Minnesota Legislature
HF 2000
3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 12:20pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/17/2023 | |
| 1st Engrossment | Posted on 03/13/2023 | |
| 2nd Engrossment | Posted on 02/26/2024 | |
| 3rd Engrossment | Posted on 04/02/2024 |
Current Version - 3rd Engrossment
1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16
5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12
9.13 9.14 9.15 9.16 9.17 9.18
9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26
11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11
13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21
13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17
15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11
16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26
16.27 16.28
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27
17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15
20.16 20.17 20.18 20.19 20.20 20.21
20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 22.1 22.2
22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29
22.30 22.31 22.32 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25
23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34
25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14
25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16
27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13
28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25
28.26 28.27 28.28 28.29
29.1 29.2 29.3 29.4 29.5
29.6 29.7
29.8 29.9
29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24
29.25 29.26
30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22
31.23 31.24
31.25 31.26 31.27 31.28 31.29 31.30 31.31 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8
32.9 32.10
32.11 32.12 32.13
32.14 32.15
32.16 32.17
32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25
34.26 34.27 34.28 34.29 34.30 34.31 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12
36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20
38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27
39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8
41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11
44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 45.1 45.2 45.3 45.4
45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30
45.31 45.32 45.33 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23
47.24 47.25 47.26 47.27 47.28 47.29
47.30 47.31
48.1 48.2
48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19
48.20 48.21
48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13
49.14 49.15
49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28
49.29 49.30
50.1 50.2
50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29
50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23
54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11
55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21
55.22 55.23 55.24 55.25 55.26 55.27
55.28 55.29 55.30 55.31 56.1 56.2 56.3 56.4
56.5 56.6 56.7 56.8
56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21
56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11
57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27
57.28 57.29 57.30
58.1 58.2
58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28
60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15
61.16 61.17
61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 62.37 62.38 62.39 63.1 63.2 63.3 63.4
63.5 63.6
63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13
64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32
69.33
70.1 70.2
70.3 70.4 70.5 70.6 70.7 70.8 70.9
70.10 70.11 70.12 70.13 70.14
70.15 70.16 70.17 70.18 70.19
70.20 70.21 70.22 70.23 70.24 70.25 70.26
70.27 70.28 70.29 70.30 70.31 71.1 71.2 71.3 71.4 71.5 71.6
71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17
71.18 71.19
71.20 71.21 71.22 71.23 71.24 71.25
71.26 71.27 71.28 71.29 71.30
72.1 72.2 72.3 72.4 72.5
72.6 72.7 72.8 72.9 72.10 72.11
72.12 72.13 72.14 72.15 72.16
72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18
A bill for an act
relating to gambling; authorizing and providing for sports betting and fantasy
contests; establishing licenses; prohibiting local restrictions; providing for taxation
of sports betting and fantasy contests; providing civil and criminal penalties;
providing for amateur sports grants; providing for charitable gambling; providing
for pari-mutuel horse racing; requiring reports; appropriating money; amending
Minnesota Statutes 2022, sections 240.01, subdivisions 1c, 8, 14, by adding a
subdivision; 240.30, subdivision 8; 245.98, subdivision 2; 260B.007, subdivision
16; 349.12, by adding a subdivision; 609.75, subdivisions 3, 4, 7, by adding
subdivisions; 609.755; 609.76, subdivision 2; Minnesota Statutes 2023 Supplement,
sections 297E.02, subdivision 6; 349.12, subdivision 25; proposing coding for
new law in Minnesota Statutes, chapters 240; 240A; 299L; 609; proposing coding
for new law as Minnesota Statutes, chapters 297J; 297K; 349C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
LAWFUL SPORTS BETTING
Section 1.
new text begin
[299L.10] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Terms. new text end
new text begin
For the purposes of this chapter, the following terms have the
meanings given them.
new text end
new text begin Subd. 2. new text end
new text begin Athletic event. new text end
new text begin
"Athletic event" means a sports game, match, or activity, or
series of games, matches, activities, or tournaments involving the athletic skill of one or
more players or participants. Athletic event does not include any of the following:
new text end
new text begin
(1) horse racing as defined in section 240.01, subdivision 8;
new text end
new text begin
(2) an esports or athletic competition, demonstration, activity, or tournament organized
by an elementary, middle, or high school, or by any youth activity sports program, league,
or clinic; or
new text end
new text begin
(3) a fantasy sports contest in which participants assemble teams of athletes or individuals
and the winning outcome reflects the relative knowledge and skill of the participants and
is determined predominantly by the accumulated statistical results of the performance of
athletes or individuals in an actual event.
new text end
new text begin Subd. 3. new text end
new text begin Authorized participant. new text end
new text begin
"Authorized participant" means an individual who
has a valid mobile sports betting account with a mobile betting operator and is at least 21
years of age.
new text end
new text begin Subd. 4. new text end
new text begin Casino. new text end
new text begin
"Casino" means an establishment in which gaming is lawfully conducted
by an Indian Tribe in the state of Minnesota pursuant to the Indian Gaming Regulatory Act
and in accordance with a Tribal gaming ordinance and applicable Tribal-state compacts.
new text end
new text begin Subd. 5. new text end
new text begin Class III gaming. new text end
new text begin
"Class III gaming" has the meaning given in United States
Code, title 25, section 2703.
new text end
new text begin Subd. 6. new text end
new text begin College sports. new text end
new text begin
"College sports" means a sporting event in which at least one
participant is a team or individual from a public or private institution of higher education.
new text end
new text begin Subd. 7. new text end
new text begin Compact. new text end
new text begin
"Compact" means a Tribal-state compact governing the conduct of
class III gaming on Indian lands that is negotiated under section 3.9221, any other state law,
or pursuant to the Indian Gaming Regulatory Act, Public Law 100-497, and future
amendments to it.
new text end
new text begin Subd. 8. new text end
new text begin Esports event. new text end
new text begin
"Esports event" means a competition between individuals or
teams using video games in a game, match, contest, or series of games, matches, or contests,
or a tournament, or by a person or team against a specified measure of performance which
is hosted at a physical location or online that meets the following conditions:
new text end
new text begin
(1) the video game does not simulate the play of a game classified as Class I, II, or III
under the Indian Gaming Regulatory Act, Public Law 100-497, and future amendments to
it;
new text end
new text begin
(2) spectators are allowed to watch the competition in real time in person or online; and
new text end
new text begin
(3) the video game is approved by the commissioner to be an event eligible for wagering
under this section to section 299L.80.
new text end
new text begin Subd. 9. new text end
new text begin Indian Tribe. new text end
new text begin
"Indian Tribe" means the following federally recognized Tribes
and any instrumentality, political subdivision, legal entity, or other organization through
which one of them conducts business:
new text end
new text begin
(1) the Fond du Lac Band;
new text end
new text begin
(2) the Grand Portage Band;
new text end
new text begin
(3) the Mille Lacs Band;
new text end
new text begin
(4) the White Earth Band;
new text end
new text begin
(5) the Bois Forte Band;
new text end
new text begin
(6) the Leech Lake Band;
new text end
new text begin
(7) the Red Lake Nation;
new text end
new text begin
(8) the Upper Sioux Community;
new text end
new text begin
(9) the Lower Sioux Indian Community;
new text end
new text begin
(10) the Shakopee Mdewakanton Sioux Community; and
new text end
new text begin
(11) the Prairie Island Indian Community.
new text end
new text begin Subd. 10. new text end
new text begin In-game betting. new text end
new text begin
"In-game betting" means placing a mobile sports betting
wager after a sporting event has started but before the outcome of the wager is determined.
new text end
new text begin Subd. 11. new text end
new text begin Mobile application. new text end
new text begin
"Mobile application" means an application on a mobile
phone or other device through which an individual is able to place a mobile sports betting
wager.
new text end
new text begin Subd. 12. new text end
new text begin Mobile sports betting. new text end
new text begin
"Mobile sports betting" means operating, conducting,
or offering for play sports betting through the Internet.
new text end
new text begin Subd. 13. new text end
new text begin Mobile sports betting account. new text end
new text begin
"Mobile sports betting account" means an
electronic ledger in which all of the following types of transactions relative to an authorized
participant are recorded:
new text end
new text begin
(1) deposits and credits;
new text end
new text begin
(2) withdrawals;
new text end
new text begin
(3) mobile sports betting wagers;
new text end
new text begin
(4) monetary value of winnings;
new text end
new text begin
(5) service or other transaction related charges authorized by the authorized participant,
if any;
new text end
new text begin
(6) adjustments to the account;
new text end
new text begin
(7) promotional activity; and
new text end
new text begin
(8) responsible gaming parameters.
new text end
new text begin Subd. 14. new text end
new text begin Mobile sports betting operator. new text end
new text begin
"Mobile sports betting operator" means an
Indian Tribe that receives a license from the commissioner to operate, conduct, or offer for
play mobile sports betting under this section to section 299L.80.
new text end
new text begin Subd. 15. new text end
new text begin Mobile sports betting platform. new text end
new text begin
"Mobile sports betting platform" means an
integrated system of hardware, software, or applications, including mobile applications and
servers, through which a mobile sports betting operator operates, conducts, or offers sports
betting through the Internet.
new text end
new text begin Subd. 16. new text end
new text begin Mobile sports betting platform provider. new text end
new text begin
"Mobile sports betting platform
provider" means a sports betting supplier that contracts with a mobile sports betting operator
to provide a mobile sports betting platform.
new text end
new text begin Subd. 17. new text end
new text begin Participant in a sporting event. new text end
new text begin
"Participant in a sporting event" means a
person engaging in a sporting event as a player, coach, or official, or who is an owner or
officer of a team engaging in a sporting event or the league or organization organizing the
sporting event.
new text end
new text begin Subd. 18. new text end
new text begin Sporting event. new text end
new text begin
"Sporting event" means an athletic event, esports event,
college sports event, or other event approved by the commissioner to be an event eligible
for wagering under this section to section 299L.80.
new text end
new text begin Subd. 19. new text end
new text begin Sports betting. new text end
new text begin
(a) "Sports betting" means wagering on the outcome of a
sporting event or portions thereof or individual performance statistics therein that is:
new text end
new text begin
(1) organized by a professional sports organization, internationally recognized sports
organization, amateur sports organization, or a postsecondary educational institution or
group of postsecondary educational institutions; and
new text end
new text begin
(2) approved by the commissioner to be an event eligible for wagering under this act.
new text end
new text begin
(b) Sports betting includes but is not limited to single-game bets; futures bets; teaser
bets; parlay bets; over-under bets; money line bets; in-game betting; proposition bets; straight
bets; exchange wagering; futures bets placed on end of the season standings, awards, or
statistics; and any other bets approved by the commissioner.
new text end
new text begin
(c) A contract for insurance on the life or health of a participant in a sporting event is
not sports betting regulated under this section to section 299L.80.
new text end
new text begin
(d) A private social bet as described in section 609.75, subdivision 3, clause (5), is not
sports betting regulated under this section to section 299L.80.
new text end
new text begin
(e) A sports-themed tipboard as described in section 349.12, subdivision 34, is not sports
betting regulated under this section to section 299L.80.
new text end
new text begin Subd. 20. new text end
new text begin Sports betting supplier. new text end
new text begin
"Sports betting supplier" means a person that, either
directly or indirectly, provides mobile sports betting operators with services, goods, software,
or any other product or information necessary to conduct sports betting or determine the
outcome of wagers, including a person who provides data feeds and odds services, risk
management providers, and integrity monitoring providers. Sports betting supplier does not
include a sports governing body that provides raw statistical match data.
new text end
new text begin Subd. 21. new text end
new text begin Sports governing body. new text end
new text begin
"Sports governing body" means an organization
headquartered in the United States that prescribes and enforces final rules and codes of
conduct for a sporting event and participants engaged in the sport. Notwithstanding the
foregoing, the commissioner shall adopt rules to determine the governing body for electronic
sports for the purposes of this chapter.
new text end
new text begin Subd. 22. new text end
new text begin Wager. new text end
new text begin
"Wager" means a transaction between an individual and a licensed
mobile sports betting operator in which an individual pays, deposits, or risks cash or a cash
equivalent during sports betting on an uncertain outcome of a sporting event.
new text end
Sec. 2.
new text begin
[299L.11] SCOPE.
new text end
new text begin Subdivision 1. new text end
new text begin Lawful mobile sports betting. new text end
new text begin
A person 21 years of age or older may
participate in mobile sports betting within the state provided the person places all wagers
with an entity licensed under sections 299L.10 to 299L.80 and is not disqualified, prohibited,
or excluded from placing a wager on a sporting event.
new text end
new text begin Subd. 2. new text end
new text begin Unlawful sports betting. new text end
new text begin
It is unlawful to wager on a sporting event, or engage
in sports betting except in compliance with the terms, conditions, limitations, and restrictions
of sections 299L.10 to 299L.80 or the rules adopted under those sections, other than class
III sports betting conducted by an Indian Tribe pursuant to a Tribal-state compact.
new text end
new text begin Subd. 3. new text end
new text begin Inapplicability to sports betting on Indian lands. new text end
new text begin
Sections 299L.10 to 299L.80,
except for any provisions authorizing the negotiations of Tribal-state compacts, do not apply
to sports betting conducted exclusively on Indian lands by an Indian Tribe conducted pursuant
to a Tribal gaming ordinance approved by the National Indian Gaming Commission and a
Tribal-state compact.
new text end
Sec. 3.
new text begin
[299L.15] POWERS AND DUTIES OF COMMISSIONER.
new text end
new text begin Subdivision 1. new text end
new text begin Regulate sports betting. new text end
new text begin
The commissioner has the power and duty to
regulate mobile sports betting authorized under sections 299L.10 to 299L.80. In making
rules, establishing policy, and regulating mobile sports betting, the commissioner shall:
new text end
new text begin
(1) ensure that mobile sports betting is conducted in a fair and lawful manner;
new text end
new text begin
(2) promote public safety and welfare; and
new text end
new text begin
(3) ensure that mobile sports betting is conducted in a manner that is transparent to
authorized participants.
new text end
new text begin Subd. 2. new text end
new text begin Rulemaking. new text end
new text begin
(a) The commissioner must adopt and enforce rules that are
consistent with sections 299L.10 to 299L.80 and address the following subjects:
new text end
new text begin
(1) the manner in which wagers are accepted and payouts are remitted;
new text end
new text begin
(2) the manner in which betting lines are communicated to the public;
new text end
new text begin
(3) the calculation of gross sports betting revenue and standards for daily counting and
recording of cash and cash equivalents received in the conduct of sports betting;
new text end
new text begin
(4) the method of accounting to be used by mobile sports betting operators;
new text end
new text begin
(5) the types of records that shall be kept by mobile sports betting operators, mobile
sports betting platform providers, and sports betting suppliers;
new text end
new text begin
(6) the testing and auditing requirements for licensees, including requirements related
to mobile sports betting accounts;
new text end
new text begin
(7) the creation, funding, and use of mobile sports betting accounts, debit cards, and
checks by authorized participants provided that the rules permit an authorized participant
to fund a mobile sports betting account through a bonus or promotion, electronic bank
transfer, an online or mobile payment system that supports online money transfers, a
reloadable or prepaid card, and any other appropriate means approved by the commissioner
other than the use of credit cards;
new text end
new text begin
(8) the appropriate standards and practices to prevent and address compulsive and
problem gambling;
new text end
new text begin
(9) the appropriate standards and practices to prevent and address sports betting by
individuals who are not authorized participants or who are otherwise disqualified, prohibited,
or excluded from placing a wager on a sporting event;
new text end
new text begin
(10) the sporting events on which wagers are authorized to be placed;
new text end
new text begin
(11) the requirements for obtaining and retaining mobile sports betting operator licenses,
mobile sports betting platform provider licenses, and sports wagering supplier licenses,
including requirements for criminal and financial background checks, financial disclosure
and auditing requirements, data practices and security requirements, bonding or other surety
requirements, and the conduct of inspections;
new text end
new text begin
(12) the requirements for mobile sports betting platform provider licensees to provide
equipment and supplies used in sports betting;
new text end
new text begin
(13) the requirements for sports wagering supplier licensees to provide services, goods,
software, or any other product or information necessary to conduct sports betting or determine
the outcome of wagers;
new text end
new text begin
(14) the requirements for employees of mobile sports betting operators whose exclusive
or primary responsibilities involve mobile sports betting, including minimum age
requirements, criminal background checks, and retention of documents related to the
employees;
new text end
new text begin
(15) the appropriate limits, requirements, standards, and regulations related to marketing
and advertising, developed in consultation with the state affiliate recognized by the National
Council on Problem Gambling, including rules to address the time, place, and manner of
marketing and advertising, the types of wagers that may be marketed or advertised, and the
types of mobile sports betting accounts that may be marketed or advertised;
new text end
new text begin
(16) the limits and requirements related to advertising, including:
new text end
new text begin
(i) rules that prohibit depicting an individual under age 21 engaging in sports betting;
new text end
new text begin
(ii) rules that prohibit advertisement in any print publication or on radio, television, or
any other medium if the targeted audience of that medium is reasonably expected to be
individuals who are under age 21;
new text end
new text begin
(iii) rules that establish what warnings and other information an advertisement must
contain; and
new text end
new text begin
(iv) rules that limit the frequency of advertisements;
new text end
new text begin
(17) the appropriate standards for limiting the total number of wagers an individual can
place within a specified period of time and any required waiting period between placing
wagers, in order to reduce the addictive impact of mobile wagering applications;
new text end
new text begin
(18) the requirements for monitoring patterns of wagering to identify behaviors consistent
with problem gambling and the appropriate actions to take when problem gambling is
suspected, including pausing or suspending activities from an identified mobile sports betting
account; and
new text end
new text begin
(19) the appropriate limits, standards, and requirements necessary to prevent excessive
wagering by an individual whose ability to control impulsive wagering is impaired in any
way.
new text end
new text begin
(b) Rules for which notice is published in the State Register before January 1, 2025,
may be adopted using the expedited rulemaking process in section 14.389.
new text end
new text begin
(c) The commissioner shall regularly review and update rules designed to prevent and
address compulsive and problem gambling to incorporate advances in the understanding of
compulsive and problem gambling and updated best practices in the area.
new text end
new text begin Subd. 3. new text end
new text begin Delegation. new text end
new text begin
The commissioner may delegate any of its authority under this
chapter to the director if, in the judgment of the commissioner, doing so would promote the
efficient administration of this chapter.
new text end
new text begin Subd. 4. new text end
new text begin Requests for restrictions on wager types. new text end
new text begin
(a) A sports governing body may
request that the commissioner prohibit or restrict wagers on a particular sporting event, or
prohibit or restrict particular types of wagers if the sports governing body believes that such
type, form, or category of sports betting may undermine the integrity or perceived integrity
of the sports governing body or sporting event.
new text end
new text begin
(b) Requests from a sports governing body shall be made in the form and manner
established by the commissioner.
new text end
new text begin
(c) Upon receipt of a request made under this subdivision, the commissioner shall send
written notice to every mobile sports betting operator, provide mobile sports betting operators
with an opportunity to respond to the request, and consider any timely response submitted
by a mobile sports betting operator. The commissioner may not take action without providing
mobile sports betting operators with an opportunity to respond, but may establish reasonable
deadlines for the response based on the nature of the request and any exigent circumstances
that exist.
