1.1 A bill for an act
1.2 relating to gambling; authorizing and providing for sports betting and fantasy
1.3 contests; establishing licenses; prohibiting local restrictions; providing for taxation
1.4 of sports betting and fantasy contests; providing civil and criminal penalties;
1.5 providing for amateur sports grants; providing for charitable gambling and
1.6 modifying certain rates of tax on lawful gambling; providing for pari-mutuel horse
1.7 racing; making clarifying, conforming, and technical changes; requiring reports;
1.8 appropriating money; amending Minnesota Statutes 2024, sections 240.01,
1.9 subdivision 1b; 245.98, subdivision 2; 260B.007, subdivision 16; 270B.07, by
1.10 adding a subdivision; 297E.02, by adding a subdivision; 349.12, subdivision 25;
1.11 609.75, subdivisions 3, 4, 7, by adding subdivisions; 609.755; 609.76, subdivision
1.12 2; 609.761, subdivision 3; proposing coding for new law in Minnesota Statutes,
1.13 chapters 116U; 240; 240A; 245; 299L; 609; proposing coding for new law as
1.14 Minnesota Statutes, chapters 297J; 297K; 349C.
1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.16 ARTICLE 1
1.17 LAWFUL SPORTS BETTING
1.18 Section 1. [299L.10] DEFINITIONS.
1.19 Subdivision 1.Terms.For the purposes of this chapter, the following terms have the
1.20meanings given.
1.21 Subd. 2.Athletic event."Athletic event" means a sports game, match, or activity, or
1.22series of games, matches, activities, or tournaments involving the athletic skill of one or
1.23more players or participants. Athletic event does not include any of the following:
1.24 (1) horse racing as defined in section 240.01, subdivision 8;
1Article 1 Section 1.
REVISOR JSK/KR 25-0126501/13/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1842
NINETY-FOURTH SESSION
Authored by Frazier, Kozlowski, Huot, Tabke, Stephenson and others03/03/2025
The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (2) an esports or athletic competition, demonstration, activity, or tournament organized
2.2by an elementary, middle, or high school, or by any youth activity sports program, league,
2.3or clinic; or
2.4 (3) a fantasy sports contest in which participants assemble teams of athletes or individuals
2.5and the winning outcome reflects the relative knowledge and skill of the participants and
2.6is determined predominantly by the accumulated statistical results of the performance of
2.7athletes or individuals in an actual event.
2.8 Subd. 3.Authorized participant."Authorized participant" means an individual who
2.9has a valid mobile sports betting account with a mobile betting operator and is at least 21
2.10years of age.
2.11 Subd. 4.Betting exchange."Betting exchange" is a marketplace that facilitates
2.12peer-to-peer wagers without collecting fees for wagers placed.
2.13 Subd. 5.Casino."Casino" means an establishment in which gaming is lawfully conducted
2.14by an Indian Tribe in the state of Minnesota pursuant to the Indian Gaming Regulatory Act
2.15and in accordance with a Tribal gaming ordinance and applicable Tribal-state compacts.
2.16 Subd. 6.Class III gaming."Class III gaming" has the meaning given in United States
2.17Code, title 25, section 2703.
2.18 Subd. 7.College sports."College sports" means a sporting event in which at least one
2.19participant is a team or individual from a public or private institution of higher education.
2.20 Subd. 8.Compact."Compact" means a Tribal-state compact governing the conduct of
2.21class III gaming on Indian lands that is negotiated under section 3.9221, any other state law,
2.22or pursuant to the Indian Gaming Regulatory Act, Public Law 100-497, and future
2.23amendments to it.
2.24 Subd. 9.Esports event."Esports event" means a competition between individuals or
2.25teams using video games in a game, match, contest, or series of games, matches, or contests,
2.26or a tournament, or by a person or team against a specified measure of performance which
2.27is hosted at a physical location or online that meets the following conditions:
2.28 (1) the video game does not simulate the play of a game classified as Class I, II, or III
2.29under the Indian Gaming Regulatory Act, Public Law 100-497, and future amendments to
2.30it;
2.31 (2) spectators are allowed to watch the competition in real time, either in person or
2.32online; and
2Article 1 Section 1.
REVISOR JSK/KR 25-0126501/13/25 3.1 (3) the video game is approved by the commissioner to be an event eligible for wagering
3.2under this section to section 299L.80.
3.3 Subd. 10.Indian Tribe."Indian Tribe" means the following federally recognized Tribes
3.4and any instrumentality, political subdivision, legal entity, or other organization through
3.5which one of them conducts business:
3.6 (1) the Fond du Lac Band;
3.7 (2) the Grand Portage Band;
3.8 (3) the Mille Lacs Band;
3.9 (4) the White Earth Band;
3.10 (5) the Bois Forte Band;
3.11 (6) the Leech Lake Band;
3.12 (7) the Red Lake Nation;
3.13 (8) the Upper Sioux Community;
3.14 (9) the Lower Sioux Indian Community;
3.15 (10) the Shakopee Mdewakanton Sioux Community; and
3.16 (11) the Prairie Island Indian Community.
3.17 Subd. 11.In-game betting."In-game betting" means placing a mobile sports betting
3.18wager after a sporting event has started but before the outcome of the wager is determined.
3.19 Subd. 12.Mobile application."Mobile application" means an application on a mobile
3.20phone or other device through which an individual is able to place a mobile sports betting
3.21wager.
3.22 Subd. 13.Mobile sports betting."Mobile sports betting" means operating, conducting,
3.23or offering for play sports betting through the Internet.
3.24 Subd. 14.Mobile sports betting account."Mobile sports betting account" means an
3.25electronic ledger in which all of the following types of transactions relative to an authorized
3.26participant are recorded:
3.27 (1) deposits and credits;
3.28 (2) withdrawals;
3.29 (3) mobile sports betting wagers;
3Article 1 Section 1.
REVISOR JSK/KR 25-0126501/13/25 4.1 (4) monetary value of winnings;
4.2 (5) service or other transaction related charges authorized by the authorized participant,
4.3if any;
4.4 (6) adjustments to the account;
4.5 (7) promotional activity; and
4.6 (8) responsible gaming parameters.
4.7 Subd. 15.Mobile sports betting operator."Mobile sports betting operator" means an
4.8Indian Tribe that receives a license from the commissioner to operate, conduct, or offer for
4.9play mobile sports betting under this section to section 299L.80.
4.10 Subd. 16.Mobile sports betting platform."Mobile sports betting platform" means an
4.11integrated system of hardware, software, or applications, including mobile applications and
4.12servers, through which a mobile sports betting operator operates, conducts, or offers sports
4.13betting through the Internet.
4.14 Subd. 17.Mobile sports betting platform provider."Mobile sports betting platform
4.15provider" means a sports betting supplier that contracts with a mobile sports betting operator
4.16to provide a mobile sports betting platform.
4.17 Subd. 18.Participant in a sporting event."Participant in a sporting event" means a
4.18person engaging in a sporting event as a player, coach, or official, or who is an owner or
4.19officer of a team engaging in a sporting event or the league or organization organizing the
4.20sporting event.
4.21 Subd. 19.Peer-to-peer wager."Peer-to-peer wager" means a wager placed between
4.22two individuals in which one individual sets the conditions for a wager on a sporting event
4.23and is matched by a betting exchange against another individual who sets the opposite
4.24conditions for a wager for the same sporting event.
4.25 Subd. 20.Sporting event."Sporting event" means an athletic event, esports event,
4.26college sports event, or other event approved by the commissioner to be an event eligible
4.27for wagering under this section to section 299L.80.
4.28 Subd. 21.Sports betting.(a) "Sports betting" means wagering on the outcome of a
4.29sporting event or portions thereof or individual performance statistics therein that is:
4.30 (1) organized by a professional sports organization, internationally recognized sports
4.31organization, amateur sports organization, or a postsecondary educational institution or
4.32group of postsecondary educational institutions; and
4Article 1 Section 1.
REVISOR JSK/KR 25-0126501/13/25 5.1 (2) approved by the commissioner to be an event eligible for wagering under this act.
5.2 (b) Sports betting includes but is not limited to single-game bets; futures bets; teaser
5.3bets; parlay bets; over-under bets; money line bets; in-game betting; proposition bets; straight
5.4bets; exchange wagering; futures bets placed on end of the season standings, awards, or
5.5statistics; and any other bets approved by the commissioner.
5.6 (c) A contract for insurance on the life or health of a participant in a sporting event is
5.7not sports betting regulated under this section to section 299L.80.
5.8 (d) A private social bet as described in section 609.75, subdivision 3, clause (5), is not
5.9sports betting regulated under this section to section 299L.80.
5.10 (e) A sports-themed tipboard as described in section 349.12, subdivision 34, is not sports
5.11betting regulated under this section to section 299L.80.
5.12 (f) A peer-to-peer wager placed on a betting exchange is not sports betting regulated
5.13under this section to section 299L.80.
5.14 Subd. 22.Sports betting supplier."Sports betting supplier" means a person that, either
5.15directly or indirectly, provides mobile sports betting operators with services, goods, software,
5.16or any other product or information necessary to conduct sports betting or determine the
5.17outcome of wagers, including a person who provides data feeds and odds services, risk
5.18management providers, and integrity monitoring providers. Sports betting supplier does not
5.19include a sports governing body that provides raw statistical match data.
5.20 Subd. 23.Sports governing body."Sports governing body" means an organization that
5.21prescribes and enforces final rules and codes of conduct for a sporting event and participants
5.22engaged in the sport. For a sporting event sanctioned by a higher education institution, sports
5.23governing body means the athletic conference to which the institution belongs. For an esports
5.24event, sports governing body means the video game publisher of the title used in the esports
5.25competition.
5.26 Subd. 24.Wager."Wager" means a transaction between an individual and a licensed
5.27mobile sports betting operator in which an individual pays, deposits, or risks cash or a cash
5.28equivalent during sports betting on an uncertain outcome of a sporting event.
5.29 Sec. 2. [299L.11] SCOPE.
5.30 Subdivision 1.Lawful mobile sports betting.A person 21 years of age or older may
5.31participate in mobile sports betting within the state provided the person places all wagers
5Article 1 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 6.1with an entity licensed under sections 299L.10 to 299L.80 and is not disqualified, prohibited,
6.2or excluded from placing a wager on a sporting event.
6.3 Subd. 2.Unlawful sports betting.It is unlawful to wager on a sporting event, or engage
6.4in sports betting except in compliance with the terms, conditions, limitations, and restrictions
6.5of sections 299L.10 to 299L.80 or the rules adopted under those sections, other than class
6.6III sports betting conducted by an Indian Tribe pursuant to a Tribal-state compact.
6.7 Subd. 3.Inapplicability to sports betting on Indian lands.Sections 299L.10 to 299L.80,
6.8except for any provisions authorizing the negotiations of Tribal-state compacts, do not apply
6.9to sports betting conducted exclusively on Indian lands by an Indian Tribe conducted pursuant
6.10to a Tribal gaming ordinance approved by the National Indian Gaming Commission and a
6.11Tribal-state compact.
6.12 Sec. 3. [299L.15] POWERS AND DUTIES OF COMMISSIONER.
6.13 Subdivision 1.Regulate sports betting.The commissioner has the power and duty to
6.14regulate mobile sports betting authorized under sections 299L.10 to 299L.80. In making
6.15rules, establishing policy, and regulating mobile sports betting, the commissioner shall:
6.16 (1) ensure that mobile sports betting is conducted in a fair and lawful manner;
6.17 (2) promote public safety and welfare; and
6.18 (3) ensure that mobile sports betting is conducted in a manner that is transparent to
6.19authorized participants.
6.20 Subd. 2.Rulemaking.(a) The commissioner may adopt and enforce rules that are
6.21consistent with sections 299L.10 to 299L.80 and address the following subjects:
6.22 (1) the manner in which wagers are accepted and payouts are remitted;
6.23 (2) the manner in which betting lines are communicated to the public;
6.24 (3) the calculation of gross sports betting revenue and standards for daily counting and
6.25recording of cash and cash equivalents received in the conduct of sports betting;
6.26 (4) the method of accounting to be used by mobile sports betting operators;
6.27 (5) the types of records that shall be kept by mobile sports betting operators, mobile
6.28sports betting platform providers, and sports betting suppliers;
6.29 (6) the testing and auditing requirements for licensees, including requirements related
6.30to mobile sports betting accounts;
6Article 1 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 7.1 (7) the creation, funding, and use of mobile sports betting accounts, debit cards, and
7.2checks by authorized participants provided that the rules permit an authorized participant
7.3to fund a mobile sports betting account through a bonus or promotion, electronic bank
7.4transfer, an online or mobile payment system that supports online money transfers, a
7.5reloadable or prepaid card, and any other appropriate means approved by the commissioner
7.6other than the use of credit cards;
7.7 (8) the appropriate standards and practices to prevent and address compulsive and
7.8problem gambling;
7.9 (9) the appropriate standards and practices to prevent and address sports betting by
7.10individuals who are not authorized participants or who are otherwise disqualified, prohibited,
7.11or excluded from placing a wager on a sporting event;
7.12 (10) the sporting events on which wagers are authorized to be placed;
7.13 (11) the requirements for obtaining and retaining mobile sports betting operator licenses,
7.14mobile sports betting platform provider licenses, and sports wagering supplier licenses,
7.15including requirements for criminal and financial background checks, financial disclosure
7.16and auditing requirements, data practices and security requirements, bonding or other surety
7.17requirements, and the conduct of inspections;
7.18 (12) the requirements for mobile sports betting platform provider licensees to provide
7.19equipment and supplies used in sports betting;
7.20 (13) the requirements for sports wagering supplier licensees to provide services, goods,
7.21software, or any other product or information necessary to conduct sports betting or determine
7.22the outcome of wagers;
7.23 (14) the requirements for employees of mobile sports betting operators whose exclusive
7.24or primary responsibilities involve mobile sports betting, including minimum age
7.25requirements, criminal background checks, and retention of documents related to the
7.26employees;
7.27 (15) the appropriate limits, requirements, standards, and regulations related to marketing
7.28and advertising, developed in consultation with the state affiliate recognized by the National
7.29Council on Problem Gambling, including rules to address the time, place, and manner of
7.30marketing and advertising, the types of wagers that may be marketed or advertised, and the
7.31types of mobile sports betting accounts that may be marketed or advertised;
7.32 (16) the limits and requirements related to advertising, including:
7.33 (i) rules that prohibit depicting an individual under age 21 engaging in sports betting;
7Article 1 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 8.1 (ii) rules that prohibit advertisement in any print publication or on radio, television, or
8.2any other medium if the targeted audience of that medium is reasonably expected to be
8.3individuals who are under age 21;
8.4 (iii) rules that establish what warnings and other information an advertisement must
8.5contain; and
8.6 (iv) rules that limit the frequency of advertisements;
8.7 (17) the appropriate standards for limiting the total number of wagers an individual can
8.8place within a specified period of time and any required waiting period between placing
8.9wagers, in order to reduce the addictive impact of mobile wagering applications;
8.10 (18) the requirements for monitoring patterns of wagering to identify behaviors consistent
8.11with problem gambling and the appropriate actions to take when problem gambling is
8.12suspected, including pausing or suspending activities from an identified mobile sports betting
8.13account; and
8.14 (19) the appropriate limits, standards, and requirements necessary to prevent excessive
8.15wagering by an individual whose ability to control impulsive wagering is impaired in any
8.16way.
8.17 (b) Rules for which notice is published in the State Register before January 1, 2025,
8.18may be adopted using the expedited rulemaking process in section 14.389.
8.19 (c) The commissioner shall regularly review and update rules designed to prevent and
8.20address compulsive and problem gambling to incorporate advances in the understanding of
8.21compulsive and problem gambling and updated best practices in the area.
8.22 Subd. 3.Requests for restrictions on wager types.(a) A sports governing body may
8.23request that the commissioner prohibit or restrict wagers on a particular sporting event, or
8.24prohibit or restrict particular types of wagers if the sports governing body believes that such
8.25type, form, or category of sports betting may undermine the integrity or perceived integrity
8.26of the sports governing body or sporting event.
8.27 (b) Requests from a sports governing body shall be made in the form and manner
8.28established by the commissioner.
8.29 (c) Upon receipt of a request made under this subdivision, the commissioner shall send
8.30written notice to every mobile sports betting operator, provide mobile sports betting operators
8.31with an opportunity to respond to the request, and consider any timely response submitted
8.32by a mobile sports betting operator. The commissioner may not take action without providing
8.33mobile sports betting operators with an opportunity to respond, but may establish reasonable
8Article 1 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 9.1deadlines for the response based on the nature of the request and any exigent circumstances
9.2that exist.
9.3 (d) If the commissioner determines that the sports governing body has shown good cause
9.4to support the requested prohibition or restriction, the commissioner shall adopt the
9.5prohibition or restriction and send notice of the prohibition or restriction to every mobile
9.6sports betting operator. If the commissioner determines that the sports governing body has
9.7not shown good cause to support the requested prohibition or restriction, the commissioner
9.8shall provide the sports governing body with notice and an opportunity for a hearing to offer
9.9further evidence in support of its request. The commissioner shall provide the mobile sports
9.10betting operators with notice of the hearing and an opportunity to participate.
9.11 (e) The commissioner shall respond to a request concerning a particular event before
9.12the start of the event, or if it is not feasible to respond before the start of the event, no later
9.13than seven days after the request is made.
9.14 (f) If the commissioner determines that the requestor is more likely than not to prevail
9.15in successfully demonstrating good cause for its request, the commissioner may provisionally
9.16grant the request of the sports governing body until the commissioner makes a final
9.17determination as to whether the requestor has demonstrated good cause. Absent such a
9.18provisional grant, mobile sports betting operators may continue to offer sports betting on
9.19covered sporting events that are the subject of the request during the pendency of the
9.20commissioner's consideration of the applicable request.
9.21 Subd. 4.Helpline.The commissioner must provide a helpline, accessible by telephone
9.22or online live chat, that operates 24 hours per day and seven days per week, staffed by people
9.23trained in the psychology of gambling disorders and suicide prevention to assist those who
9.24contact the helpline to help the person with a gambling disorder.
9.25 Subd. 5.Methods for identifying people at risk for gambling disorders.The
9.26commissioner must monitor the sports betting industry for the most effective methods to
9.27identify people with a gambling disorder. The commissioner must adopt rules to implement
9.28best practices to prevent sports betting by people flagged as having a gambling disorder or
9.29being at risk of developing a gambling disorder.
9.30 Subd. 6.Exclusion list audits.The commissioner must periodically conduct audits as
9.31to the compliance of mobile sports betting platform providers and mobile sports betting
9.32operators with any preclusions on sports betting in section 299L.45.
9Article 1 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 10.1 Subd. 7.Delegation.The commissioner may delegate any of its authority under this
10.2chapter to the director if, in the judgment of the commissioner, doing so would promote the
10.3efficient administration of this chapter.
10.4 Sec. 4. [299L.20] LICENSE TYPES; TRANSFERS PROHIBITED.
10.5 (a) The commissioner shall issue the following licenses for mobile sports betting:
10.6 (1) up to 11 mobile sports betting operator licenses;
10.7 (2) up to 11 mobile sports betting platform provider licenses;
10.8 (3) up to 11 mobile sports betting platform provider provisional licenses;
10.9 (4) sports betting supplier licenses; and
10.10 (5) sports betting supplier provisional licenses.
10.11 (b) Licenses issued under sections 299L.10 to 299L.80 may not be transferred.
10.12Sec. 5. [299L.25] GENERAL LICENSING REQUIREMENTS;
10.13DISQUALIFICATIONS; BACKGROUND INVESTIGATIONS.
10.14 Subdivision 1.General requirements.(a) A licensee or applicant must meet each of
10.15the following requirements, if applicable, to hold or receive a license issued under sections
10.16299L.10 to 299L.80:
10.17 (1) have completed an application for licensure or application for renewal;
10.18 (2) have paid the applicable application and licensing fees;
10.19 (3) not be employed by any state agency with regulatory authority over mobile sports
10.20betting;
10.21 (4) not owe $500 or more in delinquent taxes, penalties, or interest, with delinquent
10.22taxes subject to the limitations under section 270C.72, subdivision 2;
10.23 (5) not have had a sales and use tax permit revoked by the commissioner of revenue
10.24within the past two years; and
10.25 (6) not have, after demand, failed to file tax returns required by the commissioner of
10.26revenue.
10.27 (b) The requirements under paragraph (a) apply to the applicant or licensee; a director,
10.28officer, partner, or member of the governing body for the applicant or licensee; a person in
10Article 1 Sec. 5.
REVISOR JSK/KR 25-0126501/13/25 11.1a supervisory or management position of the applicant or licensee; or any direct or indirect
11.2holder of more than ten percent financial interest in the applicant or licensee.
