Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 1894

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/11/2019 11:27am

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11
1.12 1.13
1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 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 2.33 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 3.30 3.31 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
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 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
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
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 9.31 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 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
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

A bill for an act
relating to gambling; creating a sports wagering commission; providing for licensing
of sports pool operators and sports wagering premises; establishing mobile and
electronic sports pool licenses; prescribing the conduct of sports pools; prohibiting
local restrictions; restricting participation in sports wagering; imposing an excise
tax on sports wagers in lieu of the corporate tax; providing for the administration
of the tax; requiring a report; amending Minnesota Statutes 2018, sections 290.0131,
by adding a subdivision; 290.0132, by adding a subdivision; 290.0133, by adding
a subdivision; 290.0134, by adding a subdivision; 297E.02, subdivision 3; 541.20;
541.21; proposing coding for new law as Minnesota Statutes, chapters 240B; 297J.

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

ARTICLE 1

REGULATION OF SPORTS WAGERING

Section 1.

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

new text begin Subdivision 1. new text end

new text begin Individual wager. new text end

new text begin "Individual wager" means a wager as to which of the
participating contestants will win specified sports events.
new text end

new text begin Subd. 2. new text end

new text begin Line. new text end

new text begin "Line" means the odds or point spread on a particular sporting event,
including a money line.
new text end

new text begin Subd. 3. new text end

new text begin Electronic sports pool. new text end

new text begin "Electronic sports pool" means the conduct of a sports
pool by the use of communications technology that allows a person to transmit information
via the Internet, mobile application, computer, mobile device, tablet, or other electronic
device owned or possessed by the person placing the wager to assist in the placing of a bet
or wager.
new text end

new text begin Subd. 4. new text end

new text begin Money line. new text end

new text begin "Money line" means the odds on a particular sporting event
expressed in terms of money.
new text end

new text begin Subd. 5. new text end

new text begin On-site sports pool. new text end

new text begin "On-site sports pool" means the conduct of a sports pool
in which the placing of a bet or wager takes place on a premises licensed under section
240B.25, subdivision 2.
new text end

new text begin Subd. 6. new text end

new text begin Parlay card wager. new text end

new text begin "Parlay card wager" means a wager on the outcome of a
series of three or more games, matches, or similar sporting events or on a series of three or
more contingencies incident to particular games, matches, or similar sporting events.
new text end

new text begin Subd. 7. new text end

new text begin Proposition wager. new text end

new text begin "Proposition wager" means a wager as to whether the total
points scored in a specified game, match, or similar sporting event will be higher or lower
than a number specified for that event, and other contingencies for which the outcomes are
reported in newspapers of general circulation or in official public records maintained by
the appropriate league.
new text end

new text begin Subd. 8. new text end

new text begin Sporting event. new text end

new text begin "Sporting event" means a contest in any sport, including a
motor sport, between individuals or teams which is usually attended by the public and is
governed by rules established by a sporting body, which stages a sporting event, or a
regulatory body under whose authorization a sporting event takes place. An activity, sport,
or athletic event organized by an elementary, middle, or high school, or by any youth activity
sports program, league, or clinic, is not a sporting event. Horse racing as defined in chapter
240 is not a sporting event.
new text end

new text begin Subd. 9. new text end

new text begin Sports pool. new text end

new text begin "Sports pool" means the business of accepting wagers on a sporting
event by a system or method of wagering.
new text end

new text begin Subd. 10. new text end

new text begin Sports pool operator. new text end

new text begin "Sports pool operator" means an individual or legal
entity licensed to conduct an on-site sports pool or mobile and electronic sports pool.
new text end

new text begin Subd. 11. new text end

new text begin Sports wager. new text end

new text begin "Sports wager" means any type of authorized wager on a
sporting event.
new text end

Sec. 2.

new text begin [240B.10] MINNESOTA SPORTS WAGERING COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Authority created. new text end

new text begin The Minnesota Sports Wagering Commission is
created with the powers and duties established by this section.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The commission consists of five members appointed by the
governor. When a vacancy on the commission exists, the governor will notify the legislature
of the vacancy and invite a member of the legislature to recommend a candidate to fill the
available position as prescribed under this subdivision. For the first vacancy, the governor
will invite a recommendation from the senate majority leader; for the second vacancy, the
governor will invite a recommendation from the speaker of the house of representatives;
for the third vacancy, the governor will invite a recommendation from the senate minority
leader; for the fourth vacancy, the governor will invite a recommendation from the house
of representatives minority leader; for the fifth vacancy, the governor will not invite a
recommendation from a member of the legislature. The governor must invite or not invite
a recommendation from a member of the legislature for all vacancies following the fifth
vacancy in the same order and manner as the governor is required to invite or not invite
recommendations for the first to fifth vacancies. The governor may choose to fill a
commission vacancy with a candidate recommended by a member of the legislature under
this subdivision. Appointments under this subdivision must be made with the advice and
consent of the legislative body of which the legislator making the submission is a member.
If no legislative recommendation is made, the appointment must be made with the advice
and consent of both the house and senate. The commission must select one of its members
as chair. The term of the chair may not exceed four years and no person may serve
consecutive terms as chair. Appointments to the commission are for four years, but a member
may be reappointed.
new text end