new text end
new text begin
(d) If the commissioner determines that the sports governing body has shown good cause
to support the requested prohibition or restriction, the commissioner shall adopt the
prohibition or restriction and send notice of the prohibition or restriction to every mobile
sports betting operator. If the commissioner determines that the sports governing body has
not shown good cause to support the requested prohibition or restriction, the commissioner
shall provide the sports governing body with notice and an opportunity for a hearing to offer
further evidence in support of its request. The commissioner shall provide the mobile sports
betting operators with notice of the hearing and an opportunity to participate.
new text end
new text begin
(e) The commissioner shall respond to a request concerning a particular event before
the start of the event, or if it is not feasible to respond before the start of the event, no later
than seven days after the request is made.
new text end
new text begin
(f) If the commissioner determines that the requestor is more likely than not to prevail
in successfully demonstrating good cause for its request, the commissioner may provisionally
grant the request of the sports governing body until the commissioner makes a final
determination as to whether the requestor has demonstrated good cause. Absent such a
provisional grant, mobile sports betting operators may continue to offer sports betting on
covered sporting events that are the subject of the request during the pendency of the
commissioner's consideration of the applicable request.
new text end
Sec. 4.
new text begin
[299L.20] LICENSE TYPES; TRANSFERS PROHIBITED.
new text end
new text begin
(a) The commissioner shall issue the following licenses for mobile sports betting:
new text end
new text begin
(1) up to 11 mobile sports betting operator licenses;
new text end
new text begin
(2) up to 11 mobile sports betting platform provider licenses; and
new text end
new text begin
(3) sports betting supplier licenses.
new text end
new text begin
(b) Licenses issued under sections 299L.10 to 299L.80 may not be transferred.
new text end
Sec. 5.
new text begin
[299L.25] GENERAL LICENSING REQUIREMENTS;
DISQUALIFICATIONS; BACKGROUND INVESTIGATIONS.
new text end
new text begin Subdivision 1. new text end
new text begin General requirements. new text end
new text begin
(a) A licensee or applicant must meet each of
the following requirements, if applicable, to hold or receive a license issued under sections
299L.10 to 299L.80:
new text end
new text begin
(1) have completed an application for licensure or application for renewal;
new text end
new text begin
(2) have paid the applicable application and licensing fees;
new text end
new text begin
(3) not be employed by any state agency with regulatory authority over mobile sports
betting;
new text end
new text begin
(4) not owe $500 or more in delinquent taxes, as defined in section 270C.72;
new text end
new text begin
(5) not have had a sales and use tax permit revoked by the commissioner of revenue
within the past two years; and
new text end
new text begin
(6) not have, after demand, failed to file tax returns required by the commissioner of
revenue.
new text end
new text begin
(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director,
officer, partner, member of the governing body for the applicant or licensee, person in a
supervisory or management position of the applicant or licensee, or any direct or indirect
holder of more than ten percent financial interest in the applicant or licensee.
new text end
new text begin
(c) The requirements under paragraph (a) do not apply to an elected or appointed
representative of any applicant or licensee that is an Indian Tribe unless the representative
is also a full-time employee of the applicant's or licensee's mobile sports betting operations.
new text end
new text begin Subd. 2. new text end
new text begin Criminal offenses; disqualifications. new text end
new text begin
(a) No person may hold or receive a
license issued under sections 299L.10 to 299L.80 if the person has been convicted of, or
received a stay of adjudication for, a violation of a state or federal law that:
new text end
new text begin
(1) is a felony, other than any act that would be a violation of section 152.025 under
Minnesota law;
new text end
new text begin
(2) is a crime involving gambling; or
new text end
new text begin
(3) is a crime involving theft or fraud that would be a gross misdemeanor or felony under
Minnesota law.
new text end
new text begin
(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director,
officer, partner, member of the governing body for the applicant or licensee, person in a
supervisory or management position of the applicant or licensee, or any direct or indirect
holder of more than ten percent financial interest in the applicant or licensee.
new text end
new text begin
(c) The requirements under paragraph (a) do not apply to an elected or appointed
representative of any applicant or licensee that is an Indian Tribe unless the representative
is also a full-time employee of the applicant's or licensee's mobile sports betting operations.
new text end
new text begin Subd. 3. new text end
new text begin Background investigation. new text end
new text begin
The commissioner must perform a background
investigation on applicants for a license or license renewal and on each director, officer,
partner, member of the governing body for the applicant or licensee, person in a supervisory
or management position of the applicant or licensee, or any direct or indirect holder of more
than ten percent financial interest in the applicant or licensee. The commissioner may request
the director and the commissioner of revenue to assist in investigating the background of
an applicant or a licensee under this section. The commissioner may charge an applicant
an investigation fee to cover the cost of the investigation and shall from this fee reimburse
the Division of Alcohol and Gambling Enforcement and the Department of Revenue for
their respective shares of the cost of the investigation. The commissioner is authorized to
have access to all data compiled by the Division of Alcohol and Gambling Enforcement on
licensees and applicants.
new text end
new text begin Subd. 4. new text end
new text begin Criminal history record check. new text end
new text begin
The commissioner must perform a criminal
history record check on each officer, director, or stakeholder with more than ten percent
interest in the licensee or applicant. The records check must include a criminal history check
of the state and federal criminal records. The applicant or licensee must provide signed
consent for the national criminal history records check and fingerprints for each person
subject to a check under this subdivision. The director shall assist in performing the criminal
history records check. The director may charge an applicant a fee to cover the cost of the
criminal history record check, and shall from this fee reimburse the Division of Alcohol
and Gambling Enforcement for its share of the cost of the investigation. The commissioner
or the director must submit the signed informed consent, fingerprints, and Bureau of Criminal
Apprehension and Federal Bureau of Investigation fees to the superintendent of the Bureau
of Criminal Apprehension who is authorized to exchange the fingerprints with the Federal
Bureau of Investigation to obtain the applicant's national criminal history data. The
superintendent of the Bureau of Criminal Apprehension shall retrieve Minnesota criminal
history data and shall provide the results of the state and federal criminal history record
check to the director. The commissioner is authorized to have access to all criminal history
data compiled on licensees and applicants by the Division of Alcohol and Gambling
Enforcement, including criminal history data on each officer, director, or stakeholder with
more than ten percent interest in the licensee or applicant.
new text end
new text begin Subd. 5. new text end
new text begin Prohibition on use of information. new text end
new text begin
The provisions of this section only apply
to mobile sports betting operations and do not apply to other activities relating to Tribal
gaming operations, Tribal government records, or class III sports betting operations conducted
exclusively on Indian lands.
new text end
Sec. 6.
new text begin
[299L.26] LICENSE APPLICATION AND RENEWAL; GENERAL
REQUIREMENTS; PROCEDURE.
new text end
new text begin Subdivision 1. new text end
new text begin Application; contents. new text end
new text begin
An application for a license under sections
299L.10 to 299L.80 must be submitted on a form prescribed by the commissioner. At a
minimum, the application must include:
new text end
new text begin
(1) the name and address of the applicant and, if it is a corporation, the names of all
officers, directors, and shareholders with more than ten percent interest in the corporation
and any of its holding companies;
new text end
new text begin
(2) the type of license being sought;
new text end
new text begin
(3) if required by the commissioner, the names of any person holding directly, indirectly,
or beneficially an interest of any kind in the applicant or any of its holding corporations,
whether the interest is financial, administrative, policy making, or supervisory. This provision
does not extend to individual Tribal members whose only relation to the applicant is their
membership in their respective Tribal Nations, or to an elected or appointed representative
of any applicant or licensee that is an Indian Tribe unless the representative is also a full-time
employee of the applicant's or licensee's mobile sports betting operations;
new text end
new text begin
(4) an affidavit executed by the applicant setting forth that, to the best of the applicant's
knowledge, no officer, director, or other person with a present direct or indirect financial
or management interest in the applicant:
new text end
new text begin
(i) is in default in the payment of an obligation or debt to the state;
new text end
new text begin
(ii) has ever been convicted of a crime listed in section 299L.25, subdivision 2, paragraph
(a), or has a state or federal charge for one of those crimes pending;
new text end
new text begin
(iii) is or has been convicted of engaging in an illegal business;
new text end
new text begin
(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;
or
new text end
new text begin
(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota
relating to wagering;
new text end
new text begin
(5) an irrevocable consent statement, signed by the applicant, which states that suits and
actions limited to the enforcement of this chapter may be commenced against the applicant
by the commissioner in any court of competent jurisdiction in this state by the service on
the secretary of state of any summons, process, or pleadings authorized by the laws of this
state. If any summons, process, or pleadings is served upon the secretary of state, it must
be by duplicate copies. One copy must be retained in the Office of the Secretary of State
and the other copy must be forwarded immediately by certified mail to the address of the
applicant, as shown by the records of the commissioner;
new text end
new text begin
(6) a declaration that the laws of the state of Minnesota will be followed, including any
applicable provisions of the Minnesota Human Rights Act, chapter 363A; and
new text end
new text begin
(7) any additional information required for the specific license the applicant is seeking.
new text end
new text begin Subd. 2. new text end
new text begin Application; process. new text end
new text begin
(a) Applicants must submit all required information to
the commissioner on the forms and in the manner prescribed by the commissioner.
new text end
new text begin
(b) If the commissioner receives an application that fails to provide the required
information, the commissioner shall issue a deficiency notice to the applicant. The applicant
shall have ten business days from the date of the deficiency notice to submit the required
information.
new text end
new text begin
(c) Failure by an applicant to submit all required information will result in the application
being rejected.
new text end
new text begin
(d) Within 90 days of receiving a completed application, the commissioner shall issue
the appropriate license or send the applicant a notice of rejection setting forth specific
reasons why the commissioner did not approve the application.
new text end
new text begin
(e) An applicant whose application is not approved may reapply at any time, but must
submit a new application and pay an additional application fee.
new text end
Sec. 7.
new text begin
[299L.27] DUTY TO UPDATE.
new text end
new text begin
(a) During the pendency of an application and at any time after a license has been issued,
an applicant or licensee shall notify the commissioner of any changes to the information
provided under section 299L.25 or 299L.26.
new text end
new text begin
(b) If a change in the officers, directors, shareholders, or other persons with a present
or future direct or indirect financial or management interest in a licensee, or a change of
ownership of more than ten percent of the shares of the licensee is made after the application
for a license is filed or a license is issued, the applicant or licensee must notify the
commissioner of the changes within ten days of their occurrence and submit a new affidavit
as required by section 299L.26, subdivision 1, clause 4.
new text end
Sec. 8.
new text begin
[299L.28] MOBILE SPORTS BETTING OPERATOR LICENSE.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance. new text end
new text begin
(a) The commissioner may issue up to 11 mobile sports betting
operator licenses that are valid for 20 years. A mobile sports betting operator license may
be renewed under conditions required by rule adopted pursuant to section 299L.15.
new text end
new text begin
(b) The commissioner shall only issue a mobile sports betting operator license to an
Indian Tribe that lawfully conducts class III gaming in a casino located in this state under
a facility license issued in accordance with a Tribal gaming ordinance approved by the chair
of the National Indian Gaming Commission.
new text end
new text begin
(c) Each Indian Tribe described in paragraph (b) is not eligible for more than one mobile
sports betting operator license.
new text end
new text begin Subd. 2. new text end
new text begin Authorized actions. new text end
new text begin
A mobile sports betting operator license entitles the licensee
to:
new text end
new text begin
(1) operate, coordinate, conduct, or offer for play mobile sports betting in Minnesota;
new text end
new text begin
(2) contract with one licensed mobile sports betting platform provider to facilitate the
acceptance of wagers on behalf of the mobile sports betting operator;
new text end
new text begin
(3) contract with licensed sports betting suppliers; and
new text end
new text begin
(4) perform any other actions approved by the commissioner to ensure that mobile sports
betting is conducted in a fair, lawful, and transparent manner.
new text end
new text begin Subd. 3. new text end
new text begin Licensing requirements. new text end
new text begin
A mobile sports betting operator must:
new text end
new text begin
(1) be an entity wholly owned and controlled by an Indian Tribe;
new text end
new text begin
(2) submit a completed application and all required documents or other materials pursuant
to sections 299L.25 and 299L.26 and any relevant rules;
new text end
new text begin
(3) submit a detailed plan and specifications for the implementation of mobile sports
betting;
new text end
new text begin
(4) include mechanisms on its mobile sports betting platform that are designed to detect
and prevent the unauthorized use of Internet sports betting accounts and to detect and prevent
fraud, money laundering, and collusion, or require a contracted mobile sports betting platform
provider to include those mechanisms;
new text end
new text begin
(5) submit a statement of the assets and liabilities of the license holder to the
commissioner;
new text end
new text begin
(6) not be disqualified under section 299L.25 or any relevant rules;
new text end
new text begin
(7) pay an annual licensing fee in the amount of $2,125; and
new text end
new text begin
(8) meet any other conditions required by rule adopted pursuant to section 299L.15.
new text end
new text begin Subd. 4. new text end
new text begin Reporting. new text end
new text begin
A mobile sports betting operator must report to the commissioner
monthly on wagers placed and redeemed during the reporting month and outstanding at the
time of the report.
new text end
new text begin Subd. 5. new text end
new text begin Prohibition on use of information. new text end
new text begin
The provisions of this section only apply
to mobile sports betting operations in this state and do not apply to other activities relating
to Tribal gaming operations, Tribal government records, or class III sports betting operations
conducted exclusively on Indian lands.
new text end
Sec. 9.
new text begin
[299L.29] MOBILE SPORTS BETTING PLATFORM PROVIDER LICENSE.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance. new text end
new text begin
The commissioner may issue up to 11 mobile sports betting
platform provider licenses that are valid for three years. A mobile sports betting platform
provider may be renewed under conditions required by rule adopted pursuant to section
299L.15.
new text end
new text begin Subd. 2. new text end
new text begin Authorized actions. new text end
new text begin
A mobile sports betting platform provider license entitles
the licensee to provide a sports betting platform, sports betting technology, sports betting
applications, or associated mobile sports betting hardware, software, or equipment to a
mobile sports betting operator.
new text end
new text begin Subd. 3. new text end
new text begin Licensing requirements. new text end
new text begin
A mobile sports betting platform provider must:
new text end
new text begin
(1) submit a completed application and all required documents or other materials pursuant
to sections 299L.25 and 299L.26 and any relevant rules;
new text end
new text begin
(2) not be disqualified under section 299L.25 or any relevant rules;
new text end
new text begin
(3) pay an application fee of $50,000 with submission of an application;
new text end
new text begin
(4) pay a licensing fee after the application is approved in the amount of $250,000 or a
license renewal fee of $250,000; and
new text end
new text begin
(5) meet any other conditions required by rule adopted pursuant to section 299L.15.
new text end
Sec. 10.
new text begin
[299L.30] SPORTS BETTING SUPPLIER LICENSE.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance. new text end
new text begin
The commissioner may issue sports betting supplier licenses
that are valid for three years. A sports betting supplier license may be renewed under
conditions required by rule adopted pursuant to section 299L.15.
new text end
new text begin Subd. 2. new text end
new text begin Authorized actions. new text end
new text begin
A sports betting supplier license entitles the licensee to
either directly or indirectly provide mobile sports betting operators with information and
support necessary to offer mobile sports betting. Information and support may be provided
in the form of services, goods, or software, and may include data feeds and odds services,
risk management, and integrity monitoring.
new text end
new text begin Subd. 3. new text end
new text begin Licensing requirements. new text end
new text begin
(a) A sports betting supplier must:
new text end
new text begin
(1) submit a completed application and all required documents for the applicant's principal
owners who directly own ten percent or more of the applicant and the applicant's officers;
new text end
new text begin
(2) pay an application fee of $50,000 with submission of an application;
new text end
new text begin
(3) pay a licensing fee after the application is approved in the amount of $100,000 or a
license renewal fee of $100,000; and
new text end
new text begin
(4) meet any other conditions required by rule adopted pursuant to section 299L.15.
new text end
new text begin
(b) Provided an application has been completed to the satisfaction of the commissioner,
disclosure of the following public information may be waived:
new text end
new text begin
(1) statutorily authorized pension investment boards that are direct or indirect shareholders
of an applicant; and
new text end
new text begin
(2) investment funds or entities registered with the Securities and Exchange Commission,
including any investment advisors or entities under the management of an entity registered
with the Securities and Exchange Commission, that are direct or indirect shareholders of
the applicant.
new text end
Sec. 11.
new text begin
[299L.35] PARTNERSHIP ALLOWED.
new text end
new text begin Subdivision 1. new text end
new text begin Ability to contract with platform providers. new text end
new text begin
(a) A mobile sports betting
operator may, but is not required to, contract with a mobile sports betting platform provider
to provide, create, or operate sports betting platforms, sports betting technology, sports
betting applications, or associated mobile sports betting hardware, software, or equipment.
new text end
new text begin
(b) If a mobile sports betting operator chooses to contract with a mobile sports betting
platform provider for these services, it shall contract with no more than one mobile sports
betting platform provider.
new text end
new text begin
(c) If a mobile sports betting operator chooses not to contract with a mobile sports betting
platform provider for these services, then the mobile sports betting operator must comply
with the reporting and regulatory requirements held by mobile sports betting platform
provider license holders.
new text end
new text begin Subd. 2. new text end
new text begin Logo display required. new text end
new text begin
A mobile sports betting platform provider that has
contracted with a mobile sports betting operator must clearly display a brand of the mobile
sports betting operator within its mobile application.
new text end
Sec. 12.
new text begin
[299L.36] DEPOSIT OF FEES.
new text end
new text begin
Application, license, and renewal fees shall be deposited in the general fund.
new text end
Sec. 13.
new text begin
[299L.37] ADVERTISING.
new text end
new text begin Subdivision 1. new text end
new text begin Prohibition on targeting individuals under age 21. new text end
new text begin
No licensee or
other person shall publish or cause to be published an advertisement for mobile sports betting
that:
new text end
new text begin
(1) depicts a person under age 21 engaging in sports betting or mobile sports betting;
new text end
new text begin
(2) includes an image that is designed to be appealing to individuals under age 21 or
encourage sports betting by individuals under age 21; or
new text end
new text begin
(3) is in any print publication or on radio, television, or any other medium if 30 percent
or more of the audience of that medium is reasonably expected to be individuals who are
under age 21, as determined by reliable, current audience composition data.
new text end
new text begin Subd. 2. new text end
new text begin Prohibition on targeting individuals prohibited from placing wagers. new text end
new text begin
No
licensee or other person shall publish or cause to be published an advertisement for mobile
sports betting that targets individuals who are disqualified, prohibited, or excluded from
placing a wager on a sporting event for any reason, including being identified on the exclusion
list identified in section 299L.45, subdivision 1.
new text end
new text begin Subd. 3. new text end
new text begin Prohibition on advertising in certain locations. new text end
new text begin
No licensee or other person
shall place or cause to be placed an advertisement for mobile sports betting:
new text end
new text begin
(1) in a personal vehicle as defined in section 65B.472, subdivision 1, paragraph (c);
new text end
new text begin
(2) in a taxicab, limousine, or for-hire vehicle;
new text end
new text begin
(3) at a bus stop or train stop location, transit shelter, or transit passenger seating facility;
new text end
new text begin
(4) at a taxi stand or other transportation waiting area;
new text end
new text begin
(5) at any airport; or
new text end
new text begin
(6) at any other similar location.
