Latest Minnesota Sports Betting Bill Sets New Industry Standard

Changes have been made to the latest Minnesota sports betting bill. And if the initiative winds up being successful, it may set a regulation standard for the industry.

We are not just talking about states that have yet legalize sports betting, either. Markets that already rolled out gambling services could look to implement similar changes to their current protocols. 

The measure in question is Senate Bill 3414 (SB 3414). Among other things, it seeks to legalize sports betting in Minnesota, as well as daily fantasy sports sites, for state residents 21 or older. It also affords exclusivity to tribal nations, with language that allows them to partner with online sports betting sites in the USA. On top of that, it allocates a portion of Minnesota sports betting revenue to racetracks, since they will not be cleared to have their own standalone sportsbooks.

Reactions to the proposal remain mixed. That is to be expected. Indeed, 39 states, as well as the District of Columbia and Puerto Rico, have legalized some form of wagering. But the rise of sports betting in the United States continues to be a divisive issue. 

This holds true in Minnesota. Opponents of sports betting have pushed back with a bunch of different concerns. The newest bill addresses some of them, including its assurances for tribal nations. But the safety of consumers is top-of-mind for many lawmakers. Opponents often point to the increase of reported problem gambling and its trickle-down effects (debt, lower savings accounts, bankruptcy) as proof that the industry does more harm than good.

To that end, the most recent amendments to SB 3414 are clearly an attempt to assuage those concerns.

Additions to Minnesota Sports Betting Bill Emphasize Stricter Regulation

The most unique parts of SB 3414 addendums focus on regulatory practices. More specifically, they target sports book operators’ access to consumers via notifications and promotions. Here is Justin Byers of SBC Americas with more:
“SB 3414 requires all advertisements related to mobile sports betting to display ‘1-800-GAMBLER’ or other toll-free problem gambling helplines. The bill also prohibits any license holder from depicting underage gambling and appealing to individuals under the age of 21. Any marketing that is described as ‘risk-free’ is also barred from being published. Licensed operators are required to offer a 24-hour helpline for problem gambling. The helpline must be provided by the National Council on Problem Gambling. While these are standard measures in most states, the bill does have a unique prohibition that would keep apps from using push notifications on phones to entice people back onto the app.”

That last addition is incredibly interesting. Other states are starting to spotlight targeted marketing with emails and live television advertisements. But those are more so aimed at limited access to new clients. Restricting push notifications would cap the exposure existing customers have to promotional material.

This might seem counterintuitive to some. Shouldn’t customers have access to special deals? To some extent, yes, they should. But operators are known to send out notifications to people on cold streaks, in hopes of enticing them to spend more. Failing that, push notifications can act like spam email, alerting you to upcoming events in addition to promotions. 

To be sure, minimizing those alerts will not solve problem gambling altogether. But it is yet another boundary between operators and prospective bettors.

Will Minnesota Consider Implementing Individual Betting Limits? 

The current language in SB 3414 has many wondering whether the Minnesota sports betting market will institute individual betting limits. These restrictions apply to both the consumer and sportsbooks. Individuals would be capped at what they can bet per day, week and/or month depending on how much they make, and it would be on operators to vet this information.

However, it does not appear that this is part of the legislation. This is likely because Minnesota online sports betting will not be available outright. The idea of individual limits is being popularized among regulators of sports betting in Massachusetts, which allows places like DraftKings and FanDuel to operate independently. A similar stipulation is not as critical in Minnesota. 

Still, this might be something the state revisits in the future. Most consider the expansion of sports betting in markets with online restrictions to be inevitable. It could be years down the line, but The Land of 10,000 Lakes will surely contemplate broadening their horizons. 

Of course, Minnesota needs to actually legalize sports betting first. That is not a given. Though SB 3414 has plenty of traction, two other measures are also up for consideration. On top of that, support for Minnesota sports betting in general remains scattered. Many officials continue to oppose it. Others, meanwhile, want looser Minnesota online sports betting laws before issuing their stamp of approval. And then there are those who believe that the current restrictions in place with SB 3414 and other initiatives fall short. They want even stricter regulation. 

All of which is an extension of previous Minnesota sports betting discussions. The state has come relatively close to approving a bill on two occasions, only for division among lawmakers to win out. Will the same thing happen this time around? The state legislature is set to adjourn later this month, so we’ll know soon enough.

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