new text begin (b) A person may not serve on the commission, be the director, or be an employee of
the commission who has an interest in or receives compensation from any corporation,
association, limited liability company, or partnership that is licensed by the commission.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin Members of the commission serve in the unclassified service.
new text end

new text begin Subd. 4. new text end

new text begin Powers and duties. new text end

new text begin (a) The commission has the power and duty to regulate
sports wagering to ensure that it is conducted in a fair and lawful manner and to take all
necessary actions sufficient to administer and enforce the provisions of this section.
new text end

new text begin (b) The commission must adopt rules consistent with this section for the conduct of
sports pools, including but not limited to:
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 lines are determined;
new text end

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

new text begin (4) minimum and maximum wagers;
new text end

new text begin (5) standards to address and prevent compulsive and problem gambling;
new text end

new text begin (6) the sporting events on which wagers are authorized to be placed including but not
limited to any professional or National Collegiate Athletic Association division I sporting
event;
new text end

new text begin (7) application requirements for mobile and electronic sports pool licenses;
new text end

new text begin (8) application requirements for licenses, background checks, prohibitions, audits,
registration of employees, inspections, filing of inventory, serial numbers, or termination
plans; and
new text end

new text begin (9) develop license requirements for providing equipment and software used in operating
a sports pool.
new text end

new text begin Subd. 5. new text end

new text begin Orders. new text end

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

new text begin Subd. 6. new text end

new text begin Court orders. new text end

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

new text begin Subd. 7. new text end

new text begin Delegation. new text end

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

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin By February 15 of each year, the commission shall submit a report to
the governor and legislature on its activities, receipts and disbursements, and
recommendations for changes in the laws relating to sports wagering.
new text end

Sec. 3.

new text begin [240B.16] DIRECTOR.
new text end

new text begin The governor must appoint a director to the Minnesota Sports Wagering Commission.
The director has the duty to operate and manage the day-to-day functions of the commission;
to execute the authority delegated to the director by the commission, statute, or rule; and to
advise the commission on policy, rule, or legislative changes. The director serves in the
unclassified service at the pleasure of the governor.
new text end

Sec. 4.

new text begin [240B.22] LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Forms. new text end

new text begin All applications for a license or renewal must be on a form
prescribed by the commission. The commission may require an applicant to submit any
documents it deems necessary.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin The commission may charge a license fee of $....... to administer and
cover the costs associated with the application or renewal process.
new text end

Sec. 5.

new text begin [240B.25] SPORTS POOL LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin No sports pool may be conducted by a sports pool
operator unless the operator has been issued a license under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Sports pool operator license. new text end

new text begin (a) No person may operate a sports pool without
a valid license issued under this subdivision. A license may only be issued under this section
to:
new text end

new text begin (1) a federally recognized Indian tribe or group of tribes that is located in this state to
conduct sports wagering on tribal land;
new text end

new text begin (2) a class A license under section 240.06 to conduct wagering at a racetrack; or
new text end

new text begin (3) a provider of an electronic sports wagering platform to operate an electronic sports
pool through a website or mobile application. A license to operate an electronic sports pool
through a website or mobile application may be granted only to a holder of a license under
clause (1) or (2). An electronic sports wagering platform may be operated only through
equipment owned or possessed by the wagerer.
new text end

new text begin Licenses must be renewed annually.
new text end

new text begin (b) The governor may negotiate with a tribe for the purpose of entering into a compact
to conduct sports wagering in a manner consistent with this chapter. A request made by the
governor pursuant to this section is limited to sports wagering matters unless a tribe expressly
requests that the scope of negotiations include other matters. The compact and negotiations
are governed under this paragraph and all applicable provisions of section 3.9221. The
governor may delegate authority to negotiate a compact under this section to the commission.
new text end

new text begin Subd. 3. new text end

new text begin Equipment and software licenses. new text end

new text begin No person may provide equipment or
software for use in operating a sports pool without a license. An equipment or software
provider licensed in Nevada is eligible for a license under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Third-party agreements. new text end

new text begin Nothing in this section prohibits a licensee from
entering into an agreement with a third party to manage or operate an on-site sports pool,
a mobile and electronic sports pool, or both.
new text end