new text end
new text begin Subd. 4. new text end
new text begin Prohibition on false or misleading claims. new text end
new text begin
No licensee or other person shall
publish or cause to be published an advertisement for mobile sports betting that contains
false or misleading claims or which contains statements, words, or pictures of an obscene,
indecent, or immoral character, or such as would offend public morals or decency.
new text end
Sec. 14.
new text begin
[299L.40] WAGERING.
new text end
new text begin Subdivision 1. new text end
new text begin Placing wagers. new text end
new text begin
An individual who is 21 years of age or older may place
wagers pursuant to sections 299L.10 to 299L.80 provided the individual is not otherwise
disqualified, prohibited, or excluded from doing so.
new text end
new text begin Subd. 2. new text end
new text begin Wager type. new text end
new text begin
A mobile sports betting operator, or a mobile sports betting
platform provider on behalf of a mobile sports betting operator, may only accept wagers of
a type previously approved by the commissioner. Wager types that the commissioner may
approve include but are not limited to the following:
new text end
new text begin
(1) a wager that a participant or participating team will win a sporting event or will win
by a specified number of points;
new text end
new text begin
(2) a wager as to whether the total points scored in a sporting event will be higher or
lower than a number specified;
new text end
new text begin
(3) a wager on an outcome contingency or proposition incidental to a sporting event,
series, tournament, or season for which the outcome is published in newspapers of general
circulation or in records made publicly available by the league or governing body for the
event;
new text end
new text begin
(4) a wager on the outcome of a series of two or more sporting events or a series of two
or more contingencies incidental to a sporting event;
new text end
new text begin
(5) in-game betting;
new text end
new text begin
(6) future bets placed on end of the season standings, awards, or statistics; and
new text end
new text begin
(7) a wager that a participant or participating team will win an esports event or will win
by a specified number of points.
new text end
new text begin Subd. 3. new text end
new text begin Wager types prohibited. new text end
new text begin
Mobile sports betting operators shall not offer or
accept wagers on the occurrence or outcomes of the following situations that may occur
during or after a sporting event:
new text end
new text begin
(1) player injuries;
new text end
new text begin
(2) penalties;
new text end
new text begin
(3) the outcome of player disciplinary rulings; or
new text end
new text begin
(4) replay reviews.
new text end
new text begin Subd. 4. new text end
new text begin Mobile sports betting account; establishment. new text end
new text begin
(a) An individual may establish
a mobile sports betting account by electronic means from any location, and may fund an
account by any means approved by the commissioner.
new text end
new text begin
(b) Money deposited in a mobile sports betting account may not be used to place a wager
until at least three hours have passed from the time of the deposit.
new text end
new text begin
(c) Information provided by an individual who establishes a mobile sports betting account
may be accessed, stored, and used by a mobile sports betting operator.
new text end
new text begin Subd. 5. new text end
new text begin Consideration; mobile sports betting account. new text end
new text begin
(a) A mobile sports betting
operator or mobile sports betting platform provider must not accept a wager unless the
authorized participant provides consideration in the form of funds or other thing of value
such as use of free bets or promotional credits from their mobile sports betting account at
the time of making the wager.
new text end
new text begin
(b) Consideration must be in the form of withdrawal from a mobile sports betting account
maintained by the mobile sports betting operator or mobile sports betting platform provider
for the benefit of and in the name of the wagerer.
new text end
new text begin
(c) A mobile sports betting operator, or a mobile sports betting platform provider on
behalf of a mobile sports betting operator, shall verify an individual's age and identity before
allowing that individual to place a wager. Mobile sports betting operators and mobile sports
betting platform providers may utilize an approved identity verification service provider to
confirm an individual's age and identity.
new text end
new text begin
(d) A person shall have the right to withdraw the balance of funds in the mobile sports
betting account in the person's name at any time with proof of identity, as determined by
rules adopted pursuant to section 299L.15.
new text end
new text begin Subd. 6. new text end
new text begin Wager location. new text end
new text begin
Mobile sports betting wagers regulated under sections 299L.10
to 299L.80 may only be accepted from a person placing a wager online, through a website
or mobile application, while the person placing the wager is physically within the state. The
website or application may be hosted by a mobile sports betting operator operating in
conjunction with a mobile sports betting platform provider. The incidental routing of a
mobile sports wager shall not determine the location or locations in which the wager is
initiated, received, or otherwise made.
new text end
new text begin Subd. 7. new text end
new text begin Information provided at the time of wager. new text end
new text begin
A mobile sports betting operator
or mobile sports betting platform provider must disclose the betting line and terms of a
wager prior to accepting a wager. Terms of the wager include the ratio of the amount to be
paid for winning to the wagered amount.
new text end
new text begin Subd. 8. new text end
new text begin Outcome determined. new text end
new text begin
A mobile sports betting operator or mobile sports betting
platform provider must not accept a wager on the outcome of an event or proposition that
has already been determined.
new text end
new text begin Subd. 9. new text end
new text begin Receipt. new text end
new text begin
A mobile sports betting operator must provide a person who places a
wager with an electronic receipt at the time of sale that contains the following information:
new text end
new text begin
(1) the sporting event or proposition that is the subject of the wager;
new text end
new text begin
(2) the outcome that will constitute a win on the wager;
new text end
new text begin
(3) the amount wagered; and
new text end
new text begin
(4) the payout in the event of a winning wager.
new text end
new text begin Subd. 10. new text end
new text begin Wager data; safeguards necessary. new text end
new text begin
(a) Information regarding wagers made
by an authorized participant who engages in mobile sports betting, including but not limited
to wager type and consideration paid, may be accessed, stored, or used for ordinary business
purposes by the mobile sports betting operator.
new text end
new text begin
(b) Mobile sports betting operators must use commercially reasonable methods to
maintain the security of wager data, authorized participant data, and other confidential
information from unauthorized access and dissemination, however, that nothing in this act
shall preclude the use of Internet or cloud-based hosting of such data and information or
disclosure as required by court order, other law, or this act.
new text end
Sec. 15.
new text begin
[299L.41] PROHIBITION ON PUSH NOTIFICATIONS.
new text end
new text begin
Mobile sports betting operators and mobile sports betting platform providers are
prohibited from sending a message from a mobile sports betting application or website that
appears on a user's device while the application or website is inactive unless the message
is sent to notify the user of potentially fraudulent activity associated with the user's mobile
sports betting account.
new text end
Sec. 16.
new text begin
[299L.45] EXCLUSION LIST AND PROHIBITION ON WAGERING.
new text end
new text begin Subdivision 1. new text end
new text begin Exclusion list. new text end
new text begin
(a) The commissioner shall maintain a list of persons who
are not eligible to wager on sporting events through a mobile sports betting operator. The
list shall include the names of:
new text end
new text begin
(1) persons who have themselves requested to be on the exclusion list;
new text end
new text begin
(2) persons whose names have been submitted, for their protection, by their legal
guardians;
new text end
new text begin
(3) persons whose names have been submitted by mobile sports betting operators, mobile
sports betting platform providers, or mobile sports betting suppliers for good cause; and
new text end
new text begin
(4) persons whose names have been submitted by sports governing bodies.
new text end
new text begin
(b) A person who has requested to be on the exclusion list may specify a time limit of
one, three, or five years for the person's name to be on the list. The commissioner will
remove the person's name from the list at the conclusion of the specified time. A person
may be removed from the list before the specified time by providing proof of completion
of a class approved by the commissioner to address compulsive gambling.
new text end
new text begin
(c) The information contained on the list is private data on individuals, as defined in
section 13.02, subdivision 12, except the commissioner is permitted to share the list with
mobile sports betting operators as needed to prevent persons on the exclusion list from
placing sports betting wagers.
new text end
new text begin Subd. 2. new text end
new text begin Prohibited wagers by certain persons. new text end
new text begin
The following individuals who are
otherwise authorized to place wagers are prohibited from placing the wagers described:
new text end
new text begin
(1) an individual who is prohibited from placing wagers by a mobile sports betting
operator or mobile sports betting platform provider for good cause, including, but not limited
to, any individual placing a wager as an agent or proxy on behalf of another may not place
a wager of any kind;
new text end
new text begin
(2) an individual who is an athlete, coach, referee, player, trainer, or team employee is
prohibited from wagering on a sporting event overseen by that person's sports governing
body;
new text end
new text begin
(3) an individual who holds a position of authority sufficient to exert influence over the
participants in a sporting event, including, but not limited to, a coach, manager, or owner
is prohibited from wagering on that sporting event; and
new text end
new text begin
(4) an individual who has access to certain types of exclusive or nonpublic information
regarding a sporting event is prohibited from wagering on that sporting event and any other
sporting event overseen by the sports governing body of that sporting event.
new text end
new text begin Subd. 3. new text end
new text begin Prohibition on accepting wagers. new text end
new text begin
(a) A mobile sports betting operator or
mobile sports betting platform provider shall not knowingly accept a wager from a person
on the exclusion list or allow a person on the exclusion list to establish a mobile sports
betting account.
new text end
new text begin
(b) A mobile sports betting operator or a mobile sports betting platform provider shall
not knowingly accept a wager prohibited under subdivision 2 from any individual who can
reasonably be identified by publicly available information or by any lists provided to the
commissioner.
new text end
new text begin
(c) Knowingly accepting a wager from a person on the exclusion list is a license violation,
subject to a penalty established by the commissioner.
new text end
Sec. 17.
new text begin
[299L.50] FINANCIAL RESPONSIBILITY.
new text end
new text begin Subdivision 1. new text end
new text begin Responsibility for satisfying winning wagers. new text end
new text begin
A wager on a sporting
event placed with a mobile sports betting operator is an enforceable contract. A mobile
sports betting operator or mobile sports betting platform provider who accepts a wager bears
all risk of loss to satisfy winnings on the wager. A wager that is not redeemed within one
year of the outcome that is the subject of the wager may be canceled by the mobile sports
betting operator and its sports betting platform provider.
new text end
new text begin Subd. 2. new text end
new text begin Cash reserves. new text end
new text begin
(a) A mobile sports betting operator shall, in conjunction with
the mobile sports betting platform provider, maintain cash reserves in an amount that is not
less than the greater of $25,000 or the sum of the following three amounts:
new text end
new text begin
(1) amounts held by the mobile sports betting operator for the mobile sports betting
accounts of authorized participants;
new text end
new text begin
(2) amounts accepted by the mobile sports betting operator as wagers on contingencies
whose outcome have not been determined; and
new text end
new text begin
(3) amounts owed but unpaid by the mobile sports betting operator on winning wagers
through the period established by the operator, subject to time limits set by the commissioner,
for honoring winning wagers.
new text end
new text begin
(b) Such reserves shall be held in the form of cash or cash equivalents segregated from
operational funds, payment processor reserves and receivables, any bond, an irrevocable
letter of credit, or any combination thereof.
new text end
new text begin Subd. 3. new text end
new text begin Bond. new text end
new text begin
A mobile sports betting operator or mobile sports betting platform
provider shall be required to post a bond, securities, or an irrevocable letter of credit in an
amount the commissioner deems necessary after taking into consideration the amount of
the mobile sports betting operator's cash reserves, to protect the financial interests of people
wagering on sporting events. If securities are deposited or an irrevocable letter of credit
filed, the securities or letter of credit must be of a type or in the form provided under section
349A.07, subdivision 5, paragraphs (b) and (c).
new text end
Sec. 18.
new text begin
[299L.51] INTEGRITY MONITORING.
new text end
new text begin
(a) Each mobile sports betting operator or mobile sports betting platform provider must
contract with a licensed independent integrity monitoring provider in order to identify any
unusual betting activity or patterns that may indicate a need for further investigation. The
commissioner shall establish minimum standards requiring each mobile sports betting
operator or mobile sports betting platform provider to participate in the monitoring system
as part of that licensee's minimum internal control standards.
new text end
new text begin
(b) If any unusual betting activity is deemed by independent integrity monitoring provider
to have risen to the level of suspicious betting activity, then the independent integrity
monitoring provider shall immediately report the suspicious activity to the commissioner,
all mobile sports betting operator or mobile sports betting platform provider licensees that
contract with that integrity provider, and the sports governing body that governs the sporting
event on which the suspicious activity was deemed to have taken place.
new text end
new text begin
(c) The commissioner, mobile sports betting operators, and any sports governing body
that receives the information described in paragraph (b) from an independent integrity
monitoring provider must maintain the confidentiality of the information, and use the
information solely for purposes of investigating or preventing the conduct described in this
section unless disclosure is required by this act, the commissioner, other law, or court order,
or unless the sports governing body consents to disclosure. The information may not be
used for any commercial or other purpose.
new text end
new text begin
(d) Notwithstanding paragraph (c), a sports governing body may make disclosures
necessary to conduct and resolve integrity-related investigations and may publicly disclose
such information if required by the sports governing body's integrity policies or if deemed
by the sports governing body in its reasonable judgment to be necessary to maintain the
actual or perceived integrity of its sporting events. Prior to any such public disclosure that
would identify the mobile sports betting operator by name, the sports governing body will
provide the mobile sports betting operator with notice of such disclosure and an opportunity
to object to such disclosure.
new text end
Sec. 19.
new text begin
[299L.53] RECORD KEEPING; INFORMATION SHARING.
new text end
new text begin Subdivision 1. new text end
new text begin Record retention. new text end
new text begin
(a) Mobile sports betting operators shall maintain
records of all bets and wagers placed, including personally identifiable information of an
authorized participant, amount and type of wager, time the wager was placed, location of
the wager, including IP address if applicable, the outcome of the wager, and records of
abnormal betting activity for three years after the sporting event occurs.
new text end
new text begin
(b) Mobile sports betting operators shall maintain video camera recordings in the case
of in-person wagers for at least one year after the sporting event occurs.
new text end
new text begin
(c) Mobile sports betting operators shall make the data described in paragraphs (a) and
(b) available for inspection upon request of the commissioner or as required by court order.
new text end
new text begin Subd. 2. new text end
new text begin Anonymization required. new text end
new text begin
Mobile sports betting operators shall use
commercially reasonable efforts to maintain in real time and at the account level anonymized
information regarding an authorized participant, amount and type of wager, the time the
wager was placed, the location of the wager, including the IP address if applicable, the
outcome of the wager, and records of abnormal betting activity. Nothing in this section shall
require a mobile sports betting operator to provide any information that is prohibited by
federal, state, or local laws or regulations, including laws and regulations relating to privacy
and personally identifiable information.
new text end
new text begin Subd. 3. new text end
new text begin Information sharing. new text end
new text begin
(a) If a sports governing body has notified the
commissioner that access to the information described in subdivision 2 for wagers placed
on sporting events of the sports governing body is necessary to monitor the integrity of such
body's sporting events, then mobile sports betting operators shall share, in a commercially
reasonable frequency, form, and manner, with the sports governing body or its designees
the information under subdivision 2 with respect to sports wagers on sporting events of such
sports governing body.
new text end
new text begin
(b) Sports governing bodies and their designees may only use information received under
this section for integrity-monitoring purposes and may not use information received under
this section for any commercial or other purpose.
new text end
new text begin
(c) Mobile sports betting operators must share, in a time and manner prescribed by the
commissioner, the information described in subdivision 2 with the University of Minnesota
for the purpose of conducting research to ensure the integrity of sports betting or assist the
commissioner of human services in improving state-funded services related to responsible
gambling and problem gambling. Information that the University of Minnesota receives
from mobile sports betting operators under this paragraph constitutes data on the mobile
sports betting operator and is classified as nonpublic data, as defined by section 13.02. The
University of Minnesota must not disclose the information to any person, except for the
purpose of conducting the research described in this paragraph, as part of a peer-reviewed
research report, or pursuant to an agreement between the University of Minnesota and the
mobile sports betting operators or sports governing body.
new text end
new text begin
(d) Nothing in this section shall require a mobile sports betting operator to provide any
information that is prohibited by federal, state, or local laws or regulations, including without
limitation laws and regulations relating to privacy and personally identifiable information.
new text end
Sec. 20.
new text begin
[299L.55] INSPECTION AND AUDITING OF LICENSEES.
new text end
new text begin Subdivision 1. new text end
new text begin Inspection. new text end
new text begin
The commissioner, the commissioner of revenue, and the
director are authorized to inspect the accounting records of licensees at any time provided
the licensee is given notice at least 24 hours before the inspection. This provision only
applies to mobile sports betting operations and does not authorize the inspection of records
related to Tribal gaming operations, Tribal governmental records, or class III sports betting
operations conducted exclusively on Indian Lands.
new text end
new text begin Subd. 2. new text end
new text begin Annual audit. new text end
new text begin
To ensure compliance with this chapter and rules adopted under
this chapter, a mobile sports betting operator must contract with an independent third party
to perform a financial audit, consistent with the standards established by the Public Company
Accounting Oversight Board or using the Statements on Accounting standards issued by
the Audit Standards Board of the American Institute of Certified Public Accountants. The
mobile sports betting operator must submit the audit to the commissioner for examination
and inspection within 120 days of the end of its fiscal year.
new text end
Sec. 21.
new text begin
[299L.60] LICENSE VIOLATIONS; ENFORCEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Schedule of penalties. new text end
new text begin
The commissioner must adopt rules that provide
a graduated schedule of penalties for violations of license requirements under statute or
rule. The schedule must specify penalties that may range from warnings and probation
periods to civil fines, temporary suspension of licenses, or revocation of licenses.
new text end
new text begin Subd. 2. new text end
new text begin Authority to act. new text end
new text begin
(a) The commissioner may issue administrative orders, impose
civil penalties, and suspend, revoke, or not renew a license issued pursuant to sections
299L.10 to 299L.80 if the commissioner determines that a licensee has committed or is
about to commit a violation of those sections or rules adopted pursuant to those sections,
or if the commissioner determines that the licensee is disqualified or ineligible to hold a
license pursuant to section 299L.25 or 299L.26. A conviction for a violation of section
299L.80 is not required for the commissioner to take action on a violation.
new text end
new text begin
(b) Enforcement actions, license suspensions, license revocations, or license nonrenewals
related to a specific mobile sports betting operator shall not impact or limit the ability of
another mobile sports betting operator to conduct, offer, or offer for play mobile sports
betting.
new text end
new text begin Subd. 3. new text end
new text begin Temporary suspension. new text end
new text begin
(a) The commissioner may temporarily, without
hearing, suspend the license and operating privilege of any licensee for a period of up to 90
days if there is clear and convincing evidence that:
new text end
new text begin
(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation,
requires immediate action to protect the public from harm;
new text end
new text begin
(2) the licensee has not timely filed a tax return or paid the tax required under chapter
297J; or
new text end
new text begin
(3) the licensee has not timely paid all fees due under sections 299L.10 to 299L.80.
new text end
new text begin
(b) The commissioner shall notify the licensee of the violation that caused the temporary
suspension and may lift the temporary suspension if the licensee corrects the violation.
new text end
new text begin
(c) The commissioner may extend the period of suspension if the violation is not
corrected, the commissioner notifies the business that it intends to revoke or not renew a
license, and a contested case hearing has not taken place.
new text end
new text begin Subd. 4. new text end
new text begin
Notice of violation; administrative orders; request for reconsideration;
demand for hearing.
new text end
new text begin
(a) The commissioner may issue an administrative order to any
licensee who has committed a violation. The order may require the licensee to correct the
violation or to cease and desist from committing the violation and may impose civil penalties.
