
16.12 	risk management, and integrity monitoring.
16.13 		Subd. 3.Licensing requirements. (a) A mobile sports betting supplier must:
16.14 	(1) submit a completed application and all required documents for the applicant's principal 
16.15 	owners who directly own ten percent or more of the applicant and the applicant's officers;
16.16 	(2) pay an application fee of $6,000 with submission of an application;
16.17 	(3) pay a licensing fee after the application is approved in the amount of $38,250 or a 
16.18 	license renewal fee of $8,500; and
16.19 	(4) meet any other conditions required by rule adopted pursuant to section 299L.15.
16.20 	(b) Provided an application has been completed to the satisfaction of the commissioner, 
16.21 	disclosure of the following public information may be waived:
16.22 	(1) statutorily authorized pension investment boards that are direct or indirect shareholders 
16.23 	of an applicant; and
16.24 	(2) investment funds or entities registered with the Securities and Exchange Commission, 
16.25 	including any investment advisors or entities under the management of an entity registered 
16.26 	with the Securities and Exchange Commission, that are direct or indirect shareholders of 
16.27 	the applicant.

16.28 	Sec. 12. [299L.35] DEPOSIT AND APPROPRIATION OF FEES.
16.29 	Application, license, and renewal fees shall be deposited in the sports betting revenue 
16.30 	account in the special revenue fund.

17.1 	Sec. 13. [299L.36] ADVERTISING.
17.2 		Subdivision 1.Prohibition on targeting individuals under age 21. No licensee or 
17.3 	other person shall publish or cause to be published an advertisement for mobile sports betting 
17.4 	that:
17.5 	(1) depicts a person under age 21 engaging in sports betting or mobile sports betting;
17.6 	(2) includes an image that is designed to be appealing to individuals under age 21 or 
17.7 	encourage sports betting by individuals under age 21; or
17.8 	(3) is in any print publication or on radio, television, or any other medium if 30 percent 
17.9 	or more of the audience of that medium is reasonably expected to be individuals who are 
17.10 	under age 21, as determined by reliable, current audience composition data.
17.11 		Subd. 2.Prohibition on targeting individuals prohibited from placing wagers. No 
17.12 	licensee or other person shall publish or cause to be published an advertisement for mobile 
17.13 	sports betting that targets individuals who are disqualified, prohibited, or excluded from 
17.14 	placing a wager on a sporting event for any reason, including being identified on the exclusion 
17.15 	list identified in section 299L.45, subdivision 1.
17.16 		Subd. 3.Prohibition on advertising in certain locations. No licensee or other person 
17.17 	shall place or cause to be placed an advertisement for mobile sports betting:
17.18 	(1) in a personal vehicle as defined in section 65B.472, subdivision 1, paragraph (c);
17.19 	(2) in a taxicab, limousine, or for-hire vehicle;
17.20 	(3) at a bus stop or train stop location, transit shelter, or transit passenger seating facility;
17.21 	(4) at a taxi stand or other transportation waiting area;
17.22 	(5) at any airport; or
17.23 	(6) at any other similar location.
17.24 		Subd. 4.Prohibition on false or misleading claims. No licensee or other person shall 
17.25 	publish or cause to be published an advertisement for mobile sports betting that contains 
17.26 	false or misleading claims or which contains statements, words, or pictures of an obscene, 
17.27 	indecent, or immoral character, or such as would offend public morals or decency.

17.28 	Sec. 14. [299L.40] WAGERING.
17.29 		Subdivision 1.Placing wagers. An individual who is 21 years of age or older may place 
17.30 	wagers pursuant to sections 299L.10 to 299L.80 provided the individual is not otherwise 
17.31 	disqualified, prohibited, or excluded from doing so.
18.1 		Subd. 2.Wager type. A mobile sports betting operator, or a mobile sports betting 
18.2 	platform provider on behalf of a mobile sports betting operator, may only accept wagers of 
18.3 	a type previously approved by the commissioner. Wager types that the commissioner may 
18.4 	approve include but are not limited to the following:
18.5 	(1) a wager that a participant or participating team will win a sporting event or will win 
18.6 	by a specified number of points;
18.7 	(2) a wager as to whether the total points scored in a sporting event will be higher or 
18.8 	lower than a number specified;
18.9 	(3) a wager on an outcome contingency or proposition incidental to a sporting event, 
18.10 	series, tournament, or season for which the outcome is published in newspapers of general 
18.11 	circulation or in records made publicly available by the league or governing body for the 
18.12 	event;
18.13 	(4) a wager on the outcome of a series of two or more sporting events or a series of two 
18.14 	or more contingencies incidental to a sporting event;
18.15 	(5) in-game betting;
18.16 	(6) futures bets placed on end of the season standings, awards, or statistics; and
18.17 	(7) a wager that a participant or participating team will win an esports event or will win 
18.18 	by a specified number of points.
18.19 		Subd. 3.Mobile sports betting account; establishment. (a) An individual may establish 
18.20 	a mobile sports betting account by electronic means from any location, and may fund an 
18.21 	account by any means approved by the commissioner.
18.22 	(b) Money deposited in a mobile sports betting account may not be used to place a wager 
18.23 	until at least three hours have passed from the time of the deposit.
18.24 		Subd. 4.Consideration; mobile sports betting account. (a) A mobile sports betting 
18.25 	operator or mobile sports betting platform provider must not accept a wager unless the 
18.26 	authorized participant provides consideration in the form of funds or other thing of value 
18.27 	such as use of free bets or promotional credits from their mobile sports betting account at 
18.28 	the time of making the wager.
18.29 	(b) Consideration must be in the form of withdrawal from a mobile sports betting account 
18.30 	maintained by the mobile sports betting operator or mobile sports betting platform provider 
18.31 	for the benefit of and in the name of the wagerer.
19.1 	(c) A mobile sports betting operator, or a mobile sports betting platform provider on 
19.2 	behalf of a mobile sports betting operator, shall verify an individual's age and identity before 
19.3 	allowing that individual to place a wager. Mobile sports betting operators and mobile sports 
19.4 	betting platform providers may utilize an approved identity verification service provider to 
19.5 	confirm an individual's age and identity.
19.6 	(d) A person shall have the right to withdraw the balance of funds in the mobile sports 
19.7 	betting account in the person's name at any time with proof of identity, as determined by 
19.8 	rules adopted pursuant to section 299L.15.
19.9 		Subd. 5.Wager location. Mobile sports betting wagers regulated under sections 299L.10 
19.10 	to 299L.80 may only be accepted from a person placing a wager online, through a website 
19.11 	or mobile application, while the person placing the wager is physically within the state. The 
19.12 	website or application may be hosted by a mobile sports betting operator operating in 
19.13 	conjunction with a mobile sports betting platform provider. The incidental routing of a 
19.14 	mobile sports wager shall not determine the location or locations in which the wager is 
19.15 	initiated, received, or otherwise made.
19.16 		Subd. 6.Information provided at the time of wager. A mobile sports betting operator 
19.17 	or mobile sports betting platform provider must disclose the betting line and terms of a 
19.18 	wager prior to accepting a wager. Terms of the wager include the ratio of the amount to be 
19.19 	paid for winning to the wagered amount.
19.20 		Subd. 7.Outcome determined. A mobile sports betting operator or mobile sports betting 
19.21 	platform provider must not accept a wager on the outcome of an event or proposition that 
19.22 	has already been determined.
19.23 		Subd. 8.Receipt. A mobile sports betting operator must provide a person who places a 
19.24 	wager with an electronic receipt at the time of sale that contains the following information:
19.25 	(1) the sporting event or proposition that is the subject of the wager;
19.26 	(2) the outcome that will constitute a win on the wager;
19.27 	(3) the amount wagered; and
19.28 	(4) the payout in the event of a winning wager.