11.3 (c) The requirements under paragraph (a) do not apply to an elected or appointed
11.4representative of any applicant or licensee that is an Indian Tribe unless the representative
11.5is also a full-time employee of the applicant's or licensee's mobile sports betting operations.
11.6 Subd. 2.Criminal offenses; disqualifications.(a) No person may hold or receive a
11.7license issued under sections 299L.10 to 299L.80 if the person has been convicted of, or
11.8received a stay of adjudication for, a violation of a state or federal law that:
11.9 (1) is a felony, other than any act that would be a violation of section 152.025 under
11.10Minnesota law;
11.11 (2) is a crime involving gambling; or
11.12 (3) is a crime involving theft or fraud that would be a gross misdemeanor or felony under
11.13Minnesota law.
11.14 (b) The requirements under paragraph (a) apply to the applicant or licensee, or a director,
11.15officer, partner, member of the governing body for the applicant or licensee, person in a
11.16supervisory or management position of the applicant or licensee, or any direct or indirect
11.17holder of more than ten percent financial interest in the applicant or licensee.
11.18 (c) The requirements under paragraph (a) do not apply to an elected or appointed
11.19representative of any applicant or licensee that is an Indian Tribe unless the representative
11.20is also a full-time employee of the applicant's or licensee's mobile sports betting operations.
11.21 Subd. 3.Background investigation.The commissioner must perform a background
11.22investigation on applicants for a license or license renewal and on each director, officer,
11.23partner, member of the governing body for the applicant or licensee, person in a supervisory
11.24or management position of the applicant or licensee, or any direct or indirect holder of more
11.25than ten percent financial interest in the applicant or licensee. The commissioner may request
11.26the director and the commissioner of revenue to assist in investigating the background of
11.27an applicant or a licensee under this section. The commissioner may charge an applicant
11.28an investigation fee to cover the cost of the investigation and shall from this fee reimburse
11.29the Division of Alcohol and Gambling Enforcement and the Department of Revenue for
11.30their respective shares of the cost of the investigation. The commissioner is authorized to
11.31have access to all data compiled by the Division of Alcohol and Gambling Enforcement on
11.32licensees and applicants.
11Article 1 Sec. 5.
REVISOR JSK/KR 25-0126501/13/25 12.1 Subd. 4.Criminal history record check.The commissioner must perform a criminal
12.2history record check on each officer, director, or stakeholder with more than ten percent
12.3interest in the licensee or applicant. The records check must include a criminal history check
12.4of the state and federal criminal records. The applicant or licensee must provide signed
12.5consent for the national criminal history records check and fingerprints for each person
12.6subject to a check under this subdivision. The director shall assist in performing the criminal
12.7history records check. The director may charge an applicant a fee to cover the cost of the
12.8criminal history record check, and shall from this fee reimburse the Division of Alcohol
12.9and Gambling Enforcement for its share of the cost of the investigation. The commissioner
12.10or the director must submit the signed informed consent, fingerprints, and Bureau of Criminal
12.11Apprehension and Federal Bureau of Investigation fees to the superintendent of the Bureau
12.12of Criminal Apprehension who is authorized to exchange the fingerprints with the Federal
12.13Bureau of Investigation to obtain the applicant's national criminal history data. The
12.14superintendent of the Bureau of Criminal Apprehension shall retrieve Minnesota criminal
12.15history data and shall provide the results of the state and federal criminal history record
12.16check to the director. The commissioner is authorized to have access to all criminal history
12.17data compiled on licensees and applicants by the Division of Alcohol and Gambling
12.18Enforcement, including criminal history data on each officer, director, or stakeholder with
12.19more than ten percent interest in the licensee or applicant.
12.20 Subd. 5.Prohibition on use of information.The provisions of this section only apply
12.21to mobile sports betting operations and do not apply to other activities relating to Tribal
12.22gaming operations, Tribal government records, or class III sports betting operations conducted
12.23exclusively on Indian lands.
12.24Sec. 6. [299L.26] LICENSE APPLICATION AND RENEWAL; GENERAL
12.25REQUIREMENTS; PROCEDURE.
12.26 Subdivision 1.Application; contents.An application for a license under sections
12.27299L.10 to 299L.80 must be submitted on a form prescribed by the commissioner. At a
12.28minimum, the application must include:
12.29 (1) the name and address of the applicant and, if it is a corporation, the names of all
12.30officers, directors, and shareholders with more than ten percent interest in the corporation
12.31and any of its holding companies;
12.32 (2) the type of license being sought;
12.33 (3) if required by the commissioner, the names of any person holding directly, indirectly,
12.34or beneficially an interest of any kind in the applicant or any of its holding corporations,
12Article 1 Sec. 6.
REVISOR JSK/KR 25-0126501/13/25 13.1whether the interest is financial, administrative, policy making, or supervisory. This provision
13.2does not extend to individual Tribal members whose only relation to the applicant is their
13.3membership in their respective Tribal Nations, or to an elected or appointed representative
13.4of any applicant or licensee that is an Indian Tribe unless the representative is also a full-time
13.5employee of the applicant's or licensee's mobile sports betting operations;
13.6 (4) an affidavit executed by the applicant setting forth that, to the best of the applicant's
13.7knowledge, no officer, director, or other person with a present direct or indirect financial
13.8or management interest in the applicant:
13.9 (i) is in default in the payment of an obligation or debt to the state;
13.10 (ii) has ever been convicted of a crime listed in section 299L.25, subdivision 2, paragraph
13.11(a), or has a state or federal charge for one of those crimes pending;
13.12 (iii) is or has been convicted of engaging in an illegal business;
13.13 (iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;
13.14or
13.15 (v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota
13.16relating to wagering;
13.17 (5) an irrevocable consent statement, signed by the applicant, which states that suits and
13.18actions limited to the enforcement of this chapter may be commenced against the applicant
13.19by the commissioner in any court of competent jurisdiction in this state by the service on
13.20the secretary of state of any summons, process, or pleadings authorized by the laws of this
13.21state. If any summons, process, or pleadings is served upon the secretary of state, it must
13.22be by duplicate copies. One copy must be retained in the Office of the Secretary of State
13.23and the other copy must be forwarded immediately by certified mail to the address of the
13.24applicant, as shown by the records of the commissioner;
13.25 (6) a declaration that the laws of the state of Minnesota will be followed, including any
13.26applicable provisions of the Minnesota Human Rights Act, chapter 363A; and
13.27 (7) any additional information required for the specific license the applicant is seeking.
13.28 Subd. 2.Application; process.(a) Applicants must submit all required information to
13.29the commissioner on the forms and in the manner prescribed by the commissioner.
13.30 (b) If the commissioner receives an application that fails to provide the required
13.31information, the commissioner shall issue a deficiency notice to the applicant. The applicant
13Article 1 Sec. 6.
REVISOR JSK/KR 25-0126501/13/25 14.1shall have ten business days from the date of the deficiency notice to submit the required
14.2information.
14.3 (c) Failure by an applicant to submit all required information will result in the application
14.4being rejected.
14.5 (d) Within 90 days of receiving a completed application, the commissioner shall issue
14.6the appropriate license or send the applicant a notice of rejection setting forth specific
14.7reasons why the commissioner did not approve the application.
14.8 (e) An applicant whose application is not approved may reapply at any time, but must
14.9submit a new application and pay an additional application fee.
14.10 Subd. 3.Provisional license authorized.The commissioner must issue provisional
14.11licensure in accordance with sections 299L.29 and 299L.30 within ten days of a platform
14.12provider or supplier registering with the commissioner and paying the registration fee.
14.13Sec. 7. [299L.27] DUTY TO UPDATE.
14.14 (a) During the pendency of an application and at any time after a license has been issued,
14.15an applicant or licensee shall notify the commissioner of any changes to the information
14.16provided under section 299L.25 or 299L.26.
14.17 (b) If a change in the officers, directors, shareholders, or other persons with a present
14.18or future direct or indirect financial or management interest in a licensee, or a change of
14.19ownership of more than ten percent of the shares of the licensee is made after the application
14.20for a license is filed or a license is issued, the applicant or licensee must notify the
14.21commissioner of the changes within ten days of their occurrence and submit a new affidavit
14.22as required by section 299L.26, subdivision 1, clause (4).
14.23Sec. 8. [299L.28] MOBILE SPORTS BETTING OPERATOR LICENSE.
14.24 Subdivision 1.Issuance.(a) The commissioner may issue up to 11 mobile sports betting
14.25operator licenses that are valid for 20 years. A mobile sports betting operator license may
14.26be renewed under conditions required by rule adopted pursuant to section 299L.15.
14.27 (b) The commissioner shall only issue a mobile sports betting operator license to an
14.28Indian Tribe that lawfully conducts class III gaming in a casino located in this state under
14.29a facility license issued in accordance with a Tribal gaming ordinance approved by the chair
14.30of the National Indian Gaming Commission.
14Article 1 Sec. 8.
REVISOR JSK/KR 25-0126501/13/25 15.1 (c) Each Indian Tribe described in paragraph (b) is not eligible for more than one mobile
15.2sports betting operator license.
15.3 Subd. 2.Authorized actions.A mobile sports betting operator license entitles the licensee
15.4to:
15.5 (1) operate, coordinate, conduct, or offer for play mobile sports betting in Minnesota;
15.6 (2) contract with one licensed mobile sports betting platform provider to facilitate the
15.7acceptance of wagers on behalf of the mobile sports betting operator;
15.8 (3) contract with licensed sports betting suppliers; and
15.9 (4) perform any other actions approved by the commissioner to ensure that mobile sports
15.10betting is conducted in a fair, lawful, and transparent manner.
15.11 Subd. 3.Licensing requirements.A mobile sports betting operator must:
15.12 (1) be an entity wholly owned and controlled by an Indian Tribe;
15.13 (2) submit a completed application and all required documents or other materials pursuant
15.14to sections 299L.25 and 299L.26 and any relevant rules;
15.15 (3) submit a detailed plan and specifications for the implementation of mobile sports
15.16betting;
15.17 (4) include mechanisms on its mobile sports betting platform that are designed to detect
15.18and prevent the unauthorized use of Internet sports betting accounts and to detect and prevent
15.19fraud, money laundering, and collusion, or require a contracted mobile sports betting platform
15.20provider to include those mechanisms;
15.21 (5) submit a statement of the assets and liabilities of the license holder to the
15.22commissioner;
15.23 (6) not be disqualified under section 299L.25 or any relevant rules;
15.24 (7) pay an annual licensing fee in the amount of $2,125; and
15.25 (8) meet any other conditions required by rule adopted pursuant to section 299L.15.
15.26 Subd. 4.Reporting.A mobile sports betting operator must report to the commissioner
15.27monthly on wagers placed and redeemed during the reporting month and outstanding at the
15.28time of the report.
15.29 Subd. 5.Prohibition on use of information.The provisions of this section only apply
15.30to mobile sports betting operations in this state and do not apply to other activities relating
15Article 1 Sec. 8.
REVISOR JSK/KR 25-0126501/13/25 16.1to Tribal gaming operations, Tribal government records, or class III sports betting operations
16.2conducted exclusively on Indian lands.
16.3 Sec. 9. [299L.29] MOBILE SPORTS BETTING PLATFORM PROVIDER LICENSE.
16.4 Subdivision 1.Issuance.The commissioner may issue up to 11 mobile sports betting
16.5platform provider licenses that are valid for one year. A mobile sports betting platform
16.6provider may be renewed under conditions required by rule adopted pursuant to section
16.7299L.15.
16.8 Subd. 2.Authorized actions.A mobile sports betting platform provider license entitles
16.9the licensee to provide a sports betting platform, sports betting technology, sports betting
16.10applications, or associated mobile sports betting hardware, software, or equipment to a
16.11mobile sports betting operator.
16.12 Subd. 3.Licensing requirements.For initial licensure and subsequent license renewal,
16.13a mobile sports betting platform provider must:
16.14 (1) submit a completed application and all required documents or other materials pursuant
16.15to sections 299L.25 and 299L.26 and any relevant rules;
16.16 (2) not be disqualified under section 299L.25 or any relevant rules;
16.17 (3) pay an application fee of $16,500 with submission of an application;
16.18 (4) pay a licensing fee after the application is approved in the amount of $250,000 or a
16.19license renewal fee of $83,000; and
16.20 (5) meet any other conditions required by rule adopted pursuant to section 299L.15.
16.21 Subd. 4.Provisional license authorized.Any mobile sports betting platform provider
16.22that is licensed to conduct sports betting in the state of Iowa as of February 1, 2024, shall
16.23be granted a provisional mobile sports betting platform provider license under this section.
16.24The provisional license expires the earlier of the date the application for full licensure has
16.25been approved or denied or December 31, 2025. During the period of provisional licensure,
16.26a mobile sports betting platform provider must be partnered with an Indian Tribe. To obtain
16.27a provisional license, a mobile sports betting platform provider must register with the
16.28commissioner and pay a registration fee of $250,000. All provisional licenses issued by the
16.29commissioner must be effective on the same day for mobile sports betting platform providers
16.30who register by a date set by the commissioner.
16Article 1 Sec. 9.
REVISOR JSK/KR 25-0126501/13/25 17.1 Sec. 10. [299L.30] SPORTS BETTING SUPPLIER LICENSE.
17.2 Subdivision 1.Issuance.The commissioner may issue sports betting supplier licenses
17.3that are valid for one year. A sports betting supplier license may be renewed under conditions
17.4required by rule adopted pursuant to section 299L.15.
17.5 Subd. 2.Authorized actions.A sports betting supplier license entitles the licensee to
17.6either directly or indirectly provide mobile sports betting operators with information and
17.7support necessary to offer mobile sports betting. Information and support may be provided
17.8in the form of services, goods, or software, and may include data feeds and odds services,
17.9risk management, and integrity monitoring.
17.10 Subd. 3.Licensing requirements.(a) For initial licensure and subsequent license
17.11renewal, a sports betting supplier must:
17.12 (1) submit a completed application and all required documents for the applicant's principal
17.13owners who directly own ten percent or more of the applicant and the applicant's officers;
17.14 (2) pay an application fee of $16,500 with submission of an application;
17.15 (3) pay a licensing fee after the application is approved in the amount of $75,000 or a
17.16license renewal fee of $33,000; and
17.17 (4) meet any other conditions required by rule adopted pursuant to section 299L.15.
17.18 (b) Provided an application has been completed to the satisfaction of the commissioner,
17.19disclosure of the following public information may be waived:
17.20 (1) statutorily authorized pension investment boards that are direct or indirect shareholders
17.21of an applicant; and
17.22 (2) investment funds or entities registered with the Securities and Exchange Commission,
17.23including any investment advisors or entities under the management of an entity registered
17.24with the Securities and Exchange Commission, that are direct or indirect shareholders of
17.25the applicant.
17.26 Subd. 4.Provisional license authorized.Any mobile sports betting supplier that is
17.27licensed to conduct sports betting in the state of Iowa as of February 1, 2024, shall be granted
17.28a provisional mobile sports betting supplier license under this section. The provisional
17.29license expires the earlier of the date the application for full licensure has been approved
17.30or denied or December 31, 2025. To obtain a provisional license, a sports betting supplier
17.31must register with the commissioner and pay a registration fee of $75,000.
17Article 1 Sec. 10.
REVISOR JSK/KR 25-0126501/13/25 18.1 Sec. 11. [299L.35] PARTNERSHIP ALLOWED.
18.2 Subdivision 1.Ability to contract with platform providers.(a) A mobile sports betting
18.3operator may, but is not required to, contract with a mobile sports betting platform provider
18.4to provide, create, or operate sports betting platforms, sports betting technology, sports
18.5betting applications, or associated mobile sports betting hardware, software, or equipment.
18.6 (b) If a mobile sports betting operator chooses to contract with a mobile sports betting
18.7platform provider for these services, the mobile sports betting operator shall contract with
18.8no more than one mobile sports betting platform provider.
18.9 (c) If a mobile sports betting operator chooses not to contract with a mobile sports betting
18.10platform provider for these services, the mobile sports betting operator must comply with
18.11the reporting and regulatory requirements held by mobile sports betting platform provider
18.12license holders.
18.13 Subd. 2.Logo display required.A mobile sports betting platform provider that has
18.14contracted with a mobile sports betting operator must clearly display a brand of the mobile
18.15sports betting operator within its mobile application.
18.16Sec. 12. [299L.36] DEPOSIT OF FEES.
18.17 Application, registration, license, and renewal fees shall be deposited in the general
18.18fund.
18.19Sec. 13. [299L.37] ADVERTISING.
18.20 Subdivision 1.Advertising content.All advertisements for mobile sports betting must
18.21display "1-800-GAMBLER" or other national toll-free numbers approved by the
18.22commissioner for information and referral services for compulsive and problem gambling
18.23and must provide a warning, as specified by the commissioner, that gambling may be
18.24addictive and may cause financial hardship.
18.25 Subd. 2.Prohibition on targeting individuals under age 21.No licensee or other
18.26person shall publish or cause to be published an advertisement for mobile sports betting
18.27that:
18.28 (1) depicts a person under age 21 engaging in sports betting or mobile sports betting;
18.29 (2) includes an image that is designed to be appealing to individuals under age 21 or
18.30encourage sports betting by individuals under age 21; or
18Article 1 Sec. 13.
REVISOR JSK/KR 25-0126501/13/25 19.1 (3) is in any print publication or on radio, television, or any other medium if 30 percent
19.2or more of the audience of that medium is reasonably expected to be individuals who are
19.3under age 21, as determined by reliable, current audience composition data.
19.4 Subd. 3.Prohibition on targeting individuals prohibited from placing wagers.No
19.5licensee or other person shall publish or cause to be published an advertisement for mobile
19.6sports betting that targets individuals who are disqualified, prohibited, or excluded from
19.7placing a wager on a sporting event for any reason, including being identified on the exclusion
19.8list identified in section 299L.45, subdivision 1.
19.9 Subd. 4.Prohibition on advertising in certain locations.No advertising, marketing,
19.10or other promotional materials may be published, aired, displayed, disseminated, or
19.11distributed by or on behalf of a mobile sports betting operator or mobile sports betting
19.12platform provider for sports betting:
19.13 (1) on any elementary or secondary school property;
19.14 (2) on any college or university campus property, unless that advertising is generally
19.15available and primarily directed at a general audience, not specific to the college or university
19.16or its students; or
19.17 (3) in college-owned or university-owned news assets.
19.18 Subd. 5.Prohibition on false or misleading claims.No licensee or other person shall
19.19publish or cause to be published an advertisement for mobile sports betting that contains
19.20false or misleading claims; statements, words, or pictures of an obscene, indecent, or immoral
19.21character; or such as would offend public morals or decency.
19.22Sec. 14. [299L.40] WAGERING.
19.23 Subdivision 1.Placing wagers.An individual who is 21 years of age or older may place
19.24wagers pursuant to sections 299L.10 to 299L.80 provided the individual is not otherwise
19.25disqualified, prohibited, or excluded from doing so.
19.26 Subd. 2.Wager type.A mobile sports betting operator, or a mobile sports betting
19.27platform provider on behalf of a mobile sports betting operator, may only accept wagers of
19.28a type previously approved by the commissioner. Wager types that the commissioner may
19.29approve include but are not limited to the following:
19.30 (1) a wager that a participant or participating team will win a sporting event or will win
19.31by a specified number of points;
19Article 1 Sec. 14.
REVISOR JSK/KR 25-0126501/13/25 20.1 (2) a wager as to whether the total points scored in a sporting event will be higher or
20.2lower than a number specified;
20.3 (3) a wager on an outcome contingency or proposition incidental to a sporting event,
20.4series, tournament, or season for which the outcome is published in newspapers of general
20.5circulation or in records made publicly available by the league or governing body for the
20.6event;
20.7 (4) a wager on the outcome of a series of two or more sporting events or a series of two
20.8or more contingencies incidental to a sporting event;
20.9 (5) in-game betting;
20.10 (6) future bets placed on end of the season standings, awards, or statistics; and
20.11 (7) a wager that a participant or participating team will win an esports event or will win
20.12by a specified number of points.
20.13 Subd. 3.Wager types prohibited.(a) Mobile sports betting operators shall not offer or
20.14accept wagers on the occurrence or outcomes of the following situations that may occur
20.15during or after a sporting event:
20.16 (1) player injuries;
20.17 (2) penalties;
20.18 (3) the outcome of player disciplinary rulings; or
20.19 (4) replay reviews.
20.20 (b) Mobile sports betting operators shall not offer or accept wagers on propositional
20.21occurrences or proposition bets on college sports.
20.22 Subd. 4.Mobile sports betting account; establishment.(a) An individual may establish
20.23a mobile sports betting account by electronic means from any location, and may fund an
20.24account by any means approved by the commissioner.