The order must state the deficiencies that constitute a violation, the time by which the
violation must be corrected, and the amount of any civil penalty.
new text end
new text begin
(b) If the licensee believes the information in the administrative order is in error, the
licensee may ask the commissioner to reconsider any parts of the order that are alleged to
be in error. The request must be in writing, delivered to the commissioner by certified mail
within seven days after receipt of the order, and provide documentation to support the
allegation of error. The commissioner must respond to a request for reconsideration within
15 days after receiving the request. A request for reconsideration does not stay the order
unless the commissioner issues a supplemental order granting additional time. The
commissioner's disposition of a request for reconsideration is final.
new text end
new text begin
(c) An administrative order that imposes a civil penalty of more than $2,000 shall be
treated as a contested case under chapter 14.
new text end
new text begin
(d) A licensee may request a hearing on the administrative order within 30 days of the
service of the order. The request must be in writing and delivered to the commissioner by
certified mail. If the licensee does not request a hearing within 30 days, the order becomes
final.
new text end
new text begin
(e) If the licensee requests a hearing, the hearing must be held not later than 30 days
after the commissioner receives the request unless the licensee and the commissioner agree
on a later date. After the hearing, the commissioner may enter an order making such
disposition as the facts require. If the licensee fails to appear at the hearing after having
been notified of it, the licensee is considered in default and the proceeding may be determined
against the licensee on consideration of the administrative order, the allegations of which
may be considered to be true. An action of the commissioner under this paragraph is subject
to judicial review pursuant to chapter 14.
new text end
new text begin
(f) Civil penalties collected by the commissioner shall be deposited in the general fund.
Civil penalties may be recovered in a civil action in the name of the state brought in the
district court.
new text end
new text begin Subd. 5. new text end
new text begin Revocation, nonrenewal, civil penalties; contested case. new text end
new text begin
If the commissioner
intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the
commissioner shall provide the licensee with a statement of the complaints made against
the licensee and shall initiate a contested case proceeding. The contested case shall be held
pursuant to chapter 14.
new text end
new text begin Subd. 6. new text end
new text begin Penalties. new text end
new text begin
In addition to penalties listed in this section, a person or licensee
who violates the provisions of sections 299L.10 to 299L.80 is subject to any applicable
criminal penalty.
new text end
Sec. 22.
new text begin
[299L.65] REPORTING.
new text end
new text begin Subdivision 1. new text end
new text begin Financial report. new text end
new text begin
By June 1 of each year, the commissioner must submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the
committee in the house of representatives with jurisdiction over commerce, the committee
in the senate with jurisdiction over state government finance and policy, the committee in
the house of representatives with jurisdiction over ways and means, and the committee in
the senate with jurisdiction over finance. The report must describe the activities of the
commissioner with respect to wagering on sporting events and include summary financial
information on sports betting and the regulated sports betting industry as a whole. The report
must not include information or data on individuals or entities that is classified as private
data under section 299L.70 or separately list the earnings, wagers, or tax revenue generated
by or use identifying information for specific mobile sports betting operators.
new text end
new text begin Subd. 2. new text end
new text begin License activity report. new text end
new text begin
By February 1 of each year beginning in 2025, the
commissioner shall submit a report to the chairs and ranking minority members of the
committees in the house of representatives and the senate with jurisdiction over public
safety, the committee in the house of representatives with jurisdiction over commerce, and
the committee in the senate with jurisdiction over state government finance and policy on
the following:
new text end
new text begin
(1) the status of applications for licenses issued by the commissioner, including the
number of applications for each type of license, the number of licenses of each type issued,
and the average time between receipt of a complete application and issuance of each type
of license;
new text end
new text begin
(2) an overview of the sports betting market, including but not limited to the actual and
anticipated demand;
new text end
new text begin
(3) the amount of revenue generated to the state by sports betting and the expenses
incurred by the commissioner in enforcing restrictions on lawful sports betting; and
new text end
new text begin
(4) the commissioner's enforcement actions taken against persons licensed under sections
299L.10 to 299L.80 for licensing violations, including violations of the rules adopted under
section 299L.15.
new text end
Sec. 23.
new text begin
[299L.70] DATA PROTECTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Classification. new text end
new text begin
Data in which an individual who has wagered on sporting
events is identified by name, account number, Social Security number, or any other uniquely
identifying indicia, is private data on individuals, as defined in section 13.02, subdivision
12. Data on individual earnings of mobile sports betting operators, mobile sports betting
operator application and licensing information, and all Tribal revenue records unassociated
with mobile sports betting operators is nonpublic data, as defined in section 13.02, subdivision
9.
new text end
new text begin Subd. 2. new text end
new text begin Sale of private data on individuals. new text end
new text begin
The commissioner shall revoke any license
issued under sections 299L.10 to 299L.80 of a person who sells data on individuals that
would be classified as private under subdivision 1 collected through the practice of sports
betting.
new text end
Sec. 24.
new text begin
[299L.75] LOCAL RESTRICTIONS; PROHIBITION ON LOCAL TAXES
OR FEES.
new text end
new text begin
No political subdivision may require a local license to offer sports betting or impose a
tax or fee on the sports betting conducted pursuant to this chapter.
new text end
Sec. 25. new text begin INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.
new text end
new text begin
The governor or the governor's designated representatives shall negotiate in good faith
new Tribal-state compacts regulating the conduct of class III sports betting on the Indian
lands of an Indian Tribe requesting negotiations, under Minnesota Statutes, section 3.9221.
Compacts in effect on January 1, 2024, shall not be modified to accommodate sports betting.
new text end
Sec. 26. new text begin EFFECTIVE DATE.
new text end
new text begin
Except as otherwise provided, this article is effective July 1, 2024.
new text end
ARTICLE 2
TAXATION OF SPORTS BETTING
Section 1.
new text begin
[297J.01] DEFINITIONS.
new text end
new text begin
Unless otherwise defined in this chapter, or unless the context clearly indicates otherwise,
the following terms have the meanings given:
new text end
new text begin
(1) "casino" has the meaning given in section 299L.10, subdivision 4;
new text end
new text begin
(2) "commissioner" means the commissioner of revenue;
new text end
new text begin
(3) "mobile sports betting operator" has the meaning given in section 299L.10, subdivision
14;
new text end
new text begin
(4) "sporting event" has the meaning given in section 299L.10, subdivision 18;
new text end
new text begin
(5) "sports betting" has the meaning given in section 299L.10, subdivision 19;
new text end
new text begin
(6) "sports betting net revenue" means the total of all cash and cash equivalents received
in a month by a mobile sports betting operator from wagers on sporting events, less the
following:
new text end
new text begin
(i) cash paid out as winnings in the month; and
new text end
new text begin
(ii) the cash equivalent of noncash prizes paid out as winnings in the month; and
new text end
new text begin
(7) "wager" has the meaning given in section 299L.10, subdivision 22.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sports betting net revenue received
after June 30, 2024.
new text end
Sec. 2.
new text begin
[297J.02] TAX ON SPORTS BETTING NET REVENUE.
new text end
new text begin Subdivision 1. new text end
new text begin Tax imposed. new text end
new text begin
(a) Except as provided in paragraph (b), a tax is imposed
on sports betting net revenue received equal to 20 percent on wagers placed online through
a website or mobile application, as allowed under section 299L.40.
new text end
new text begin
(b) Any wager placed on Indian lands is not subject to state taxation. For purposes of
this chapter, a wager is placed at the physical location of the individual placing the wager.
new text end
new text begin Subd. 2. new text end
new text begin Sports betting net revenue tax in lieu of other taxes. new text end
new text begin
Income derived by a
mobile sports betting operator from the conduct of wagering on a sporting event is not
subject to the tax imposed in chapter 290. Wagers accepted by a mobile sports betting
operator are not subject to the tax imposed in section 297A.62 or 297E.03.
new text end
new text begin Subd. 3. new text end
new text begin Returns; due dates. new text end
new text begin
A mobile sports betting operator must file a return by the
20th day of each month reporting the tax due under this section for the preceding month.
The return must include the amount of all wagers received, payouts made, all sports betting
taxes owed, and other information required by the commissioner. The tax under this chapter
is due to be paid to the commissioner on the day the return is due.
new text end
new text begin Subd. 4. new text end
new text begin Public information. new text end
new text begin
All records concerning the administration of taxes under
this chapter are classified as public information.
new text end
new text begin Subd. 5. new text end
new text begin Refunds. new text end
new text begin
A person who has, under this chapter, paid to the commissioner an
amount of tax for a period in excess of the amount legally due for that period may file with
the commissioner a claim for a refund of the excess. The amount necessary to pay the refunds
under this subdivision is appropriated from the sports betting revenue account established
in subdivision 7 to the commissioner.
new text end
new text begin Subd. 6. new text end
new text begin Extensions. new text end
new text begin
If in the commissioner's judgment good cause exists, the
commissioner may extend the time for filing tax returns, paying taxes, or both under this
section for not more than six months.
new text end
new text begin Subd. 7. new text end
new text begin Distribution of revenues; account established. new text end
new text begin
(a) The commissioner must
deposit the revenues, including penalties and interest, derived from the tax imposed by this
section as follows:
new text end
new text begin
(1) 80 percent to the general fund; and
new text end
new text begin
(2) 20 percent to the sports betting revenue account in the special revenue fund.
new text end
new text begin
(b) The sports betting revenue account is established in the special revenue fund.
new text end
new text begin Subd. 8. new text end
new text begin Distribution of money. new text end
new text begin
(a) All amounts collected in the previous fiscal year
by the commissioner in the sports betting revenue account must be distributed annually by
October 1 as provided in this subdivision. Any money remaining in the account at the end
of each fiscal year does not cancel. Interest and income earned on money in the account,
after deducting any applicable charges, shall be credited to the account. After deducting
any amounts necessary to pay the refunds under subdivision 5, the money shall be distributed
as provided in paragraphs (b) and (d).
new text end
new text begin
(b) 50 percent is appropriated to the commissioner of human services, of which:
new text end
new text begin
(1) one-third is for the compulsive gambling treatment program established under section
245.98 which must also be available for up to 60 hours of intervention services for a family
member or concerned significant other who is a Minnesota resident and is negatively
impacted by problem or compulsive gambling;
new text end
new text begin
(2) one-third is for emergency services grants under section 256E.36; and
new text end
new text begin
(3) one-third is for a grant to the state affiliate recognized by the National Council on
Problem Gambling to increase public awareness of problem gambling, provide education
and training for individuals and organizations providing effective treatment services to
problem gamblers and their families, and conduct research relating to problem gambling.
new text end
new text begin
(c) Money appropriated by this subdivision must supplement and must not replace
existing state funding for these programs. Money appropriated from the sports betting
revenue account under this subdivision is available until expended.
new text end
new text begin
(d) 50 percent shall be transferred to the amateur sports integrity and participation account
established pursuant to section 240A.15, subdivision 1.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sports betting net revenue received
after June 30, 2024.
new text end
Sec. 3.
new text begin
[297J.03] MOBILE SPORTS BETTING OPERATOR REPORTS AND
RECORDS.
new text end
new text begin Subdivision 1. new text end
new text begin Business records. new text end
new text begin
A mobile sports betting operator must maintain records
supporting the sports betting activity and taxes owed. Records required to be kept in this
section must be preserved by the mobile sports betting operator for at least 3-1/2 years after
the return is due or filed, whichever is later, and may be inspected by the commissioner at
any reasonable time without notice or a search warrant.
new text end
new text begin Subd. 2. new text end
new text begin Audits. new text end
new text begin
The commissioner may require a financial audit of a mobile sports
betting operator's sports betting activities if the mobile sports betting operator has failed to
comply with this chapter as it relates to financial reporting. Audits must be performed by
an independent accountant licensed according to chapter 326A. The commissioner must
prescribe standards for an audit required under this subdivision. A complete, true, and correct
copy of an audit must be filed as prescribed by the commissioner. Nothing in this subdivision
limits the commissioner's ability to conduct its own audit pursuant to its authority under
chapter 270C.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sports betting net revenue received
after June 30, 2024.
new text end
Sec. 4.
new text begin
[297J.04] OTHER PROVISIONS APPLY.
new text end
new text begin
Except for those provisions specific to distributors, gambling products, or gambling
equipment, sections 297E.11 to 297E.14 apply to this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sports betting net revenue received
after June 30, 2024.
new text end
ARTICLE 3
FANTASY CONTESTS
Section 1.
new text begin
[349C.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Terms. new text end
new text begin
For the purposes of this chapter, the following terms have the
meanings given.
new text end
new text begin Subd. 2. new text end
new text begin Adjusted gross fantasy contest receipts. new text end
new text begin
"Adjusted gross fantasy contest
receipts" means the amount equal to the total of all entry fees that a fantasy contest operator
collects from all participants minus the total of all prizes paid out to all participants multiplied
by the location percentage for this state.
new text end
new text begin Subd. 3. new text end
new text begin Athletic event. new text end
new text begin
"Athletic event" means a sports game, match, or activity, or
series of games, matches, activities, or tournaments involving the athletic skill of one or
more players or participants.
new text end
new text begin Subd. 4. new text end
new text begin Authorized participant. new text end
new text begin
"Authorized participant" means an individual who
has a valid fantasy contest account with a fantasy contest operator and is at least 21 years
of age.
new text end
new text begin Subd. 5. new text end
new text begin College sports. new text end
new text begin
"College sports" means a sporting event in which at least one
participant is a team or individual from a public or private institution of higher education.
new text end
new text begin Subd. 6. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of public safety.
new text end
new text begin Subd. 7. new text end
new text begin Entry fee. new text end
new text begin
"Entry fee" means cash or cash equivalent that is required to be paid
by an authorized participant and set in advance by a fantasy contest operator to participate
in a fantasy contest.
new text end
new text begin Subd. 8. new text end
new text begin Esports event. new text end
new text begin
"Esports event" means a competition between individuals or
teams using video games in a game, match, or contest, or series of games, matches, or
contests, or a tournament, or by a person or team against a specified measure of performance
which is hosted at a physical location or online that is approved by the commissioner to be
an event eligible for fantasy contests under this chapter.
new text end
new text begin Subd. 9. new text end
new text begin Fantasy contest. new text end
new text begin
"Fantasy contest" means any simulated game or contest, with
an entry fee, in which:
new text end
new text begin
(1) the value of all prizes offered to a winning authorized participant are established and
made known to the authorized participant in advance of the contest;
new text end
new text begin
(2) all winning outcomes reflect the relative knowledge and skill of the authorized
participant; and
new text end
new text begin
(3) the authorized participant assembles, owns, or manages a fictional entry or roster of
actual professional or amateur athletes, who participate in real-world sports events, or esports
events that are regulated by a governing body and that are held between professional players
who play individually or as teams.
new text end
new text begin Subd. 10. new text end
new text begin Fantasy contest account. new text end
new text begin
"Fantasy contest account" means an electronic
ledger in which the following types of transactions relative to an authorized participant are
recorded:
new text end
new text begin
(1) deposits and credits;
new text end
new text begin
(2) withdrawals;
new text end
new text begin
(3) fantasy contest wagers;
new text end
new text begin
(4) monetary value of winnings;
new text end
new text begin
(5) service or other transaction related charges authorized by the authorized participant,
if any;
new text end
new text begin
(6) adjustments to the account;
new text end
new text begin
(7) promotional activity; and
new text end
new text begin
(8) responsible gaming parameters.
new text end
new text begin Subd. 11. new text end
new text begin Fantasy contest operator. new text end
new text begin
"Fantasy contest operator" means an entity that is
licensed by the commissioner to operate, conduct, or offer for play fantasy contests under
this chapter. A fantasy contest operator shall not be an authorized participant in a fantasy
contest.
new text end
new text begin Subd. 12. new text end
new text begin Governing body. new text end
new text begin
"Governing body" means an organization headquartered in
the United States that prescribes and enforces final rules and codes of conduct for a sporting
event and participants engaged in the sport. Notwithstanding the foregoing, the commissioner
shall adopt rules to determine the governing body for electronic sports for the purposes of
this chapter.
new text end
new text begin Subd. 13. new text end
new text begin Location percentage. new text end
new text begin
"Location percentage" means the percentage rounded
to the nearest tenth of one percent of the total entry fees collected from authorized participants
located in this state divided by the total entry fees collected from all players in the fantasy
contest activity.
new text end
new text begin Subd. 14. new text end
new text begin Sports event. new text end
new text begin
"Sports event" means an athletic event, esports event, college
sports event, or other event approved by the commissioner to be an event eligible for
participation in a fantasy contest under this chapter. Sports event does not include:
new text end
new text begin
(1) horse racing as defined in section 240.01, subdivision 8; or
new text end
new text begin
(2) an esports or athletic event, demonstration, activity, or tournament organized by an
elementary, middle, or high school, or by any youth activity sports program, league, or
clinic.
new text end
new text begin Subd. 15. new text end
new text begin Wager. new text end
new text begin
"Wager" means a transaction between an authorized participant and
a licensed fantasy contest operator in which an authorized participant pays, deposits, or
risks cash or a cash equivalent as an entry fee into a fantasy contest.
new text end
Sec. 2.
new text begin
[349C.02] POWERS AND DUTIES OF THE COMMISSIONER.
new text end
new text begin Subdivision 1. new text end
new text begin Regulate fantasy contests. new text end
new text begin
The commissioner has the power and duty
to regulate fantasy contests authorized under this chapter. In making rules, establishing
policy, and regulating fantasy contests, the commissioner shall:
new text end
new text begin
(1) ensure that fantasy contests are conducted in a fair and lawful manner;
new text end
new text begin
(2) promote public safety and welfare; and
new text end
new text begin
(3) ensure that fantasy contests are conducted in a manner that is transparent to authorized
participants.
new text end
new text begin Subd. 2. new text end
new text begin Rulemaking. new text end
new text begin
(a) The commissioner must adopt and enforce rules consistent
with this chapter that address:
new text end
new text begin
(1) the manner in which wagers are accepted and payouts are remitted;
new text end
new text begin
(2) the types of records that shall be kept by fantasy contest operators;
new text end
new text begin
(3) the testing and auditing requirements for licensees, including requirements related
to fantasy contest accounts;
new text end
new text begin
(4) the method of accounting used by fantasy contest operators;
new text end
new text begin
(5) the creation, funding, and use of fantasy contest accounts, debit cards, and checks
by authorized participants, provided that the rules permit an authorized participant to fund
a fantasy contest account through a bonus or promotion, electronic bank transfer, an online
or mobile payment system that supports online money transfers, a reloadable or prepaid
card, and any other appropriate means approved by the commissioner, not including the use
of credit cards;
new text end
new text begin
(6) the appropriate standards and practices to prevent and address compulsive and
problem gambling;
new text end
new text begin
(7) the appropriate standards and practices to prevent and address fantasy contest entry
by individuals who are not authorized participants or who are otherwise disqualified,
prohibited, or excluded from contest entry;
new text end
new text begin
(8) the sporting events eligible for fantasy contests;
new text end
new text begin
(9) the requirements for obtaining and retaining fantasy contest operator licenses,
including requirements for criminal and financial background checks, financial disclosure
and auditing requirements, data practices and security requirements, bonding or other surety
requirements, and the conduct of inspections;
new text end
new text begin
(10) investigation into any licensed or unlicensed person or entity when a person or
entity is engaged in conducting a fantasy contest or engaged in conduct advertised as a
fantasy contest that does meet the requirements of this chapter;
new text end
new text begin
(11) the requirements for monitoring patterns of participation to identify behaviors
consistent with problem gambling and the appropriate actions to take when problem gambling
is suspected, including pausing or suspending activities from an identified fantasy contest
account; and
new text end
new text begin
(12) the appropriate limits, standards, and requirements necessary to prevent excessive
wagering by an individual whose ability to control impulsive wagering is impaired in any
way.