19.29 	Sec. 15. [299L.41] PROHIBITION ON PUSH NOTIFICATIONS.
19.30 	Mobile sports betting operators and mobile sports betting platform and service providers 
19.31 	are prohibited from sending a message from a mobile sports betting application or website 
19.32 	that appears on a user's device while the application or website is inactive unless the message 
20.1 	is sent to notify the user of potentially fraudulent activity associated with the user's mobile 
20.2 	sports betting account.

20.3 	Sec. 16. [299L.45] EXCLUSION LIST AND PROHIBITION ON WAGERING.
20.4 		Subdivision 1.Exclusion list. (a) The commissioner shall maintain a list of persons who 
20.5 	are not eligible to wager on sporting events through a mobile sports betting operator. The 
20.6 	list shall include the names of:
20.7 	(1) persons who have themselves requested to be on the exclusion list;
20.8 	(2) persons whose names have been submitted, for their protection, by their legal 
20.9 	guardians; and
20.10 	(3) persons whose names have been submitted by mobile sports betting operators, mobile 
20.11 	sports betting platform providers, or mobile sports betting vendors.
20.12 	(b) A person who has requested to be on the exclusion list may specify a time limit of 
20.13 	one, three, or five years for the person's name to be on the list. The commissioner will 
20.14 	remove the person's name from the list at the conclusion of the specified time. A person 
20.15 	may be removed from the list before the specified time by providing proof of completion 
20.16 	of a class approved by the commission to address compulsive gambling.
20.17 	(c) The information contained on the list is private data on individuals, as defined in 
20.18 	section 13.02, subdivision 12, except the commissioner is permitted to share the list with 
20.19 	mobile sports betting operators as needed to prevent persons on the exclusion list from 
20.20 	placing sports betting wagers.
20.21 		Subd. 2.Prohibited wagers. The following individuals who are otherwise authorized 
20.22 	to place wagers are prohibited from placing the wagers described:
20.23 	(1) an individual who is prohibited from placing wagers by a mobile sports betting 
20.24 	operator or mobile sports betting platform provider for good cause, including, but not limited 
20.25 	to, any individual placing a wager as an agent or proxy on behalf of another may not place 
20.26 	a wager of any kind;
20.27 	(2) an individual who is an athlete, coach, referee, player, trainer, or team employee is 
20.28 	prohibited from wagering on a sporting event overseen by that person's sports governing 
20.29 	body;
20.30 	(3) an individual who holds a position of authority sufficient to exert influence over the 
20.31 	participants in a sporting event, including, but not limited to, a coach, manager, or owner 
20.32 	is prohibited from wagering on that sporting event; and
21.1 	(4) an individual who has access to certain types of exclusive or nonpublic information 
21.2 	regarding a sporting event is prohibited from wagering on that sporting event and any other 
21.3 	sporting event overseen by the sports governing body of that sporting event.
21.4 		Subd. 3.Prohibition on accepting wagers. (a) A mobile sports betting operator or 
21.5 	mobile sports betting platform provider shall not knowingly accept a wager from a person 
21.6 	on the exclusion list or allow a person on the exclusion list to establish a mobile sports 
21.7 	betting account.
21.8 	(b) A mobile sports betting operator or a mobile sports betting platform provider shall 
21.9 	not knowingly accept a wager prohibited under subdivision 2 from any individual who can 
21.10 	reasonably be identified by publicly available information or by any lists provided to the 
21.11 	commissioner.
21.12 	(c) Knowingly accepting a wager from a person on the exclusion list is a license violation, 
21.13 	subject to a penalty established by the commissioner.

21.14 	Sec. 17. [299L.50] FINANCIAL RESPONSIBILITY.
21.15 		Subdivision 1.Responsibility for satisfying winning wagers. A wager on a sporting 
21.16 	event placed with a mobile sports betting operator is an enforceable contract. A mobile 
21.17 	sports betting operator or mobile sports betting platform provider who accepts a wager bears 
21.18 	all risk of loss to satisfy winnings on the wager. A wager that is not redeemed within one 
21.19 	year of the outcome that is the subject of the wager may be canceled by the mobile sports 
21.20 	betting operator and its sports betting platform provider.
21.21 		Subd. 2.Cash reserves. (a) A mobile sports betting operator shall, in conjunction with 
21.22 	the mobile sports betting platform provider, maintain cash reserves in an amount that is not 
21.23 	less than the greater of $25,000 or the sum of the following three amounts:
21.24 	(1) amounts held by the mobile sports betting operator for the mobile sports betting 
21.25 	accounts of authorized participants;
21.26 	(2) amounts accepted by the mobile sports betting operator as wagers on contingencies 
21.27 	whose outcome have not been determined; and
21.28 	(3) amounts owed but unpaid by the mobile sports betting operator on winning wagers 
21.29 	through the period established by the operator, subject to time limits set by the commissioner, 
21.30 	for honoring winning wagers.
22.1 	(b) Such reserves shall be held in the form of cash or cash equivalents segregated from 
22.2 	operational funds, payment processor reserves and receivables, any bond, an irrevocable 
22.3 	letter of credit, or any combination thereof.
22.4 		Subd. 3.Bond. A mobile sports betting operator or mobile sports betting platform 
22.5 	provider shall be required to post a bond, securities, or an irrevocable letter of credit in an 
22.6 	amount the commissioner deems necessary after taking into consideration the amount of 
22.7 	the mobile sports betting operator's cash reserves, to protect the financial interests of people 
22.8 	wagering on sporting events. If securities are deposited or an irrevocable letter of credit 
22.9 	filed, the securities or letter of credit must be of a type or in the form provided under section 
22.10 	349A.07, subdivision 5, paragraphs (b) and (c).

22.11 	Sec. 18. [299L.51] INTEGRITY MONITORING.
22.12 	Each mobile sports betting operator or mobile sports betting platform provider must 
22.13 	contract with a licensed independent integrity monitoring provider in order to identify any 
22.14 	unusual betting activity or patterns that may indicate a need for further investigation. The 
22.15 	commissioner shall establish minimum standards requiring each mobile sports betting 
22.16 	operator or mobile sports betting platform provider to participate in the monitoring system 
22.17 	as part of that licensee's minimum internal control standards. The commissioner shall 
22.18 	immediately report any suspicious wagering to the appropriate state or federal authorities.