20.25 (b) Money deposited in a mobile sports betting account may not be used to place a wager
20.26until at least three hours have passed from the time of the deposit.
20.27 (c) Unless otherwise prohibited by state or federal law or regulation, upon written request
20.28by a mobile sports betting operator to a platform provider, the mobile sports betting platform
20.29provider must provide access to the name, email address, physical mailing address, and
20.30record of mobile sports wagers placed and use of free bets or promotional play in this state
20.31of an authorized participant who establishes a mobile sports betting account in Minnesota.
20Article 1 Sec. 14.
REVISOR JSK/KR 25-0126501/13/25 21.1The Minnesota mobile sports betting operator may store and use the authorized participant
21.2data for ordinary business purposes. This section does not apply to individuals on the
21.3exclusion list in section 299L.45, subdivision 1.
21.4 Subd. 5.Consideration; mobile sports betting account.(a) A mobile sports betting
21.5operator or mobile sports betting platform provider must not accept a wager unless the
21.6authorized participant provides consideration in the form of funds or another thing of value
21.7such as use of free bets or promotional credits from their mobile sports betting account at
21.8the time of making the wager.
21.9 (b) Consideration must be in the form of withdrawal from a mobile sports betting account
21.10maintained by the mobile sports betting operator or mobile sports betting platform provider
21.11for the benefit of and in the name of the wagerer.
21.12 (c) A mobile sports betting operator, or a mobile sports betting platform provider on
21.13behalf of a mobile sports betting operator, shall verify an individual's age and identity before
21.14allowing that individual to place a wager. Mobile sports betting operators and mobile sports
21.15betting platform providers may utilize an approved identity verification service provider to
21.16confirm an individual's age and identity.
21.17 (d) A person shall have the right to withdraw the balance of funds in the mobile sports
21.18betting account in the person's name at any time with proof of identity, as determined by
21.19rules adopted pursuant to section 299L.15.
21.20 Subd. 6.Personal limits; mobile sports betting account.(a) A mobile sports betting
21.21account must provide a mechanism for a person to set limits on the amount of time they
21.22spend on the mobile sports betting platform, set limits on the amount of money they spend
21.23on the platform, and self-exclude from using the mobile sports betting platform. A mobile
21.24sports betting account provider must allow a person to set the following limits for the person's
21.25mobile sports betting account:
21.26 (1) a limit on the amount that can be deposited within a specified period;
21.27 (2) a limit on losses within a specified period; and
21.28 (3) a limit on the time spent placing bets.
21.29 (b) The mobile sports betting account must not allow the account to be used to place
21.30bets when the person has exceeded a limit the person has set. The mobile sports betting
21.31account provider must provide notice to the person of the opportunity to set these limits at
21.32the time the person sets up the account and annually after setup and must require a person
21.33to either set limits or affirm that the person does not want to set any limits at account setup
21Article 1 Sec. 14.
REVISOR JSK/KR 25-0126501/13/25 22.1and annually after setup. The notice must be worded and formatted as specified by the
22.2commissioner.
22.3 Subd. 7.Personal limits on wagering.(a) A mobile sports betting operator or mobile
22.4sports betting platform provider must allow a person to establish the following types of
22.5limits on their own wagering activity:
22.6 (1) a limit on the amount of money the person can lose in a 24-hour period before
22.7triggering a cooling-off period;
22.8 (2) a limit on the amount of money the person can lose in a 30-day period before
22.9triggering a cooling-off period;
22.10 (3) the maximum amount of money the person may deposit into the their mobile sports
22.11betting account in a 24-hour period;
22.12 (4) the maximum amount of time the person can be logged into their mobile sports
22.13betting program in a 24-hour period; and
22.14 (5) a cooling-off period during which time the person is not able to place wagers.
22.15 (b) Pursuant to subdivision 6, a mobile sports betting operator or mobile sports betting
22.16platform provider must set the limits in paragraph (a) to the following default limits for a
22.17new account, subject to any limits established by law:
22.18 (1) $500 is the default amount of losses a person can incur in a 24-hour period before
22.19the person is prohibited from wagering;
22.20 (2) $3,000 is the default limit on the amount a person can lose in a 30-day period before
22.21the person is prohibited from wagering;
22.22 (3) $500 is the default maximum amount a person may deposit into the person's mobile
22.23sports betting account in a 24-hour period; and
22.24 (4) 72 hours is the default length of a cooling-off period if a person requests a cooling-off
22.25period during which time wagers from the person cannot be accepted.
22.26 (c) A mobile sports betting operator or mobile sports betting platform provider must not
22.27accept a wager from a person in a cooling-off period or in an exclusion period set by a
22.28person in paragraph (a) or, if the person does not set exclusion periods under paragraph (a),
22.29during the default exclusion periods established in paragraph (b).
22.30 (d) A mobile sports betting operator must allow a person to make changes to their
22.31exclusion settings under paragraph (a) in ways that make them more restrictive at any time
22.32and those limits must take effect immediately. Changes that make the exclusion settings
22Article 1 Sec. 14.
REVISOR JSK/KR 25-0126501/13/25 23.1under paragraph (a) less restrictive become effective seven days after the person makes the
23.2change.
23.3 (e) A mobile sports betting operator must require a person to review the limits in
23.4paragraph (a) annually.
23.5 (f) A mobile sports betting operator must report to the commissioner when a person
23.6becomes excluded due to exceeding a limit set under paragraph (a) or (b). The commissioner
23.7must immediately communicate to other licensed mobile sports betting operators or platform
23.8providers as necessary to make the exclusion effective across all opportunities for
23.9participating in sports betting in Minnesota.
23.10 Subd. 8.Wager location.Mobile sports betting wagers regulated under sections 299L.10
23.11to 299L.80 may only be accepted from a person placing a wager online, through a website
23.12or mobile application, while the person placing the wager is physically within the state. The
23.13website or application may be hosted by a mobile sports betting operator operating in
23.14conjunction with a mobile sports betting platform provider. The incidental routing of a
23.15mobile sports wager shall not determine the location or locations in which the wager is
23.16initiated, received, or otherwise made.
23.17 Subd. 9.Information provided at the time of wager.A mobile sports betting operator
23.18or mobile sports betting platform provider must disclose the betting line and terms of a
23.19wager prior to accepting a wager. Terms of the wager include the ratio of the amount to be
23.20paid for winning to the wagered amount.
23.21 Subd. 10.Outcome determined.A mobile sports betting operator or mobile sports
23.22betting platform provider must not accept a wager on the outcome of an event or proposition
23.23that has already been determined.
23.24 Subd. 11.Receipt.A mobile sports betting operator must provide a person who places
23.25a wager with an electronic receipt at the time of sale that contains the following information:
23.26 (1) the sporting event or proposition that is the subject of the wager;
23.27 (2) the outcome that will constitute a win on the wager;
23.28 (3) the amount wagered; and
23.29 (4) the payout in the event of a winning wager.
23.30 Subd. 12.Wager data; safeguards necessary.(a) Information regarding wagers made
23.31by an authorized participant may be stored and used pursuant to subdivision 4, paragraph
23.32(c).
23Article 1 Sec. 14.
REVISOR JSK/KR 25-0126501/13/25 24.1 (b) Mobile sports betting operators must use commercially reasonable methods to
24.2maintain the security of wager data, authorized participant data, and other confidential
24.3information from unauthorized access and dissemination, however, that nothing in this act
24.4shall preclude the use of Internet or cloud-based hosting of such data and information or
24.5disclosure as required by court order, other law, or this act.
24.6 Sec. 15. [299L.41] PROHIBITION ON PUSH NOTIFICATIONS.
24.7 (a) Mobile sports betting operators and mobile sports betting platform providers are
24.8prohibited from sending a message from a mobile sports betting application or website that
24.9appears on a user's device while the application or website is inactive unless the message
24.10is sent to notify the user of potentially fraudulent activity associated with the user's mobile
24.11sports betting account.
24.12 (b) Mobile sports betting operators and mobile sports betting platform providers are
24.13prohibited from sending a message that advertises or promotes sports betting from a mobile
24.14sports betting application or website to appear on a user's device while the user is setting
24.15self-imposed restrictions under section 299L.45.
24.16Sec. 16. [299L.45] EXCLUSION LIST AND PROHIBITION ON WAGERING.
24.17 Subdivision 1.Exclusion list.(a) The commissioner shall maintain a list of persons who
24.18are not eligible to wager on sporting events through a mobile sports betting operator. The
24.19list shall include the names of:
24.20 (1) persons who have themselves requested to be on the exclusion list;
24.21 (2) persons whose names have been submitted, for their protection, by their legal
24.22guardians;
24.23 (3) persons whose names have been submitted by mobile sports betting operators, mobile
24.24sports betting platform providers, or mobile sports betting suppliers for good cause; and
24.25 (4) persons whose names have been submitted by sports governing bodies.
24.26 (b) A person who has requested to be on the exclusion list may specify a time limit of
24.27one, three, or five years or for a person's lifetime for the person's name to be on the list. The
24.28commissioner will remove the person's name from the list at the conclusion of the specified
24.29time. A person whose name was added to the exclusion list under paragraph (a), clauses (3)
24.30and (4), may be removed from the list before the specified time by providing proof of
24.31completion of a program approved by the commissioner to address compulsive gambling.
24Article 1 Sec. 16.
REVISOR JSK/KR 25-0126501/13/25 25.1 (c) The information contained on the list is private data on individuals, as defined in
25.2section 13.02, subdivision 12, except the commissioner is permitted to share the list with
25.3mobile sports betting operators as needed to prevent persons on the exclusion list from
25.4placing sports betting wagers.
25.5 (d) A mobile platform provider must provide a user the opportunity to request the person's
25.6name and exclusion request to the list maintained under this section.
25.7 (e) The commissioner must provide through the agency's website a form for a person to
25.8make a request to be included on the exclusion list for a specified time under paragraph (b).
25.9 Subd. 2.Prohibited wagers by certain persons.The following individuals who are
25.10otherwise authorized to place wagers are prohibited from placing the wagers described:
25.11 (1) an individual who is prohibited from placing wagers by a mobile sports betting
25.12operator or mobile sports betting platform provider for good cause, including, but not limited
25.13to, any individual placing a wager as an agent or proxy on behalf of another may not place
25.14a wager of any kind;
25.15 (2) an individual who is an athlete, coach, referee, player, health care provider, or team
25.16employee is prohibited from wagering on a sporting event overseen by that person's sports
25.17governing body;
25.18 (3) an individual who holds a position of authority sufficient to exert influence over the
25.19participants in a sporting event, including, but not limited to, a coach, manager, or owner
25.20is prohibited from wagering on that sporting event; and
25.21 (4) an individual who has access to certain types of exclusive or nonpublic information
25.22regarding a sporting event is prohibited from wagering on that sporting event and any other
25.23sporting event overseen by the sports governing body of that sporting event.
25.24 Subd. 3.Prohibition on accepting wagers.(a) A mobile sports betting operator or
25.25mobile sports betting platform provider shall not knowingly accept a wager from a person
25.26on the exclusion list or allow a person on the exclusion list to establish a mobile sports
25.27betting account.
25.28 (b) A mobile sports betting operator or a mobile sports betting platform provider shall
25.29not knowingly accept a wager prohibited under subdivision 2 from any individual who can
25.30reasonably be identified by publicly available information or by any lists provided to the
25.31commissioner.
25.32 (c) Knowingly accepting a wager from a person on the exclusion list is a license violation,
25.33subject to a penalty established by the commissioner.
25Article 1 Sec. 16.
REVISOR JSK/KR 25-0126501/13/25 26.1 Subd. 4.Prohibition on advertising.A platform provider and operator are prohibited
26.2from contacting a person through communications in a mobile sports betting application or
26.3via email, text, or telephone call for the purpose of advertising or promoting sports betting
26.4during the following periods:
26.5 (1) during a period of betting restrictions under this section; and
26.6 (2) after the period of betting restrictions under this section is over, until the person
26.7places a bet through the platform or with the operator.
26.8 Sec. 17. [299L.50] FINANCIAL RESPONSIBILITY.
26.9 Subdivision 1.Responsibility for satisfying winning wagers.A wager on a sporting
26.10event placed with a mobile sports betting operator is an enforceable contract. A mobile
26.11sports betting operator or mobile sports betting platform provider who accepts a wager bears
26.12all risk of loss to satisfy winnings on the wager. A wager that is not redeemed within one
26.13year of the outcome that is the subject of the wager may be canceled by the mobile sports
26.14betting operator and its sports betting platform provider.
26.15 Subd. 2.Cash reserves.(a) A mobile sports betting operator shall, in conjunction with
26.16the mobile sports betting platform provider, maintain cash reserves in an amount that is not
26.17less than the greater of $25,000 or the sum of the following three amounts:
26.18 (1) amounts held by the mobile sports betting operator for the mobile sports betting
26.19accounts of authorized participants;
26.20 (2) amounts accepted by the mobile sports betting operator as wagers on contingencies
26.21whose outcome have not been determined; and
26.22 (3) amounts owed but unpaid by the mobile sports betting operator on winning wagers
26.23through the period established by the operator, subject to time limits set by the commissioner,
26.24for honoring winning wagers.
26.25 (b) Such reserves shall be held in the form of cash or cash equivalents segregated from
26.26operational funds, payment processor reserves and receivables, any bond, an irrevocable
26.27letter of credit, or any combination thereof.
26.28 Subd. 3.Bond.A mobile sports betting operator or mobile sports betting platform
26.29provider shall be required to post a bond, securities, or an irrevocable letter of credit in an
26.30amount the commissioner deems necessary after taking into consideration the amount of
26.31the mobile sports betting operator's cash reserves, to protect the financial interests of people
26.32wagering on sporting events. If securities are deposited or an irrevocable letter of credit
26Article 1 Sec. 17.
REVISOR JSK/KR 25-0126501/13/25 27.1filed, the securities or letter of credit must be of a type or in the form provided under section
27.2349A.07, subdivision 5, paragraphs (b) and (c).
27.3 Sec. 18. [299L.51] INTEGRITY MONITORING.
27.4 (a) Each mobile sports betting operator or mobile sports betting platform provider must
27.5contract with a licensed independent integrity monitoring provider in order to identify any
27.6unusual betting activity or patterns that may indicate a need for further investigation. The
27.7commissioner shall establish minimum standards requiring each mobile sports betting
27.8operator or mobile sports betting platform provider to participate in the monitoring system
27.9as part of that licensee's minimum internal control standards.
27.10 (b) If any unusual betting activity is deemed by independent integrity monitoring provider
27.11to have risen to the level of suspicious betting activity, the independent integrity monitoring
27.12provider shall immediately report the suspicious activity to the commissioner, all mobile
27.13sports betting operator or mobile sports betting platform provider licensees that contract
27.14with that integrity provider, and the sports governing body that governs the sporting event
27.15on which the suspicious activity was deemed to have taken place.
27.16 (c) The commissioner, mobile sports betting operators, and any sports governing body
27.17that receives the information described in paragraph (b) from an independent integrity
27.18monitoring provider must maintain the confidentiality of the information, and use the
27.19information solely for purposes of investigating or preventing the conduct described in this
27.20section unless disclosure is required by this act, the commissioner, other law, or court order,
27.21or unless the sports governing body consents to disclosure. The information may not be
27.22used for any commercial or other purpose.
27.23 (d) Notwithstanding paragraph (c), a sports governing body may make disclosures
27.24necessary to conduct and resolve integrity-related investigations and may publicly disclose
27.25such information if required by the sports governing body's integrity policies or if deemed
27.26by the sports governing body in its reasonable judgment to be necessary to maintain the
27.27actual or perceived integrity of its sporting events. Prior to any such public disclosure that
27.28would identify the mobile sports betting operator by name, the sports governing body will
27.29provide the mobile sports betting operator with notice of such disclosure and an opportunity
27.30to object to such disclosure.
27.31Sec. 19. [299L.53] RECORD KEEPING; INFORMATION SHARING.
27.32 Subdivision 1.Record retention.Mobile sports betting operators shall maintain records
27.33of all bets and wagers placed, including personally identifiable information of an authorized
27Article 1 Sec. 19.
REVISOR JSK/KR 25-0126501/13/25 28.1participant, amount and type of wager, time the wager was placed, location of the wager,
28.2including IP address if applicable, the outcome of the wager, and records of abnormal betting
28.3activity for 3-1/2 years after the sporting event occurs. Mobile sports betting operators shall
28.4make the data described in this subdivision available for inspection upon request of the
28.5commissioner or as required by court order.
28.6 Subd. 2.Anonymization required.Mobile sports betting operators shall use
28.7commercially reasonable efforts to maintain in real time and at the account level anonymized
28.8information regarding an authorized participant, amount and type of wager, the time the
28.9wager was placed, the location of the wager, including the IP address if applicable, the
28.10outcome of the wager, and records of abnormal betting activity. Nothing in this section shall
28.11require a mobile sports betting operator to provide any information that is prohibited by
28.12federal, state, or local laws or regulations, including laws and regulations relating to privacy
28.13and personally identifiable information.
28.14 Subd. 3.Information sharing.(a) If a sports governing body has notified the
28.15commissioner that access to the information described in subdivision 2 for wagers placed
28.16on sporting events of the sports governing body is necessary to monitor the integrity of such
28.17body's sporting events, mobile sports betting operators shall share, in a commercially
28.18reasonable frequency, form, and manner, with the sports governing body or its designees
28.19the information under subdivision 2 with respect to sports wagers on sporting events of such
28.20sports governing body.
28.21 (b) Sports governing bodies and their designees may only use information received under
28.22this section for integrity-monitoring purposes and may not use information received under
28.23this section for any commercial or other purpose.
28.24 (c) Mobile sports betting operators must share, in a time and manner prescribed by the
28.25commissioner, the information described in subdivisions 1 and 2 with the University of
28.26Minnesota for the purpose of conducting research to ensure the integrity of sports betting
28.27or assist the commissioner of human services in improving state-funded services related to
28.28responsible gambling and problem gambling. Information that the University of Minnesota
28.29receives from mobile sports betting operators under this paragraph constitutes data on the
28.30mobile sports betting operator and is classified as nonpublic data, as defined by section
28.3113.02. The University of Minnesota must not disclose the information to any person, except
28.32for the purpose of conducting the research described in this paragraph, as part of a
28.33peer-reviewed research report, or pursuant to an agreement between the University of
28.34Minnesota and the mobile sports betting operators or sports governing body.
28Article 1 Sec. 19.
REVISOR JSK/KR 25-0126501/13/25 29.1 (d) Nothing in this section shall require a mobile sports betting operator to provide any
29.2information that is prohibited by federal, state, or local laws or regulations, including without
29.3limitation laws and regulations relating to privacy and personally identifiable information.
29.4 Sec. 20. [299L.55] INSPECTION AND AUDITING OF LICENSEES.
29.5 Subdivision 1.Inspection.The commissioner and the director are authorized to inspect
29.6the accounting records of licensees at any time provided the licensee is given notice at least
29.724 hours before the inspection. This provision only applies to mobile sports betting operations
29.8and does not authorize the inspection of records related to Tribal gaming operations, Tribal
29.9governmental records, or class III sports betting operations conducted exclusively on Indian
29.10lands.
29.11 Subd. 2.Annual audit.To ensure compliance with this chapter and rules adopted under
29.12this chapter, a mobile sports betting operator must contract with an independent third party
29.13to perform a financial audit, consistent with the standards established by the Public Company
29.14Accounting Oversight Board or using the Statements on Accounting standards issued by
29.15the Audit Standards Board of the American Institute of Certified Public Accountants. The
29.16mobile sports betting operator must submit the audit to the commissioner for examination
29.17and inspection within 120 days of the end of its fiscal year.
29.18Sec. 21. [299L.60] LICENSE VIOLATIONS; ENFORCEMENT .
29.19 Subdivision 1.Schedule of penalties.The commissioner must adopt rules that provide
29.20a graduated schedule of penalties for violations of license requirements under statute or
29.21rule. The schedule must specify penalties that may range from warnings and probation
29.22periods to civil fines, temporary suspension of licenses, or revocation of licenses.
29.23 Subd. 2.Authority to act.(a) The commissioner may issue administrative orders, impose
29.24civil penalties, and suspend, revoke, or not renew a license issued pursuant to sections
29.25299L.10 to 299L.80 if the commissioner determines that a licensee has committed or is
29.26about to commit a violation of those sections or rules adopted pursuant to those sections,
29.27or if the commissioner determines that the licensee is disqualified or ineligible to hold a
29.28license pursuant to section 299L.25 or 299L.26. A conviction for a violation of section
29.29299L.80 is not required for the commissioner to take action on a violation.