Sec. 6.

new text begin [240B.35] CONDUCT OF SPORTS POOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Tribal casino and racetrack premises only. new text end

new text begin Except for wagers received
in an electronic sports pool, wagers in a sports pool may only be received:
new text end

new text begin (1) in a casino operated under a tribal-state compact under section 3.9221; or
new text end

new text begin (2) at a racetrack licensed under chapter 240.
new text end

new text begin Subd. 2. new text end

new text begin Reserve funds. new text end

new text begin (a) A sports pool operator must maintain a reserve fund equal
to the sum of the following amounts:
new text end

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

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

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

new text begin (b) Before beginning operations, each newly licensed sports pool operator must establish
a reserve of $25,000, or the amount specified by the commission, whichever is greater.
new text end

new text begin (c) The commission may require a sports pool operator to maintain any other accounts
that the commission deems necessary to ensure that all payouts may be made.
new text end

new text begin Subd. 3. new text end

new text begin Types of wagers allowed. new text end

new text begin A sports pool may take wagers, including parlay
card wagers, individual wagers, proposition wagers, or any other type of wager authorized
by the commission on any sporting event authorized by the commission.
new text end

new text begin Subd. 4. new text end

new text begin Types of wagers prohibited. new text end

new text begin No wagers may be accepted or paid by a sports
pool on:
new text end

new text begin (1) any sport or athletic event other than one authorized by the commission;
new text end

new text begin (2) any sporting event that the sports pool operator knows, or reasonably should know,
is being placed by or on behalf of a person prohibited from wagering under section 240B.45;
new text end

new text begin (3) any nonsports or athletic event including but not limited to the outcome of any
election for any public office;
new text end

new text begin (4) any virtual event; or
new text end

new text begin (5) a sporting event for which the line was not posted.
new text end

new text begin Subd. 5. new text end

new text begin Pool cancellation. new text end

new text begin The commission may order the cancellation of an open
sports pool and refund of wagers if, in the judgment of the director, the immediate
cancellation of a pool is necessary to ensure the fairness, lawfulness, or integrity of sports
wagering or of a sporting event.
new text end

Sec. 7.

new text begin [240B.45] RESTRICTIONS ON WHO MAY PARTICIPATE IN A SPORTS
POOL.
new text end

new text begin The following persons must not place a wager in a sports pool:
new text end

new text begin (1) a person under the age of 18;
new text end

new text begin (2) sports pool operators;
new text end

new text begin (3) a director, officer, partner, governor, or direct or indirect holder of more than a five
percent financial interest in a sports pool operator;
new text end

new text begin (4) an employee of a sports pool operator or other entity that has entered into an agreement
to manage or operate a sports pool on behalf of a licensee;
new text end

new text begin (5) a person participating in a sporting event as a player, coach, or official; or who is an
owner, employee, or officer of a team participating in the sporting event or of the league;
or the organizer of a sporting event;
new text end

new text begin (6) an immediate family member of a player participating in the sporting event;
new text end

new text begin (7) a person who possesses nonpublic information about a player's ability to perform in
the sporting event;
new text end

new text begin (8) an officer, director, or employee of the Minnesota Sports Wagering Commission;
new text end

new text begin (9) a person who is placing the wager on behalf of another person in exchange for
compensation; or
new text end

new text begin (10) a person who has been convicted of a crime related to sports wagering.
new text end

Sec. 8.

new text begin [240B.60] ACCEPTANCE OF WAGERS.
new text end

new text begin A sports pool operator may not accept wagers unless made with a method of payment
approved by the commission.
new text end

Sec. 9.

Minnesota Statutes 2018, section 541.20, is amended to read:


541.20 RECOVERY OF MONEY LOST.

Every person who, by playing at cards, dice, or other game, or by betting on the hands
or sides of such as are gambling, shall lose to any person so playing or betting any sum of
money or any goods, and pays or delivers the same, or any part thereof, to the winner, may
sue for and recover such money by a civil action, before any court of competent jurisdiction.
For purposes of this section, gambling shall not include pari-mutuel wagering conducted
under a license issued pursuant to chapter 240, purchase or sale of tickets in the State Lottery,
deleted text begin ordeleted text end gambling authorized under chapters 349 and 349Anew text begin , or sports wagering authorized under
chapter 240B
new text end .

Sec. 10.