new text end
new text begin Subd. 3. new text end
new text begin Licensing; fee collection. new text end
new text begin
(a) The commissioner shall issue all fantasy contest
operator licenses. Licenses issued under this chapter may not be transferred.
new text end
new text begin
(b) The commissioner shall collect all license fees, including renewals, surcharges, and
civil penalties imposed by this chapter.
new text end
new text begin Subd. 4. new text end
new text begin Delegation. new text end
new text begin
The commissioner may delegate any of its authority under this
chapter to the director of alcohol and gambling enforcement if, in the judgment of the
commissioner, doing so would promote the efficient administration of this chapter.
new text end
new text begin Subd. 5. new text end
new text begin Additional powers. new text end
new text begin
The commissioner may exercise any other powers necessary
to enforce the provisions of this chapter.
new text end
Sec. 3.
new text begin
[349C.03] LICENSING; APPLICATION REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin General requirements. new text end
new text begin
(a) A licensee or applicant must meet each of
the following requirements, if applicable, to hold or receive a license issued under this
chapter:
new text end
new text begin
(1) complete an application for licensure or application for renewal;
new text end
new text begin
(2) pay the applicable application and licensing fees;
new text end
new text begin
(3) not owe $500 or more in delinquent taxes, as defined in section 270C.72;
new text end
new text begin
(4) not have, after demand, failed to file tax returns required by the commissioner of
revenue; and
new text end
new text begin
(5) no officer, director, or other person with a present direct or indirect financial or
management interest in the applicant:
new text end
new text begin
(i) is in default in the payment of an obligation or debt to the state;
new text end
new text begin
(ii) has been convicted of a crime listed in section 299L.25, subdivision 2, paragraph
(a), or has a state or federal charge for one of those crimes pending;
new text end
new text begin
(iii) is or has been convicted of engaging in an illegal business;
new text end
new text begin
(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;
new text end
new text begin
(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota
relating to wagering; or
new text end
new text begin
(vi) may be employed by any state agency with regulatory authority over fantasy contests.
new text end
new text begin
(b) Any fantasy contest operator applying for licensure or renewal of a license may
operate during the application period unless the commissioner has reasonable cause to
believe that such operator is or may be in violation of the provisions of this chapter.
new text end
new text begin
(c) A fantasy contest operator applying for licensure or renewal of a license must pay
an application fee of $10,000.
new text end
new text begin Subd. 2. new text end
new text begin Application; contents. new text end
new text begin
(a) An application for a license under this chapter must
be submitted on a form prescribed by the commissioner. At a minimum, the application
must include:
new text end
new text begin
(1) the business name, address, and contact information of the applicant;
new text end
new text begin
(2) the applicant's website address;
new text end
new text begin
(3) the applicant's tax identification number;
new text end
new text begin
(4) proof of the applicant's financial security in an amount sufficient to comply with the
provisions of section 349C.08;
new text end
new text begin
(5) the name and address of all officers, directors, and shareholders with more than ten
percent interest in the corporation and any of its holding companies;
new text end
new text begin
(6) an affidavit executed by the applicant setting forth that, to the best of the applicant's
knowledge, the applicant meets the requirements of subdivision 1, paragraph (a), clauses
(3) to (5);
new text end
new text begin
(7) an irrevocable consent statement, signed by the applicant, which states that suits and
actions limited to the enforcement of this chapter may be commenced against the applicant
by the commissioner in any court of competent jurisdiction in this state by the service on
the secretary of state of any summons, process, or pleadings authorized by the laws of this
state. If any summons, process, or pleadings is served upon the secretary of state, it must
be by duplicate copies. One copy must be retained in the Office of the Secretary of State
and the other copy must be forwarded immediately by certified mail to the address of the
applicant, as shown by the records of the commissioner;
new text end
new text begin
(8) a declaration that the laws of the state of Minnesota will be followed, including any
applicable provisions of the Minnesota Human Rights Act, chapter 363A; and
new text end
new text begin
(9) any additional information required by the commissioner.
new text end
new text begin
(b) If the commissioner receives an application that fails to provide the required
information, the commissioner shall issue a deficiency notice to the applicant. The applicant
shall have ten business days from the date of the deficiency notice to submit the required
information.
new text end
new text begin
(c) Failure by an applicant to submit all required information will result in the application
being rejected.
new text end
new text begin
(d) Within 90 days of receiving a completed application, the commissioner shall issue
the appropriate license or send the applicant a notice of rejection setting forth specific
reasons why the commissioner did not approve the application.
new text end
new text begin
(e) An applicant whose application is not approved may reapply at any time, but must
submit a new application and pay an additional application fee.
new text end
new text begin Subd. 3. new text end
new text begin Duty to update. new text end
new text begin
(a) During the pendency of an application and at any time
after a license has been issued, an applicant or licensee shall notify the commissioner of
any changes to the information provided under this section.
new text end
new text begin
(b) If a change in the officers, directors, shareholders, or other persons with a present
or future direct or indirect financial or management interest in a licensee, or a change of
ownership of more than ten percent of the shares of the licensee is made after the application
for a license is filed or a license is issued, the applicant or licensee must notify the
commissioner of the changes within ten days of their occurrence and submit a new affidavit
as required by this section.
new text end
new text begin Subd. 4. new text end
new text begin Deposit of fees. new text end
new text begin
Application, registration, license, and renewal fees shall be
deposited in the general fund.
new text end
Sec. 4.
new text begin
[349C.04] FANTASY CONTEST OPERATOR LICENSE.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance; renewal. new text end
new text begin
The commissioner may issue an unlimited number
of licenses. Each license is valid for three years and may be renewed under conditions
required by rule adopted pursuant to section 349C.02.
new text end
new text begin Subd. 2. new text end
new text begin Licensing requirements. new text end
new text begin
A fantasy contest operator must:
new text end
new text begin
(1) submit a completed application and all required documents or other materials pursuant
to this chapter and any relevant rules;
new text end
new text begin
(2) submit a detailed plan and specifications for the implementation of fantasy contests;
new text end
new text begin
(3) include mechanisms on its platform that are designed to detect and prevent the
unauthorized use of fantasy contest accounts and to detect and prevent fraud, money
laundering, and collusion;
new text end
new text begin
(4) include identity and geolocation verification procedures, which may require the use
of a reputable independent third party that is in the business of verifying an individual's
personally identifiable information and can detect potential prohibited participants;
new text end
new text begin
(5) submit a statement of the assets and liabilities of the license holder to the
commissioner;
new text end
new text begin
(6) pay a licensing fee pursuant to subdivision 3 upon initial application and at each
subsequent license renewal; and
new text end
new text begin
(7) meet any other conditions required by rule adopted pursuant to section 349C.02.
new text end
new text begin Subd. 3. new text end
new text begin Fees. new text end
new text begin
(a) The initial license fee for a fantasy contest operator that operated in
Minnesota in the preceding 12 months shall be the greater of ten percent of its adjusted
gross fantasy contest receipts from the preceding 12 months or $5,000. The initial license
fee for a fantasy contest operator that did not operate in the state for at least the preceding
12 months shall be $5,000.
new text end
new text begin
(b) The license renewal fee shall be one percent of adjusted gross fantasy contest receipts
for the preceding three years.
new text end
new text begin Subd. 4. new text end
new text begin Continued operation; registration. new text end
new text begin
(a) Any fantasy operator already offering
fantasy contests to persons located in Minnesota before July 1, 2024, may continue to offer
contests to persons located in Minnesota until the fantasy operator's application for licensure
has been approved or denied so long as the fantasy operator files an application for licensure
with the commissioner within 90 days of the commissioner making applications available
for submission.
new text end
new text begin
(b) A fantasy contest operator must register with the commissioner in a form and manner
prescribed by the commissioner to continue operations under paragraph (a). The fantasy
contest operator must submit its registration with a $10,000 registration fee.
new text end
new text begin Subd. 5. new text end
new text begin Reporting. new text end
new text begin
A fantasy contest operator must report to the commissioner monthly
on wagers placed and redeemed during the reporting month and outstanding at the time of
the report.
new text end
Sec. 5.
new text begin
[349C.05] FANTASY CONTESTS AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Authorization. new text end
new text begin
A person 21 years of age or older may participate in a
fantasy contest within the state provided the person places all wagers with an entity licensed
under this chapter and is not disqualified, prohibited, or excluded from participation in a
fantasy contest.
new text end
new text begin Subd. 2. new text end
new text begin Fantasy contest. new text end
new text begin
(a) Entry into a fantasy contest by an authorized participant
is lawful provided that:
new text end
new text begin
(1) winning outcomes are determined solely by clearly established scoring criteria based
on one or more statistical results of the performance of individual athletes, including but
not limited to a fantasy score or a statistical measure of performance; and
new text end
new text begin
(2) no winning outcome is entirely based on the score, point spread, or any performance
of any single actual team or combination of teams or solely on any single performance of
an individual athlete or player in any single actual event;
new text end
new text begin
(b) Fantasy contests may include both contests wherein authorized participants compete
against each other and contests wherein only a single authorized participant competes against
a target score set by the fantasy contest operator.
new text end
new text begin
(c) Any fantasy contest conducted under this chapter does not constitute sports betting
for any purpose, as set forth in sections 299L.10 to 299L.80.
new text end
new text begin
(d) A fantasy contest subject to the requirements of this chapter does not include:
new text end
new text begin
(1) any fantasy contest in which the authorized participant is not required to pay an entry
fee to a fantasy contest operator; or
new text end
new text begin
(2) contests:
new text end
new text begin
(i) with rosters whose membership is limited to athletes of a single sport;
new text end
new text begin
(ii) that encompass at least one-half of a sport's regular season of the athletic activity in
which the underlying competition is being conducted;
new text end
new text begin
(iii) in which participants compete against each other; and
new text end
new text begin
(iv) in which the fantasy contest operator, if it so chooses, retains an administrative fee
not to exceed 50 percent of all entry fees paid to enter the single season-long contest.
new text end
new text begin Subd. 3. new text end
new text begin Fantasy contest operator. new text end
new text begin
A fantasy contest operator must:
new text end
new text begin
(1) make available on its website means to allow individuals to self-report to the exclusion
list provided under section 349C.07;
new text end
new text begin
(2) provide authorized participants with access to their play history and account details,
including all deposit amounts, withdrawal amounts, a summary of entry fees expended, and
bonus or promotion information, including how much is left on any pending bonus or
promotion and how much has been released to the authorized participant;
new text end
new text begin
(3) segregate authorized participant funds, including amounts in live fantasy contests
that have not been paid out yet, from operational funds;
new text end
new text begin
(4) prominently publish the rules governing each fantasy contest with an entry fee;
new text end
new text begin
(5) develop and prominently publish procedures by which any person may file a complaint
with the operator and the commissioner; and
new text end
new text begin
(6) disclose the terms of all promotional offers at the time the offers are advertised, and
provide full disclosures of limitations on the offer before an authorized participant provides
financial consideration in exchange for the offer.
new text end
Sec. 6.
new text begin
[349C.06] WAGERING.
new text end
new text begin Subdivision 1. new text end
new text begin Placing wagers; entry fees. new text end
new text begin
An individual who is 21 years of age or
older may place wagers pursuant to this chapter by submitting an entry fee to a fantasy
contest operator to participate in a fantasy contest provided the individual is not otherwise
disqualified, prohibited, or excluded from doing so. A fantasy contest operator may only
accept wagers in a form and manner prescribed and approved by the commissioner.
new text end
new text begin Subd. 2. new text end
new text begin Fantasy contest account. new text end
new text begin
(a) An individual may establish a fantasy contest
account by electronic means from any location, and may fund an account by any means
approved by the commissioner.
new text end
new text begin
(b) A fantasy contest operator must not accept a wager unless the authorized participant
provides consideration in the form of money or other thing of value such as use of
promotional credits from the authorized participant's fantasy contest account at the time of
making the wager.
new text end
new text begin
(c) Consideration must be in the form of withdrawal from a fantasy contest account
maintained by the fantasy contest operator for the benefit of and in the name of the wagerer.
new text end
new text begin
(d) A fantasy contest operator shall verify an individual's age and identity before allowing
that individual to place a wager and may utilize an approved identity verification service
provider to confirm an individual's age and identity.
new text end
new text begin
(e) A fantasy contest operator must deposit any prize won by an authorized participant
into the authorized participant's account within 72 hours of winning the prize.
new text end
new text begin
(f) An authorized participant shall have the right to withdraw the balance of funds in the
fantasy contest account in the authorized participant's name at any time with proof of identity,
as determined by rules adopted pursuant to section 349C.02, within ten business days of
the request being made. This period shall be extended if the fantasy contest operator believes
in good faith that the authorized participant engaged in either fraudulent conduct or other
conduct that would put the operator in violation of this chapter, in which case the fantasy
contest operator may decline to honor the request for withdrawal for a reasonable
investigatory period until the investigation is resolved if the fantasy contest operator provides
notice of the nature of the investigation to the authorized participant. If the investigation
exceeds 60 days, the fantasy contest operator shall notify the commissioner. For the purposes
of this provision, a request for withdrawal will be considered honored if it is processed by
the fantasy contest operator but delayed by a payment processor, credit card issuer, or by
the custodian of a financial account.
new text end
new text begin Subd. 3. new text end
new text begin Wager location. new text end
new text begin
Fantasy contest wagers may only be accepted from an
authorized participant placing a wager online, through a website or mobile application,
while the authorized participant is physically within the state. The incidental routing of a
fantasy contest wager shall not determine the location or locations in which the wager is
initiated, received, or otherwise made.
new text end
new text begin Subd. 4. new text end
new text begin Wagers prohibited. new text end
new text begin
A fantasy contest operator must not accept a wager on the
outcome of an event or proposition that has already been determined.
new text end
new text begin Subd. 5. new text end
new text begin Receipt. new text end
new text begin
A fantasy contest operator must provide a person who places a wager
with an electronic receipt at the time of sale that contains the following information:
new text end
new text begin
(1) the proposition that is the subject of the wager;
new text end
new text begin
(2) the outcome that will constitute a win on the wager;
new text end
new text begin
(3) the amount wagered; and
new text end
new text begin
(4) the payout in the event of a winning wager.
new text end
new text begin Subd. 6. new text end
new text begin Wager data; safeguards necessary. new text end
new text begin
(a) Information regarding wagers made
by an authorized participant who engages in fantasy contests, including but not limited to
wager type and consideration paid, may be accessed, stored, or used for ordinary business
purposes by the fantasy contest operator.
new text end
new text begin
(b) Fantasy contest operators must use commercially reasonable methods to maintain
the security of wager data, authorized participant data, and other confidential information
from unauthorized access and dissemination, however, that nothing in this chapter shall
preclude the use of Internet or cloud-based hosting of such data and information or disclosure
as required by court order, other law, or this chapter.
new text end
Sec. 7.
new text begin
[349C.07] EXCLUSION LIST AND PROHIBITION ON PARTICIPATION.
new text end
new text begin Subdivision 1. new text end
new text begin Exclusion list. new text end
new text begin
(a) The commissioner shall maintain a list of persons who
are not eligible to wager on fantasy contests through a fantasy contest operator. The list
shall include the names of:
new text end
new text begin
(1) persons who have themselves requested to be on the exclusion list;
new text end
new text begin
(2) persons whose names have been submitted, for their protection, by their legal
guardians;
new text end
new text begin
(3) persons whose names have been submitted by fantasy contest operators for good
cause; and
new text end
new text begin
(4) persons whose names have been submitted by sports governing bodies.
new text end
new text begin
(b) A person who has requested to be on the exclusion list may specify a time limit of
one, three, or five years for the person's name to be on the list. The commissioner will
remove the person's name from the list at the conclusion of the specified time. A person
may be removed from the list before the specified time by providing proof of completion
of a class approved by the commissioner to address compulsive gambling.
new text end
new text begin
(c) The information contained on the list is private data on individuals, as defined in
section 13.02, subdivision 12, except the commissioner is permitted to share the list with
fantasy contest operators as needed to prevent persons on the exclusion list from participating
in fantasy contests.
new text end
new text begin Subd. 2. new text end
new text begin Prohibited wagers by certain persons. new text end
new text begin
The following persons who are
otherwise authorized to participate in fantasy contests are prohibited from placing the wagers
described:
new text end
new text begin
(1) a person who is prohibited from placing wagers by a fantasy contest operator for
good cause, including but not limited to any person placing a wager as an agent or proxy
on behalf of another, may not place a wager of any kind;
new text end
new text begin
(2) a person who is an athlete, coach, referee, player, trainer, or team employee is
prohibited from wagering in a fantasy contest overseen by that person's sports governing
body;
new text end
new text begin
(3) a person who holds a position of authority sufficient to exert influence over the
participants in a sporting event, including but not limited to a coach, manager, or owner is
prohibited from wagering in a fantasy contest overseen by that person's sports governing
body; and
new text end
new text begin
(4) a person who has access to certain types of exclusive or nonpublic information
regarding a sporting event is prohibited from wagering in a fantasy contest overseen by the
sports governing body of that sporting event.
new text end
new text begin Subd. 3. new text end
new text begin Prohibition on accepting wagers. new text end
new text begin
(a) A fantasy contest operator shall not
knowingly accept a wager from a person on the exclusion list or allow a person on the
exclusion list to establish a fantasy contest account.
new text end
new text begin
(b) A fantasy contest operator shall not knowingly accept a wager prohibited under
subdivision 2 from any person who can reasonably be identified by publicly available
information or by any lists provided to the commissioner.
new text end
new text begin
(c) Knowingly accepting a wager from a person on the exclusion list is a license violation,
subject to a penalty established by the commissioner.
new text end
Sec. 8.
new text begin
[349C.08] FINANCIAL RESPONSIBILITY.
new text end
new text begin Subdivision 1. new text end
new text begin Responsibility for satisfying winning wagers. new text end
new text begin
A wager in a fantasy
contest placed with a fantasy contest operator is an enforceable contract. A fantasy contest
operator who accepts a wager bears all risk of loss to satisfy winnings on the wager. A
wager that is not redeemed within one year of the outcome that is the subject of the wager
may be canceled by the fantasy contest operator.
new text end
new text begin Subd. 2. new text end
new text begin Cash reserves. new text end
new text begin
(a) A fantasy contest operator shall maintain cash reserves in
an amount that is not less than the greater of $25,000 or the sum of the:
new text end
new text begin
(1) amounts held by the fantasy contest operator for the fantasy contest accounts of
authorized participants;
new text end
new text begin
(2) amounts accepted by the fantasy contest operator as wagers on contingencies whose
outcome have not been determined; and
new text end
new text begin
(3) amounts owed but unpaid by the fantasy contest operator on winning wagers through
the period established by the operator, subject to time limits set by the commissioner, for
honoring winning wagers.