29.30 (b) Enforcement actions, license suspensions, license revocations, or license nonrenewals
29.31related to a specific mobile sports betting operator shall not impact or limit the ability of
29.32another mobile sports betting operator to conduct, offer, or offer for play mobile sports
29.33betting.
29Article 1 Sec. 21.
REVISOR JSK/KR 25-0126501/13/25 30.1 Subd. 3.Temporary suspension.(a) The commissioner may temporarily, without
30.2hearing, suspend the license and operating privilege of any licensee for a period of up to 90
30.3days if there is clear and convincing evidence that:
30.4 (1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation,
30.5requires immediate action to protect the public from harm;
30.6 (2) the licensee has not timely filed a tax return or paid the tax required under chapter
30.7297J; or
30.8 (3) the licensee has not timely paid all license fees or penalties due under sections 299L.10
30.9to 299L.80.
30.10 (b) The commissioner shall notify the licensee of the violation that caused the temporary
30.11suspension and may lift the temporary suspension if the licensee corrects the violation.
30.12 (c) The commissioner may extend the period of suspension if the violation is not
30.13corrected, the commissioner notifies the business that it intends to revoke or not renew a
30.14license, and a contested case hearing has not taken place.
30.15 Subd. 4.Notice of violation; administrative orders; request for reconsideration;
30.16demand for hearing.(a) The commissioner may issue an administrative order to any
30.17licensee who has committed a violation. The order may require the licensee to correct the
30.18violation or to cease and desist from committing the violation and may impose civil penalties.
30.19The order must state the deficiencies that constitute a violation, the time by which the
30.20violation must be corrected, and the amount of any civil penalty.
30.21 (b) If the licensee believes the information in the administrative order is in error, the
30.22licensee may ask the commissioner to reconsider any parts of the order that are alleged to
30.23be in error. The request must be in writing, delivered to the commissioner by certified mail
30.24within seven days after receipt of the order, and provide documentation to support the
30.25allegation of error. The commissioner must respond to a request for reconsideration within
30.2615 days after receiving the request. A request for reconsideration does not stay the order
30.27unless the commissioner issues a supplemental order granting additional time. The
30.28commissioner's disposition of a request for reconsideration is final.
30.29 (c) An administrative order that imposes a civil penalty of more than $2,000 shall be
30.30treated as a contested case under chapter 14.
30.31 (d) A licensee may request a hearing on the administrative order within 30 days of the
30.32service of the order. The request must be in writing and delivered to the commissioner by
30Article 1 Sec. 21.
REVISOR JSK/KR 25-0126501/13/25 31.1certified mail. If the licensee does not request a hearing within 30 days, the order becomes
31.2final.
31.3 (e) If the licensee requests a hearing, the hearing must be held not later than 30 days
31.4after the commissioner receives the request unless the licensee and the commissioner agree
31.5on a later date. After the hearing, the commissioner may enter an order making such
31.6disposition as the facts require. If the licensee fails to appear at the hearing after having
31.7been notified of it, the licensee is considered in default and the proceeding may be determined
31.8against the licensee on consideration of the administrative order, the allegations of which
31.9may be considered to be true. An action of the commissioner under this paragraph is subject
31.10to judicial review pursuant to chapter 14.
31.11 (f) Civil penalties collected by the commissioner shall be deposited in the general fund.
31.12Civil penalties may be recovered in a civil action in the name of the state brought in the
31.13district court.
31.14 Subd. 5.Revocation, nonrenewal, civil penalties; contested case.If the commissioner
31.15intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the
31.16commissioner shall provide the licensee with a statement of the complaints made against
31.17the licensee and shall initiate a contested case proceeding. The contested case shall be held
31.18pursuant to chapter 14.
31.19 Subd. 6.Penalties.In addition to penalties listed in this section, a person or licensee
31.20who violates the provisions of sections 299L.10 to 299L.80 is subject to any applicable
31.21criminal penalty.
31.22Sec. 22. [299L.65] REPORTING.
31.23 Subdivision 1.Financial report.By June 1 of each year, the commissioner must submit
31.24a report to the chairs and ranking minority members of the legislative committees with
31.25jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the
31.26committee in the house of representatives with jurisdiction over commerce, the committee
31.27in the senate with jurisdiction over state government finance and policy, the committee in
31.28the house of representatives with jurisdiction over ways and means, and the committee in
31.29the senate with jurisdiction over finance. The report must describe the activities of the
31.30commissioner with respect to wagering on sporting events and include summary financial
31.31information on sports betting and the regulated sports betting industry as a whole. The report
31.32must not include information or data on individuals or entities that is classified as private
31.33data under section 299L.70 or separately list the earnings, wagers, or tax revenue generated
31.34by or use identifying information for specific mobile sports betting operators.
31Article 1 Sec. 22.
REVISOR JSK/KR 25-0126501/13/25 32.1 Subd. 2.License activity report.By February 1 of each year beginning in 2025, the
32.2commissioner shall submit a report to the chairs and ranking minority members of the
32.3committees in the house of representatives and the senate with jurisdiction over public
32.4safety, the committee in the house of representatives with jurisdiction over commerce, and
32.5the committee in the senate with jurisdiction over state government finance and policy on
32.6the following:
32.7 (1) the status of applications for licenses issued by the commissioner, including the
32.8number of applications for each type of license, the number of licenses of each type issued,
32.9and the average time between receipt of a complete application and issuance of each type
32.10of license;
32.11 (2) an overview of the sports betting market, including but not limited to the actual and
32.12anticipated demand;
32.13 (3) the amount of revenue generated to the state by sports betting and the expenses
32.14incurred by the commissioner in enforcing restrictions on lawful sports betting; and
32.15 (4) the commissioner's enforcement actions taken against persons licensed under sections
32.16299L.10 to 299L.80 for licensing violations, including violations of the rules adopted under
32.17section 299L.15.
32.18Sec. 23. [299L.70] DATA PROTECTIONS.
32.19 Subdivision 1.Classification.Data in which an individual who has wagered on sporting
32.20events is identified by name, account number, Social Security number, or any other uniquely
32.21identifying indicia, is private data on individuals, as defined in section 13.02, subdivision
32.2212. Data on individual earnings of mobile sports betting operators, mobile sports betting
32.23operator application and licensing information, and all Tribal revenue records unassociated
32.24with mobile sports betting operators is nonpublic data, as defined in section 13.02, subdivision
32.259.
32.26 Subd. 2.Sale of private data on individuals.The commissioner shall revoke any license
32.27issued under sections 299L.10 to 299L.80 of a person who sells data on individuals that
32.28would be classified as private under subdivision 1 collected through the practice of sports
32.29betting.
32Article 1 Sec. 23.
REVISOR JSK/KR 25-0126501/13/25 33.1 Sec. 24. [299L.73] LOCAL RESTRICTIONS; PROHIBITION ON LOCAL TAXES
33.2OR FEES.
33.3 No political subdivision may require a local license to offer sports betting or impose a
33.4tax or fee on the sports betting conducted pursuant to this chapter.
33.5 Sec. 25. [299L.75] STUDY ON THE PREVALENCE OF GAMBLING.
33.6 Subdivision 1.Baseline study.The commissioner must commission a study on gambling
33.7activity that occurred in Minnesota prior to the implementation of sports betting in Minnesota.
33.8The study must determine the prevalence of gambling in the state and the incidence of
33.9problem gambling, identifying the number of people who participate in various forms of
33.10gambling.
33.11 Subd. 2.Continued study.Three years after the baseline study, and every three years
33.12thereafter, the commissioner must commission an update for the study of the prevalence of
33.13gambling and the incidence and level of problem gambling.
33.14Sec. 26. [299L.751] STUDY ON THE IMPACT OF SPORTS BETTING ON
33.15PROBLEM GAMBLING, GAMBLING DISORDERS, YOUTH GAMBLING, AND
33.16SUICIDE.
33.17 The commissioner must commission a study on the impact of sports betting on the
33.18prevalence of gambling disorders, suicide related to gambling disorders, and risks to youth
33.19of developing gambling disorders, based on any research available on how sports betting
33.20has impacted these problems in jurisdictions where sports betting is occurring.
33.21Sec. 27. [299L.753] REVIEW OF OTHER STATES' RESTRICTIONS.
33.22 The commissioner must review the laws of other states in which wagering on sports is
33.23regulated to identify restrictions and safeguards on sports wagering that would be advisable
33.24to ensure the integrity of sports betting and to provide effective safety measures to protect
33.25people with a gambling disorder or who are at risk of developing a gambling disorder. The
33.26commissioner must adopt rules to implement the restrictions and safeguards the commissioner
33.27identifies from other states as advisable under this section. By January 15 of each year, the
33.28commissioner shall report to the chairs and ranking minority members of the committees
33.29in the house of representatives and the senate with jurisdiction over sports wagering on
33.30advisable restrictions and safeguards, including draft legislation to implement the additional
33.31restrictions or safeguards.
33Article 1 Sec. 27.
REVISOR JSK/KR 25-0126501/13/25 34.1 Sec. 28. [299L.755] SPORTS BETTING EQUALIZATION.
34.2 Subdivision 1.Account created; appropriation.(a) The sports betting equalization
34.3account is established in the special revenue fund. The account shall consist of the amounts
34.4deposited pursuant to sections 297J.02 and 297K.02.
34.5 (b) The amount necessary to make payments under subdivision 2 is appropriated to the
34.6commissioner of revenue.
34.7 (c) Any money remaining in the account at the end of each fiscal year does not cancel.
34.8Interest and income earned on money in the account, after deducting any applicable charges,
34.9shall be credited to the account.
34.10 Subd. 2.Payments.(a) The commissioner of revenue must make payments under this
34.11section to each eligible Indian Tribe as defined in section 299L.10, subdivision 10, in an
34.12amount equal to the amount of funds available in the sports betting equalization account as
34.13of June 30 of the same calendar year divided equally among each eligible Indian Tribe. For
34.14the purposes of this section, "eligible Indian Tribe" means any Indian Tribe that does not
34.15contract with a mobile sports betting platform provider that constitutes more than ten percent
34.16of the Minnesota market share of sports betting platform providers as of December 31 of
34.17the prior calendar year. For purposes of determining market share amounts, any platform
34.18provider with a common majority owner is the same platform provider.
34.19 (b) The commissioner must make payments annually by October 1.
34.20 Subd. 3.Report.The commissioner of revenue must submit a report to the chairs and
34.21ranking minority members of the legislative committees with jurisdiction over taxes providing
34.22a list of eligible Indian Tribes receiving a distribution and the amount distributed to each
34.23eligible Indian Tribe.
34.24Sec. 29. INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.
34.25 The governor or the governor's designated representatives shall negotiate in good faith
34.26new Tribal-state compacts regulating the conduct of class III sports betting on the Indian
34.27lands of an Indian Tribe requesting negotiations, under Minnesota Statutes, section 3.9221.
34.28Compacts in effect on January 1, 2024, shall not be modified to accommodate sports betting.
34.29Sec. 30. TIMELINE.
34.30 (a) All initial licenses issued by the commissioner under this article must be effective
34.31on the same day for applicants who have met all license application requirements by a date
34Article 1 Sec. 30.
REVISOR JSK/KR 25-0126501/13/25 35.1set by the commissioner. This requirement does not apply to provisional licenses issued by
35.2the commissioner.
35.3 (b) The commissioner must provide notice of the anticipated effective date for licenses
35.4at least ten days before the anticipated date for the effective date of licenses, including
35.5provisional licenses. The notice must be provided to all licensees, the commissioner of
35.6revenue, and the chairs and ranking minority members of the legislative committees with
35.7jurisdiction over public safety and state government.
35.8 Sec. 31. EFFECTIVE DATE.
35.9 This article is effective the day following final enactment.
35.10 ARTICLE 2
35.11 TAXATION OF SPORTS BETTING
35.12Section 1. Minnesota Statutes 2024, section 270B.07, is amended by adding a subdivision
35.13to read:
35.14 Subd. 6.Disclosure to Department of Public Safety.The commissioner may disclose
35.15return information to the commissioner of public safety for the purpose of verifying licensure
35.16requirements under sections 299L.25 and 349C.03.
35.17 EFFECTIVE DATE.This section is effective the day following final enactment.
35.18Sec. 2. [297J.01] DEFINITIONS.
35.19 (a) Unless otherwise defined in this chapter, or unless the context clearly indicates
35.20otherwise, the following terms have the meanings given.
35.21 (b) "Cash equivalent" means the cash value of any free bets, promotional credits, and
35.22any other noncash form of consideration, payment, or compensation.
35.23 (c) "Casino" has the meaning given in section 299L.10, subdivision 5.
35.24 (d) "Commissioner" means the commissioner of revenue.
35.25 (e) "Mobile sports betting operator" has the meaning given in section 299L.10, subdivision
35.2615.
35.27 (f) "Sporting event" has the meaning given in section 299L.10, subdivision 20.
35.28 (g) "Sports betting" has the meaning given in section 299L.10, subdivision 21.
35Article 2 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 36.1 (h) "Sports betting net revenue" means the total of all cash and cash equivalents received
36.2in a month by a mobile sports betting operator from wagers on sporting events, less the
36.3following:
36.4 (1) cash paid out as winnings in the month; and
36.5 (2) the fair market value of noncash prizes paid out as winnings in the month.
36.6 (i) "Wager" has the meaning given in section 299L.10, subdivision 24.
36.7 EFFECTIVE DATE.This section is effective the day following final enactment.
36.8 Sec. 3. [297J.02] TAX ON SPORTS BETTING NET REVENUE.
36.9 Subdivision 1.Tax imposed.(a) Except as provided in paragraph (b), a tax is imposed
36.10on sports betting net revenue received equal to 22 percent on wagers placed online through
36.11a website or mobile application, as allowed under section 299L.40.
36.12 (b) Any wager placed on Indian lands is not subject to state taxation. For purposes of
36.13this chapter, a wager is placed at the physical location of the individual placing the wager.
36.14 Subd. 2.Sports betting net revenue tax in lieu of other taxes.Income derived by a
36.15sports game, match, or activity; a series of games, matches or activities; or a tournament or
36.16tournaments involving a sporting event is not subject to the tax imposed in chapter 290.
36.17Wagers accepted by a mobile sports betting operator are not subject to the tax imposed in
36.18section 297A.62 or 297E.03.
36.19 Subd. 3.Returns; due dates.A mobile sports betting operator must file a return by the
36.2020th day of each month reporting the tax due under this section for the preceding month.
36.21The return must include the amount of all wagers received, payouts made, all sports betting
36.22taxes owed, and other information required by the commissioner. The tax under this chapter
36.23is due to be paid to the commissioner on the day the return is due.
36.24 Subd. 4.Deposit of revenue; account established.(a) The commissioner must deposit
36.25the revenues, including penalties and interest, derived from the tax imposed by this section
36.26into the sports betting revenue account. After deducting any amounts necessary to pay the
36.27refunds, the money shall be distributed as follows:
36.28 (1) 45 percent must be appropriated to the commissioner of revenue for the purposes of
36.29making payments under section 297E.02, subdivision 12;
36.30 (2) 15 percent must be transferred to the racing economic development account to be
36.31distributed in accordance with section 240.1563;
36Article 2 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 37.1 (3) 15 percent must be transferred to the sports betting equalization account to be
37.2distributed in accordance with section 299L.755;
37.3 (4) ten percent must be transferred to the sports marketing and awareness account to be
37.4distributed in accordance with section 116U.60;
37.5 (5) ten percent must be appropriated to the commissioner of human services to be
37.6distributed in accordance with section 245.983; and
37.7 (6) five percent must be transferred to the amateur sports integrity and participation
37.8account to be distributed in accordance with section 240A.15.
37.9 (b) The sports betting revenue account is established in the special revenue fund.
37.10 Subd. 5.Distribution of revenue.All amounts collected in the previous fiscal year by
37.11the commissioner in the sports betting revenue account must be distributed annually by
37.12October 1 as provided in subdivision 4. Any money remaining in the sports betting revenue
37.13account at the end of each fiscal year does not cancel. Interest and income earned on money
37.14in the account, after deducting any applicable charges, shall be credited to the account.
37.15 EFFECTIVE DATE.This section is effective the day following final enactment.
37.16Sec. 4. [297J.03] MOBILE SPORTS BETTING OPERATOR REPORTS AND
37.17RECORDS.
37.18 Subdivision 1.Business records.A mobile sports betting operator must maintain records
37.19supporting the sports betting activity and taxes owed. Records required to be kept in this
37.20section must be preserved by the mobile sports betting operator for at least 3-1/2 years after
37.21the return is due or filed, whichever is later, and may be inspected by the commissioner at
37.22any reasonable time without notice or a search warrant.
37.23 Subd. 2.Audits.The commissioner may require a financial audit of a mobile sports
37.24betting operator's sports betting activities if the mobile sports betting operator has failed to
37.25comply with this chapter, including failure to timely file returns or pay tax, or take corrective
37.26actions required by the commissioner. Audits must be performed by an independent
37.27accountant licensed according to chapter 326A. The commissioner must prescribe standards
37.28for an audit required under this subdivision. A complete, true, and correct copy of an audit
37.29must be filed as prescribed by the commissioner. Nothing in this subdivision limits the
37.30commissioner's ability to conduct its own audit pursuant to its authority under chapter 270C.
37.31 EFFECTIVE DATE.This section is effective the day following final enactment.
37Article 2 Sec. 4.
REVISOR JSK/KR 25-0126501/13/25 38.1 Sec. 5. [297J.04] OTHER PROVISIONS APPLY.
38.2 Except for those provisions specific to distributors, gambling products, or gambling
38.3equipment, sections 297E.02, subdivisions 9 and 10, and 297E.10 to 297E.14 apply to this
38.4chapter.
38.5 EFFECTIVE DATE.This section is effective the day following final enactment.
38.6 ARTICLE 3
38.7 FANTASY CONTESTS
38.8 Section 1. [349C.01] DEFINITIONS.
38.9 Subdivision 1.Terms.For the purposes of this chapter, the following terms have the
38.10meanings given.
38.11 Subd. 2.Adjusted gross fantasy contest receipts."Adjusted gross fantasy contest
38.12receipts" means the amount equal to the total of all entry fees that a fantasy contest operator
38.13collects from all participants minus the total of all prizes paid out to all participants multiplied
38.14by the location percentage for this state.
38.15 Subd. 3.Athletic event."Athletic event" means a sports game, match, or activity; a
38.16series of games, matches, or activities; or a tournament or tournaments involving the athletic
38.17skill of one or more players or participants.
38.18 Subd. 4.Authorized participant."Authorized participant" means an individual who
38.19has a valid fantasy contest account with a fantasy contest operator and is at least 21 years
38.20of age.
38.21 Subd. 5.College sports."College sports" means a sporting event in which at least one
38.22participant is a team or individual from a public or private institution of higher education.
38.23 Subd. 6.Commissioner."Commissioner" means the commissioner of public safety.
38.24 Subd. 7.Entry fee."Entry fee" means cash or a cash equivalent that is required to be
38.25paid by an authorized participant and set in advance by a fantasy contest operator to
38.26participate in a fantasy contest.
38.27 Subd. 8.Esports event."Esports event" means a competition between individuals or
38.28teams using video games in a game, match, or contest; a series of games, matches, or contests;
38.29a tournament; or a person or team against a specified measure of performance which is
38.30hosted at a physical location or online that is approved by the commissioner to be an event
38.31eligible for fantasy contests under this chapter.
38Article 3 Section 1.
REVISOR JSK/KR 25-0126501/13/25 39.1 Subd. 9.Fantasy contest."Fantasy contest" means any simulated game or contest, with
39.2an entry fee, in which:
39.3 (1) the value of all prizes offered to a winning authorized participant are established and
39.4made known to the authorized participant in advance of the contest;
39.5 (2) all winning outcomes reflect the relative knowledge and skill of the authorized
39.6participant; and
39.7 (3) the authorized participant assembles, owns, or manages a fictional entry or roster of
39.8actual professional or amateur athletes, who participate in real-world sports events or esports
39.9events that are regulated by a governing body, and that are held between professional players
39.10who play individually or as teams.
39.11 Subd. 10.Fantasy contest account."Fantasy contest account" means an electronic
39.12ledger in which the following types of transactions relative to an authorized participant are
39.13recorded:
39.14 (1) deposits and credits;
39.15 (2) withdrawals;
39.16 (3) fantasy contest wagers;
39.17 (4) monetary value of winnings;
39.18 (5) service or other transaction-related charges authorized by the authorized participant,
39.19if any;
39.20 (6) adjustments to the account;
39.21 (7) promotional activity; and
39.22 (8) responsible gaming parameters.
