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HF 778

6th Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/13/2022 09:08am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/04/2021
1st Engrossment Posted on 03/14/2022
2nd Engrossment Posted on 03/21/2022
3rd Engrossment Posted on 03/30/2022
4th Engrossment Posted on 04/04/2022
5th Engrossment Posted on 04/29/2022
6th Engrossment Posted on 05/13/2022

Current Version - 6th Engrossment

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A bill for an act
relating to gambling; authorizing and providing for sports betting; establishing
licenses; prohibiting local restrictions; providing for taxation of sports betting;
providing civil and criminal penalties; providing for amateur sports grants; requiring
reports; appropriating money; amending Minnesota Statutes 2020, sections 245.98,
subdivision 2; 260B.007, subdivision 16; 609.75, subdivisions 3, 4, 7, by adding
a subdivision; 609.755; 609.76, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 240A; 299L; 609; proposing coding for new law as
Minnesota Statutes, chapter 297J.

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 sections 299L.10 to 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 any 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 an internet 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 master licensee. new text end

new text begin "Mobile sports betting master licensee"
means an entity comprised of Indian Tribes located in Minnesota that is licensed pursuant
to a master sports betting license and enters into operational agreements with mobile sports
betting operators that operate, conduct, or offer mobile sports betting.
new text end

new text begin Subd. 15. new text end

new text begin Mobile sports betting operator. new text end

new text begin "Mobile sports betting operator" means an
Indian Tribe or entity comprised of multiple Indian Tribes that receives a license from the
commissioner to operate, conduct, or offer for play mobile sports betting under sections
299L.10 to 299L.80.
new text end

new text begin Subd. 16. 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. 17. 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. 18. 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. 19. 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 sections 299L.10 to 299L.80.
new text end

new text begin Subd. 20. 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 sections 299L.10 to 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 sections 299L.10 to 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 sections 299L.10 to 299L.80.
new text end

new text begin Subd. 21. 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. 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 master mobile sports betting licensees,
mobile sports betting operators, mobile sports betting platform providers and service
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 master mobile sports betting licenses,
mobile sports betting operator licenses, mobile sports betting platform provider and service
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 and service 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 master mobile sports betting licensees and 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, 2023,
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 wagers on a particular sporting event, or prohibit or
restrict particular types of wagers.
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 master mobile
sports betting licensees and mobile sports betting operators with notice of the hearing and
an opportunity to participate.
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) two master mobile sports betting licenses;
new text end

new text begin (2) up to 11 mobile sports betting operator licenses;
new text end

new text begin (3) mobile sports betting platform provider and service provider licenses; and
new text end

new text begin (4) 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 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 Subd. 3. new text end

new text begin Background investigation. new text end

new text begin The commissioner shall 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

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, provided
that this provision does not extend to individual Tribal members whose only relation to the
applicant is their membership in their respective Tribal Nations;
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] MASTER MOBILE SPORTS BETTING 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 shall issue two master mobile sports
betting licenses that are valid for 20 years as follows:
new text end

new text begin (1) one master mobile sports betting license to a Tribal entity that may only be comprised
of the following Ojibwe Indian Tribes or an entity wholly owned by the Indian Tribe:
new text end

new text begin (i) the Bois Forte Band;
new text end

new text begin (ii) the Red Lake Nation;
new text end

new text begin (iii) the White Earth Band;
new text end

new text begin (iv) the Grand Portage Band;
new text end

new text begin (v) the Leech Lake Band;
new text end

new text begin (vi) the Fond du Lac Band; and
new text end

new text begin (vii) the Mille Lacs Band; and
new text end

new text begin (2) one master mobile sports betting license to a Tribal entity that may only be comprised
of the following Dakota Indian Tribes or an entity wholly owned by the Indian Tribe:
new text end

new text begin (i) the Lower Sioux Indian Community;
new text end

new text begin (ii) the Upper Sioux Community;
new text end

new text begin (iii) the Shakopee Mdewakanton Sioux Community; and
new text end

new text begin (iv) the Prairie Island Indian Community.
new text end

new text begin (b) The commissioner may not issue a master mobile sports betting license under this
section unless an operational agreement signed by both the Tribal entities identified in
paragraph (a), clauses (1) and (2), has been filed with the commissioner. An operational
agreement executed pursuant to this paragraph is not subject to section 13.05, subdivision
6 or 11.
new text end