Minnesota Statutes 2018, section 541.21, is amended to read:


541.21 COMMITMENTS FOR GAMBLING DEBT VOID.

Every note, bill, bond, mortgage, or other security or conveyance in which the whole or
any part of the consideration shall be for any money or goods won by gambling or playing
at cards, dice, or any other game whatever, or by betting on the sides or hands of any person
gambling, or for reimbursing or repaying any money knowingly lent or advanced at the
time and place of such gambling or betting, or lent and advanced for any gambling or betting
to any persons so gambling or betting, shall be void and of no effect as between the parties
to the same, and as to all persons except such as hold or claim under them in good faith,
without notice of the illegality of the consideration of such contract or conveyance. The
provisions of this section shall not apply to: (1) pari-mutuel wagering conducted under a
license issued pursuant to chapter 240; (2) purchase of tickets in the State Lottery under
chapter 349A; (3) gaming activities conducted pursuant to the Indian Gaming Regulatory
Act, United States Code, title 25, section 2701 et seq.; deleted text begin ordeleted text end (4) lawful gambling activities
permitted under chapter 349new text begin ; or (5) sports wagering activities permitted under chapter 240Bnew text end .

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective September 1, 2020, or the day following the effective date of a
law that makes wagering on sporting events legal if conducted under Minnesota Statutes,
chapter 240B, whichever is later.
new text end

ARTICLE 2

TAXATION OF SPORTS WAGERING

Section 1.

Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Nontaxable sports wagering losses. new text end

new text begin Losses from the business of conducting
a sports pool under chapter 240B that are not subject to Minnesota franchise tax are an
addition.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 27. new text end

new text begin Exempt sports wagering income. new text end

new text begin Income or gains from the business of
conducting a sports pool under chapter 240B that are not subject to Minnesota franchise
tax are a subtraction.
new text end

Sec. 3.

Minnesota Statutes 2018, section 290.0133, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Nontaxable sports wagering losses. new text end

new text begin Losses from the business of conducting
a sports pool under chapter 240B that are not subject to Minnesota franchise tax are an
addition.
new text end

Sec. 4.

Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Exempt sports wagering income. new text end

new text begin Income or gains from the business of
conducting a sports pool under chapter 240B that are not subject to Minnesota franchise
tax are a subtraction.
new text end

Sec. 5.

Minnesota Statutes 2018, section 297E.02, subdivision 3, is amended to read:


Subd. 3.

Collection; disposition.

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

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

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

Sec. 6.

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

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

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

new text begin (2) "wager" means a wager as defined in section 4421 of the Internal Revenue Code;
new text end

new text begin (3) "sports pool operator" means a sports pool operator as defined in section 240B.01,
who is licensed to conduct a sports pool under chapter 240B, and who is liable for paying
the federal excise tax on wagers in section 4401 of the Internal Revenue Code;
new text end

new text begin (4) "sports pool" has the meaning given in section 240B.01 provided that the sports pool
is conducted by a sports pool operator;
new text end

new text begin (5) "commissioner" means the commissioner of revenue; and
new text end

new text begin (6) "sports wagering net revenue" means the total of all cash received by a sports pool
operator from sports wagering, less cash paid out as winnings and cash equivalent of noncash
prizes paid out as winnings. Sports wagering net revenue does not include other cash received
by a sports pool operator for activities other than sports wagering. The cash received by a
sports pool operator as part of the sports wagering net revenue calculation does not include
the value of cash received as a result of promotional credits, free bets, or other incentives.
new text end

Sec. 7.

new text begin [297J.05] TAX ON SPORTS WAGERING NET REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin A tax is imposed on sports wagering net revenue equal to
6.75 percent.
new text end

new text begin Subd. 2. new text end

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

new text begin Income derived
by a sports pool operator from the conduct of a sports pool is not subject to the tax imposed
in chapter 290. Wagers accepted by a sports pool 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 Personal debt. new text end

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

new text begin Subd. 4. new text end

new text begin Public information. new text end

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

new text begin Subd. 5. new text end

new text begin Refunds. new text end

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

new text begin Subd. 6. new text end

new text begin Extensions. new text end

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

new text begin Subd. 7. new text end

new text begin Distribution of funds. new text end

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

Sec. 8.

new text begin [297J.15] SPORTS POOL OPERATOR REPORTS AND RECORDS.
new text end

new text begin Subdivision 1. new text end

new text begin Reports. new text end

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

new text begin Subd. 2. new text end

new text begin Business records. new text end

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

new text begin Subd. 3. new text end

new text begin Audits. new text end

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

Sec. 9.

new text begin [297J.25] OTHER PROVISIONS APPLY.
new text end

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

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

new text begin This article is effective 90 days following final enactment.
new text end