new text end
new text begin
(b) Such reserves shall be held in the form of cash or cash equivalents segregated from
operational funds, payment processor reserves and receivables, any bond, an irrevocable
letter of credit, or any combination thereof.
new text end
new text begin Subd. 3. new text end
new text begin Bond. new text end
new text begin
A fantasy contest operator shall be required to post a bond, securities,
or an irrevocable letter of credit in an amount the commissioner deems necessary after taking
into consideration the amount of the fantasy contest operator's cash reserves, to protect the
financial interests of authorized participants participating in fantasy contests. If securities
are deposited or an irrevocable letter of credit filed, the securities or letter of credit must be
of a type or in the form provided under section 349A.07, subdivision 5, paragraphs (b) and
(c).
new text end
Sec. 9.
new text begin
[349C.09] RECORD RETENTION; INFORMATION SHARING.
new text end
new text begin Subdivision 1. new text end
new text begin Record retention. new text end
new text begin
Fantasy contest operators shall maintain records of
all wagers placed, including personally identifiable information of an authorized participant,
amount and type of wager, time the wager was placed, location of the wager, including IP
address if applicable, the outcome of the wager, and records of abnormal betting activity
for three years after the fantasy contest occurs. Fantasy contest operators shall make the
data described in this subdivision available for inspection upon request of the commissioner
or as required by court order.
new text end
new text begin Subd. 2. new text end
new text begin Anonymization required. new text end
new text begin
Fantasy contest operators shall use commercially
reasonable efforts to maintain in real time and at the account level anonymized information
regarding an authorized participant, amount and type of wager, the time the wager was
placed, the location of the wager, including the IP address if applicable, the outcome of the
wager, and records of abnormal betting activity. Nothing in this section shall require a
fantasy contest operator to provide any information that is prohibited by federal, state, or
local laws or regulations, including laws and regulations relating to privacy and personally
identifiable information.
new text end
new text begin Subd. 3. new text end
new text begin Information sharing. new text end
new text begin
(a) If a sports governing body has notified the
commissioner that access to the information described in subdivision 2 for wagers placed
on fantasy contests of the sports governing body is necessary to monitor the integrity of
such body's sporting events, then fantasy contest operators shall share, in a commercially
reasonable frequency, form, and manner, with the sports governing body or its designees
the information under subdivision 2 with respect to wagers on fantasy contests of the sports
governing body.
new text end
new text begin
(b) Sports governing bodies and their designees may only use information received under
this subdivision for integrity-monitoring purposes and may not use information received
under this subdivision for any commercial or other purpose.
new text end
Sec. 10.
new text begin
[349C.10] LICENSE VIOLATIONS; ENFORCEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Schedule of penalties. new text end
new text begin
The commissioner must adopt rules that provide
a graduated schedule of penalties for violations of license requirements under statute or
rule. The schedule must specify penalties that may range from warnings and probation
periods to civil fines, temporary suspension of licenses, or revocation of licenses.
new text end
new text begin Subd. 2. new text end
new text begin Authority to act. new text end
new text begin
The commissioner may issue administrative orders, impose
civil penalties, and suspend, revoke, or not renew a license issued pursuant to this chapter
if the commissioner determines that a licensee has committed or is about to commit a
violation of this chapter or rules adopted pursuant to this chapter, or if the commissioner
determines that the licensee is disqualified or ineligible to hold a license pursuant to sections
349C.04 and 349C.05.
new text end
new text begin Subd. 3. new text end
new text begin Temporary suspension. new text end
new text begin
(a) The commissioner may temporarily, without a
hearing, suspend the license and operating privilege of any licensee for a period of up to 90
days if there is clear and convincing evidence that:
new text end
new text begin
(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation,
requires immediate action to protect the public from harm;
new text end
new text begin
(2) the licensee has not timely filed a tax return or paid the tax required under chapter
297K; or
new text end
new text begin
(3) the licensee has not timely paid all fees due under this chapter.
new text end
new text begin
(b) The commissioner shall notify the licensee of the violation that caused the temporary
suspension and may lift the temporary suspension if the licensee corrects the violation.
new text end
new text begin
(c) The commissioner may extend the period of suspension if the violation is not
corrected, the commissioner notifies the licensee that the commissioner intends to revoke
or not renew a license, and a contested case hearing has not taken place.
new text end
new text begin Subd. 4. new text end
new text begin
Notice of violation; administrative orders; request for reconsideration;
demand for hearing.
new text end
new text begin
(a) The commissioner may issue an administrative order to any
licensee who has committed a violation. The order may require the licensee to correct the
violation or to cease and desist from committing the violation and may impose civil penalties.
The order must state the deficiencies that constitute a violation, the time by which the
violation must be corrected, and the amount of any civil penalty.
new text end
new text begin
(b) If the licensee believes the information in the administrative order is in error, the
licensee may ask the commissioner to reconsider any parts of the order that are alleged to
be in error. The request must be in writing, be delivered to the commissioner by certified
mail within seven days after receipt of the order, and provide documentation to support the
allegation of error. The commissioner must respond to a request for reconsideration within
15 days after receiving the request. A request for reconsideration does not stay the order
unless the commissioner issues a supplemental order granting additional time. The
commissioner's disposition of a request for reconsideration is final.
new text end
new text begin
(c) An administrative order that imposes a civil penalty of more than $2,000 shall be
treated as a contested case under chapter 14.
new text end
new text begin
(d) A licensee may request a hearing on the administrative order within 30 days of service
of the order. The request must be in writing and delivered to the commissioner by certified
mail. If the licensee does not request a hearing within 30 days, the order becomes final.
new text end
new text begin
(e) If a licensee requests a hearing, the hearing must be held not later than 30 days after
the commissioner receives the request unless the licensee and the commissioner agree on
a later date. After the hearing, the commissioner may enter an order making such disposition
as the facts require. If the licensee fails to appear at the hearing after having been notified
of it, the licensee is considered in default and the proceeding may be determined against
the licensee on consideration of the administrative order, the allegations of which may be
considered to be true. An action of the commissioner under this paragraph is subject to
judicial review pursuant to chapter 14.
new text end
new text begin
(f) Civil penalties collected by the commissioner shall be deposited in the general fund.
Civil penalties may be recovered in a civil action in the name of the state brought in the
district court.
new text end
new text begin Subd. 5. new text end
new text begin Revocation, nonrenewal, civil penalties; contested case. new text end
new text begin
If the commissioner
intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the
commissioner shall provide the licensee with a statement of the complaints made against
the licensee and shall initiate a contested case proceeding. The contested case shall be held
pursuant to chapter 14.
new text end
Sec. 11.
new text begin
[349C.11] DATA PROTECTIONS.
new text end
new text begin
Data in which an individual who has wagered on a fantasy contest is identified by name,
account number, Social Security number, or any other uniquely identifying indicia, are
private data on individuals, as defined in section 13.02, subdivision 12. Data on individual
earnings of fantasy contest operator application and licensing information are nonpublic
data, as defined in section 13.02, subdivision 9.
new text end
Sec. 12. new text begin EFFECTIVE DATE.
new text end
new text begin
Except as otherwise provided, this article is effective July 1, 2024.
new text end
ARTICLE 4
TAXATION OF FANTASY CONTESTS
Section 1.
new text begin
[297K.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Terms. new text end
new text begin
For the purposes of this chapter, the following terms have the
meanings given.
new text end
new text begin Subd. 2. new text end
new text begin Adjusted gross fantasy contest receipts. new text end
new text begin
"Adjusted gross fantasy contest
receipts" means the amount equal to the total of all entry fees that a fantasy contest operator
collects from all authorized participants minus the total of all prizes paid out to all participants
multiplied by the location percentage for this state.
new text end
new text begin Subd. 3. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue.
new text end
new text begin Subd. 4. new text end
new text begin Fantasy contest. new text end
new text begin
"Fantasy contest" has the meaning given in section 349C.01,
subdivision 9.
new text end
new text begin Subd. 5. new text end
new text begin Fantasy contest operator. new text end
new text begin
"Fantasy contest operator" has the meaning given
in section 349C.01, subdivision 11.
new text end
new text begin Subd. 6. new text end
new text begin Location percentage. new text end
new text begin
"Location percentage" means the percentage rounded
to the nearest tenth of one percent of the total entry fees collected from authorized participants
located in this state divided by the total entry fees collected from all players in the fantasy
contest activity.
new text end
new text begin Subd. 7. new text end
new text begin Wager. new text end
new text begin
"Wager" has the meaning given in section 349C.01, subdivision 15.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjusted gross fantasy receipts received
after June 30, 2024.
new text end
Sec. 2.
new text begin
[297K.02] TAX ON FANTASY CONTEST NET REVENUE.
new text end
new text begin Subdivision 1. new text end
new text begin Tax imposed. new text end
new text begin
A tax is imposed on fantasy contest operators equal to ten
percent of adjusted gross fantasy receipts.
new text end
new text begin Subd. 2. new text end
new text begin Fantasy contest net revenue tax in lieu of other taxes. new text end
new text begin
Income derived by a
fantasy contest operator from the conduct of wagering on a fantasy contest is not subject to
the tax imposed under chapter 290. Wagers accepted by a fantasy contest operator are not
subject to the tax imposed in section 297A.62 or 297E.03.
new text end
new text begin Subd. 3. new text end
new text begin Returns; due dates. new text end
new text begin
A fantasy contest operator must file a return by the 20th
day of each month reporting the tax due under this section for the preceding month. The
return must include the amount of all wagers received, payouts made, all fantasy contest
taxes owed, and other information required by the commissioner. The tax under this chapter
is due to be paid to the commissioner on the day the return is due.
new text end
new text begin Subd. 4. new text end
new text begin Public information. new text end
new text begin
All records concerning the administration of taxes under
this chapter are classified as public information.
new text end
new text begin Subd. 5. new text end
new text begin Refunds. new text end
new text begin
A person who has, under this chapter, paid to the commissioner an
amount of tax for a period in excess of the amount legally due for that period may file with
the commissioner a claim for a refund of the excess. The amount necessary to pay the refunds
under this subdivision is appropriated from the general fund to the commissioner.
new text end
new text begin Subd. 6. new text end
new text begin Extensions. new text end
new text begin
If in the commissioner's judgment good cause exists, the
commissioner may extend the time for filing tax returns or paying taxes, or both, under this
section for not more than six months.
new text end
new text begin Subd. 7. new text end
new text begin Deposit of revenue. new text end
new text begin
The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed by this section into the general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjusted gross fantasy receipts received
after June 30, 2024.
new text end
Sec. 3.
new text begin
[297K.03] FANTASY CONTEST OPERATOR REPORTS AND RECORDS.
new text end
new text begin Subdivision 1. new text end
new text begin Business records. new text end
new text begin
A fantasy contest operator must maintain records
supporting the fantasy contest activity and taxes owed. Records required to be kept in this
section must be preserved by the fantasy contest operator for at least 3-1/2 years after the
return is due or filed, whichever is later, and may be inspected by the commissioner at any
reasonable time without notice or a search warrant.
new text end
new text begin Subd. 2. new text end
new text begin Audits. new text end
new text begin
The commissioner may require a financial audit of a fantasy contest
operator's fantasy contest activities if the operator has failed to comply with the financial
reporting requirements under this chapter. Audits must be performed by an independent
accountant licensed according to chapter 326A. The commissioner must prescribe standards
for an audit required under this subdivision. A complete, true, and correct copy of an audit
must be filed as prescribed by the commissioner. Nothing in this subdivision limits the
commissioner's ability to conduct its own audit pursuant to its authority under chapter 270C.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjusted gross fantasy receipts received
after June 30, 2024.
new text end
ARTICLE 5
CRIMES RELATED TO SPORTS BETTING
Section 1.
Minnesota Statutes 2022, section 260B.007, subdivision 16, is amended to read:
Subd. 16.
Juvenile petty offender; juvenile petty offense.
(a) "Juvenile petty offense"
includes a juvenile alcohol offense, a juvenile controlled substance offense, new text begin a juvenile
violation of section 299L.80, subdivision 3, paragraph (a), new text end a violation of section 609.685,
or a violation of a local ordinance, which by its terms prohibits conduct by a child under
the age of 18 years which would be lawful conduct if committed by an adult.
(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also includes
an offense that would be a misdemeanor if committed by an adult.
(c) "Juvenile petty offense" does not include any of the following:
(1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242,
609.324, subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79, or
617.23;
(2) a major traffic offense or an adult court traffic offense, as described in section
260B.225;
(3) a misdemeanor-level offense committed by a child whom the juvenile court previously
has found to have committed a misdemeanor, gross misdemeanor, or felony offense; or
(4) a misdemeanor-level offense committed by a child whom the juvenile court has
found to have committed a misdemeanor-level juvenile petty offense on two or more prior
occasions, unless the county attorney designates the child on the petition as a juvenile petty
offender notwithstanding this prior record. As used in this clause, "misdemeanor-level
juvenile petty offense" includes a misdemeanor-level offense that would have been a juvenile
petty offense if it had been committed on or after July 1, 1995.
(d) A child who commits a juvenile petty offense is a "juvenile petty offender." The
term juvenile petty offender does not include a child alleged to have violated any law relating
to being hired, offering to be hired, or agreeing to be hired by another individual to engage
in sexual penetration or sexual conduct which, if committed by an adult, would be a
misdemeanor.
Sec. 2.
new text begin
[299L.80] CRIMES RELATING TO WAGERING ON SPORTING EVENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
As used in this section:
new text end
new text begin
(1) "accepts a wager" includes receiving, recording, or forwarding a wager or an offer
to wager on a sporting event, and attempts to do so;
new text end
new text begin
(2) "nonpublic information" means information regarding a participant's ability or
likelihood to perform in a sporting event that:
new text end
new text begin
(i) is not available to the general public;
new text end
new text begin
(ii) is derived from a personal or professional relationship with the participant; and
new text end
new text begin
(iii) if the information was disseminated, would likely affect the odds of the participant
or the participant's team in achieving a particular outcome in the event; and
new text end
new text begin
(3) "places a wager" includes an offer or attempt to place a wager on a sporting event.
new text end
new text begin Subd. 2. new text end
new text begin Sale or transfer of private data. new text end
new text begin
(a) Whoever sells or transfers private data
on individuals collected through the practice of wagering on sporting events is guilty of a
misdemeanor.
new text end
new text begin
(b) Paragraph (a) does not apply to transfers of data between a person licensed under
sections 299L.10 to 299L.80 or an employee of a licensee and the following entities when
that transfer is necessary to perform duties prescribed by law relating to wagering on sporting
events:
new text end
new text begin
(1) the transfer of data to the commissioner, the director, or the commissioner of revenue;
new text end
new text begin
(2) the transfer of data to a sports governing body pursuant to section 299L.53,
subdivision 3, paragraph (a); and
new text end
new text begin
(3) the transfer of data to the University of Minnesota pursuant to section 299L.53,
subdivision 3, paragraph (c).
new text end
new text begin Subd. 3. new text end
new text begin Wagering by a person under age 21. new text end
new text begin
(a) A person who is under 21 years of
age and does either of the following is guilty of a misdemeanor:
new text end
new text begin
(1) places a wager on a sporting event; or
new text end
new text begin
(2) misrepresents the person's age as being 21 or older for the purposes of placing a
wager on a sporting event.
new text end
new text begin
(b) A person licensed under sections 299L.10 to 299L.80 or an employee of a licensee
who accepts a wager on a sporting event placed by someone under the age of 21 years is
guilty of a gross misdemeanor.
new text end
new text begin
(c) Paragraph (a), clause (1) does not prohibit private social bets on sporting events that
are not part of or incidental to organized, commercialized, or systematic gambling.
new text end
new text begin Subd. 4. new text end
new text begin Unauthorized wagers. new text end
new text begin
(a) The following persons who place a wager with an
entity licensed under sections 299L.10 to 299L.80 are guilty of a crime and may be sentenced
as provided in paragraphs (b) to (e):
new text end
new text begin
(1) a person who is a participant in a sporting event and who places a wager on that
event or who induces another to place a wager on the event on behalf of the person;
new text end
new text begin
(2) a person licensed under sections 299L.10 to 299L.80, or an employee of a licensee
whose exclusive or primary responsibilities involve mobile sports betting, who places a
wager on a sporting event on an online website or mobile application with which the person
is affiliated;
new text end
new text begin
(3) an officer, director, member, or employee of the Department of Public Safety or the
division who places a wager on a sporting event; or
new text end
new text begin
(4) a person who possesses nonpublic information on a sporting event and who places
a wager on that event.
new text end
new text begin
(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the
wager is no more than $500.
new text end
new text begin
(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
new text end
new text begin
(1) the person has previously been convicted of a violation of this section or section
609.76; or
new text end
new text begin
(2) the amount of the wager is more than $500 but not more than $1,000.
new text end
new text begin
(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
imprisonment for not more than two years or to payment of a fine of not more than $4,000,
or both, if the amount of the wager is more than $1,000 but not more than $5,000.
new text end
new text begin
(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
imprisonment for not more than five years or to payment of a fine of not more than $10,000,
or both, if:
new text end
new text begin
(1) the amount of the wager is more than $5,000; or
new text end
new text begin
(2) the person places more than five wagers on any one or more sporting events within
any 30-day period and the total amount wagered is more than $2,500.
new text end
new text begin Subd. 5. new text end
new text begin Unauthorized acceptance of wagers. new text end
new text begin
(a) A person licensed under sections
299L.10 to 299L.80, or an employee of a licensee whose exclusive or primary responsibilities
involve mobile sports betting, who accepts a wager on a sporting event knowing that the
wager was made in violation of subdivision 4, paragraph (a) is guilty of a crime and may
be sentenced as provided in paragraphs (b) to (e).
new text end
new text begin
(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the
wager is no more than $500.
new text end
new text begin
(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
new text end
new text begin
(1) the person has previously been convicted of a violation of this section or section
609.76; or
new text end
new text begin
(2) the amount of the wager is more than $500 but not more than $1,000.
new text end
new text begin
(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
imprisonment for not more than two years or to payment of a fine of not more than $4,000,
or both, if the amount of the wager is more than $1,000 but not more than $5,000.
new text end
new text begin
(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
imprisonment for not more than five years or to payment of a fine of not more than $10,000,
or both, if:
new text end
new text begin
(1) the amount of the wager is more than $5,000; or
new text end
new text begin
(2) the person accepts one or more wagers knowing that:
new text end
new text begin
(i) the wager is prohibited under subdivision 4, paragraph (a);
new text end
new text begin
(ii) acceptance of the wager will result in the person making a wager having placed more
than five wagers on any one or more sporting events within any 30-day period; and
new text end
new text begin
(iii) the total amount wagered is more than $2,500.
new text end
new text begin Subd. 6. new text end
new text begin Aggregation; venue. new text end
new text begin
In any prosecution under subdivision 4 or 5, the amount
of money wagered within any six-month period may be aggregated and the accused charged
accordingly in applying the provisions of those subdivisions. In addition, when two or more
offenses are committed by the same person in two or more counties, the accused may be
prosecuted in any county in which one of the offenses was committed for all of the offenses
aggregated under this subdivision.
new text end
new text begin Subd. 7. new text end
new text begin Proof of age; defense; seizure of false identification. new text end
new text begin
(a) Proof of age for
placing a wager under sections 299L.10 to 299L.80 on a sporting event may be established
only by one of the following:
new text end
new text begin
(1) a valid driver's license or identification card issued by Minnesota, another state, a
Tribal government, or a province of Canada, that includes the photograph and date of birth
of the person;
new text end
new text begin
(2) a valid military identification card issued by the United States Department of Defense;
new text end
new text begin
(3) a valid United States passport;
new text end
new text begin
(4) a valid instructional permit issued under section 171.05 that includes a photograph
and the date of birth of the person;
new text end
new text begin
(5) a Tribal identification;
new text end
new text begin
(6) in the case of a foreign national, a valid passport; or
new text end
new text begin
(7) use of an identity verification process approved by the commissioner and implemented
by the mobile sports betting operator or mobile sports betting platform provider.
new text end
new text begin
(b) In a prosecution for accepting a wager on a sporting event from a person under the
age of 21, it is an affirmative defense for the defendant to prove by a preponderance of the
evidence that the defendant reasonably and in good faith relied upon representations of
proof of age authorized in paragraph (a).
new text end
new text begin
(c) A mobile sports betting operator or employee of a mobile sports betting operator, or
an official or employee authorized to accept wagers on sporting events under a Tribal-state
compact regulating the conduct of class III sports betting on the Indian lands of an Indian
Tribe, may seize a form of identification listed under paragraph (a) if the person has
reasonable grounds to believe that the form of identification has been altered or falsified or
is being used to violate any law. A person who seizes a form of identification under this
paragraph must deliver it to a law enforcement agency, as defined in section 626.84,
subdivision 1, paragraph (f), within 24 hours of seizure.
new text end
Sec. 3.