new text begin (c) A master mobile sports betting license issued under this subdivision is renewable
every 20 years 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) A master mobile sports betting license entitles the
licensee to coordinate mobile sports betting in Minnesota and contract through an inter-Tribal
compact with a mobile sports betting operator.
new text end

new text begin (b) A master mobile sports betting licensee licensed under subdivision 1, clause (1),
may contract with up to seven mobile sports betting operators. A master sports betting
licensee licensed under subdivision 1, clause (2), may contract with up to four mobile sports
betting operators.
new text end

new text begin (c) A master mobile sports betting licensee may contract with a mobile sports betting
operator before the mobile sports betting operator is licensed, but may not coordinate or
facilitate the acceptance of wagers through an unlicensed 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 master mobile sports betting licensee must:
new text end

new text begin (1) be an organization comprised of two or more Indian Tribes;
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) not be disqualified under section 299L.25 or any relevant rules; and
new text end

new text begin (4) meet any other conditions required by rule adopted pursuant to section 299L.15.
new text end

Sec. 9.

new text begin [299L.29] 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 The commissioner may issue up to 11 mobile sports betting
operator licenses that are valid for one year. 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 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) contract through an inter-Tribal compact with a master mobile sports betting licensee
to operate, conduct, or offer for play mobile sports betting in Minnesota;
new text end

new text begin (2) contract with licensed mobile sports betting platform providers and service providers
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 or an entity wholly
owned and controlled by multiple Indian Tribes;
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 mobile sports betting operator
to the commissioner;
new text end

new text begin (6) have entered into an inter-Tribal compact with a master mobile sports betting licensee
to operate, conduct, or offer for play mobile sports betting in Minnesota;
new text end

new text begin (7) not be disqualified under section 299L.25 or any relevant rules;
new text end

new text begin (8) pay an annual licensing fee in the amount of $2,125; and
new text end

new text begin (9) 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

Sec. 10.

new text begin [299L.30] MOBILE SPORTS BETTING PLATFORM PROVIDER AND
SERVICE 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 mobile sports betting platform
provider and service provider licenses that are valid for one year. A mobile sports betting
platform provider and service provider 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 mobile sports betting platform provider or service
provider license entitles the licensee to provide sports betting platforms, sports betting
technology, sports betting applications, or associated mobile sports betting hardware,
software, or equipment to mobile sports betting operators.
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) 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 $6,000 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 $38,250 or a
license renewal fee of $8,500; 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. 11.

new text begin [299L.31] 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 one year. 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 mobile 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 $6,000 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 $38,250 or a
license renewal fee of $8,500; 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. 12.

new text begin [299L.35] DEPOSIT AND APPROPRIATION OF FEES.
new text end

new text begin Application, license, and renewal fees shall be deposited in the sports betting revenue
account in the special revenue fund.
new text end

Sec. 13.

new text begin [299L.36] 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) futures 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 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 Subd. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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

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 and service 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; and
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 vendors.
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 commission 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. 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 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. The commissioner shall
immediately report any suspicious wagering to the appropriate state or federal authorities.
new text end

Sec. 19.

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. 20.

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. 21.

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 or specific
master mobile sports betting licensees.
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 2023, 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. 22.

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 private data on the individuals
collected through the practice of sports betting.
new text end

Sec. 23.

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. 24. new text beginINDIAN 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, 2022, shall not be modified to accommodate sports betting.
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
15;
new text end

new text begin (4) "sporting event" has the meaning given in section 299L.10, subdivision 19;
new text end

new text begin (5) "sports betting" has the meaning given in section 299L.10, subdivision 20;
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.
new text end

new text begin Sports betting net revenue does not include promotional credits or free bets that are used
toward wagering on sporting events, or other cash and cash equivalents received by a mobile
sports betting operator for activities other than sports betting; 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, 2023.
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 ten 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 funds. new text end

new text begin (a) The sports betting revenue account is established in
the special revenue fund. All amounts collected by the commissioner under this chapter
must be deposited in the account and distributed 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) to (d).
new text end

new text begin (b) $2,700,000 is appropriated from the sports betting revenue account to the
commissioner of public safety to regulate mobile sports betting under sections 299L.10 to
299L.80.
new text end