39.23 Subd. 11.Fantasy contest operator."Fantasy contest operator" means an entity that is
39.24licensed by the commissioner to operate, conduct, or offer for play fantasy contests under
39.25this chapter. A fantasy contest operator shall not be an authorized participant in a fantasy
39.26contest. An Indian Tribe that does not contract with a fantasy contest operator to operate
39.27fantasy contests is considered to be a fantasy contest operator.
39.28 Subd. 12.Indian Tribe"Indian Tribe" means the following federally recognized Tribes
39.29and any instrumentality, political subdivision, legal entity, or other organization through
39.30which an Indian Tribe conducts business:
39.31 (1) the Fond du Lac Band;
39Article 3 Section 1.
REVISOR JSK/KR 25-0126501/13/25 40.1 (2) the Grand Portage Band;
40.2 (3) the Mille Lacs Band;
40.3 (4) the White Earth Band;
40.4 (5) the Bois Forte Band;
40.5 (6) the Leech Lake Band;
40.6 (7) the Red Lake Nation;
40.7 (8) the Upper Sioux Community;
40.8 (9) the Lower Sioux Indian Community;
40.9 (10) the Shakopee Mdewakanton Sioux Community; and
40.10 (11) the Prairie Island Indian Community.
40.11 Subd. 13.Location percentage."Location percentage" means the percentage rounded
40.12to the nearest tenth of one percent of the total entry fees collected from authorized participants
40.13located in this state divided by the total entry fees collected from all players in the fantasy
40.14contest activity.
40.15 Subd. 14.Sports event."Sports event" means an athletic event, esports event, college
40.16sports event, or other event approved by the commissioner to be an event eligible for
40.17participation in a fantasy contest under this chapter. Sports event does not include:
40.18 (1) horse racing as defined in section 240.01, subdivision 8; or
40.19 (2) an esports or athletic event, demonstration, activity, or tournament organized by an
40.20elementary, middle, or high school or by any youth activity sports program, league, or clinic.
40.21 Subd. 15.Sports governing body."Sports governing body" means an organization that
40.22prescribes and enforces final rules and codes of conduct for a sporting event and participants
40.23engaged in the sport. For a sporting event sanctioned by a higher education institution, sports
40.24governing body means the athletic conference to which the institution belongs. For an esports
40.25event, sports governing body means the video game publisher of the title used in the esports
40.26competition.
40.27 Subd. 16.Wager."Wager" means a transaction between an authorized participant and
40.28a licensed fantasy contest operator in which an authorized participant pays, deposits, or
40.29risks cash or a cash equivalent as an entry fee into a fantasy contest.
40Article 3 Section 1.
REVISOR JSK/KR 25-0126501/13/25 41.1 Sec. 2. [349C.02] POWERS AND DUTIES OF THE COMMISSIONER.
41.2 Subdivision 1.Regulating fantasy contests.The commissioner has the power and duty
41.3to regulate fantasy contests authorized under this chapter. In making rules, establishing
41.4policy, and regulating fantasy contests, the commissioner shall:
41.5 (1) ensure that fantasy contests are conducted in a fair and lawful manner;
41.6 (2) promote public safety and welfare; and
41.7 (3) ensure that fantasy contests are conducted in a manner that is transparent to authorized
41.8participants.
41.9 Subd. 2.Rulemaking.(a) The commissioner must adopt and enforce rules consistent
41.10with this chapter that address:
41.11 (1) the manner in which wagers are accepted and payouts are remitted;
41.12 (2) the types of records that shall be kept by fantasy contest operators;
41.13 (3) the testing and auditing requirements for licensees, including requirements related
41.14to fantasy contest accounts;
41.15 (4) the method of accounting used by fantasy contest operators;
41.16 (5) the creation, funding, and use of fantasy contest accounts, debit cards, and checks
41.17by authorized participants, provided that the rules permit an authorized participant to fund
41.18a fantasy contest account through a bonus or promotion, an electronic bank transfer, an
41.19online or mobile payment system that supports online money transfers, a reloadable or
41.20prepaid card, and any other appropriate means approved by the commissioner, not including
41.21the use of credit cards;
41.22 (6) the appropriate standards and practices to prevent and address compulsive and
41.23problem gambling;
41.24 (7) the appropriate standards and practices to prevent and address fantasy contest entry
41.25by individuals who are not authorized participants or who are otherwise disqualified,
41.26prohibited, or excluded from contest entry;
41.27 (8) the sporting events eligible for fantasy contests;
41.28 (9) the requirements for obtaining and retaining fantasy contest operator licenses,
41.29including requirements for criminal and financial background checks, financial disclosure
41.30and auditing requirements, data practices and security requirements, bonding or other surety
41.31requirements, and the conduct of inspections;
41Article 3 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 42.1 (10) investigation into any licensed or unlicensed person or entity when a person or
42.2entity is engaged in conducting a fantasy contest or engaged in conduct advertised as a
42.3fantasy contest that does meet the requirements of this chapter;
42.4 (11) the requirements for monitoring patterns of participation to identify behaviors
42.5consistent with problem gambling and the appropriate actions to take when problem gambling
42.6is suspected, including pausing or suspending activities from an identified fantasy contest
42.7account; and
42.8 (12) the appropriate limits, standards, and requirements necessary to prevent excessive
42.9wagering by an individual whose ability to control impulsive wagering is impaired in any
42.10way.
42.11 (b) Rules for which notice is published in the State Register before January 1, 2026,
42.12may be adopted using the expedited rulemaking process in section 14.389.
42.13 Subd. 3.Licensing; fee collection.(a) The commissioner shall issue all fantasy contest
42.14operator licenses. Licenses issued under this chapter may not be transferred.
42.15 (b) The commissioner shall collect all license fees, including renewals, surcharges, and
42.16civil penalties imposed by this chapter.
42.17 Subd. 4.Helpline.The commissioner must provide a helpline, accessible by telephone
42.18or online live chat, that operates 24 hours per day and seven days per week and is staffed
42.19by people trained in the psychology of gambling disorders and suicide prevention to assist
42.20those who contact the helpline to help the person with a gambling disorder.
42.21 Subd. 5.Methods for identifying people at risk for gambling disorders.The
42.22commissioner must monitor the sports betting and fantasy contest industries for the most
42.23effective methods to identify people with a gambling disorder. The commissioner must
42.24adopt rules to implement best practices to prevent sports betting and fantasy contest
42.25participation by people flagged as having a gambling disorder or being at risk of developing
42.26a gambling disorder.
42.27 Subd. 6.Exclusion list audits.The commissioner must periodically audit for compliance
42.28of fantasy contest operators with any preclusions on sports betting and fantasy contests in
42.29section 349C.07.
42.30 Subd. 7.Delegation.The commissioner may delegate any of its authority under this
42.31chapter to the director of alcohol and gambling enforcement if, in the judgment of the
42.32commissioner, doing so would promote the efficient administration of this chapter.
42Article 3 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 43.1 Subd. 8.Additional powers.The commissioner may exercise any other powers necessary
43.2to enforce the provisions of this chapter.
43.3 Sec. 3. [349C.03] LICENSING; APPLICATION REQUIREMENTS.
43.4 Subdivision 1.General requirements.(a) A licensee or applicant must meet each of
43.5the following requirements, if applicable, to hold or receive a license issued under this
43.6chapter:
43.7 (1) a licensee or applicant must complete an application for licensure or application for
43.8renewal;
43.9 (2) a licensee or applicant must meet the requirements of section 349C.041;
43.10 (3) a licensee or applicant must pay the applicable application and licensing fees;
43.11 (4) a licensee or applicant must not owe $500 or more in delinquent taxes, penalties, or
43.12interest, with delinquent taxes subject to the limitations under section 270C.72, subdivision
43.132;
43.14 (5) not have, after demand, failed to file tax returns required by the commissioner of
43.15revenue; and
43.16 (6) an officer, director, or other person with a present direct or indirect financial or
43.17management interest in the applicant must not:
43.18 (i) be in default in the payment of an obligation or debt to the state;
43.19 (ii) have been convicted of a crime listed in section 299L.25, subdivision 2, paragraph
43.20(a), or have a state or federal charge for one of those crimes pending;
43.21 (iii) be or have been convicted of engaging in an illegal business;
43.22 (iv) have ever been found guilty of fraud or misrepresentation in connection with
43.23wagering;
43.24 (v) have ever knowingly violated a rule or order of the commissioner or a law of
43.25Minnesota relating to wagering; or
43.26 (vi) be employed by any state agency with regulatory authority over fantasy contests.
43.27 (b) Any fantasy contest operator applying for licensure or renewal of a license may
43.28operate during the application period unless the commissioner has reasonable cause to
43.29believe that such operator is or may be in violation of the provisions of this chapter.
43Article 3 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 44.1 (c) A fantasy contest operator applying for licensure or renewal of a license must pay
44.2an application fee of $3,300.
44.3 Subd. 2.Application; contents.(a) An application for a license under this chapter must
44.4be submitted on a form prescribed by the commissioner. At a minimum, the application
44.5must include:
44.6 (1) the business name, address, and contact information of the applicant;
44.7 (2) the applicant's website address;
44.8 (3) the applicant's tax identification number;
44.9 (4) proof of the applicant's financial security in an amount sufficient to comply with the
44.10provisions of section 349C.08;
44.11 (5) the name and address of all officers, directors, and shareholders with more than ten
44.12percent interest in the corporation and any of its holding companies;
44.13 (6) an affidavit executed by the applicant setting forth that, to the best of the applicant's
44.14knowledge, the applicant meets the requirements of subdivision 1, paragraph (a), clauses
44.15(3) to (5);
44.16 (7) an irrevocable consent statement, signed by the applicant, which states that suits and
44.17actions limited to the enforcement of this chapter may be commenced against the applicant
44.18by the commissioner in any court of competent jurisdiction in this state by the service on
44.19the secretary of state of any summons, process, or pleadings authorized by the laws of this
44.20state. If any summons, process, or pleading is served upon the secretary of state, it must be
44.21by duplicate copies. One copy must be retained in the Office of the Secretary of State and
44.22the other copy must be forwarded immediately by certified mail to the address of the
44.23applicant, as shown by the records of the commissioner;
44.24 (8) a declaration that the laws of the state of Minnesota will be followed, including any
44.25applicable provisions of the Minnesota Human Rights Act, chapter 363A; and
44.26 (9) any additional information required by the commissioner.
44.27 (b) If the commissioner receives an application that fails to provide the required
44.28information, the commissioner shall issue a deficiency notice to the applicant. The applicant
44.29shall have ten business days from the date of the deficiency notice to submit the required
44.30information.
44.31 (c) Failure by an applicant to submit all required information will result in the application
44.32being rejected.
44Article 3 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 45.1 (d) Within 90 days of receiving a completed application, the commissioner shall issue
45.2the appropriate license or send the applicant a notice of rejection setting forth specific
45.3reasons why the commissioner did not approve the application.
45.4 (e) An applicant whose application is not approved may reapply at any time but must
45.5submit a new application and pay an additional application fee.
45.6 Subd. 3.Duty to update.(a) During the pendency of an application and at any time
45.7after a license has been issued, an applicant or licensee shall notify the commissioner of
45.8any changes to the information provided under this section.
45.9 (b) If a change in the officers, directors, shareholders, or other persons with a present
45.10or future direct or indirect financial or management interest in a licensee or a change of
45.11ownership of more than ten percent of the shares of the licensee is made after the application
45.12for a license is filed or a license is issued, the applicant or licensee must notify the
45.13commissioner of the changes within ten days of their occurrence and submit a new affidavit
45.14as required by this section.
45.15 Subd. 4.Deposit of fees.Application, registration, license, and renewal fees shall be
45.16deposited in the general fund.
45.17Sec. 4. [349C.04] FANTASY CONTEST OPERATOR LICENSE.
45.18 Subdivision 1.Issuance; renewal.(a) The commissioner may issue up to 11 licenses.
45.19Each license is valid for one year and may be renewed under conditions required by rule
45.20adopted pursuant to section 349C.02.
45.21 (b) Licenses issued under this chapter may not be transferred.
45.22 Subd. 2.Licensing requirements.A fantasy contest operator must:
45.23 (1) submit a completed application and all required documents or other materials pursuant
45.24to this chapter and any relevant rules;
45.25 (2) submit a detailed plan and specifications for the implementation of fantasy contests;
45.26 (3) include mechanisms on its platform that are designed to detect and prevent the
45.27unauthorized use of fantasy contest accounts and to detect and prevent fraud, money
45.28laundering, and collusion;
45.29 (4) include identity and geolocation verification procedures, which may require the use
45.30of a reputable independent third party that is in the business of verifying an individual's
45.31personally identifiable information and can detect potential prohibited participants;
45Article 3 Sec. 4.
REVISOR JSK/KR 25-0126501/13/25 46.1 (5) submit a statement of the assets and liabilities of the license holder to the
46.2commissioner;
46.3 (6) pay a licensing fee pursuant to subdivision 3 upon initial application and at each
46.4subsequent license renewal; and
46.5 (7) meet any other conditions required by rule adopted pursuant to section 349C.02.
46.6 Subd. 3.Fees.(a) The initial license fee for a fantasy contest operator that operated in
46.7Minnesota in the preceding 12 months shall be the greater of ten percent of its adjusted
46.8gross fantasy contest receipts from the preceding 12 months or $5,000. The initial license
46.9fee for a fantasy contest operator that did not operate in the state for at least the preceding
46.1012 months shall be $5,000.
46.11 (b) The license renewal fee shall be one percent of adjusted gross fantasy contest receipts
46.12for the preceding year.
46.13 Subd. 4.Continued operation; registration.(a) Any fantasy operator already offering
46.14fantasy contests to persons located in Minnesota before July 1, 2024, may continue to offer
46.15contests to persons located in Minnesota until the fantasy operator's application for licensure
46.16has been approved or denied so long as the fantasy operator files an application for licensure
46.17with the commissioner within 90 days of the commissioner making applications available
46.18for submission.
46.19 (b) A fantasy contest operator must register with the commissioner in a form and manner
46.20prescribed by the commissioner to continue operations under paragraph (a). The fantasy
46.21contest operator must submit its registration with a $10,000 registration fee.
46.22 Subd. 5.Reporting.A fantasy contest operator must report to the commissioner monthly
46.23on wagers placed and redeemed during the reporting month and outstanding at the time of
46.24the report.
46.25Sec. 5. [349C.041] TRIBAL PARTNERSHIP REQUIRED.
46.26 (a) A fantasy contest operator must contract with an Indian Tribe to obtain licensure
46.27under this chapter.
46.28 (b) A fantasy contest operator already offering fantasy contests to persons located in
46.29Minnesota for at least six consecutive months before June 1, 2024, must contract with an
46.30Indian Tribe by July 1, 2025. A fantasy contest operator may continue to offer contests
46.31during this time. If a fantasy contest operator fails to contract with an Indian Tribe by
46.32December 1, 2025, the operator must pay to the commissioner five percent of its adjusted
46Article 3 Sec. 5.
REVISOR JSK/KR 25-0126501/13/25 47.1gross fantasy contest receipts of the six month period before June 1, 2024, during which
47.2the operator offered contests.
47.3 Sec. 6. [349C.05] FANTASY CONTESTS AUTHORIZED.
47.4 Subdivision 1.Authorization.A person 21 years of age or older may participate in a
47.5fantasy contest within the state provided the person places all wagers with an entity licensed
47.6under this chapter and is not disqualified, prohibited, or excluded from participation in a
47.7fantasy contest.
47.8 Subd. 2.Fantasy contest.(a) Entry into a fantasy contest by an authorized participant
47.9is lawful provided that:
47.10 (1) winning outcomes are determined solely by clearly established scoring criteria based
47.11on one or more statistical results of the performance of individual athletes, including but
47.12not limited to a fantasy score or a statistical measure of performance; and
47.13 (2) no winning outcome is entirely based on the score, point spread, or any performance
47.14of any single actual team or combination of teams or solely on any single performance of
47.15an individual athlete or player in any single actual event;
47.16 (b) Fantasy contests may include both contests in which authorized participants compete
47.17against each other and contests in which only a single authorized participant competes
47.18against a target score set by the fantasy contest operator.
47.19 (c) Any fantasy contest conducted under this chapter does not constitute sports betting
47.20for any purpose, as set forth in sections 299L.10 to 299L.80.
47.21 (d) A fantasy contest subject to the requirements of this chapter does not include:
47.22 (1) any fantasy contest in which the authorized participant is not required to pay an entry
47.23fee to a fantasy contest operator; or
47.24 (2) contests:
47.25 (i) with rosters whose membership is limited to athletes of a single sport;
47.26 (ii) that encompass at least one-half of a sport's regular season of the athletic activity in
47.27which the underlying competition is being conducted;
47.28 (iii) in which participants compete against each other; and
47.29 (iv) in which the fantasy contest operator, if it so chooses, retains an administrative fee
47.30not to exceed 50 percent of all entry fees paid to enter the single season-long contest.
47.31 Subd. 3.Fantasy contest operator.A fantasy contest operator must:
47Article 3 Sec. 6.
REVISOR JSK/KR 25-0126501/13/25 48.1 (1) make available on its website means to allow individuals to self-report to the exclusion
48.2list provided under section 349C.07;
48.3 (2) provide authorized participants with access to their play history and account details,
48.4including all deposit amounts, withdrawal amounts, a summary of entry fees expended, and
48.5bonus or promotion information, including how much is left on any pending bonus or
48.6promotion and how much has been released to the authorized participant;
48.7 (3) segregate authorized participant funds, including amounts in live fantasy contests
48.8that have not been paid out yet, from operational funds;
48.9 (4) prominently publish the rules governing each fantasy contest with an entry fee;
48.10 (5) develop and prominently publish procedures by which any person may file a complaint
48.11with the operator and the commissioner; and
48.12 (6) disclose the terms of all promotional offers at the time the offers are advertised and
48.13provide full disclosures of limitations on the offer before an authorized participant provides
48.14financial consideration in exchange for the offer.
48.15 Subd. 4.Indian Tribe operators.An Indian Tribe may act as a fantasy contest operator
48.16to offer for play fantasy contests and provide, create, or operate fantasy contest platforms,
48.17fantasy contest technology, fantasy contest applications, or associated fantasy contest
48.18hardware, software, or equipment. Pursuant to section 349C.041, an Indian Tribe may, but
48.19is not required to, contract with a fantasy contest operator. If an Indian Tribe does not
48.20contract with a fantasy contest operator, the Indian Tribe must comply with the reporting
48.21and regulatory requirements held by fantasy contest operator license holders imposed by
48.22this chapter.
48.23Sec. 7. [349C.06] WAGERING.
48.24 Subdivision 1.Placing wagers; entry fees.An individual who is 21 years of age or
48.25older may place wagers pursuant to this chapter by submitting an entry fee to a fantasy
48.26contest operator to participate in a fantasy contest provided the individual is not otherwise
48.27disqualified, prohibited, or excluded from doing so. A fantasy contest operator may only
48.28accept wagers in a form and manner prescribed and approved by the commissioner. A
48.29fantasy contest operator may only accept wagers of a type previously approved by the
48.30commissioner.
48.31 Subd. 2.Fantasy contest account.(a) An individual may establish a fantasy contest
48.32account by electronic means from any location and may fund an account by any means
48.33approved by the commissioner.
48Article 3 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 49.1 (b) A fantasy contest operator must not accept a wager unless the authorized participant
49.2provides consideration in the form of money or another thing of value such as use of
49.3promotional credits from the authorized participant's fantasy contest account at the time of
49.4making the wager.
49.5 (c) Consideration must be in the form of withdrawal from a fantasy contest account
49.6maintained by the fantasy contest operator for the benefit of and in the name of the wagerer.
49.7 (d) A fantasy contest operator shall verify an individual's age and identity before allowing
49.8that individual to place a wager and may utilize an approved identity verification service
49.9provider to confirm an individual's age and identity.
49.10 (e) A fantasy contest operator must deposit any prize won by an authorized participant
49.11into the authorized participant's account within 72 hours of winning the prize.
49.12 (f) An authorized participant shall have the right to withdraw the balance of funds in the
49.13fantasy contest account in the authorized participant's name at any time with proof of identity,
49.14as determined by rules adopted pursuant to section 349C.02, within ten business days of
49.15the request being made. This period shall be extended if the fantasy contest operator believes
49.16in good faith that the authorized participant engaged in either fraudulent conduct or other
49.17conduct that would put the operator in violation of this chapter, in which case the fantasy
49.18contest operator may decline to honor the request for withdrawal for a reasonable
49.19investigatory period until the investigation is resolved if the fantasy contest operator provides
49.20notice of the nature of the investigation to the authorized participant. If the investigation
49.21exceeds 60 days, the fantasy contest operator shall notify the commissioner. For the purposes
49.22of this provision, a request for withdrawal will be considered honored if it is processed by
49.23the fantasy contest operator but delayed by a payment processor, a credit card issuer, or the
49.24custodian of a financial account.