22.19 	Sec. 19. [299L.55] INSPECTION AND AUDITING OF LICENSEES.
22.20 		Subdivision 1.Inspection. The commissioner, the commissioner of revenue, and the 
22.21 	director are authorized to inspect the accounting records of licensees at any time provided 
22.22 	the licensee is given notice at least 24 hours before the inspection. This provision only 
22.23 	applies to mobile sports betting operations and does not authorize the inspection of records 
22.24 	related to Tribal gaming operations, Tribal governmental records, or Class III sports betting 
22.25 	operations conducted exclusively on Indian Lands.
22.26 		Subd. 2.Annual audit. To ensure compliance with this chapter and rules adopted under 
22.27 	this chapter, a mobile sports betting operator must contract with an independent third party 
22.28 	to perform a financial audit, consistent with the standards established by the Public Company 
22.29 	Accounting Oversight Board or using the Statements on Accounting standards issued by 
22.30 	the Audit Standards Board of the American Institute of Certified Public Accountants. The 
22.31 	mobile sports betting operator must submit the audit to the commissioner for examination 
22.32 	and inspection within 120 days of the end of its fiscal year.

23.1 	Sec. 20. [299L.60] LICENSE VIOLATIONS; ENFORCEMENT.
23.2 		Subdivision 1.Schedule of penalties. The commissioner must adopt rules that provide 
23.3 	a graduated schedule of penalties for violations of license requirements under statute or 
23.4 	rule. The schedule must specify penalties that may range from warnings and probation 
23.5 	periods to civil fines, temporary suspension of licenses, or revocation of licenses.
23.6 		Subd. 2.Authority to act. (a) The commissioner may issue administrative orders, impose 
23.7 	civil penalties, and suspend, revoke, or not renew a license issued pursuant to sections 
23.8 	299L.10 to 299L.80 if the commissioner determines that a licensee has committed or is 
23.9 	about to commit a violation of those sections or rules adopted pursuant to those sections, 
23.10 	or if the commissioner determines that the licensee is disqualified or ineligible to hold a 
23.11 	license pursuant to section 299L.25 or 299L.26. A conviction for a violation of section 
23.12 	299L.80 is not required for the commissioner to take action on a violation.
23.13 	(b) Enforcement actions, license suspensions, license revocations, or license nonrenewals 
23.14 	related to a specific mobile sports betting operator shall not impact or limit the ability of 
23.15 	another mobile sports betting operator to conduct, offer, or offer for play mobile sports 
23.16 	betting.
23.17 		Subd. 3.Temporary suspension. (a) The commissioner may temporarily, without 
23.18 	hearing, suspend the license and operating privilege of any licensee for a period of up to 90 
23.19 	days if there is clear and convincing evidence that:
23.20 	(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation, 
23.21 	requires immediate action to protect the public from harm;
23.22 	(2) the licensee has not timely filed a tax return or paid the tax required under chapter 
23.23 	297J; or
23.24 	(3) the licensee has not timely paid all fees due under sections 299L.10 to 299L.80.
23.25 	(b) The commissioner shall notify the licensee of the violation that caused the temporary 
23.26 	suspension and may lift the temporary suspension if the licensee corrects the violation.
23.27 	(c) The commissioner may extend the period of suspension if the violation is not 
23.28 	corrected, the commissioner notifies the business that it intends to revoke or not renew a 
23.29 	license, and a contested case hearing has not taken place.
23.30 		Subd. 4.Notice of violation; administrative orders; request for reconsideration; 
23.31 	demand for hearing. (a) The commissioner may issue an administrative order to any 
23.32 	licensee who has committed a violation. The order may require the licensee to correct the 
23.33 	violation or to cease and desist from committing the violation and may impose civil penalties. 
24.1 	The order must state the deficiencies that constitute a violation, the time by which the 
24.2 	violation must be corrected, and the amount of any civil penalty.
24.3 	(b) If the licensee believes the information in the administrative order is in error, the 
24.4 	licensee may ask the commissioner to reconsider any parts of the order that are alleged to 
24.5 	be in error. The request must be in writing, delivered to the commissioner by certified mail 
24.6 	within seven days after receipt of the order, and provide documentation to support the 
24.7 	allegation of error. The commissioner must respond to a request for reconsideration within 
24.8 	15 days after receiving the request. A request for reconsideration does not stay the order 
24.9 	unless the commissioner issues a supplemental order granting additional time. The 
24.10 	commissioner's disposition of a request for reconsideration is final.
24.11 	(c) An administrative order that imposes a civil penalty of more than $2,000 shall be 
24.12 	treated as a contested case under chapter 14.
24.13 	(d) A licensee may request a hearing on the administrative order within 30 days of the 
24.14 	service of the order. The request must be in writing and delivered to the commissioner by 
24.15 	certified mail. If the licensee does not request a hearing within 30 days, the order becomes 
24.16 	final.
24.17 	(e) If the licensee requests a hearing, the hearing must be held not later than 30 days 
24.18 	after the commissioner receives the request unless the licensee and the commissioner agree 
24.19 	on a later date. After the hearing, the commissioner may enter an order making such 
24.20 	disposition as the facts require. If the licensee fails to appear at the hearing after having 
24.21 	been notified of it, the licensee is considered in default and the proceeding may be determined 
24.22 	against the licensee on consideration of the administrative order, the allegations of which 
24.23 	may be considered to be true. An action of the commissioner under this paragraph is subject 
24.24 	to judicial review pursuant to chapter 14.
24.25 	(f) Civil penalties collected by the commissioner shall be deposited in the general fund. 
24.26 	Civil penalties may be recovered in a civil action in the name of the state brought in the 
24.27 	district court.
24.28 		Subd. 5.Revocation, nonrenewal, civil penalties; contested case. If the commissioner 
24.29 	intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the 
24.30 	commissioner shall provide the licensee with a statement of the complaints made against 
24.31 	the licensee and shall initiate a contested case proceeding. The contested case shall be held 
24.32 	pursuant to chapter 14.
25.1 		Subd. 6.Penalties. In addition to penalties listed in this section, a person or licensee 
25.2 	who violates the provisions of sections 299L.10 to 299L.80 is subject to any applicable 
25.3 	criminal penalty.

25.4 	Sec. 21. [299L.65] REPORTING.
25.5 		Subdivision 1.Financial report. By June 1 of each year, the commissioner must submit 
25.6 	a report to the chairs and ranking minority members of the legislative committees with 
25.7 	jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the 
25.8 	committee in the house of representatives with jurisdiction over commerce, the committee 
25.9 	in the senate with jurisdiction over state government finance and policy, the committee in 
25.10 	the house of representatives with jurisdiction over ways and means, and the committee in 
25.11 	the senate with jurisdiction over finance. The report must describe the activities of the 
25.12 	commissioner with respect to wagering on sporting events and include summary financial 
25.13 	information on sports betting and the regulated sports betting industry as a whole. The report 
25.14 	must not include information or data on individuals or entities that is classified as private 
25.15 	data under section 299L.70 or separately list the earnings, wagers, or tax revenue generated 
25.16 	by or use identifying information for specific mobile sports betting operators or specific 
25.17 	master mobile sports betting licensees.
25.18 		Subd. 2.License activity report. By February 1 of each year beginning in 2023, the 
25.19 	commissioner shall submit a report to the chairs and ranking minority members of the 
25.20 	committees in the house of representatives and the senate with jurisdiction over public 
25.21 	safety, the committee in the house of representatives with jurisdiction over commerce, and 
25.22 	the committee in the senate with jurisdiction over state government finance and policy on 
25.23 	the following:
25.24 	(1) the status of applications for licenses issued by the commissioner, including the 
25.25 	number of applications for each type of license, the number of licenses of each type issued, 
25.26 	and the average time between receipt of a complete application and issuance of each type 
25.27 	of license;
25.28 	(2) an overview of the sports betting market, including but not limited to the actual and 
25.29 	anticipated demand;
25.30 	(3) the amount of revenue generated to the state by sports betting and the expenses 
25.31 	incurred by the commissioner in enforcing restrictions on lawful sports betting; and
26.1 	(4) the commissioner's enforcement actions taken against persons licensed under sections 
26.2 	299L.10 to 299L.80 for licensing violations, including violations of the rules adopted under 
26.3 	section 299L.15.

