SF 4714

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/24/2026 10:53 a.m.

A bill for an act
relating to pari-mutuel horse racing; modifying the definition of advance deposit
wagering; providing for certain advance deposit wagering proceeds; amending
Minnesota Statutes 2024, sections 240.01, subdivision 1b; 240.131, subdivision
6.

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

Section 1.

Minnesota Statutes 2024, section 240.01, subdivision 1b, is amended to read:

Subd. 1b.

Advance deposit wager.

"Advance deposit wager" means a wager placed
through an advance deposit wagering provider on a horse race deleted text begin that is conducted outside of
the state deleted text end .

Sec. 2.

Minnesota Statutes 2024, section 240.131, subdivision 6, is amended to read:

Subd. 6.

Source market fees; payment; distribution.

(a) It is the intent of the legislature
that the proceeds of advance deposit wagering authorized by this chapter be used to support
and improve the horse racing industry in Minnesota by improving purses, supporting
breeding, and ensuring that the industry is adequately regulated for the protection of all
participants.

(b) Source market fees shall be established by contract and are in addition to other
contractual fees such as host fees.

(c) Except as provided in paragraph deleted text begin (e) deleted text end new text begin (f) new text end , a class A or class B licensee shall pay all
source market fees it receives from an ADW provider as follows:

(1) 28 percent to a licensed racetrack that primarily conducts standardbred horse racing;
and

(2) 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter
Horse racing.

(d) Of the total source market fees received by a licensed racetrack under paragraph (c) new text begin
for races conducted outside the state new text end , at least 50 percent must be set aside for breeders
awards and purses. Of the amount set aside: (1) at least 33 percent shall be paid by the
racetrack to the state for deposit to the breeders fund and must be expended solely for
breeders awards in accordance with section 240.18, subdivisions 2, paragraph (d), clause
(2), and 3, paragraph (b), clause (2); and (2) the remainder shall be paid by the racetrack to
purse accounts for races held at the racetrack pursuant to agreements between the racetrack
and the horsepersons' associations that represent a majority of the type of breed that races
at the track.

new text begin (e) Of the total source market fees received by a licensed racetrack under paragraph (c)
for races conducted within the state, at least 50 percent must be set aside for purses and paid
by the racetrack to purse accounts for races held at the racetrack pursuant to agreements
between the racetrack and the horsepersons' associations that represent a majority of the
type of breed that races at the track.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end No source market fees shall be paid by a class A or class B licensee to a licensed
racetrack whose license has been revoked or not renewed under this chapter. In the event
that a racetrack's license has been revoked or not renewed, source market fees otherwise
payable to that racetrack by a class A or class B licensee under this section shall be paid to
the other licensed racetrack.