49.25 Subd. 3.Personal limits; account.(a) A fantasy contest account must provide a
49.26mechanism for a person to set limits on the amount of time they spend on the fantasy contest
49.27platform, set limits on the amount of money they spend on the platform, and self-exclude
49.28from using the fantasy contest platform. A fantasy contest account provider must allow a
49.29person to set the following limits for the person's fantasy contest account:
49.30 (1) a limit on the amount of money that can be deposited within a specified period;
49.31 (2) a limit on losses within a specified period; and
49.32 (3) a limit on the time spent placing bets.
49Article 3 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 50.1 (b) The fantasy contest account must not allow the account to be used to place bets when
50.2the person has exceeded a limit the person has set. The fantasy contest account provider
50.3must provide notice to the person of the opportunity to set these limits at the time the person
50.4sets up the account and annually after setup and must require a person to either set limits
50.5or affirm that the person does not want to set any limits at account setup and annually after
50.6setup. The notice must be worded and formatted as specified by the commissioner.
50.7 Subd. 4.Personal limits on wagering.(a) A fantasy contest operator must allow a
50.8person to establish the following types of limits on their own wagering activity:
50.9 (1) a limit on the amount of money the person can lose in a 24-hour period before
50.10triggering a cooling-off period;
50.11 (2) a limit on the amount of money the person can lose in a 30-day period before
50.12triggering a cooling-off period;
50.13 (3) the maximum amount of money the person may deposit into the their fantasy contest
50.14account in a 24-hour period;
50.15 (4) the maximum amount of time the person can be logged into their fantasy contest
50.16program in a 24-hour period; and
50.17 (5) a cooling-off period during which time the person is not able to place wagers.
50.18 (b) Pursuant to subdivision 6, a fantasy contest operator must set the limits in paragraph
50.19(a) to the following default limits for a new account, subject to any limits established by
50.20law:
50.21 (1) $500 is the default amount of losses a person can incur in a 24-hour period before
50.22the person is prohibited from wagering;
50.23 (2) $3,000 is the default limit on the amount of money a person can lose in a 30-day
50.24period before the person is prohibited from wagering;
50.25 (3) $500 is the default maximum amount of money a person may deposit into the person's
50.26fantasy contest account in a 24-hour period; and
50.27 (4) 72 hours is the default length of a cooling-off period if a person requests a cooling-off
50.28period during which time wagers from the person cannot be accepted.
50.29 (c) A fantasy contest operator must not accept a wager from a person in a cooling-off
50.30period or in an exclusion period set by a person in paragraph (a) or, if the person does not
50.31set exclusion periods under paragraph (a), during the default exclusion periods established
50.32in paragraph (b).
50Article 3 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 51.1 (d) A fantasy contest operator must allow a person to make changes to their exclusion
51.2settings under paragraph (a) in ways that make them more restrictive at any time, and those
51.3limits must take effect immediately. Changes that make the exclusion settings under
51.4paragraph (a) less restrictive become effective seven days after the person makes the change.
51.5 (e) A fantasy contest operator must require a person to review the limits in paragraph
51.6(a) annually.
51.7 (f) A fantasy contest operator must report to the commissioner when a person becomes
51.8excluded due to hitting a limit set under paragraph (a) or (b). The commissioner must
51.9immediately communicate to other licensed fantasy contest operators as necessary to make
51.10the exclusion effective across all opportunities for participating in sports betting and fantasy
51.11contests in Minnesota.
51.12 Subd. 5.Wager location.Fantasy contest wagers may only be accepted from an
51.13authorized participant placing a wager online, through a website or mobile application,
51.14while the authorized participant is physically within the state. The incidental routing of a
51.15fantasy contest wager shall not determine the location or locations in which the wager is
51.16initiated, received, or otherwise made.
51.17 Subd. 6.Wagers prohibited.(a) A fantasy contest operator must not accept a wager on
51.18the outcome of an event or proposition that has already been determined.
51.19 (b) A fantasy contest operator must not offer or accept wagers on the occurrence or
51.20outcomes of the following situations that may occur during or after a sporting event:
51.21 (1) player injuries;
51.22 (2) penalties;
51.23 (3) the outcome of player disciplinary rulings; or
51.24 (4) replay reviews.
51.25 (c) Fantasy contest operators must not offer or accept wagers on propositional occurrences
51.26or proposition bets on college sports.
51.27 Subd. 7.Receipt.A fantasy contest operator must provide a person who places a wager
51.28with an electronic receipt at the time of sale that contains the following information:
51.29 (1) the proposition that is the subject of the wager;
51.30 (2) the outcome that will constitute a win on the wager;
51.31 (3) the amount wagered; and
51Article 3 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 52.1 (4) the payout in the event of a winning wager.
52.2 Subd. 8.Requests for restrictions on wager types.(a) A sports governing body may
52.3request that the commissioner prohibit or restrict wagers on a particular sporting event, or
52.4prohibit or restrict particular types of wagers if the sports governing body believes that such
52.5type, form, or category of wagering may undermine the integrity or perceived integrity of
52.6the sports governing body or sporting event.
52.7 (b) Requests from a sports governing body shall be made in the form and manner
52.8established by the commissioner.
52.9 (c) Upon receipt of a request made under this subdivision, the commissioner shall send
52.10written notice to every fantasy contest operator, provide fantasy contest operators with an
52.11opportunity to respond to the request, and consider any timely response submitted by a
52.12fantasy contest operator. The commissioner may not take action without providing fantasy
52.13contest operators with an opportunity to respond, but may establish reasonable deadlines
52.14for the response based on the nature of the request and any exigent circumstances that exist.
52.15 (d) If the commissioner determines that the sports governing body has shown good cause
52.16to support the requested prohibition or restriction, the commissioner shall adopt the
52.17prohibition or restriction and send notice of the prohibition or restriction to every fantasy
52.18contest operator. If the commissioner determines that the sports governing body has not
52.19shown good cause to support the requested prohibition or restriction, the commissioner shall
52.20provide the sports governing body with notice and an opportunity for a hearing to offer
52.21further evidence in support of its request. The commissioner shall provide the fantasy contest
52.22operators with notice of the hearing and an opportunity to participate.
52.23 (e) The commissioner shall respond to a request concerning a particular event before
52.24the start of the event or, if it is not feasible to respond before the start of the event, no later
52.25than seven days after the request is made.
52.26 (f) If the commissioner determines that the requestor is more likely than not to prevail
52.27in successfully demonstrating good cause for its request, the commissioner may provisionally
52.28grant the request of the sports governing body until the commissioner makes a final
52.29determination as to whether the requestor has demonstrated good cause. Absent such a
52.30provisional grant, fantasy contest operators may continue to offer fantasy contests on covered
52.31sporting events that are the subject of the request during the pendency of the commissioner's
52.32consideration of the applicable request.
52.33 Subd. 9.Wager data; safeguards necessary.(a) Information regarding wagers made
52.34by an authorized participant who engages in fantasy contests, including but not limited to
52Article 3 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 53.1wager type and consideration paid, may be accessed, stored, or used for ordinary business
53.2purposes by the fantasy contest operator.
53.3 (b) Fantasy contest operators must use commercially reasonable methods to maintain
53.4the security of wager data, authorized participant data, and other confidential information
53.5from unauthorized access and dissemination. Nothing in this chapter shall preclude the use
53.6of Internet or cloud-based hosting of such data and information or disclosure as required
53.7by court order, other law, or this chapter.
53.8 Sec. 8. [349C.061] ADVERTISING.
53.9 Subdivision 1.Advertising content.All advertisements for fantasy contests must display
53.10"1-800-GAMBLER" or other national toll-free numbers approved by the commissioner for
53.11information and referral services for compulsive and problem gambling and must provide
53.12a warning, as specified by the commissioner, that gambling may be addictive and may cause
53.13financial hardship.
53.14 Subd. 2.Prohibition on targeting individuals under age 21.No licensee or other
53.15person shall publish or cause to be published an advertisement for fantasy contests that:
53.16 (1) depicts a person under age 21 engaging in wagering on fantasy contests;
53.17 (2) includes an image that is designed to be appealing to individuals under age 21 or
53.18encourage participation in fantasy contests by individuals under age 21; or
53.19 (3) is in any print publication or on radio, television, or any other medium if 30 percent
53.20or more of the audience of that medium is reasonably expected to be individuals who are
53.21under age 21, as determined by reliable, current audience composition data.
53.22 Subd. 3.Prohibition on targeting individuals prohibited from placing wagers.No
53.23licensee or other person shall publish or cause to be published an advertisement for fantasy
53.24contest wagering that targets individuals who are disqualified, prohibited, or excluded from
53.25placing a wager on a sporting event or fantasy contest for any reason, including being
53.26identified on the exclusion list identified in section 299L.45, subdivision 1, or 349C.07.
53.27 Subd. 4.Prohibition on advertising in certain locations.No advertising, marketing,
53.28or other promotional materials may be published, aired, displayed, disseminated, or
53.29distributed by or on behalf of a fantasy contest operator for fantasy contests:
53.30 (1) on any elementary or secondary school property;
53Article 3 Sec. 8.
REVISOR JSK/KR 25-0126501/13/25 54.1 (2) on any college or university campus property, unless that advertising is generally
54.2available and primarily directed at a general audience, not specific to the college or university,
54.3or its students; or
54.4 (3) in college-owned or university-owned news assets.
54.5 Subd. 5.Prohibition on false or misleading claims.No licensee or other person shall
54.6publish or cause to be published an advertisement for fantasy contests that contains false
54.7or misleading claims; statements, words, or pictures of an obscene, indecent, or immoral
54.8character; or such as would offend public morals or decency.
54.9 Sec. 9. [349C.062] PROHIBITION ON PUSH NOTIFICATIONS.
54.10 (a) Fantasy operators are prohibited from sending a message from a fantasy contest
54.11application or website that appears on a user's device while the application or website is
54.12inactive unless the message is sent to notify the user of potentially fraudulent activity
54.13associated with the user's fantasy contest account.
54.14 (b) Fantasy contest operators are prohibited from sending a message that advertises or
54.15promotes fantasy contests from a fantasy contest application or website to appear on a user's
54.16device while the user is setting self-imposed restrictions under section 299L.45.
54.17Sec. 10. [349C.07] EXCLUSION LIST AND PROHIBITION ON PARTICIPATION.
54.18 Subdivision 1.Exclusion list.(a) The commissioner shall maintain a list of persons who
54.19are not eligible to wager on fantasy contests through a fantasy contest operator. The list
54.20shall include the names of:
54.21 (1) persons who have themselves requested to be on the exclusion list;
54.22 (2) persons whose names have been submitted, for their protection, by their legal
54.23guardians;
54.24 (3) persons whose names have been submitted by fantasy contest operators for good
54.25cause; and
54.26 (4) persons whose names have been submitted by sports governing bodies.
54.27 (b) A person who has requested to be on the exclusion list may specify a time limit of
54.28one, three, or five years or for a person's lifetime for the person's name to be on the list. The
54.29commissioner will remove the person's name from the list at the conclusion of the specified
54.30time. A person whose name was added to the exclusion list under paragraph (a), clauses (3)
54Article 3 Sec. 10.
REVISOR JSK/KR 25-0126501/13/25 55.1and (4), may be removed from the list before the specified time by providing proof of
55.2completion of a program approved by the commissioner to address compulsive gambling.
55.3 (c) The information contained on the list described in paragraph (a) is private data on
55.4individuals, as defined in section 13.02, subdivision 12, except the commissioner is permitted
55.5to share the list with fantasy contest operators as needed to prevent persons on the exclusion
55.6list from participating in fantasy contests.
55.7 (d) A fantasy contest operator must provide a user the opportunity to request the person's
55.8name and exclusion request to the list maintained under this section.
55.9 (e) The commissioner must provide through the agency's website a form for a person to
55.10make a request to be included on the exclusion list for a specified time under paragraph (b).
55.11 Subd. 2.Prohibited wagers by certain persons.The following persons who are
55.12otherwise authorized to participate in fantasy contests are prohibited from placing the wagers
55.13described:
55.14 (1) a person who is prohibited from placing wagers by a fantasy contest operator for
55.15good cause, including but not limited to any person placing a wager as an agent or proxy
55.16on behalf of another, may not place a wager of any kind;
55.17 (2) a person who is an athlete, coach, referee, player, health care provider, or team
55.18employee is prohibited from wagering in a fantasy contest overseen by that person's sports
55.19governing body;
55.20 (3) a person who holds a position of authority sufficient to exert influence over the
55.21participants in a sporting event, including but not limited to a coach, manager, or owner, is
55.22prohibited from wagering in a fantasy contest overseen by that person's sports governing
55.23body; and
55.24 (4) a person who has access to certain types of exclusive or nonpublic information
55.25regarding a sporting event is prohibited from wagering in a fantasy contest overseen by the
55.26sports governing body of that sporting event.
55.27 Subd. 3.Prohibition on accepting wagers.(a) A fantasy contest operator shall not
55.28knowingly accept a wager from a person on the exclusion list or allow a person on the
55.29exclusion list to establish a fantasy contest account.
55.30 (b) A fantasy contest operator shall not knowingly accept a wager prohibited under
55.31subdivision 2 from any person who can reasonably be identified by publicly available
55.32information or by any lists provided to the commissioner.
55Article 3 Sec. 10.
REVISOR JSK/KR 25-0126501/13/25 56.1 (c) Knowingly accepting a wager from a person on the exclusion list is a license violation,
56.2subject to a penalty established by the commissioner.
56.3 Subd. 4.Prohibition on advertising.A fantasy contest operator is prohibited from
56.4contacting a person through communications in a fantasy contest application or via email,
56.5text, or telephone call for the purpose of advertising or promoting sports betting and fantasy
56.6contests during the following periods:
56.7 (1) during a period of betting restrictions under this section; and
56.8 (2) after the period of betting restrictions under this section is over, until the person
56.9places a bet through the platform or with the operator.
56.10Sec. 11. [349C.08] FINANCIAL RESPONSIBILITY.
56.11 Subdivision 1.Responsibility for satisfying winning wagers.A wager in a fantasy
56.12contest placed with a fantasy contest operator is an enforceable contract. A fantasy contest
56.13operator who accepts a wager bears all risk of loss to satisfy winnings on the wager. A
56.14wager that is not redeemed within one year of the outcome that is the subject of the wager
56.15may be canceled by the fantasy contest operator.
56.16 Subd. 2.Cash reserves.(a) A fantasy contest operator shall maintain cash reserves in
56.17an amount that is not less than the greater of $25,000 or the sum of the:
56.18 (1) amounts held by the fantasy contest operator for the fantasy contest accounts of
56.19authorized participants;
56.20 (2) amounts accepted by the fantasy contest operator as wagers on contingencies whose
56.21outcome have not been determined; and
56.22 (3) amounts owed but unpaid by the fantasy contest operator on winning wagers through
56.23the period established by the operator, subject to time limits set by the commissioner, for
56.24honoring winning wagers.
56.25 (b) Such reserves shall be held in the form of cash or cash equivalents segregated from
56.26operational funds, payment processor reserves and receivables, any bond, an irrevocable
56.27letter of credit, or any combination thereof.
56.28 Subd. 3.Bond.A fantasy contest operator shall be required to post a bond, securities,
56.29or an irrevocable letter of credit in an amount the commissioner deems necessary after taking
56.30into consideration the amount of the fantasy contest operator's cash reserves to protect the
56.31financial interests of authorized participants participating in fantasy contests. If securities
56.32are deposited or an irrevocable letter of credit filed, the securities or letter of credit must be
56Article 3 Sec. 11.
REVISOR JSK/KR 25-0126501/13/25 57.1of a type or in the form provided under section 349A.07, subdivision 5, paragraphs (b) and
57.2(c).
57.3 Sec. 12. [349C.09] RECORD RETENTION; INFORMATION SHARING.
57.4 Subdivision 1.Record retention.Fantasy contest operators shall maintain records of
57.5all wagers placed, including personally identifiable information of an authorized participant;
57.6the amount and type of wager; the time the wager was placed; the location of the wager,
57.7including IP address if applicable; the outcome of the wager; and records of abnormal betting
57.8activity for 3-1/2 years after the fantasy contest occurs. Fantasy contest operators shall make
57.9the data described in this subdivision available for inspection upon request of the
57.10commissioner or as required by court order.
57.11 Subd. 2.Information sharing.(a) If a sports governing body has notified the
57.12commissioner that access to the information described in subdivision 1 for wagers placed
57.13on fantasy contests of the sports governing body is necessary to conduct an investigation
57.14related to the integrity of one or more of such body's sporting events, the commissioner
57.15may share with the sports governing body or its designees the information under subdivision
57.161 with respect to wagers on fantasy contests of the sports governing body.
57.17 (b) Sports governing bodies and their designees may only use information received under
57.18this subdivision for integrity-related purposes and may not use information received under
57.19this subdivision for any commercial or other purposes.
57.20Sec. 13. [349C.10] LICENSE VIOLATIONS; ENFORCEMENT .
57.21 Subdivision 1.Schedule of penalties.The commissioner must adopt rules that provide
57.22a graduated schedule of penalties for violations of license requirements under statute or
57.23rule. The schedule must specify penalties that may range from warnings and probation
57.24periods to civil fines, temporary suspension of licenses, or revocation of licenses.
57.25 Subd. 2.Authority to act.The commissioner may issue administrative orders, impose
57.26civil penalties, and suspend, revoke, or not renew a license issued pursuant to this chapter
57.27if the commissioner determines that a licensee has committed or is about to commit a
57.28violation of this chapter or rules adopted pursuant to this chapter or if the commissioner
57.29determines that the licensee is disqualified or ineligible to hold a license pursuant to sections
57.30349C.04 and 349C.05.
57Article 3 Sec. 13.
REVISOR JSK/KR 25-0126501/13/25 58.1 Subd. 3.Temporary suspension.(a) The commissioner may temporarily, without a
58.2hearing, suspend the license and operating privilege of any licensee for a period of up to 90
58.3days if there is clear and convincing evidence that:
58.4 (1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation,
58.5requires immediate action to protect the public from harm;
58.6 (2) the licensee has not timely filed a tax return or paid the tax required under chapter
58.7297K; or
58.8 (3) the licensee has not timely paid all license fees or penalties due under this chapter.
58.9 (b) The commissioner shall notify the licensee of the violation that caused the temporary
58.10suspension and may lift the temporary suspension if the licensee corrects the violation.
58.11 (c) The commissioner may extend the period of suspension if the violation is not
58.12corrected, the commissioner notifies the licensee that the commissioner intends to revoke
58.13or not renew a license, and a contested case hearing has not taken place.
58.14 Subd. 4.Notice of violation; administrative orders; request for reconsideration;
58.15demand for hearing.(a) The commissioner may issue an administrative order to any
58.16licensee who has committed a violation. The order may require the licensee to correct the
58.17violation or to cease and desist from committing the violation and may impose civil penalties.
58.18The order must state the deficiencies that constitute a violation, the time by which the
58.19violation must be corrected, and the amount of any civil penalty.
58.20 (b) If the licensee believes the information in the administrative order is in error, the
58.21licensee may ask the commissioner to reconsider any parts of the order that are alleged to
58.22be in error. The request must be in writing, be delivered to the commissioner by certified
58.23mail within seven days after receipt of the order, and provide documentation to support the
58.24allegation of error. The commissioner must respond to a request for reconsideration within
58.2515 days after receiving the request. A request for reconsideration does not stay the order
58.26unless the commissioner issues a supplemental order granting additional time. The
58.27commissioner's disposition of a request for reconsideration is final.
58.28 (c) An administrative order that imposes a civil penalty of more than $2,000 shall be
58.29treated as a contested case under chapter 14.
58.30 (d) A licensee may request a hearing on the administrative order within 30 days of service
58.31of the order. The request must be in writing and delivered to the commissioner by certified
58.32mail. If the licensee does not request a hearing within 30 days, the order becomes final.
58Article 3 Sec. 13.
REVISOR JSK/KR 25-0126501/13/25 59.1 (e) If a licensee requests a hearing, the hearing must be held not later than 30 days after
59.2the commissioner receives the request unless the licensee and the commissioner agree on
59.3a later date. After the hearing, the commissioner may enter an order making such disposition
59.4as the facts require. If the licensee fails to appear at the hearing after having been notified
59.5of it, the licensee is considered in default and the proceeding may be determined against
59.6the licensee on consideration of the administrative order, the allegations of which may be
59.7considered to be true. An action of the commissioner under this paragraph is subject to
59.8judicial review pursuant to chapter 14.