26.4 	Sec. 22. [299L.70] DATA PROTECTIONS.
26.5 		Subdivision 1.Classification. Data in which an individual who has wagered on sporting 
26.6 	events is identified by name, account number, Social Security number, or any other uniquely 
26.7 	identifying indicia, is private data on individuals, as defined in section 13.02, subdivision 
26.8 	12. Data on individual earnings of mobile sports betting operators, mobile sports betting 
26.9 	operator application and licensing information, and all Tribal revenue records unassociated 
26.10 	with mobile sports betting operators is nonpublic data, as defined in section 13.02, subdivision 
26.11 	9.
26.12 		Subd. 2.Sale of private data on individuals. The commissioner shall revoke any license 
26.13 	issued under sections 299L.10 to 299L.80 of a person who sells private data on the individuals 
26.14 	collected through the practice of sports betting.

26.15 	Sec. 23. [299L.75] LOCAL RESTRICTIONS; PROHIBITION ON LOCAL TAXES 
26.16 	OR FEES.
26.17 	No political subdivision may require a local license to offer sports betting or impose a 
26.18 	tax or fee on the sports betting conducted pursuant to this chapter.

26.19 	Sec. 24. INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.
 26.20 	The governor or the governor's designated representatives shall negotiate in good faith 
26.21 	new Tribal-state compacts regulating the conduct of Class III sports betting on the Indian 
26.22 	Lands of an Indian Tribe requesting negotiations, under Minnesota Statutes, section 3.9221. 
26.23 	Compacts in effect on January 1, 2022, shall not be modified to accommodate sports betting.

26.24 	ARTICLE 2
26.25 	TAXATION OF SPORTS BETTING

26.26 	Section 1. [297J.01] DEFINITIONS.
26.27 	Unless otherwise defined in this chapter, or unless the context clearly indicates otherwise, 
26.28 	the following terms have the meanings given:
26.29 	(1) "casino" has the meaning given in section 299L.10, subdivision 4;
26.30 	(2) "commissioner" means the commissioner of revenue;
27.1 	(3) "mobile sports betting operator" has the meaning given in section 299L.10, subdivision 
27.2 	15;
27.3 	(4) "sporting event" has the meaning given in section 299L.10, subdivision 19;
27.4 	(5) "sports betting" has the meaning given in section 299L.10, subdivision 20;
27.5 	(6) "sports betting net revenue" means the total of all cash and cash equivalents received 
27.6 	in a month by a mobile sports betting operator from wagers on sporting events, less the 
27.7 	following:
27.8 	(i) cash paid out as winnings in the month; and
27.9 	(ii) the cash equivalent of noncash prizes paid out as winnings in the month.
27.10 	Sports betting net revenue does not include promotional credits or free bets that are used 
27.11 	toward wagering on sporting events, or other cash and cash equivalents received by a mobile 
27.12 	sports betting operator for activities other than sports betting; and
27.13 	(7) "wager" has the meaning given in section 299L.10, subdivision 22.

27.14 	EFFECTIVE DATE. This section is effective for sports betting net revenue received 
27.15 	after June 30, 2023.

27.16 	Sec. 2. [297J.02] TAX ON SPORTS BETTING NET REVENUE.
27.17 		Subdivision 1.Tax imposed. (a) Except as provided in paragraph (b), a tax is imposed 
27.18 	on sports betting net revenue received equal to ten percent on wagers placed online through 
27.19 	a website or mobile application, as allowed under section 299L.40.
27.20 	(b) Any wager placed on Indian Lands is not subject to state taxation. For purposes of 
27.21 	this chapter, a wager is placed at the physical location of the individual placing the wager.
27.22 		Subd. 2.Sports betting net revenue tax in lieu of other taxes. Income derived by a 
27.23 	mobile sports betting operator from the conduct of wagering on a sporting event is not 
27.24 	subject to the tax imposed in chapter 290. Wagers accepted by a mobile sports betting 
27.25 	operator are not subject to the tax imposed in section 297A.62 or 297E.03.
27.26 		Subd. 3.Returns; due dates. A mobile sports betting operator must file a return by the 
27.27 	20th day of each month reporting the tax due under this section for the preceding month. 
27.28 	The return must include the amount of all wagers received, payouts made, all sports betting 
27.29 	taxes owed, and other information required by the commissioner. The tax under this chapter 
27.30 	is due to be paid to the commissioner on the day the return is due.
28.1 		Subd. 4.Public information. All records concerning the administration of taxes under 
28.2 	this chapter are classified as public information.
28.3 		Subd. 5.Refunds. A person who has, under this chapter, paid to the commissioner an 
28.4 	amount of tax for a period in excess of the amount legally due for that period may file with 
28.5 	the commissioner a claim for a refund of the excess. The amount necessary to pay the refunds 
28.6 	under this subdivision is appropriated from the sports betting revenue account established 
28.7 	in subdivision 7 to the commissioner.
28.8 		Subd. 6.Extensions. If in the commissioner's judgment good cause exists, the 
28.9 	commissioner may extend the time for filing tax returns, paying taxes, or both under this 
28.10 	section for not more than six months.
28.11 		Subd. 7.Distribution of funds. (a) The sports betting revenue account is established in 
28.12 	the special revenue fund. All amounts collected by the commissioner under this chapter 
28.13 	must be deposited in the account and distributed as provided in this subdivision. Any money 
28.14 	remaining in the account at the end of each fiscal year does not cancel. Interest and income 
28.15 	earned on money in the account, after deducting any applicable charges, shall be credited 
28.16 	to the account. After deducting any amounts necessary to pay the refunds under subdivision 
28.17 	5, the money shall be distributed as provided in paragraphs (b) to (d).
28.18 	(b) $2,700,000 is appropriated from the sports betting revenue account to the 
28.19 	commissioner of public safety to regulate mobile sports betting under sections 299L.10 to 
28.20 	299L.80.
28.21 	(c) $1,353,000 is appropriated from the sports betting revenue account to the 
28.22 	commissioner of revenue to administer the tax established in this chapter.
28.23 	(d) Of the amount remaining in the sports betting revenue account after the appropriations 
28.24 	in paragraphs (b) and (c) have been made:
28.25 	(1) 50 percent is appropriated to the commissioner of human services of which half is 
28.26 	for the compulsive gambling treatment program established under section 245.98, and half 
28.27 	is for a grant to the state affiliate recognized by the National Council on Problem Gambling 
28.28 	to be used to increase public awareness of problem gambling, provide education and training 
28.29 	for individuals and organizations providing effective treatment services to problem gamblers 
28.30 	and their families, and research relating to problem gambling. Funds provided to the 
28.31 	commissioner of human services for the compulsive gambling treatment program must also 
28.32 	be available for up to 60 hours of intervention services for a family member or concerned 
28.33 	significant other who is a Minnesota resident and is negatively impacted by problem or 
29.1 	compulsive gambling. Money appropriated by this clause must supplement and must not 
29.2 	replace existing state funding for these programs; and
29.3 	(2) 50 percent shall be transferred to the amateur sports integrity and participation account 
29.4 	established pursuant to section 240A.15, subdivision 1.