Minnesota Statutes 2022, section 609.75, subdivision 3, is amended to read:
Subd. 3.
What are not bets.
The following are not bets:
(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance;
(2) a contract for the purchase or sale at a future date of securities or other commodities;
(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest
for the determination of skill, speed, strength, endurance, or quality or to the bona fide
owners of animals or other property entered in such a contest;
(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;
(5) a private social bet not part of or incidental to organized, commercialized, or
systematic gambling;
(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22,
by an organization licensed by the Gambling Control Board or an organization exempt from
licensing under section 349.166;
(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240;
deleted text begin and
deleted text end
(8) the purchase and sale of State Lottery tickets under chapter 349Anew text begin ;
new text end
new text begin
(9) fantasy contests when the betting is conducted pursuant to chapter 349C; and
new text end
new text begin (10) sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80new text end .
Sec. 4.
Minnesota Statutes 2022, section 609.75, subdivision 4, is amended to read:
Subd. 4.
Gambling device.
A gambling device is a contrivance the purpose of which is
that for a consideration a player is afforded an opportunity to obtain something of value,
other than free plays, automatically from the machine or otherwise, the award of which is
determined principally by chance, whether or not the contrivance is actually played.
"Gambling device" also includes a video game of chance, as defined in subdivision 8.new text begin
Gambling device does not include a website or mobile application, or device used for
accessing the website or mobile application, authorized to be used in conducting mobile
sports betting pursuant to sections 299L.10 to 299L.80 or fantasy contests pursuant to chapter
349C.
new text end
Sec. 5.
Minnesota Statutes 2022, section 609.75, subdivision 7, is amended to read:
Subd. 7.
Sports bookmaking.
Sports bookmaking is the activity of intentionally
receiving, recording or forwarding within any 30-day period more than five bets, or offers
to bet, that total more than $2,500 on any one or more sporting events.new text begin Sports bookmaking
does not include sports betting when the betting is conducted pursuant to sections 299L.10
to 299L.80 or fantasy contests when betting is conducted pursuant to chapter 349C.
new text end
Sec. 6.
Minnesota Statutes 2022, section 609.75, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Sporting event. new text end
new text begin
"Sporting event" has the meaning given in section 299L.10,
subdivision 18, and includes any event, such as a game, match, contest, or activity, or series
of games, matches, contests, activities, or tournaments, involving the athletic skill or
performance in a video game of one or more players or participants, regardless of whether
the event is approved by the commissioner to be an event eligible for wagering under sections
299L.10 to 299L.80.
new text end
Sec. 7.
Minnesota Statutes 2022, section 609.75, is amended by adding a subdivision to
read:
new text begin Subd. 7b. new text end
new text begin Fantasy contest. new text end
new text begin
"Fantasy contest" has the meaning given in section 349C.01,
subdivision 9.
new text end
Sec. 8.
Minnesota Statutes 2022, section 609.755, is amended to read:
609.755 GAMBLING; MISDEMEANOR.
Whoever does any of the following is guilty of a misdemeanor:
(1) makes a betnew text begin , other than a bet on a sporting eventnew text end ;
(2) sells or transfers a chance to participate in a lottery;
(3) disseminates information about a lottery, except a lottery conducted by an adjoining
state, with intent to encourage participation therein;
(4) permits a structure or location owned or occupied by the actor or under the actor's
control to be used as a gambling place; or
(5) except where authorized by statute, possesses a gambling device.
Clause (5) does not prohibit possession of a gambling device in a person's dwelling for
amusement purposes in a manner that does not afford players an opportunity to obtain
anything of value.
Sec. 9.
Minnesota Statutes 2022, section 609.76, subdivision 2, is amended to read:
Subd. 2.
Sports bookmaking.
new text begin
(a) Whoever makes a bet on a sporting event with a person
who is not licensed to engage in sports betting under sections 299L.10 to 299L.80 is guilty
of a misdemeanor if the amount of the wager is no more than $500.
new text end
new text begin
(b) Whoever makes a bet on a sporting event with a person who is not licensed to engage
in sports betting under sections 299L.10 to 299L.80 is guilty of a gross misdemeanor if:
new text end
new text begin
(1) the person has previously been convicted of a violation of this section or section
299L.80; or
new text end
new text begin
(2) the amount of the wager is more than $500 but not more than $1,000.
new text end
new text begin
(c) Whoever makes a bet on a sporting event with a person who is not licensed to engage
in sports betting under sections 299L.10 to 299L.80 is guilty of a felony if the amount of
the wager is more than $1,000.
new text end
new text begin (d) new text end Whoever engages in sports bookmaking is guilty of a felony.
new text begin
(e) In any prosecution under paragraph (b) or (c), the amount of money wagered within
any six-month period may be aggregated and the accused charged accordingly in applying
the provisions of those paragraphs. In addition, when two or more offenses are committed
by the same person in two or more counties, the accused may be prosecuted in any county
in which one of the offenses was committed for all of the offenses aggregated under this
subdivision.
new text end
Sec. 10.
new text begin
[609.764] SPORTING EVENTS; FRAUD; BRIBERY.
new text end
new text begin
(a) As used in this section:
new text end
new text begin
(1) "participant in a sporting event" has the meaning given in section 299L.10, subdivision
17; and
new text end
new text begin
(2) "sporting event" has the meaning given in section 299L.10, subdivision 18.
new text end
new text begin
(b) A person is guilty of a felony and may be sentenced to imprisonment for not more
than five years or to payment of a fine of not more than $10,000, or both, if the person:
new text end
new text begin
(1) offers, gives, or promises to give, directly or indirectly, to a participant in a sporting
event any benefit, reward, or consideration to which the participant is not legally entitled
as compensation or a prize, with intent to influence the performance of the participant, or
the outcome of the event or a component of the event; or
new text end
new text begin
(2) as a participant in a sporting event, requests, receives, or agrees to receive, directly
or indirectly, a benefit, reward, or consideration to which the participant is not legally entitled
to intentionally lose, cause to lose, or attempt to lose or cause to lose the event, or to
intentionally perform below abilities to adversely affect the outcome of the event or a
component of the event.
new text end
Sec. 11. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 10 are effective the day that sports betting and fantasy contests become
lawful under articles 1 and 3 and apply to crimes committed on or after that date.
new text end
ARTICLE 6
AMATEUR SPORTS AND ACTIVITIES GRANTS
Section 1.
new text begin
[240A.15] GRANTS FOR PROMOTING INTEGRITY AND
PARTICIPATION.
new text end
new text begin Subdivision 1. new text end
new text begin Account established; appropriation. new text end
new text begin
(a) The amateur sports integrity
and participation account is established in the special revenue fund. The account shall consist
of the amount deposited pursuant to section 297J.02, subdivision 8, paragraph (d).
new text end
new text begin
(b) The amount necessary to make grants under subdivisions 2 and 3 is appropriated to
the Minnesota Amateur Sports Commission. The Minnesota Amateur Sports Commission
may retain four percent of the total appropriation to administer the grants.
new text end
new text begin
(c) The amount necessary to make grants under subdivision 4 is appropriated to the
Minnesota State High School League. The Minnesota State High School League may retain
four percent of the total appropriation to administer the grants.
new text end
new text begin Subd. 2. new text end
new text begin Grants to promote the integrity of amateur sports. new text end
new text begin
(a) The Minnesota
Amateur Sports Commission shall use 20 percent of the amount deposited in the amateur
sports integrity and participation account in the previous fiscal year to award grants to
collegiate and amateur sports associations to promote the integrity of amateur sports. Of
this amount, 80 percent of money must be distributed to grant recipients at institutions whose
undergraduate enrollment total is fewer than 25,000 students.
new text end
new text begin
(b) Grant recipients may use money to:
new text end
new text begin
(1) provide comprehensive gambling and athlete protection education and programming
related to disordered gambling to athletes and others directly involved with amateur athletic
organizations;
new text end
new text begin
(2) promote the independence, safety, and training of amateur sports leagues and officials;
new text end
new text begin
(3) provide educational substance abuse prevention and intervention programs related
to the use of performance-enhancing drugs;
new text end
new text begin
(4) provide problem gambling prevention education;
new text end
new text begin
(5) provide training to coaches and athletes on safe relationships and how to establish
and maintain an environment free from bullying, harassment, and discrimination based on
race or sex; or
new text end
new text begin
(6) provide training or resources to address the mental health needs of amateur athletes,
including programs to address depression, anxiety, and disordered eating.
new text end
new text begin
(c) By September 1 of each year, individuals or organizations that received a grant in
the previous fiscal year shall provide a report in a form and manner established by the
Minnesota Amateur Sports Commission describing how grant money was used and providing
any additional information required by the Minnesota Amateur Sports Commission.
new text end
new text begin Subd. 3. new text end
new text begin Grants to promote and facilitate participation in youth sports. new text end
new text begin
(a) The
Minnesota Amateur Sports Commission shall use 40 percent of the amount deposited in the
amateur sports integrity and participation account in the previous fiscal year to award grants
to organizations to promote and facilitate participation in youth sports in areas that have
experienced a disproportionately high rate of juvenile crime.
new text end
new text begin
(b) Applicants may demonstrate that an area has experienced a disproportionately high
rate of juvenile crime through the use of public data or reports, a submission from the local
law enforcement agency, or any other reliable information showing that the area to be served
by the applicant has experienced more incidents of juvenile crime than the state average or
than surrounding communities.
new text end
new text begin
(c) Grant recipients may use money to:
new text end
new text begin
(1) establish, maintain, or expand youth sports;
new text end
new text begin
(2) improve facilities for youth sports;
new text end
new text begin
(3) reduce or eliminate participation costs for youth through the use of scholarships,
assistance with the purchase of equipment, reductions or elimination of program fees, and
accounting for other reasonable costs that serve as a barrier to participation;
new text end
new text begin
(4) recruit and train adults to serve as coaches, officials, or in other supportive roles; or
new text end
new text begin
(5) coordinate additional services for youth, including tutoring, mental health services,
substance abuse treatment, and family counseling.
new text end
new text begin
(d) By September 1 of each year, individuals or organizations that received a grant in
the previous fiscal year shall provide a report in a form and manner established by the
Minnesota Amateur Sports Commission describing how grant money was used and providing
any additional information required by the Minnesota Amateur Sports Commission.
new text end
new text begin Subd. 4. new text end
new text begin Grants to promote and facilitate participation in youth activities. new text end
new text begin
(a) The
Minnesota State High School League shall use 40 percent of the amount deposited in the
amateur sports integrity and participation account in the previous fiscal year to award grants
to schools or organizations to promote and facilitate participation in competitive, nonathletic
youth activities in areas that have experienced a disproportionately high rate of juvenile
crime.
new text end
new text begin
(b) Applicants may demonstrate that an area has experienced a disproportionately high
rate of juvenile crime through the use of public data or reports, a submission from the local
law enforcement agency, or any other reliable information showing that the area to be served
by the applicant has experienced more incidents of juvenile crime than the state average or
than surrounding communities.
new text end
new text begin
(c) Grant recipients may use money to:
new text end
new text begin
(1) establish, maintain, or expand competitive, nonathletic youth activities;
new text end
new text begin
(2) reduce or eliminate participation costs for youth through the use of scholarships,
assistance with the purchase of equipment, reductions or elimination of program fees, and
accounting for other reasonable costs that serve as a barrier to participation;
new text end
new text begin
(3) recruit and train adults to serve as coaches, officials, or in other supportive roles; or
new text end
new text begin
(4) coordinate additional services for youth, including tutoring, mental health services,
substance abuse treatment, and family counseling.
new text end
new text begin
(d) By September 1 of each year, schools or organizations that received a grant in the
previous fiscal year shall provide a report in a form and manner established by the Minnesota
State High School League describing how grant money was used and providing any additional
information required by the Minnesota State High School League.
new text end
new text begin Subd. 5. new text end
new text begin Annual report. new text end
new text begin
By January 15 of each year, the Minnesota Amateur Sports
Commission and Minnesota State High School League must submit a report to the chairs
and ranking minority members of the legislative committees with jurisdiction over public
safety, the legislative committees with jurisdiction over taxes, the committee in the house
of representatives with jurisdiction over commerce, the committee in the senate with
jurisdiction over state government finance and policy, the committee in the house of
representatives with jurisdiction over ways and means, and the committee in the senate with
jurisdiction over finance. The report must identify the grants issued under this section since
the previous report, including the individual or organization that received the grant, the
amount awarded, and the purpose of the grant. The report must also compile and provide
the annual reports received from grantees.
new text end
Sec. 2.
Minnesota Statutes 2022, section 245.98, subdivision 2, is amended to read:
Subd. 2.
Program.
The commissioner of human services shall establish a program for
the treatment of compulsive gamblersnew text begin and their familiesnew text end . The commissioner may contract
with an entity with expertise regarding the treatment of compulsive gambling to operate the
program. The program may include the establishment of a statewide toll-free number,
resource library, public education programs; regional in-service training programs and
conferences for health care professionals, educators, treatment providers, employee assistance
programs, and criminal justice representatives; and the establishment of certification standards
for programs and service providers. The commissioner may enter into agreements with
other entities and may employ or contract with consultants to facilitate the provision of
these services or the training of individuals to qualify them to provide these services.new text begin The
program must include up to 60 hours of intervention services for a family member or
concerned significant other who is a Minnesota resident and is negatively impacted by
problem or compulsive gambling.new text end The program may also include inpatient and outpatient
treatment and rehabilitation services for residents in different settings, including a temporary
or permanent residential setting for mental health or substance use disorder, and individuals
in jails or correctional facilities. The program may also include research studies. The research
studies must include baseline and prevalence studies for adolescents and adults to identify
those at the highest risk. The program must be approved by the commissioner before it is
established.
ARTICLE 7
CHARITABLE GAMBLING
Section 1.
Minnesota Statutes 2023 Supplement, section 297E.02, subdivision 6, is amended
to read:
Subd. 6.
Combined net receipts tax.
(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts from
lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes
actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for
the fiscal year. deleted text begin Thedeleted text end new text begin Fornew text end combined net receipts of an organizationnew text begin collected on or before June
30, 2025, the combined net receiptsnew text end are subject to a tax computed according to the following
schedule:
| If the combined net receipts for the fiscal year are: |
The tax is: |
|||
| Not over $87,500 |
eight percent |
|||
| Over $87,500, but not over $122,500 |
$7,000 plus 17 percent of the amount over $87,500, but not over $122,500 |
|||
| Over $122,500, but not over $157,500 |
$12,950 plus 25 percent of the amount over $122,500, but not over $157,500 |
|||
| Over $157,500 |
$21,700 plus 33.5 percent of the amount over $157,500 |
new text begin
(b) For combined net receipts of an organization collected between July 1, 2025, and
June 30, 2026, the combined net receipts are subject to a tax computed according to the
following schedule:
new text end
|
new text begin
If the combined net receipts for the fiscal year are: new text end |
new text begin
The tax is: new text end |
|||
|
new text begin
Not over $87,500 new text end |
new text begin
5.5 percent new text end |
|||
|
new text begin
Over $87,500, but not over $122,500 new text end |
new text begin
$7,000 plus 15 percent of the amount over $87,500, but not over $122,500 new text end |
|||
|
new text begin
Over $122,500, but not over $157,500 new text end |
new text begin
$12,950 plus 23 percent of the amount over $122,500, but not over $157,500 new text end |
|||
|
new text begin
Over $157,500 new text end |
new text begin
$21,700 plus 32.5 percent of the amount over $157,500 new text end |
new text begin
(c) For combined net receipts of an organization collected between July 1, 2026, and
June 30, 2027, the combined net receipts are subject to a tax computed according to the
following schedule:
new text end
|
new text begin
If the combined net receipts for the fiscal year are: new text end |
new text begin
The tax is: new text end |
|||
|
new text begin
Not over $87,500 new text end |
new text begin
four percent new text end |
|||
|
new text begin
Over $87,500, but not over $122,500 new text end |
new text begin
$7,000 plus 13 percent of the amount over $87,500, but not over $122,500 new text end |
|||
|
new text begin
Over $122,500, but not over $157,500 new text end |
new text begin
$12,950 plus 20 percent of the amount over $122,500, but not over $157,500 new text end |
|||
|
new text begin
Over $157,500 new text end |
new text begin
$21,700 plus 28.5 percent of the amount over $157,500 new text end |
new text begin
(d) For combined net receipts of an organization collected on July 1, 2027, and thereafter,
the combined net receipts are subject to a tax computed according to the following schedule:
new text end
|
new text begin
If the combined net receipts for the fiscal year are: new text end |
new text begin
The tax is: new text end |
|||
|
new text begin
Not over $87,500 new text end |
new text begin
three percent new text end |
|||
|
new text begin
Over $87,500, but not over $122,500 new text end |
new text begin
$7,000 plus ten percent of the amount over $87,500, but not over $122,500 new text end |
|||
|
new text begin
Over $122,500, but not over $157,500 new text end |
new text begin
$12,950 plus 18 percent of the amount over $122,500, but not over $157,500 new text end |
|||
|
new text begin
Over $157,500 new text end |
new text begin
$21,700 plus 26 percent of the amount over $157,500 new text end |
deleted text begin (b)deleted text end new text begin (e)new text end Gross receipts derived from sports-themed tipboards are exempt from taxation
under this section. For purposes of this paragraph, a sports-themed tipboard means a
sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning
numbers are determined by the numerical outcome of a professional sporting event.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for receipts collected the day following
final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 349.12, is amended by adding a subdivision to
read:
new text begin Subd. 12f. new text end
new text begin Electronic pull-tab device dispenser. new text end
new text begin
(a) "Electronic pull-tab device
dispenser" means a device that:
new text end
new text begin
(1) accepts cash inserted into the electronic pull-tab device dispenser;
new text end
new text begin
(2) loads funds onto an electronic pull-tab device that corresponds to the funds inserted
into the electronic pull-tab device dispenser;
new text end
new text begin
(3) dispenses an electronic pull-tab device for use;
new text end
new text begin
(4) is kept in a physical location within an establishment where the dispenser can be
seen by a bartender or booth operator at all times;
new text end
new text begin
(5) does not have the ability to redeem or dispense prizes, break bills, or return change,
tickets, tokens, or winnings to a player;
new text end
new text begin
(6) does not have the ability to track, monitor, or compile data related to individual
players or distribute play-based incentives;
new text end
new text begin
(7) does not include player stations, individual seats, or seating areas at or near the
device;
new text end
new text begin
(8) does not include interactive features, elements, or functions other than those required
to accomplish the tasks identified in clauses (1) to (3);
new text end
new text begin
(9) requires the electronic pull-tab device to be disconnected, unattached, unplugged,
or otherwise unaffixed from the electronic pull-tab device dispenser for the electronic
pull-tab device to operate or for game play to occur;
new text end
new text begin
(10) has no promotional material, signs, or advertisements attached to the physical device
or displayed on any screen located on the electronic pull-tab device dispenser;
new text end
new text begin
(11) has no spinning reels or other representations that mimic a video slot machine,
including but not limited to free plays, bonus games, screens, or game features that are
triggered after the initial symbols are revealed that display the results of the game;
new text end
new text begin
(12) has no additional function as an amusement or gambling device;
new text end
new text begin
(13) has no audio or visual components other than those necessary to allow use of the
electronic pull-tab device dispenser by a player who is visually impaired; and
new text end
new text begin
(14) satisfies any applicable federal requirements placed on such devices or specific
financial transactions.
new text end
new text begin
(b) The number of electronic pull-tab device dispensers located at any permitted premises
is limited to one.
new text end
new text begin
(c) Each electronic pull-tab device dispenser shall include a certification from a
board-approved testing laboratory that the device meets the standards and requirements
established in Minnesota Statutes and Minnesota Rules.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 349.12, subdivision 25, is amended
to read:
Subd. 25.