59.9 (f) Civil penalties collected by the commissioner shall be deposited in the general fund.
59.10Civil penalties may be recovered in a civil action in the name of the state brought in the
59.11district court.
59.12 Subd. 5.Revocation, nonrenewal, and civil penalties; contested case.If the
59.13commissioner intends to revoke or not renew a license, or impose a civil penalty in excess
59.14of $2,000, the commissioner shall provide the licensee with a statement of the complaints
59.15made against the licensee and shall initiate a contested case proceeding. The contested case
59.16shall be held pursuant to chapter 14.
59.17Sec. 14. [349C.11] DATA PROTECTIONS.
59.18 Data in which an individual who has wagered on a fantasy contest is identified by name,
59.19account number, Social Security number, or any other uniquely identifying indicia are
59.20private data on individuals, as defined in section 13.02, subdivision 12. Data on individual
59.21earnings of fantasy contest operator application and licensing information are nonpublic
59.22data, as defined in section 13.02, subdivision 9.
59.23Sec. 15. EFFECTIVE DATE.
59.24 Except as otherwise provided, this article is effective July 1, 2025.
59.25 ARTICLE 4
59.26 TAXATION OF FANTASY CONTESTS
59.27Section 1. [297K.01] DEFINITIONS.
59.28 Subdivision 1.Terms.For the purposes of this chapter, the following terms have the
59.29meanings given.
59.30 Subd. 2.Adjusted gross fantasy contest receipts."Adjusted gross fantasy contest
59.31receipts" means the amount equal to the total of all entry fees that a fantasy contest operator
59Article 4 Section 1.
REVISOR JSK/KR 25-0126501/13/25 60.1receives from all participants minus the total of cash prizes and the fair market value of
60.2noncash prizes paid as winnings to all participants multiplied by the location percentage
60.3for this state.
60.4 Subd. 3.Cash equivalent."Cash equivalent" means the cash value of any free bets,
60.5promotional credits, and any other noncash form of consideration, payment, or compensation.
60.6 Subd. 4.Commissioner."Commissioner" means the commissioner of revenue.
60.7 Subd. 5.Entry fee."Entry fee" means cash or a cash equivalent that is required to be
60.8paid by an authorized participant and set in advance by a fantasy contest operator to
60.9participate in a fantasy contest.
60.10 Subd. 6.Fantasy contest."Fantasy contest" has the meaning given in section 349C.01,
60.11subdivision 9.
60.12 Subd. 7.Fantasy contest operator."Fantasy contest operator" has the meaning given
60.13in section 349C.01, subdivision 11. For the purposes of this chapter, an Indian Tribe is
60.14considered to be a fantasy contest operator if the Indian Tribe does not contract with a
60.15fantasy contest operator to operate fantasy contests.
60.16 Subd. 8.Indian Tribe."Indian Tribe" has the meaning given in section 349C.01,
60.17subdivision 12.
60.18 Subd. 9.Location percentage."Location percentage" means the percentage rounded
60.19to the nearest tenth of one percent of the total entry fees received from authorized participants
60.20located in this state divided by the total entry fees received from all players in the fantasy
60.21contest activity.
60.22 Subd. 10.Wager."Wager" means a transaction between an authorized participant and
60.23a licensed fantasy contest operator in which an authorized participant pays, deposits, or
60.24risks cash or a cash equivalent as an entry fee into a fantasy contest.
60.25 EFFECTIVE DATE.This section is effective the day following final enactment.
60.26Sec. 2. [297K.02] TAX ON FANTASY CONTEST NET REVENUE.
60.27 Subdivision 1.Tax imposed.A tax is imposed on fantasy contest operators equal to 15
60.28percent of adjusted gross fantasy receipts.
60.29 Subd. 2.Fantasy contest net revenue tax in lieu of other taxes.Income derived by a
60.30fantasy contest operator from the conduct of wagering on a fantasy contest is not subject to
60.31the tax imposed under chapter 290. Wagers accepted by a fantasy contest operator are not
60.32subject to the tax imposed in section 297A.62 or 297E.03.
60Article 4 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 61.1 Subd. 3.Returns; due dates.A fantasy contest operator must file a return by the 20th
61.2day of each month reporting the tax due under this section for the preceding month. The
61.3return must include the amount of all wagers received, payouts made, fantasy contest taxes
61.4owed, and other information required by the commissioner. The tax under this chapter is
61.5due to be paid to the commissioner on the day the return is due.
61.6 Subd. 4.Deposit of revenue.The commissioner must deposit the revenues, including
61.7penalties and interest, derived from the tax imposed by this section into the sports betting
61.8revenue account. After deducting any amounts necessary to pay the refunds, the money
61.9shall be distributed as follows:
61.10 (1) 45 percent must be appropriated to the commissioner of revenue for the purposes of
61.11making payments under section 297E.02, subdivision 12;
61.12 (2) 15 percent must be transferred to the racing economic development account to be
61.13distributed in accordance with section 240.1563;
61.14 (3) 15 percent must be transferred to the sports betting equalization account to be
61.15distributed in accordance with section 299L.755;
61.16 (4) ten percent must be transferred to the sports marketing and awareness account to be
61.17distributed in accordance with section 116U.60;
61.18 (5) ten percent must be appropriated to the commissioner of human services to be
61.19distributed in accordance with section 245.983; and
61.20 (6) five percent must be transferred to the amateur sports integrity and participation
61.21account to be distributed in accordance with section 240A.15.
61.22 Subd. 5.Distribution of revenue.All amounts collected in the previous fiscal year by
61.23the commissioner in the sports betting revenue account must be distributed annually by
61.24October 1 as provided in subdivision 4. Any money remaining in the sports betting revenue
61.25account at the end of each fiscal year does not cancel. Interest and income earned on money
61.26in the account, after deducting any applicable charges, shall be credited to the account.
61.27 EFFECTIVE DATE.This section is effective the day following final enactment.
61.28Sec. 3. [297K.03] FANTASY CONTEST OPERATOR REPORTS AND RECORDS.
61.29 Subdivision 1.Business records.A fantasy contest operator must maintain records
61.30supporting the fantasy contest activity and taxes owed. Records required to be kept in this
61.31section must be preserved by the fantasy contest operator for at least 3-1/2 years after the
61Article 4 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 62.1return is due or filed, whichever is later, and may be inspected by the commissioner at any
62.2reasonable time without notice or a search warrant.
62.3 Subd. 2.Audits.The commissioner may require a financial audit of a fantasy contest
62.4operator's fantasy contest activities if the operator has failed to comply with this chapter,
62.5including failure to timely file returns or pay tax, or take corrective actions required by the
62.6commissioner. Audits must be performed by an independent accountant licensed according
62.7to chapter 326A. The commissioner must prescribe standards for an audit required under
62.8this subdivision. A complete, true, and correct copy of an audit must be filed as prescribed
62.9by the commissioner. Nothing in this subdivision limits the commissioner's ability to conduct
62.10its own audit pursuant to its authority under chapter 270C.
62.11 EFFECTIVE DATE.This section is effective the day following final enactment.
62.12Sec. 4. [297K.04] OTHER PROVISIONS APPLY.
62.13 Except for those provisions specific to distributors, gambling products, or gambling
62.14equipment, sections 297E.02, subdivisions 9 and 10, and 297E.10 to 297E.14 apply to this
62.15chapter.
62.16 EFFECTIVE DATE.This section is effective the day following final enactment.
62.17 ARTICLE 5
62.18 CRIMES RELATED TO SPORTS BETTING
62.19Section 1. Minnesota Statutes 2024, section 260B.007, subdivision 16, is amended to read:
62.20 Subd. 16.Juvenile petty offender; juvenile petty offense.(a) "Juvenile petty offense"
62.21includes a juvenile alcohol offense,; a juvenile controlled substance offense,; a juvenile
62.22violation of section 299L.80, subdivision 3, paragraph (a); a violation of section 609.685,;
62.23or a violation of a local ordinance, which by its terms prohibits conduct by a child under
62.24the age of 18 years which would be lawful conduct if committed by an adult.
62.25 (b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also includes
62.26an offense that would be a misdemeanor if committed by an adult.
62.27 (c) "Juvenile petty offense" does not include any of the following:
62.28 (1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242,
62.29609.324, subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79, or
62.30617.23;
62Article 5 Section 1.
REVISOR JSK/KR 25-0126501/13/25 63.1 (2) a major traffic offense or an adult court traffic offense, as described in section
63.2260B.225;
63.3 (3) a misdemeanor-level offense committed by a child whom the juvenile court previously
63.4has found to have committed a misdemeanor, gross misdemeanor, or felony offense; or
63.5 (4) a misdemeanor-level offense committed by a child whom the juvenile court has
63.6found to have committed a misdemeanor-level juvenile petty offense on two or more prior
63.7occasions, unless the county attorney designates the child on the petition as a juvenile petty
63.8offender notwithstanding this prior record. As used in this clause, "misdemeanor-level
63.9juvenile petty offense" includes a misdemeanor-level offense that would have been a juvenile
63.10petty offense if it had been committed on or after July 1, 1995.
63.11 (d) A child who commits a juvenile petty offense is a "juvenile petty offender." The
63.12term juvenile petty offender does not include a child alleged to have violated any law relating
63.13to being hired, offering to be hired, or agreeing to be hired by another individual to engage
63.14in sexual penetration or sexual conduct which, if committed by an adult, would be a
63.15misdemeanor.
63.16 (e) Effective August 1, 2026, and applied to acts committed on or after that date,
63.17notwithstanding any contrary provision in paragraphs (a) to (d), a juvenile petty offender
63.18does not include a child who is alleged to have committed a juvenile petty offense before
63.19reaching the age of 13 years.
63.20Sec. 2. [299L.80] CRIMES RELATING TO WAGERING ON SPORTING EVENTS.
63.21 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
63.22the meanings given.
63.23 (b) "Accepts a wager" includes receiving, recording, or forwarding a wager or an offer
63.24to wager on a sporting event, and attempts to do so.
63.25 (c) "Nonpublic information" means information regarding a participant's ability or
63.26likelihood to perform in a sporting event that:
63.27 (1) is not available to the general public;
63.28 (2) is derived from a personal or professional relationship with the participant; and
63.29 (3) if the information was disseminated, would likely affect the odds of the participant
63.30or the participant's team in achieving a particular outcome in the event.
63.31 (d) "Places a wager" includes an offer or attempt to place a wager on a sporting event.
63Article 5 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 64.1 Subd. 2.Sale or transfer of private data.(a) Whoever sells or transfers private data
64.2on individuals collected through the practice of wagering on sporting events is guilty of a
64.3misdemeanor.
64.4 (b) Paragraph (a) does not apply to transfers of data between a person licensed under
64.5sections 299L.10 to 299L.80 or an employee of a licensee and the following entities when
64.6that transfer is necessary to perform duties prescribed by law relating to wagering on sporting
64.7events:
64.8 (1) the commissioner, the director, or the commissioner of revenue;
64.9 (2) a sports governing body pursuant to section 299L.53, subdivision 3, paragraph (a);
64.10and
64.11 (3) the University of Minnesota pursuant to section 299L.53, subdivision 3, paragraph
64.12(c).
64.13 Subd. 3.Wagering by a person under age 21.(a) A person who is under 21 years of
64.14age and does either of the following is guilty of a misdemeanor:
64.15 (1) places a wager on a sporting event; or
64.16 (2) misrepresents the person's age as being 21 or older for the purposes of placing a
64.17wager on a sporting event.
64.18 (b) A person licensed under sections 299L.10 to 299L.80 or an employee of a licensee
64.19who accepts a wager on a sporting event placed by someone under the age of 21 years is
64.20guilty of a gross misdemeanor.
64.21 (c) Paragraph (a), clause (1), does not prohibit private social bets on sporting events that
64.22are not part of or incidental to organized, commercialized, or systematic gambling.
64.23 Subd. 4.Unauthorized wagers.(a) The following persons who place a wager with an
64.24entity licensed under sections 299L.10 to 299L.80 are guilty of a crime and may be sentenced
64.25as provided in paragraphs (b) to (e):
64.26 (1) a person who is a participant in a sporting event and who places a wager on that
64.27event or who induces another to place a wager on the event on behalf of the person;
64.28 (2) a person licensed under sections 299L.10 to 299L.80, or an employee of a licensee
64.29whose exclusive or primary responsibilities involve mobile sports betting, who places a
64.30wager on a sporting event on an online website or mobile application with which the person
64.31is affiliated;
64Article 5 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 65.1 (3) an employee of the division of alcohol and gambling enforcement as defined under
65.2chapter 299L; or
65.3 (4) a person who possesses nonpublic information on a sporting event and who places
65.4a wager on that event.
65.5 (b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the
65.6wager is no more than $500.
65.7 (c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
65.8 (1) the person has previously been convicted of a violation of this section or section
65.9609.76; or
65.10 (2) the amount of the wager is more than $500 but not more than $1,000.
65.11 (d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
65.12imprisonment for not more than two years or to payment of a fine of not more than $4,000,
65.13or both, if the amount of the wager is more than $1,000 but not more than $5,000.
65.14 (e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
65.15imprisonment for not more than five years or to payment of a fine of not more than $10,000,
65.16or both, if:
65.17 (1) the amount of the wager is more than $5,000; or
65.18 (2) the person places more than five wagers on any one or more sporting events within
65.19any 30-day period and the total amount wagered is more than $2,500.
65.20 Subd. 5.Unauthorized acceptance of wagers.(a) A person licensed under sections
65.21299L.10 to 299L.80, or an employee of a licensee whose exclusive or primary responsibilities
65.22involve mobile sports betting, who accepts a wager on a sporting event knowing that the
65.23wager was made in violation of subdivision 4, paragraph (a) is guilty of a crime and may
65.24be sentenced as provided in paragraphs (b) to (e).
65.25 (b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the
65.26wager is no more than $500.
65.27 (c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:
65.28 (1) the person has previously been convicted of a violation of this section or section
65.29609.76; or
65.30 (2) the amount of the wager is more than $500 but not more than $1,000.
65Article 5 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 66.1 (d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
66.2imprisonment for not more than two years or to payment of a fine of not more than $4,000,
66.3or both, if the amount of the wager is more than $1,000 but not more than $5,000.
66.4 (e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to
66.5imprisonment for not more than five years or to payment of a fine of not more than $10,000,
66.6or both, if:
66.7 (1) the amount of the wager is more than $5,000; or
66.8 (2) the person accepts one or more wagers knowing that:
66.9 (i) the wager is prohibited under subdivision 4, paragraph (a);
66.10 (ii) acceptance of the wager will result in the person making a wager having placed more
66.11than five wagers on any one or more sporting events within any 30-day period; and
66.12 (iii) the total amount wagered is more than $2,500.
66.13 Subd. 6.Aggregation; venue.In any prosecution under subdivision 4 or 5, the amount
66.14of money wagered within any six-month period may be aggregated and the accused charged
66.15accordingly in applying the provisions of those subdivisions. In addition, when two or more
66.16offenses are committed by the same person in two or more counties, the accused may be
66.17prosecuted in any county in which one of the offenses was committed for all of the offenses
66.18aggregated under this subdivision.
66.19 Subd. 7.Proof of age; defense; seizure of false identification.(a) Proof of age for
66.20placing a wager under sections 299L.10 to 299L.80 on a sporting event may be established
66.21only by one of the following:
66.22 (1) a valid driver's license or identification card issued by Minnesota, another state, a
66.23Tribal government, or a province of Canada, that includes the photograph and date of birth
66.24of the person;
66.25 (2) a valid military identification card issued by the United States Department of Defense;
66.26 (3) a valid United States passport;
66.27 (4) a valid instructional permit issued under section 171.05 that includes a photograph
66.28and the date of birth of the person;
66.29 (5) a Tribal identification;
66.30 (6) in the case of a foreign national, a valid passport; or
66Article 5 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 67.1 (7) use of an identity verification process approved by the commissioner and implemented
67.2by the mobile sports betting operator or mobile sports betting platform provider.
67.3 (b) In a prosecution for accepting a wager on a sporting event from a person under the
67.4age of 21, it is an affirmative defense for the defendant to prove by a preponderance of the
67.5evidence that the defendant reasonably and in good faith relied upon representations of
67.6proof of age authorized in paragraph (a).
67.7 (c) A mobile sports betting operator or employee of a mobile sports betting operator, or
67.8an official or employee authorized to accept wagers on sporting events under a Tribal-state
67.9compact regulating the conduct of class III sports betting on the Indian lands of an Indian
67.10Tribe, may seize a form of identification listed under paragraph (a) if the person has
67.11reasonable grounds to believe that the form of identification has been altered or falsified or
67.12is being used to violate any law. A person who seizes a form of identification under this
67.13paragraph must deliver it to a law enforcement agency, as defined in section 626.84,
67.14subdivision 1, paragraph (f), within 24 hours of seizure.
67.15 Subd. 8.Advertising and promotion to person under self-imposed restrictions.A
67.16person licensed under sections 299L.10 to 299L.80 or chapter 349C, or an employee of a
67.17licensee whose exclusive or primary responsibilities involve mobile sports betting, is guilty
67.18of a gross misdemeanor if the person markets sports betting to another person through a
67.19text, a message within a mobile sports betting application, or other direct message to that
67.20person during a time that the other person has implemented self-imposed prohibitions on
67.21that person participating in sports betting under section 299L.45 or fantasy contests under
67.22section 349C.07.
67.23Sec. 3. Minnesota Statutes 2024, section 609.75, subdivision 3, is amended to read:
67.24 Subd. 3.What are not bets.The following are not bets:
67.25 (1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
67.26harm or loss sustained, even though the loss depends upon chance;
67.27 (2) a contract for the purchase or sale at a future date of securities or other commodities;
67.28 (3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest
67.29for the determination of skill, speed, strength, endurance, or quality or to the bona fide
67.30owners of animals or other property entered in such a contest;
67.31 (4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;
67Article 5 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 68.1 (5) a private social bet not part of or incidental to organized, commercialized, or
68.2systematic gambling;
68.3 (6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22,
68.4by an organization licensed by the Gambling Control Board or an organization exempt from
68.5licensing under section 349.166;
68.6 (7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240;
68.7and
68.8 (8) the purchase and sale of State Lottery tickets under chapter 349A;
68.9 (9) fantasy contests when the betting is conducted pursuant to chapter 349C; and
68.10 (10) sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80.
68.11Sec. 4. Minnesota Statutes 2024, section 609.75, subdivision 4, is amended to read:
68.12 Subd. 4.Gambling device.A gambling device is a contrivance the purpose of which is
68.13that for a consideration a player is afforded an opportunity to obtain something of value,
68.14other than free plays, automatically from the machine or otherwise, the award of which is
68.15determined principally by chance, whether or not the contrivance is actually played.
68.16"Gambling device" also includes a video game of chance, as defined in subdivision 8.
68.17Gambling device does not include a website or mobile application, or device used for
68.18accessing the website or mobile application, authorized to be used in conducting mobile
68.19sports betting pursuant to sections 299L.10 to 299L.80 or fantasy contests pursuant to chapter
68.20349C.
68.21Sec. 5. Minnesota Statutes 2024, section 609.75, subdivision 7, is amended to read:
68.22 Subd. 7.Sports bookmaking.Sports bookmaking is the activity of intentionally
68.23receiving, recording or forwarding within any 30-day period more than five bets, or offers
68.24to bet, that total more than $2,500 on any one or more sporting events. Sports bookmaking
68.25does not include sports betting when the betting is conducted pursuant to sections 299L.10
68.26to 299L.80 or fantasy contests when betting is conducted pursuant to chapter 349C.
68.27Sec. 6. Minnesota Statutes 2024, section 609.75, is amended by adding a subdivision to
68.28read:
68.29 Subd. 7a.Sporting event."Sporting event" has the meaning given in section 299L.10,
68.30subdivision 20, and includes any event such as a game, match, contest, or activity; series
68.31of games, matches, contests, or activities; or a tournament involving the athletic skill or
68Article 5 Sec. 6.
REVISOR JSK/KR 25-0126501/13/25 69.1performance in a video game of one or more players or participants, regardless of whether
69.2the event is approved by the commissioner to be an event eligible for wagering under sections
69.3299L.10 to 299L.80.
69.4 Sec. 7. Minnesota Statutes 2024, section 609.75, is amended by adding a subdivision to
69.5read:
69.6 Subd. 7b.Fantasy contest."Fantasy contest" has the meaning given in section 349C.01,
69.7subdivision 9.
69.8 Sec. 8. Minnesota Statutes 2024, section 609.755, is amended to read:
69.9 609.755 GAMBLING; MISDEMEANOR.