29.5 	EFFECTIVE DATE. This section is effective for sports betting net revenue received 
29.6 	after June 30, 2023, except that subdivision 7 is effective July 1, 2022, and applies to license 
29.7 	and renewal fees received after June 30, 2022, and sports betting net revenue received after 
29.8 	June 30, 2023.

29.9 	Sec. 3. [297J.03] MOBILE SPORTS BETTING OPERATOR REPORTS AND 
29.10 	RECORDS.
29.11 		Subdivision 1.Business records. A mobile sports betting operator must maintain records 
29.12 	supporting the sports betting activity and taxes owed. Records required to be kept in this 
29.13 	section must be preserved by the mobile sports betting operator for at least 3-1/2 years after 
29.14 	the return is due or filed, whichever is later, and may be inspected by the commissioner at 
29.15 	any reasonable time without notice or a search warrant.
29.16 		Subd. 2.Audits. The commissioner may require a financial audit of a mobile sports 
29.17 	betting operator's sports betting activities if the mobile sports betting operator has failed to 
29.18 	comply with this chapter as it relates to financial reporting. Audits must be performed by 
29.19 	an independent accountant licensed according to chapter 326A. The commissioner must 
29.20 	prescribe standards for an audit required under this subdivision. A complete, true, and correct 
29.21 	copy of an audit must be filed as prescribed by the commissioner. Nothing in this subdivision 
29.22 	limits the commissioner's ability to conduct its own audit pursuant to its authority under 
29.23 	chapter 270C.

29.24 	EFFECTIVE DATE. This section is effective for sports betting net revenue received 
29.25 	after June 30, 2023.

29.26 	Sec. 4. [297J.04] OTHER PROVISIONS APPLY.
29.27 	Except for those provisions specific to distributors, gambling products, or gambling 
29.28 	equipment, sections 297E.11 to 297E.14 apply to this chapter.

29.29 	EFFECTIVE DATE. This section is effective for sports betting net revenue received 
29.30 	after June 30, 2023.

30.1 	ARTICLE 3
30.2 	CRIMES RELATED TO SPORTS BETTING

30.3 	Section 1. Minnesota Statutes 2020, section 260B.007, subdivision 16, is amended to read:
30.4 		Subd. 16.Juvenile petty offender; juvenile petty offense. (a) "Juvenile petty offense" 
30.5 	includes a juvenile alcohol offense, a juvenile controlled substance offense, a juvenile 
30.6 	violation of section 299L.80, subdivision 3, paragraph (a), a violation of section 609.685, 
30.7 	or a violation of a local ordinance, which by its terms prohibits conduct by a child under 
30.8 	the age of 18 years which would be lawful conduct if committed by an adult.
30.9 	(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also includes 
30.10 	an offense that would be a misdemeanor if committed by an adult.
30.11 	(c) "Juvenile petty offense" does not include any of the following:
30.12 	(1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242, 
30.13 	609.324, subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79, or 
30.14 	617.23;
30.15 	(2) a major traffic offense or an adult court traffic offense, as described in section 
30.16 	260B.225;
30.17 	(3) a misdemeanor-level offense committed by a child whom the juvenile court previously 
30.18 	has found to have committed a misdemeanor, gross misdemeanor, or felony offense; or
30.19 	(4) a misdemeanor-level offense committed by a child whom the juvenile court has 
30.20 	found to have committed a misdemeanor-level juvenile petty offense on two or more prior 
30.21 	occasions, unless the county attorney designates the child on the petition as a juvenile petty 
30.22 	offender notwithstanding this prior record. As used in this clause, "misdemeanor-level 
30.23 	juvenile petty offense" includes a misdemeanor-level offense that would have been a juvenile 
30.24 	petty offense if it had been committed on or after July 1, 1995.
30.25 	(d) A child who commits a juvenile petty offense is a "juvenile petty offender." The 
30.26 	term juvenile petty offender does not include a child alleged to have violated any law relating 
30.27 	to being hired, offering to be hired, or agreeing to be hired by another individual to engage 
30.28 	in sexual penetration or sexual conduct which, if committed by an adult, would be a 
30.29 	misdemeanor.