new text begin (c) $1,353,000 is appropriated from the sports betting revenue account to the
commissioner of revenue to administer the tax established in this chapter.
new text end

new text begin (d) Of the amount remaining in the sports betting revenue account after the appropriations
in paragraphs (b) and (c) have been made:
new text end

new text begin (1) 50 percent is appropriated to the commissioner of human services of which half is
for the compulsive gambling treatment program established under section 245.98, and half
is for a grant to the state affiliate recognized by the National Council on Problem Gambling
to be used 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 research relating to problem gambling. Funds provided to the
commissioner of human services for the compulsive gambling treatment program 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. Money appropriated by this clause must supplement and must not
replace existing state funding for these programs; and
new text end

new text begin (2) 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, 2023, except that subdivision 7 is effective July 1, 2022, and applies to license
and renewal fees received after June 30, 2022, and sports betting net revenue received after
June 30, 2023.
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, 2023.
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, 2023.
new text end

ARTICLE 3

CRIMES RELATED TO SPORTS BETTING

Section 1.

Minnesota Statutes 2020, 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 begina juvenile
violation of section 299L.80, subdivision 3, paragraph (a),
new text enda 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 the transfer of data between a person licensed under
section 299L.10 to 299L.80 or an employee of a licensee and the commissioner, the director,
or the commissioner of revenue when that transfer is necessary to perform duties prescribed
by law relating to wagering on sporting events.
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 2020, section 609.75, subdivision 3, is amended to read:


Subd. 3.

What are not bets.

The following are not bets:

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

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

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

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

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

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

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

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

new text begin (9) sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80new text end.

Sec. 4.

Minnesota Statutes 2020, 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.
new text end

Sec. 5.

Minnesota Statutes 2020, 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.
new text end

Sec. 6.

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


new text begin Subd. 7a. new text end

new text begin Sporting event. new text end

new text begin "Sporting event" has the meaning given in section 299L.10,
subdivision 19, 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 2020, section 609.755, is amended to read:


609.755 GAMBLING; MISDEMEANOR.

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

(1) makes a 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. 8.

Minnesota Statutes 2020, section 609.76, subdivision 2, is amended to read:


Subd. 2.

new text beginUnauthorized new text endsports deleted text beginbookmakingdeleted text endnew text begin bettingnew text end.

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
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 (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 endWhoever 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. 9.

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
18; and
new text end

new text begin (2) "sporting event" has the meaning given in section 299L.10, subdivision 19.
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. 10. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective the day that sports betting becomes lawful under article 1
and applies to crimes committed on or after that date.
new text end

ARTICLE 4

AMATEUR SPORTS GRANTS; APPROPRIATIONS

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 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 6, paragraph (d). The
amounts deposited into the account are appropriated to the Minnesota Amateur Sports
Commission to make grants under this section. The Minnesota Amateur Sports Commission
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.
new text end

new text begin (b) Grant recipients may use funds 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 the way in which grant funds were 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 80 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 funds 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 the way in which grant funds were 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 Annual report. new text end

new text begin By January 15 of each year, the Minnesota Amateur Sports
Commission 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 2020, 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. 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 chemical dependency, and individuals in jails or correctional facilities.
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 endThe 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.

Sec. 3. new text beginSTUDY 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 Notwithstanding any law to the contrary, before the
distribution required under Minnesota Statutes, section 297J.02, subdivision 7, paragraph
(d), $150,000 in fiscal year 2023 is appropriated from the sports betting revenue account
in the special revenue 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, 2024, 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

Sec. 4. new text beginDEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.
new text end

new text begin $1,301,000 in fiscal year 2023 is appropriated from the sports betting revenue account
in the special revenue 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. Notwithstanding any law to the contrary, this appropriation must be
made before the distribution required under Minnesota Statutes, section 297J.02, subdivision
7, paragraph (d). This is a onetime appropriation.
new text end

Sec. 5. new text beginDEPARTMENT OF REVENUE; APPROPRIATION.
new text end

new text begin $328,000 in fiscal year 2023 is appropriated from the sports betting revenue account in
the special revenue fund to the commissioner of revenue to perform the duties necessary to
establish and enforce the taxation of mobile sports betting. Notwithstanding any law to the
contrary, this appropriation must be made before the distribution required under Minnesota
Statutes, section 297J.02, subdivision 7, paragraph (d). This is a onetime appropriation.
new text end