Lawful purpose.
(a) "Lawful purpose" means one or more of the following:
(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined
in subdivision 15c, provided that the organization and expenditure or contribution are in
conformity with standards prescribed by the board under section 349.154, which standards
must apply to both types of organizations in the same manner and to the same extent;
(2) a contribution to or expenditure for goods and services for an individual or family
suffering from poverty, homelessness, or disability, which is used to relieve the effects of
that suffering;
(3) a contribution to a program recognized by the Minnesota Department of Human
Services for the education, prevention, or treatment of problem gambling;
(4) a contribution to or expenditure on a public or private nonprofit educational institution
registered with or accredited by this state or any other state;
(5) a contribution to an individual, public or private nonprofit educational institution
registered with or accredited by this state or any other state, or to a scholarship fund of a
nonprofit organization whose primary mission is to award scholarships, for defraying the
cost of education to individuals where the funds are awarded through an open and fair
selection process;
(6) activities by an organization or a government entity which recognize military service
to the United States, the state of Minnesota, or a community, subject to rules of the board,
provided that the rules must not include mileage reimbursements in the computation of the
per diem reimbursement limit and must impose no aggregate annual limit on the amount of
reasonable and necessary expenditures made to support:
(i) members of a military marching or color guard unit for activities conducted within
the state;
(ii) members of an organization solely for services performed by the members at funeral
services;
(iii) members of military marching, color guard, or honor guard units may be reimbursed
for participating in color guard, honor guard, or marching unit events within the state or
states contiguous to Minnesota at a per participant rate of up to $50 per diem; or
(iv) active military personnel and their immediate family members in need of support
services;
(7) recreational, community, and athletic facilities and activities, intended primarily for
persons under age 21, provided that such facilities and activities do not discriminate on the
basis of gender and the organization complies with section 349.154, subdivision 3a;
(8) payment of local taxes authorized under this chapter, including local gambling taxes
authorized under section 349.213, subdivision 3, taxes imposed by the United States on
receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and
6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on permitted gambling premises owned
by the licensed organization paying the taxes, or wholly leased by a licensed veterans
organization under a national charter recognized under section 501(c)(19) of the Internal
Revenue Code;
(10) a contribution to the United States, this state or any of its political subdivisions, or
any agency or instrumentality thereof other than a direct contribution to a law enforcement
or prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit organization which is a church or
body of communicants gathered in common membership for mutual support and edification
in piety, worship, or religious observances;
(12) an expenditure for citizen monitoring of surface water quality by individuals or
nongovernmental organizations that is consistent with section 115.06, subdivision 4, and
Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance
protocols, and data management, provided that the resulting data is submitted to the
Minnesota Pollution Control Agency for review and inclusion in the state water quality
database;
(13) a contribution to or expenditure on projects or activities approved by the
commissioner of natural resources for:
(i) wildlife management projects that benefit the public at large;
(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and
84.927, and other trails open to public use, including purchase or lease of equipment for
this purpose; and
(iii) supplies and materials for safety training and educational programs coordinated by
the Department of Natural Resources, including the Enforcement Division;
(14) conducting nutritional programs, food shelves, and congregate dining programs
primarily for persons who are age 62 or older or disabled;
(15) a contribution to a community arts organization, or an expenditure to sponsor arts
programs in the community, including but not limited to visual, literary, performing, or
musical arts;
(16) an expenditure by a licensed fraternal organization or a licensed veterans organization
for payment of water, fuel for heating, electricity, and sewer costs for:
(i) up to 100 percent for a building wholly owned or wholly leased by and used as the
primary headquarters of the licensed veteran or fraternal organization; or
(ii) a proportional amount subject to approval by the director and based on the portion
of a building used as the primary headquarters of the licensed veteran or fraternal
organization;
(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year
in net costs to the organization for meals and other membership events, limited to members
and spouses, held in recognition of military service. No more than $5,000 can be expended
in total per calendar year under this clause by all licensed veterans organizations sharing
the same veterans post home;
(18) payment of fees authorized under this chapter imposed by the state of Minnesota
to conduct lawful gambling in Minnesota;
(19) a contribution or expenditure to honor an individual's humanitarian service as
demonstrated through philanthropy or volunteerism to the United States, this state, or local
community;
(20) a contribution by a licensed organization to another licensed organization with prior
board approval, with the contribution designated to be used for one or more of the following
lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
(21) an expenditure that is a contribution to a parent organization, if the parent
organization: (i) has not provided to the contributing organization within one year of the
contribution any money, grants, property, or other thing of value, and (ii) has received prior
board approval for the contribution that will be used for a program that meets one or more
of the lawful purposes under subdivision 7a;
(22) an expenditure for the repair, maintenance, or improvement of real property and
capital assets owned by an organization, or for the replacement of a capital asset that can
no longer be repaired, with a fiscal year limit of five percent of gross profits from the
previous fiscal year, with no carryforward of unused allowances. The fiscal year is July 1
through June 30. Total expenditures for the fiscal year may not exceed the limit unless the
board has specifically approved the expenditures that exceed the limit due to extenuating
circumstances beyond the organization's control. An expansion of a building or bar-related
expenditures are not allowed under this provision.
(i) The expenditure must be related to the portion of the real property or capital asset
that must be made available for use free of any charge to other nonprofit organizations,
community groups, or service groups, and is used for the organization's primary mission or
headquarters.
(ii) An expenditure may be made to bring an existing building that the organization owns
into compliance with the Americans with Disabilities Act.
(iii) An organization may apply the amount that is allowed under item (ii) to the erection
or acquisition of a replacement building that is in compliance with the Americans with
Disabilities Act if the board has specifically approved the amount. The cost of the erection
or acquisition of a replacement building may not be made from gambling proceeds, except
for the portion allowed under this item;
(23) an expenditure for the acquisition or improvement of a capital asset with a cost
greater than $2,000, excluding real property, that will be used exclusively for lawful purposes
under this section if the board has specifically approved the amount;
(24) an expenditure for the acquisition, erection, improvement, or expansion of real
property, if the board has first specifically authorized the expenditure after finding that the
real property will be used exclusively for lawful purpose under this section;
(25) an expenditure, including a mortgage payment or other debt service payment, for
the erection or acquisition of a comparable building to replace an organization-owned
building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
organization-owned building that was taken or sold under an eminent domain proceeding.
The expenditure may be only for that part of the replacement cost not reimbursed by
insurance for the fire or catastrophe or compensation not received from a governmental unit
under the eminent domain proceeding, if the board has first specifically authorized the
expenditure; deleted text begin or
deleted text end
(26) a contribution to a 501(c)(19) organization that does not have an organization license
under section 349.16 and is not affiliated with the contributing organization, and whose
owned or leased property is not a permitted premises under section 349.165. The 501(c)(19)
organization may only use the contribution for lawful purposes under this subdivision or
for the organization's primary mission. The 501(c)(19) organization may not use the
contribution for expansion of a building or for bar-related expenditures. A contribution may
not be made to a statewide organization representing a consortia of 501(c)(19) organizationsdeleted text begin .deleted text end new text begin ;
or
new text end
new text begin
(27)(i) an expenditure made after June 30, 2024, and before August 1, 2029, for the
repair, maintenance, or improvement of real property and capital assets owned by the
following organizations, or for the replacement of a capital asset that can no longer be
repaired:
new text end
new text begin
(A) American Legion;
new text end
new text begin
(B) Veterans of Foreign Wars of the United States (VFW);
new text end
new text begin
(C) Jewish War Veterans of the United States of America;
new text end
new text begin
(D) Military Order of the Purple Heart;
new text end
new text begin
(E) AMVETS;
new text end
new text begin
(F) Marine Corps League;
new text end
new text begin
(G) Paralyzed Veterans of America; or
new text end
new text begin
(H) Disabled American Veterans.
new text end
new text begin
(ii) The expenditure is limited to 50 percent of gross profits from the previous fiscal
year. The fiscal year is July 1 through June 30. Any unused allowances may carry forward
pursuant to the requirements in item (iii).
new text end
new text begin
(iii) For qualifying organizations whose gross receipts exceed $400,000 per year, the
organization may carry forward unused allowances for up to two years. For qualifying
organizations whose gross receipts do not exceed $400,000 per year, the organization may
carry forward unused allowances for up to three years. Any organization carrying forward
funds must identify the planned project for which the funds will be used prior to carrying
forward the unused allowances.
new text end
new text begin
(iv) Total expenditures for the fiscal year may not exceed the limit imposed under item
(ii) unless the board has specifically approved the expenditures that exceed the limit due to
extenuating circumstances beyond the organization's control. An expansion of a building
or any capital improvements within the building regardless of use of the improvement are
allowed under this provision. This provision applies only to capital improvements to the
existing building square footage and does not apply to the new construction of a new or
replacement building.
new text end
(b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25),
must be 51 percent completed within two years of the date of board approval; otherwise the
organization must reapply to the board for approval of the project. "Fifty-one percent
completed" means that the work completed must represent at least 51 percent of the value
of the project as documented by the contractor or vendor.
(c) Notwithstanding paragraph (a), "lawful purpose" does not include:
(1) any expenditure made or incurred for the purpose of influencing the nomination or
election of a candidate for public office or for the purpose of promoting or defeating a ballot
question;
(2) any activity intended to influence an election or a governmental decision-making
process;
(3) a contribution to a statutory or home rule charter city, county, or town by a licensed
organization with the knowledge that the governmental unit intends to use the contribution
for a pension or retirement fund; or
(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of
not complying with lawful purpose restrictions or requirements.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 8
PARI-MUTUEL HORSE RACING
Section 1.
Minnesota Statutes 2022, section 240.01, subdivision 1c, is amended to read:
Subd. 1c.
Advance deposit wagering; ADW.
"Advance deposit wagering" or "ADW"
means a system of pari-mutuel deleted text begin wageringdeleted text end new text begin bettingnew text end in which wagers and withdrawals are
debited and winning payoffs and deposits are credited to an account held by an authorized
ADW provider on behalf of an account holder.new text begin Advance deposit wagering shall not mean
or include historical horse racing, nor any televised, video, or computer screen depicting a
video game of chance or slot machine.
new text end
Sec. 2.
Minnesota Statutes 2022, section 240.01, subdivision 8, is amended to read:
Subd. 8.
Horse racing.
"Horse racing" is any form of new text begin live or simulcast of a live new text end horse
deleted text begin racingdeleted text end new text begin racenew text end in which horses carry anew text begin humannew text end rider or pull a sulkynew text begin with a humannew text end .new text begin Horse racing
shall not include any form that has happened in the past or is considered historical horse
racing.
new text end
Sec. 3.
Minnesota Statutes 2022, section 240.01, is amended by adding a subdivision to
read:
new text begin Subd. 8a. new text end
new text begin Historical horse racing. new text end
new text begin
"Historical horse racing" means any horse race that
was previously conducted at a licensed racetrack, concluded with results, and concluded
without scratches, disqualifications, or dead-heat finishes.
new text end
Sec. 4.
Minnesota Statutes 2022, section 240.01, subdivision 14, is amended to read:
Subd. 14.
Pari-mutuel betting.
"Pari-mutuel betting" is the system of betting on horse
races where those who bet on horses that finish in the position or positions for which bets
are taken share in the total amounts bet, less deductions required or permitted by law.new text begin
Pari-mutuel betting shall not include betting on a race that has occurred in the past or is
considered historical horse racing or where bettors are allowed to bet on the individual
outcome of a race or bettors do not share in the total amount of the bets taken.
new text end
Sec. 5.
new text begin
[240.1563] RACING COMMISSION ECONOMIC DEVELOPMENT
ACCOUNT.
new text end
new text begin
The Racing Commission economic development account is established in the special
revenue fund. The account shall consist of any amounts transferred from the general fund.
The amounts deposited into the account are appropriated to the Minnesota Racing
Commission. The commission must provide money annually as follows to fund purse
supplements:
new text end
new text begin
(1) 28 percent to a licensed racetrack that primarily conducts standardbred horse racing;
and
new text end
new text begin
(2) 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter
Horse racing.
new text end
Sec. 6.
Minnesota Statutes 2022, section 240.30, subdivision 8, is amended to read:
Subd. 8.
Limitations.
The commission may not approve any plan of operation under
subdivision 6 that exceeds any of the following limitations:
(1) the maximum number of tables used for card playing at the card club at any one time,
other than tables used for instruction, demonstrations, or poker tournament play, may not
exceed 80;
(2) except as provided in clause (3), no wager may exceed $100;
(3) for games in which each player is allowed to make only one wager or has a limited
opportunity to change that wager, no wager may exceed $300.
new text begin
A plan of operation shall not authorize historical horse racing, or any other form of gaming
that is not expressly authorized for racetracks in law.
new text end
ARTICLE 9
APPROPRIATIONS; MISCELLANEOUS
Section 1. new text begin DEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.
new text end
new text begin
$4,001,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of public safety to perform the duties required to establish and regulate mobile sports betting
under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota
Statutes, chapter 349C. The base for this appropriation is $2,700,000 in fiscal year 2026
and each fiscal year thereafter.
new text end
Sec. 2. new text begin DEPARTMENT OF REVENUE; APPROPRIATION.
new text end
new text begin
$1,681,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to perform the duties necessary to establish and enforce the taxation of mobile
sports betting and fantasy contests under Minnesota Statutes, chapters 297J and 297K. The
base for this appropriation is $1,353,000 in fiscal year 2026 and each fiscal year thereafter.
new text end
Sec. 3. new text begin DEPARTMENT OF HUMAN SERVICES; APPROPRIATION.
new text end
new text begin
$100,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of human services to administer the money appropriated under Minnesota Statutes, section
297J.02, subdivision 8. The base for this appropriation is $165,000 in fiscal year 2026 and
$526,000 in fiscal year 2027 and each fiscal year thereafter.
new text end
Sec. 4. new text begin OFFICE OF THE ATTORNEY GENERAL; APPROPRIATION.
new text end
new text begin
$702,000 in fiscal year 2025 is appropriated from the general fund to the Office of the
Attorney General to perform the duties required to support state agencies regarding the
regulation of mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80,
and fantasy contests under Minnesota Statutes, chapter 349C. This is an ongoing
appropriation.
new text end
Sec. 5. new text begin RACING COMMISSION ECONOMIC DEVELOPMENT ACCOUNT;
TRANSFER.
new text end
new text begin
$625,000 in fiscal year 2026 is transferred from the general fund to the Racing
Commission economic development account in the special revenue fund to perform the
duties imposed under Minnesota Statutes, section 240.1563. This transfer is ongoing.
new text end
Sec. 6. new text begin STUDY ON MOTIVATIONS AND BELIEFS OF YOUNG ADULT
GAMBLERS; APPROPRIATION.
new text end
new text begin Subdivision 1. new text end
new text begin Appropriation. new text end
new text begin
$150,000 in fiscal year 2025 is appropriated from the
general fund to the commissioner of public safety for a grant to a nonprofit organization to
conduct a study on the gambling motivations and beliefs of young adult gamblers. The
commissioner may not use any amount of this appropriation to administer the grant. This
is a onetime appropriation.
new text end
new text begin Subd. 2. new text end
new text begin Award. new text end
new text begin
The commissioner shall award the grant to a nonprofit, gambling-neutral
organization with experience raising public awareness about problem gambling and providing
professional training for those who work with problem gamblers.
new text end
new text begin Subd. 3. new text end
new text begin Focus group. new text end
new text begin
(a) The grant recipient shall convene a focus group of 40
individuals who are at least 18 years of age but not more than 35 years of age and who have
experience gambling in Minnesota.
new text end
new text begin
(b) Membership of the focus group shall reflect the geographical and demographic
diversity of Minnesotans who are 18 to 35 years of age.
new text end
new text begin
(c) The focus group shall identify the reasons that young adults gamble and the ways in
which they engage in gambling, including whether they wager on sporting events; participate
in fantasy sports; purchase lottery tickets; visit casinos; engage in online gambling; participate
in card playing as defined in Minnesota Statutes, section 240.01, subdivision 5; engage in
pari-mutuel betting as defined in Minnesota Statutes, section 240.01, subdivision 14; or
participate in lawful gambling authorized under Minnesota Statutes, chapter 349.
new text end
new text begin Subd. 4. new text end
new text begin Qualitative survey. new text end
new text begin
Following completion of the focus group described in
subdivision 3, the grant recipient shall create a qualitative survey and obtain responses from
a sample of at least 50,000 individuals.
new text end
new text begin Subd. 5. new text end
new text begin Report. new text end
new text begin
By January 15, 2026, the grant recipient shall submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
public safety, the legislative committees with jurisdiction over taxes, the committee in the
house of representatives with jurisdiction over commerce, the committee in the senate with
jurisdiction over state government finance and policy, the committee in the house of
representatives with jurisdiction over ways and means, and the committee in the senate with
jurisdiction over finance. The report shall summarize the actions and findings of the grant
recipient and shall make recommendations for policies and the use of financial resources
to prevent and address problem gambling by young adults.
new text end