30.30 	Sec. 2. [299L.80] CRIMES RELATING TO WAGERING ON SPORTING EVENTS.
30.31 		Subdivision 1.Definitions. As used in this section:
31.1 	(1) "accepts a wager" includes receiving, recording, or forwarding a wager or an offer 
31.2 	to wager on a sporting event, and attempts to do so;
31.3 	(2) "nonpublic information" means information regarding a participant's ability or 
31.4 	likelihood to perform in a sporting event that:
31.5 	(i) is not available to the general public;
31.6 	(ii) is derived from a personal or professional relationship with the participant; and
31.7 	(iii) if the information was disseminated, would likely affect the odds of the participant 
31.8 	or the participant's team in achieving a particular outcome in the event; and
31.9 	(3) "places a wager" includes an offer or attempt to place a wager on a sporting event.
31.10 		Subd. 2.Sale or transfer of private data. (a) Whoever sells or transfers private data 
31.11 	on individuals collected through the practice of wagering on sporting events is guilty of a 
31.12 	misdemeanor.
31.13 	(b) Paragraph (a) does not apply to the transfer of data between a person licensed under 
31.14 	section 299L.10 to 299L.80 or an employee of a licensee and the commissioner, the director, 
31.15 	or the commissioner of revenue when that transfer is necessary to perform duties prescribed 
31.16 	by law relating to wagering on sporting events.
31.17 		Subd. 3.Wagering by a person under age 21. (a) A person who is under 21 years of 
31.18 	age and does either of the following is guilty of a misdemeanor:
31.19 	(1) places a wager on a sporting event; or
31.20 	(2) misrepresents the person's age as being 21 or older for the purposes of placing a 
31.21 	wager on a sporting event.
31.22 	(b) A person licensed under sections 299L.10 to 299L.80 or an employee of a licensee 
31.23 	who accepts a wager on a sporting event placed by someone under the age of 21 years is 
31.24 	guilty of a gross misdemeanor.
31.25 	(c) Paragraph (a), clause (1) does not prohibit private social bets on sporting events that 
31.26 	are not part of or incidental to organized, commercialized, or systematic gambling.
31.27 		Subd. 4.Unauthorized wagers. (a) The following persons who place a wager with an 
31.28 	entity licensed under sections 299L.10 to 299L.80 are guilty of a crime and may be sentenced 
31.29 	as provided in paragraphs (b) to (e):
31.30 	(1) a person who is a participant in a sporting event and who places a wager on that 
31.31 	event or who induces another to place a wager on the event on behalf of the person;
32.1 	(2) a person licensed under sections 299L.10 to 299L.80, or an employee of a licensee 
32.2 	whose exclusive or primary responsibilities involve mobile sports betting, who places a 
32.3 	wager on a sporting event on an online website or mobile application with which the person 
32.4 	is affiliated;
32.5 	(3) an officer, director, member, or employee of the Department of Public Safety or the 
32.6 	division who places a wager on a sporting event; or
32.7 	(4) a person who possesses nonpublic information on a sporting event and who places 
32.8 	a wager on that event.
32.9 	(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the 
32.10 	wager is no more than $500.
32.11 	(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
32.12 	(1) the person has previously been convicted of a violation of this section or section 
32.13 	609.76; or
32.14 	(2) the amount of the wager is more than $500 but not more than $1,000.
32.15 	(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
32.16 	imprisonment for not more than two years or to payment of a fine of not more than $4,000, 
32.17 	or both, if the amount of the wager is more than $1,000 but not more than $5,000.
32.18 	(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
32.19 	imprisonment for not more than five years or to payment of a fine of not more than $10,000, 
32.20 	or both, if:
32.21 	(1) the amount of the wager is more than $5,000; or
32.22 	(2) the person places more than five wagers on any one or more sporting events within 
32.23 	any 30-day period and the total amount wagered is more than $2,500.
32.24 		Subd. 5.Unauthorized acceptance of wagers. (a) A person licensed under sections 
32.25 	299L.10 to 299L.80, or an employee of a licensee whose exclusive or primary responsibilities 
32.26 	involve mobile sports betting, who accepts a wager on a sporting event knowing that the 
32.27 	wager was made in violation of subdivision 4, paragraph (a) is guilty of a crime and may 
32.28 	be sentenced as provided in paragraphs (b) to (e).
32.29 	(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the 
32.30 	wager is no more than $500.
32.31 	(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
33.1 	(1) the person has previously been convicted of a violation of this section or section 
33.2 	609.76; or
33.3 	(2) the amount of the wager is more than $500 but not more than $1,000.
33.4 	(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
33.5 	imprisonment for not more than two years or to payment of a fine of not more than $4,000, 
33.6 	or both, if the amount of the wager is more than $1,000 but not more than $5,000.
33.7 	(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
33.8 	imprisonment for not more than five years or to payment of a fine of not more than $10,000, 
33.9 	or both, if:
33.10 	(1) the amount of the wager is more than $5,000; or
33.11 	(2) the person accepts one or more wagers knowing that:
33.12 	(i) the wager is prohibited under subdivision 4, paragraph (a);
33.13 	(ii) acceptance of the wager will result in the person making a wager having placed more 
33.14 	than five wagers on any one or more sporting events within any 30-day period; and
33.15 	(iii) the total amount wagered is more than $2,500.
33.16 		Subd. 6.Aggregation; venue. In any prosecution under subdivision 4 or 5, the amount 
33.17 	of money wagered within any six-month period may be aggregated and the accused charged 
33.18 	accordingly in applying the provisions of those subdivisions. In addition, when two or more 
33.19 	offenses are committed by the same person in two or more counties, the accused may be 
33.20 	prosecuted in any county in which one of the offenses was committed for all of the offenses 
33.21 	aggregated under this subdivision.
33.22 		Subd. 7.Proof of age; defense; seizure of false identification. (a) Proof of age for 
33.23 	placing a wager under sections 299L.10 to 299L.80 on a sporting event may be established 
33.24 	only by one of the following:
33.25 	(1) a valid driver's license or identification card issued by Minnesota, another state, a 
33.26 	Tribal government, or a province of Canada, that includes the photograph and date of birth 
33.27 	of the person;
33.28 	(2) a valid military identification card issued by the United States Department of Defense;
33.29 	(3) a valid United States passport;
33.30 	(4) a valid instructional permit issued under section 171.05 that includes a photograph 
33.31 	and the date of birth of the person;
34.1 	(5) a Tribal identification;
34.2 	(6) in the case of a foreign national, a valid passport; or
34.3 	(7) use of an identity verification process approved by the commissioner and implemented 
34.4 	by the mobile sports betting operator or mobile sports betting platform provider.
34.5 	(b) In a prosecution for accepting a wager on a sporting event from a person under the 
34.6 	age of 21, it is an affirmative defense for the defendant to prove by a preponderance of the 
34.7 	evidence that the defendant reasonably and in good faith relied upon representations of 
34.8 	proof of age authorized in paragraph (a).
34.9 	(c) A mobile sports betting operator or employee of a mobile sports betting operator, or 
34.10 	an official or employee authorized to accept wagers on sporting events under a Tribal-state 
34.11 	compact regulating the conduct of Class III sports betting on the Indian Lands of an Indian 
34.12 	Tribe, may seize a form of identification listed under paragraph (a) if the person has 
34.13 	reasonable grounds to believe that the form of identification has been altered or falsified or 
34.14 	is being used to violate any law. A person who seizes a form of identification under this 
34.15 	paragraph must deliver it to a law enforcement agency, as defined in section 626.84, 
34.16 	subdivision 1, paragraph (f), within 24 hours of seizure.

34.17 	Sec. 3. Minnesota Statutes 2020, section 609.75, subdivision 3, is amended to read:
34.18 		Subd. 3.What are not bets. The following are not bets:
34.19 	(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a 
34.20 	harm or loss sustained, even though the loss depends upon chance;
34.21 	(2) a contract for the purchase or sale at a future date of securities or other commodities;
34.22 	(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest 
34.23 	for the determination of skill, speed, strength, endurance, or quality or to the bona fide 
34.24 	owners of animals or other property entered in such a contest;
34.25 	(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;
34.26 	(5) a private social bet not part of or incidental to organized, commercialized, or 
34.27 	systematic gambling;
34.28 	(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22, 
34.29 	by an organization licensed by the Gambling Control Board or an organization exempt from 
34.30 	licensing under section 349.166;
35.1 	(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240; 
35.2 	and
35.3 	(8) the purchase and sale of State Lottery tickets under chapter 349A; and
35.4 	(9) sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80.

35.5 	Sec. 4. Minnesota Statutes 2020, section 609.75, subdivision 4, is amended to read:
35.6 		Subd. 4.Gambling device. A gambling device is a contrivance the purpose of which is 
35.7 	that for a consideration a player is afforded an opportunity to obtain something of value, 
35.8 	other than free plays, automatically from the machine or otherwise, the award of which is 
35.9 	determined principally by chance, whether or not the contrivance is actually played. 
35.10 	"Gambling device" also includes a video game of chance, as defined in subdivision 8.
35.11 	"Gambling device" does not include a website or mobile application, or device used for 
35.12 	accessing the website or mobile application, authorized to be used in conducting mobile 
35.13 	sports betting pursuant to sections 299L.10 to 299L.80.

35.14 	Sec. 5. Minnesota Statutes 2020, section 609.75, subdivision 7, is amended to read:
35.15 		Subd. 7.Sports bookmaking. Sports bookmaking is the activity of intentionally 
35.16 	receiving, recording or forwarding within any 30-day period more than five bets, or offers 
35.17 	to bet, that total more than $2,500 on any one or more sporting events. Sports bookmaking 
35.18 	does not include sports betting when the betting is conducted pursuant to sections 299L.10 
35.19 	to 299L.80.

35.20 	Sec. 6. Minnesota Statutes 2020, section 609.75, is amended by adding a subdivision to 
35.21 	read:
35.22 		Subd. 7a.Sporting event. "Sporting event" has the meaning given in section 299L.10, 
35.23 	subdivision 19, and includes any event, such as a game, match, contest, or activity, or series 
35.24 	of games, matches, contests, activities, or tournaments, involving the athletic skill or 
35.25 	performance in a video game of one or more players or participants, regardless of whether 
35.26 	the event is approved by the commissioner to be an event eligible for wagering under sections 
35.27 	299L.10 to 299L.80.

35.28 	Sec. 7. Minnesota Statutes 2020, section 609.755, is amended to read:
35.29 	609.755 GAMBLING; MISDEMEANOR.
35.30 	Whoever does any of the following is guilty of a misdemeanor:
36.1 	(1) makes a bet, other than a bet on a sporting event;
36.2 	(2) sells or transfers a chance to participate in a lottery;
36.3 	(3) disseminates information about a lottery, except a lottery conducted by an adjoining 
36.4 	state, with intent to encourage participation therein;
36.5 	(4) permits a structure or location owned or occupied by the actor or under the actor's 
36.6 	control to be used as a gambling place; or
36.7 	(5) except where authorized by statute, possesses a gambling device.
36.8 	Clause (5) does not prohibit possession of a gambling device in a person's dwelling for 
36.9 	amusement purposes in a manner that does not afford players an opportunity to obtain 
36.10 	anything of value.

36.11 	Sec. 8. Minnesota Statutes 2020, section 609.76, subdivision 2, is amended to read:
36.12 		Subd. 2.Unauthorized sports bookmaking betting. (a) Whoever makes a bet on a 
36.13 	sporting event with a person who is not licensed to engage in sports betting under sections 
36.14 	299L.10 to 299L.80 is guilty of a misdemeanor if the amount of the wager is no more than 
36.15 	$500.
36.16 	(b) Whoever makes a bet on a sporting event with a person who is not licensed to engage 
36.17 	in sports betting under sections 299L.10 to 299L.80 is guilty of a gross misdemeanor if:
36.18 	(1) the person has previously been convicted of a violation of this section or section 
36.19 	609.76; or
36.20 	(2) the amount of the wager is more than $500 but not more than $1,000.
36.21 	(c) Whoever makes a bet on a sporting event with a person who is not licensed to engage 
36.22 	in sports betting under sections 299L.10 to 299L.80 is guilty of a felony if the amount of 
36.23 	the wager is more than $1,000.
36.24 	(d) Whoever engages in sports bookmaking is guilty of a felony.
36.25 	(e) In any prosecution under paragraph (b) or (c), the amount of money wagered within 
36.26 	any six-month period may be aggregated and the accused charged accordingly in applying 
36.27 	the provisions of those paragraphs. In addition, when two or more offenses are committed 
36.28 	by the same person in two or more counties, the accused may be prosecuted in any county 
36.29 	in which one of the offenses was committed for all of the offenses aggregated under this 
36.30 	subdivision.

37.1 	Sec. 9. [609.764] SPORTING EVENTS; FRAUD; BRIBERY.
37.2 	(a) As used in this section:
37.3 	(1) "participant in a sporting event" has the meaning given in section 299L.10, subdivision 
37.4 	18; and
37.5 	(2) "sporting event" has the meaning given in section 299L.10, subdivision 19.
37.6 	(b) A person is guilty of a felony and may be sentenced to imprisonment for not more 
37.7 	than five years or to payment of a fine of not more than $10,000, or both, if the person:
37.8 	(1) offers, gives, or promises to give, directly or indirectly, to a participant in a sporting 
37.9 	event any benefit, reward, or consideration to which the participant is not legally entitled 
37.10 	as compensation or a prize, with intent to influence the performance of the participant, or 
37.11 	the outcome of the event or a component of the event; or
37.12 	(2) as a participant in a sporting event, requests, receives, or agrees to receive, directly 
37.13 	or indirectly, a benefit, reward, or consideration to which the participant is not legally entitled 
37.14 	to intentionally lose, cause to lose, or attempt to lose or cause to lose the event, or to 
37.15 	intentionally perform below abilities to adversely affect the outcome of the event or a 
37.16 	component of the event.

37.17 	Sec. 10. EFFECTIVE DATE.
 37.18 	Sections 1 to 9 are effective the day that sports betting becomes lawful under article 1 
37.19 	and applies to crimes committed on or after that date.

37.20 	ARTICLE 4
37.21 	AMATEUR SPORTS GRANTS; APPROPRIATIONS

37.22 	Section 1. [240A.15] GRANTS FOR PROMOTING INTEGRITY AND 
37.23 	PARTICIPATION.
37.24 		Subdivision 1.Account established; appropriation. The amateur sports integrity and 
37.25 	participation account is established in the special revenue fund. The account shall consist 
37.26 	of the amount deposited pursuant to section 297J.02, subdivision 6, paragraph (d). The 
37.27 	amounts deposited into the account are appropriated to the Minnesota Amateur Sports 
37.28 	Commission to make grants under this section. The Minnesota Amateur Sports Commission 
37.29 	may retain four percent of the total appropriation to administer the grants.
37.30 		Subd. 2.Grants to promote the integrity of amateur sports. (a) The Minnesota 
37.31 	Amateur Sports Commission shall use 20 percent of the amount deposited in the amateur 
38.1 	sports integrity and participation account in the previous fiscal year to award grants to 
38.2 	collegiate and amateur sports associations to promote the integrity of amateur sports.
38.3 	(b) Grant recipients may use funds to:
38.4 	(1) provide comprehensive gambling and athlete protection education and programming 
38.5 	related to disordered gambling to athletes and others directly involved with amateur athletic 
38.6 	organizations;
38.7 	(2) promote the independence, safety, and training of amateur sports leagues and officials;
38.8 	(3) provide educational substance abuse prevention and intervention programs related 
38.9 	to the use of performance-enhancing drugs;
38.10 	(4) provide problem gambling prevention education;
38.11 	(5) provide training to coaches and athletes on safe relationships and how to establish 
38.12 	and maintain an environment free from bullying, harassment, and discrimination based on 
38.13 	race or sex; or
38.14 	(6) provide training or resources to address the mental health needs of amateur athletes, 
38.15 	including programs to address depression, anxiety, and disordered eating.
38.16 	(c) By September 1 of each year, individuals or organizations that received a grant in 
38.17 	the previous fiscal year shall provide a report in a form and manner established by the 
38.18 	Minnesota Amateur Sports Commission describing the way in which grant funds were used 
38.19 	and providing any additional information required by the Minnesota Amateur Sports 
38.20 	Commission.
38.21 		Subd. 3.Grants to promote and facilitate participation in youth sports. (a) The 
38.22 	Minnesota Amateur Sports Commission shall use 80 percent of the amount deposited in the 
38.23 	amateur sports integrity and participation account in the previous fiscal year to award grants 
38.24 	to organizations to promote and facilitate participation in youth sports in areas that have 
38.25 	experienced a disproportionately high rate of juvenile crime.
38.26 	(b) Applicants may demonstrate that an area has experienced a disproportionately high 
38.27 	rate of juvenile crime through the use of public data or reports, a submission from the local 
38.28 	law enforcement agency, or any other reliable information showing that the area to be served 
38.29 	by the applicant has experienced more incidents of juvenile crime than the state average or 
38.30 	than surrounding communities.
38.31 	(c) Grant recipients may use funds to:
38.32 	(1) establish, maintain, or expand youth sports;
39.1 	(2) improve facilities for youth sports;
39.2 	(3) reduce or eliminate participation costs for youth through the use of scholarships, 
39.3 	assistance with the purchase of equipment, reductions or elimination of program fees, and 
39.4 	accounting for other reasonable costs that serve as a barrier to participation;
39.5 	(4) recruit and train adults to serve as coaches, officials, or in other supportive roles; or
39.6 	(5) coordinate additional services for youth including tutoring, mental health services, 
39.7 	substance abuse treatment, and family counseling.
39.8 	(d) By September 1 of each year, individuals or organizations that received a grant in 
39.9 	the previous fiscal year shall provide a report in a form and manner established by the 
39.10 	Minnesota Amateur Sports Commission describing the way in which grant funds were used 
39.11 	and providing any additional information required by the Minnesota Amateur Sports 
39.12 	Commission.
39.13 		Subd. 4.Annual report. By January 15 of each year, the Minnesota Amateur Sports 
39.14 	Commission must submit a report to the chairs and ranking minority members of the 
39.15 	legislative committees with jurisdiction over public safety, the legislative committees with 
39.16 	jurisdiction over taxes, the committee in the house of representatives with jurisdiction over 
39.17 	commerce, the committee in the senate with jurisdiction over state government finance and 
39.18 	policy, the committee in the house of representatives with jurisdiction over ways and means, 
39.19 	and the committee in the senate with jurisdiction over finance. The report must identify the 
39.20 	grants issued under this section since the previous report, including the individual or 
39.21 	organization that received the grant, the amount awarded, and the purpose of the grant. The 
39.22 	report must also compile and provide the annual reports received from grantees.

39.23 	Sec. 2. Minnesota Statutes 2020, section 245.98, subdivision 2, is amended to read:
39.24 		Subd. 2.Program. The commissioner of human services shall establish a program for 
39.25 	the treatment of compulsive gamblers and their families. The commissioner may contract 
39.26 	with an entity with expertise regarding the treatment of compulsive gambling to operate the 
39.27 	program. The program may include the establishment of a statewide toll-free number, 
39.28 	resource library, public education programs; regional in-service training programs and 
39.29 	conferences for health care professionals, educators, treatment providers, employee assistance 
39.30 	programs, and criminal justice representatives; and the establishment of certification standards 
39.31 	for programs and service providers. The commissioner may enter into agreements with 
39.32 	other entities and may employ or contract with consultants to facilitate the provision of 
39.33 	these services or the training of individuals to qualify them to provide these services. The 
40.1 	program may also include inpatient and outpatient treatment and rehabilitation services for 
40.2 	residents in different settings, including a temporary or permanent residential setting for 
40.3 	mental health or chemical dependency, and individuals in jails or correctional facilities. 
40.4 	The program must include up to 60 hours of intervention services for a family member or 
40.5 	concerned significant other who is a Minnesota resident and is negatively impacted by 
40.6 	problem or compulsive gambling. The program may also include research studies. The 
40.7 	research studies must include baseline and prevalence studies for adolescents and adults to 
40.8 	identify those at the highest risk. The program must be approved by the commissioner before 
40.9 	it is established.

40.10 	Sec. 3. STUDY ON MOTIVATIONS AND BELIEFS OF YOUNG ADULT 
40.11 	GAMBLERS; APPROPRIATION.
 40.12 		Subdivision 1.Appropriation. Notwithstanding any law to the contrary, before the 
40.13 	distribution required under Minnesota Statutes, section 297J.02, subdivision 7, paragraph 
40.14 	(d), $150,000 in fiscal year 2023 is appropriated from the sports betting revenue account 
40.15 	in the special revenue fund to the commissioner of public safety for a grant to a nonprofit 
40.16 	organization to conduct a study on the gambling motivations and beliefs of young adult 
40.17 	gamblers. The commissioner may not use any amount of this appropriation to administer 
40.18 	the grant. This is a onetime appropriation.
40.19 		Subd. 2.Award. The commissioner shall award the grant to a nonprofit, gambling-neutral 
40.20 	organization with experience raising public awareness about problem gambling and providing 
40.21 	professional training for those who work with problem gamblers.
40.22 		Subd. 3.Focus group. (a) The grant recipient shall convene a focus group of 40 
40.23 	individuals who are at least 18 years of age but not more than 35 years of age and who have 
40.24 	experience gambling in Minnesota.
40.25 	(b) Membership of the focus group shall reflect the geographical and demographic 
40.26 	diversity of Minnesotans who are 18 to 35 years of age.
40.27 	(c) The focus group shall identify the reasons that young adults gamble and the ways in 
40.28 	which they engage in gambling, including whether they wager on sporting events; participate 
40.29 	in fantasy sports; purchase lottery tickets; visit casinos; engage in online gambling; participate 
40.30 	in card playing as defined in Minnesota Statutes, section 240.01, subdivision 5; engage in 
40.31 	pari-mutuel betting as defined in Minnesota Statutes, section 240.01, subdivision 14; or 
40.32 	participate in lawful gambling authorized under Minnesota Statutes, chapter 349.
41.1 		Subd. 4.Qualitative survey. Following completion of the focus group described in 
41.2 	subdivision 3, the grant recipient shall create a qualitative survey and obtain responses from 
41.3 	a sample of at least 50,000 individuals.
41.4 		Subd. 5.Report. By January 15, 2024, the grant recipient shall submit a report to the 
41.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
41.6 	public safety, the legislative committees with jurisdiction over taxes, the committee in the 
41.7 	house of representatives with jurisdiction over commerce, the committee in the senate with 
41.8 	jurisdiction over state government finance and policy, the committee in the house of 
41.9 	representatives with jurisdiction over ways and means, and the committee in the senate with 
41.10 	jurisdiction over finance. The report shall summarize the actions and findings of the grant 
41.11 	recipient and shall make recommendations for policies and the use of financial resources 
41.12 	to prevent and address problem gambling by young adults.

41.13 	Sec. 4. DEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.
 41.14 	$1,301,000 in fiscal year 2023 is appropriated from the sports betting revenue account 
41.15 	in the special revenue fund to the commissioner of public safety to perform the duties 
41.16 	required to establish and regulate mobile sports betting under Minnesota Statutes, sections 
41.17 	299L.10 to 299L.80. Notwithstanding any law to the contrary, this appropriation must be 
41.18 	made before the distribution required under Minnesota Statutes, section 297J.02, subdivision 
41.19 	7, paragraph (d). This is a onetime appropriation.

41.20 	Sec. 5. DEPARTMENT OF REVENUE; APPROPRIATION.
 41.21 	$328,000 in fiscal year 2023 is appropriated from the sports betting revenue account in 
41.22 	the special revenue fund to the commissioner of revenue to perform the duties necessary to 
41.23 	establish and enforce the taxation of mobile sports betting. Notwithstanding any law to the 
41.24 	contrary, this appropriation must be made before the distribution required under Minnesota 
41.25 	Statutes, section 297J.02, subdivision 7, paragraph (d). This is a onetime appropriation.