69.10 Whoever does any of the following is guilty of a misdemeanor:
69.11 (1) makes a bet, other than a bet on a sporting event;
69.12 (2) sells or transfers a chance to participate in a lottery;
69.13 (3) disseminates information about a lottery, except a lottery conducted by an adjoining
69.14state, with intent to encourage participation therein;
69.15 (4) permits a structure or location owned or occupied by the actor or under the actor's
69.16control to be used as a gambling place; or
69.17 (5) except where authorized by statute, possesses a gambling device.
69.18 Clause (5) does not prohibit possession of a gambling device in a person's dwelling for
69.19amusement purposes in a manner that does not afford players an opportunity to obtain
69.20anything of value.
69.21Sec. 9. Minnesota Statutes 2024, section 609.76, subdivision 2, is amended to read:
69.22 Subd. 2.Sports bookmaking.(a) Whoever makes a bet on a sporting event with a person
69.23who is not licensed to engage in sports betting under sections 299L.10 to 299L.80 is guilty
69.24of a misdemeanor if the amount of the wager is no more than $500.
69.25 (b) Whoever makes a bet on a sporting event with a person who is not licensed to engage
69.26in sports betting under sections 299L.10 to 299L.80 is guilty of a gross misdemeanor if:
69.27 (1) the person has previously been convicted of a violation of this section or section
69.28299L.80; or
69.29 (2) the amount of the wager is more than $500 but not more than $1,000.
69Article 5 Sec. 9.
REVISOR JSK/KR 25-0126501/13/25 70.1 (c) Whoever makes a bet on a sporting event with a person who is not licensed to engage
70.2in sports betting under sections 299L.10 to 299L.80 is guilty of a felony if the amount of
70.3the wager is more than $1,000.
70.4 (d) Whoever engages in sports bookmaking is guilty of a felony.
70.5 (e) In any prosecution under paragraph (b) or (c), the amount of money wagered within
70.6any six-month period may be aggregated and the accused charged accordingly in applying
70.7the provisions of those paragraphs. In addition, when two or more offenses are committed
70.8by the same person in two or more counties, the accused may be prosecuted in any county
70.9in which one of the offenses was committed for all of the offenses aggregated under this
70.10subdivision.
70.11Sec. 10. [609.764] SPORTING EVENTS; FRAUD; BRIBERY.
70.12 (a) As used in this section:
70.13 (1) "participant in a sporting event" has the meaning given in section 299L.10, subdivision
70.1418; and
70.15 (2) "sporting event" has the meaning given in section 299L.10, subdivision 20.
70.16 (b) A person is guilty of a felony and may be sentenced to imprisonment for not more
70.17than five years or to payment of a fine of not more than $10,000, or both, if the person:
70.18 (1) offers, gives, or promises to give, directly or indirectly, to a participant in a sporting
70.19event any benefit, reward, or consideration to which the participant is not legally entitled
70.20as compensation or a prize, with intent to influence the performance of the participant, or
70.21the outcome of the event or a component of the event; or
70.22 (2) as a participant in a sporting event, requests, receives, or agrees to receive, directly
70.23or indirectly, a benefit, reward, or consideration to which the participant is not legally entitled
70.24to intentionally lose, cause to lose, or attempt to lose or cause to lose the event, or to
70.25intentionally perform below abilities to adversely affect the outcome of the event or a
70.26component of the event.
70.27Sec. 11. EFFECTIVE DATE.
70.28 Sections 1 to 10 are effective the day that sports betting and fantasy contests become
70.29lawful under articles 1 and 3 and apply to crimes committed on or after that date.
70Article 5 Sec. 11.
REVISOR JSK/KR 25-0126501/13/25 71.1 ARTICLE 6
71.2 SPORTS AND ACTIVITIES GRANTS
71.3 Section 1. [116U.60] GRANTS FOR PROMOTING TOURISM, SPORTS, AND
71.4EVENTS.
71.5 Subdivision 1.Account established; appropriation.(a) The sports marketing and
71.6awareness account is established in the special revenue fund. The account shall consist of
71.7the amount deposited pursuant to sections 297J.02 and 297K.02.
71.8 (b) The amount necessary to make grants under subdivision 2 is appropriated to Explore
71.9Minnesota Tourism. Explore Minnesota Tourism may retain four percent of the total
71.10appropriation to administer grants.
71.11 (c) Any money remaining in the account at the end of each fiscal year does not cancel.
71.12Interest and income earned on money in the account, after deducting any applicable charges,
71.13shall be credited to the account.
71.14 Subd. 2.Grants to promote tourism, sports, and events.(a) Explore Minnesota
71.15Tourism must make grants as allowed under section 116U.30, paragraph (b), clause (5), to:
71.16 (1) attract and host large-scale sporting events in Minnesota; and
71.17 (2) coordinate statewide initiatives, including greater Minnesota youth legacy programs
71.18and a statewide marketing campaign, and increase access and awareness for greater
71.19Minnesota residents.
71.20 (b) To the extent feasible, grant money must also be used to conduct one signature event
71.21in greater Minnesota on an annual basis.
71.22 (c) For purposes of this subdivision, "greater Minnesota" means the area of Minnesota
71.23located outside of the metropolitan area as defined in section 473.121, subdivision 2.
71.24 Subd. 3.Annual report.By January 15 of each year, Explore Minnesota Tourism must
71.25submit a report to the chairs and ranking minority members of the legislative committees
71.26with jurisdiction over public safety, the legislative committees with jurisdiction over taxes,
71.27the committee in the house of representatives with jurisdiction over commerce, the committee
71.28in the senate with jurisdiction over state government finance and policy, the committee in
71.29the house of representatives with jurisdiction over ways and means, and the committee in
71.30the senate with jurisdiction over finance. The report must identify the grants issued under
71.31this section since the previous report, including the individual or organization that received
71.32the grant, the amount awarded, and the purpose of the grant. The report must also compile
71.33and provide the annual reports received from grantees.
71Article 6 Section 1.
REVISOR JSK/KR 25-0126501/13/25 72.1 Sec. 2. [240A.15] GRANTS FOR PROMOTING INTEGRITY AND
72.2PARTICIPATION.
72.3 Subdivision 1.Account established; appropriation.(a) The amateur sports integrity
72.4and participation account is established in the special revenue fund. The account shall consist
72.5of the amounts deposited pursuant to sections 297J.02 and 297K.02.
72.6 (b) The amount necessary to make grants under subdivisions 2 and 3 is appropriated to
72.7the Minnesota Amateur Sports Commission. The Minnesota Amateur Sports Commission
72.8may retain four percent of the total appropriation to administer the grants.
72.9 (c) The amount necessary to make grants under subdivision 4 is appropriated to the
72.10Minnesota State High School League Foundation. The Minnesota State High School League
72.11Foundation may retain four percent of the total appropriation to administer the grants.
72.12 Subd. 2.Grants to promote the integrity of amateur sports.(a) The Minnesota
72.13Amateur Sports Commission shall use 20 percent of the amount deposited in the amateur
72.14sports integrity and participation account in the previous fiscal year to award grants to
72.15collegiate and amateur sports associations to promote the integrity of amateur sports. Of
72.16this amount, 80 percent must be distributed to grant recipients at institutions whose
72.17undergraduate enrollment total is fewer than 25,000 students.
72.18 (b) Grant recipients may use money to:
72.19 (1) provide comprehensive gambling and athlete protection education and programming
72.20related to disordered gambling to athletes and others directly involved with amateur athletic
72.21organizations;
72.22 (2) promote the independence, safety, and training of amateur sports leagues and officials;
72.23 (3) provide educational substance abuse prevention and intervention programs related
72.24to the use of performance-enhancing drugs;
72.25 (4) provide problem gambling prevention education;
72.26 (5) provide training to coaches and athletes on safe relationships and how to establish
72.27and maintain an environment free from bullying, harassment, and discrimination based on
72.28race or sex; or
72.29 (6) provide training or resources to address the mental health needs of amateur athletes,
72.30including programs to address depression, anxiety, and disordered eating.
72.31 (c) By September 1 of each year, individuals or organizations that received a grant in
72.32the previous fiscal year shall provide a report in a form and manner established by the
72Article 6 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 73.1Minnesota Amateur Sports Commission describing how grant money was used and providing
73.2any additional information required by the Minnesota Amateur Sports Commission.
73.3 Subd. 3.Grants to promote and facilitate participation in youth sports.(a) The
73.4Minnesota Amateur Sports Commission shall use 40 percent of the amount deposited in the
73.5amateur sports integrity and participation account in the previous fiscal year to award grants
73.6to organizations to promote and facilitate participation in youth sports in areas that have
73.7experienced a disproportionately high rate of juvenile crime.
73.8 (b) Applicants may demonstrate that an area has experienced a disproportionately high
73.9rate of juvenile crime through the use of public data or reports, a submission from the local
73.10law enforcement agency, or any other reliable information showing that the area to be served
73.11by the applicant has experienced more incidents of juvenile crime than the state average or
73.12than surrounding communities.
73.13 (c) Grant recipients may use money to:
73.14 (1) establish, maintain, or expand youth sports;
73.15 (2) improve facilities for youth sports;
73.16 (3) reduce or eliminate participation costs for youth through the use of scholarships,
73.17assistance with the purchase of equipment, reductions or elimination of program fees, and
73.18accounting for other reasonable costs that serve as a barrier to participation;
73.19 (4) recruit and train adults to serve as coaches, as officials, or in other supportive roles;
73.20or
73.21 (5) coordinate additional services for youth, including tutoring, mental health services,
73.22substance abuse treatment, and family counseling.
73.23 (d) By September 1 of each year, individuals or organizations that received a grant in
73.24the previous fiscal year shall provide a report in a form and manner established by the
73.25Minnesota Amateur Sports Commission describing how grant money was used and providing
73.26any additional information required by the Minnesota Amateur Sports Commission.
73.27 Subd. 4.Grants to promote and facilitate participation in youth activities.(a) The
73.28Minnesota State High School League Foundation shall use 40 percent of the amount deposited
73.29in the amateur sports integrity and participation account in the previous fiscal year to award
73.30grants to schools or organizations to promote and facilitate participation in competitive,
73.31nonathletic youth activities in areas that have experienced a disproportionately high rate of
73.32juvenile crime.
73Article 6 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 74.1 (b) Applicants may demonstrate that an area has experienced a disproportionately high
74.2rate of juvenile crime through the use of public data or reports, a submission from the local
74.3law enforcement agency, or any other reliable information showing that the area to be served
74.4by the applicant has experienced more incidents of juvenile crime than the state average or
74.5than surrounding communities.
74.6 (c) Grant recipients may use money to:
74.7 (1) establish, maintain, or expand competitive, nonathletic youth activities;
74.8 (2) reduce or eliminate participation costs for youth through the use of scholarships,
74.9assistance with the purchase of equipment, reductions or elimination of program fees, and
74.10accounting for other reasonable costs that serve as a barrier to participation;
74.11 (3) recruit and train adults to serve as coaches, as officials, or in other supportive roles;
74.12or
74.13 (4) coordinate additional services for youth, including tutoring, mental health services,
74.14substance abuse treatment, and family counseling.
74.15 (d) By September 1 of each year, schools or organizations that received a grant in the
74.16previous fiscal year shall provide a report in a form and manner established by the Minnesota
74.17State High School League describing how grant money was used and providing any additional
74.18information required by the Minnesota State High School League.
74.19 Subd. 5.Annual report.By January 15 of each year, the Minnesota Amateur Sports
74.20Commission and Minnesota State High School League must submit a report to the chairs
74.21and ranking minority members of the legislative committees with jurisdiction over public
74.22safety, the legislative committees with jurisdiction over taxes, the committee in the house
74.23of representatives with jurisdiction over commerce, the committee in the senate with
74.24jurisdiction over state government finance and policy, the committee in the house of
74.25representatives with jurisdiction over ways and means, and the committee in the senate with
74.26jurisdiction over finance. The report must identify the grants issued under this section since
74.27the previous report, including the individual or organization that received the grant, the
74.28amount awarded, and the purpose of the grant. The report must also compile and provide
74.29the annual reports received from grantees.
74.30Sec. 3. EFFECTIVE DATE.
74.31 This article is effective the day following final enactment.
74Article 6 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 75.1 ARTICLE 7
75.2 CHARITABLE GAMBLING
75.3 Section 1. Minnesota Statutes 2024, section 297E.02, is amended by adding a subdivision
75.4to read:
75.5 Subd. 12.Tax relief payments.(a) By October 1 of each year, the commissioner shall
75.6remit payments, as required under section 297J.02, to each organization licensed to conduct
75.7lawful gambling under chapter 349 on a pro rata basis according to the organization's
75.8combined net receipts, as defined under this section, for the 12-month period ending June
75.930 of the prior calendar year, and the total combined net receipts from all organizations
75.10licensed under chapter 349 for the 12-month period ending June 30 of the prior calendar
75.11year.
75.12 (b) For purposes of determining the tax relief payment, the commissioner must use each
75.13organization's combined net receipts on record with the commissioner as of June 30 of the
75.14year the payment is made. The first payment is due on October 1, 2025, and each October
75.151 thereafter. The amount available for distribution is the amount allocated for this purpose
75.16in the sports betting revenue account as of June 30 of the year of distribution.
75.17 (c) Any relief payment made under this section must not exceed 100 percent of an
75.18organization's tax liability.
75.19 EFFECTIVE DATE.This section is effective the day following final enactment.
75.20Sec. 2. Minnesota Statutes 2024, section 349.12, subdivision 25, is amended to read:
75.21 Subd. 25.Lawful purpose.(a) "Lawful purpose" means one or more of the following:
75.22 (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined
75.23in subdivision 15c, provided that the organization and expenditure or contribution are in
75.24conformity with standards prescribed by the board under section 349.154, which standards
75.25must apply to both types of organizations in the same manner and to the same extent;
75.26 (2) a contribution to or expenditure for goods and services for an individual or family
75.27suffering from poverty, homelessness, or disability, which is used to relieve the effects of
75.28that suffering;
75.29 (3) a contribution to a program recognized by the Minnesota Department of Human
75.30Services for the education, prevention, or treatment of problem gambling;
75.31 (4) a contribution to or expenditure on a public or private nonprofit educational institution
75.32registered with or accredited by this state or any other state;
75Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 76.1 (5) a contribution to an individual, public or private nonprofit educational institution
76.2registered with or accredited by this state or any other state, or to a scholarship fund of a
76.3nonprofit organization whose primary mission is to award scholarships, for defraying the
76.4cost of education to individuals where the funds are awarded through an open and fair
76.5selection process;
76.6 (6) activities by an organization or a government entity which recognize military service
76.7to the United States, the state of Minnesota, or a community, subject to rules of the board,
76.8provided that the rules must not include mileage reimbursements in the computation of the
76.9per diem reimbursement limit and must impose no aggregate annual limit on the amount of
76.10reasonable and necessary expenditures made to support:
76.11 (i) members of a military marching or color guard unit for activities conducted within
76.12the state;
76.13 (ii) members of an organization solely for services performed by the members at funeral
76.14services;
76.15 (iii) members of military marching, color guard, or honor guard units may be reimbursed
76.16for participating in color guard, honor guard, or marching unit events within the state or
76.17states contiguous to Minnesota at a per participant rate of up to $50 per diem; or
76.18 (iv) active military personnel and their immediate family members in need of support
76.19services;
76.20 (7) recreational, community, and athletic facilities and activities, intended primarily for
76.21persons under age 21, provided that such facilities and activities do not discriminate on the
76.22basis of gender and the organization complies with section 349.154, subdivision 3a;
76.23 (8) payment of local taxes authorized under this chapter, including local gambling taxes
76.24authorized under section 349.213, subdivision 3, taxes imposed by the United States on
76.25receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and
76.266, and the tax imposed on unrelated business income by section 290.05, subdivision 3;
76.27 (9) payment of real estate taxes and assessments on permitted gambling premises owned
76.28by the licensed organization paying the taxes, or wholly leased by a licensed veterans
76.29organization under a national charter recognized under section 501(c)(19) of the Internal
76.30Revenue Code;
76.31 (10) a contribution to the United States, this state or any of its political subdivisions, or
76.32any agency or instrumentality thereof other than a direct contribution to a law enforcement
76.33or prosecutorial agency;
76Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 77.1 (11) a contribution to or expenditure by a nonprofit organization which is a church or
77.2body of communicants gathered in common membership for mutual support and edification
77.3in piety, worship, or religious observances;
77.4 (12) an expenditure for citizen monitoring of surface water quality by individuals or
77.5nongovernmental organizations that is consistent with section 115.06, subdivision 4, and
77.6Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance
77.7protocols, and data management, provided that the resulting data is submitted to the
77.8Minnesota Pollution Control Agency for review and inclusion in the state water quality
77.9database;
77.10 (13) a contribution to or expenditure on projects or activities approved by the
77.11commissioner of natural resources for:
77.12 (i) wildlife management projects that benefit the public at large;
77.13 (ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and
77.1484.927, and other trails open to public use, including purchase or lease of equipment for
77.15this purpose; and
77.16 (iii) supplies and materials for safety training and educational programs coordinated by
77.17the Department of Natural Resources, including the Enforcement Division;
77.18 (14) conducting nutritional programs, food shelves, and congregate dining programs
77.19primarily for persons who are age 62 or older or disabled;
77.20 (15) a contribution to a community arts organization, or an expenditure to sponsor arts
77.21programs in the community, including but not limited to visual, literary, performing, or
77.22musical arts;
77.23 (16) an expenditure by a licensed fraternal organization or a licensed veterans organization
77.24for payment of water, fuel for heating, electricity, and sewer costs for:
77.25 (i) up to 100 percent for a building wholly owned or wholly leased by and used as the
77.26primary headquarters of the licensed veteran or fraternal organization; or
77.27 (ii) a proportional amount subject to approval by the director and based on the portion
77.28of a building used as the primary headquarters of the licensed veteran or fraternal
77.29organization;
77.30 (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year
77.31in net costs to the organization for meals and other membership events, limited to members
77.32and spouses, held in recognition of military service. No more than $5,000 can be expended
77Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 78.1in total per calendar year under this clause by all licensed veterans organizations sharing
78.2the same veterans post home;
78.3 (18) payment of fees authorized under this chapter imposed by the state of Minnesota
78.4to conduct lawful gambling in Minnesota;
78.5 (19) a contribution or expenditure to honor an individual's humanitarian service as
78.6demonstrated through philanthropy or volunteerism to the United States, this state, or local
78.7community;
78.8 (20) a contribution by a licensed organization to another licensed organization with prior
78.9board approval, with the contribution designated to be used for one or more of the following
78.10lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
78.11 (21) an expenditure that is a contribution to a parent organization, if the parent
78.12organization: (i) has not provided to the contributing organization within one year of the
78.13contribution any money, grants, property, or other thing of value, and (ii) has received prior
78.14board approval for the contribution that will be used for a program that meets one or more
78.15of the lawful purposes under subdivision 7a;
78.16 (22) an expenditure for the repair, maintenance, or improvement of real property and
78.17capital assets owned by an organization, or for the replacement of a capital asset that can
78.18no longer be repaired, with a fiscal year limit of five percent of gross profits from the
78.19previous fiscal year, with no carryforward of unused allowances. The fiscal year is July 1
78.20through June 30. Total expenditures for the fiscal year may not exceed the limit unless the
78.21board has specifically approved the expenditures that exceed the limit due to extenuating
78.22circumstances beyond the organization's control. An expansion of a building or bar-related
78.23expenditures are not allowed under this provision.
78.24 (i) The expenditure must be related to the portion of the real property or capital asset
78.25that must be made available for use free of any charge to other nonprofit organizations,
78.26community groups, or service groups, and is used for the organization's primary mission or
78.27headquarters.
78.28 (ii) An expenditure may be made to bring an existing building that the organization owns
78.29into compliance with the Americans with Disabilities Act.
78.30 (iii) An organization may apply the amount that is allowed under item (ii) to the erection
78.31or acquisition of a replacement building that is in compliance with the Americans with
78.32Disabilities Act if the board has specifically approved the amount. The cost of the erection
78Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 79.1or acquisition of a replacement building may not be made from gambling proceeds, except
79.2for the portion allowed under this item;
79.3 (23) an expenditure for the acquisition or improvement of a capital asset with a cost
79.4greater than $2,000, excluding real property, that will be used exclusively for lawful purposes
79.5under this section if the board has specifically approved the amount;
79.6 (24) an expenditure for the acquisition, erection, improvement, or expansion of real
79.7property, if the board has first specifically authorized the expenditure after finding that the
79.8real property will be used exclusively for lawful purpose under this section;
79.9 (25) an expenditure, including a mortgage payment or other debt service payment, for
79.10the erection or acquisition of a comparable building to replace an organization-owned
79.11building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
79.12organization-owned building that was taken or sold under an eminent domain proceeding.
79.13The expenditure may be only for that part of the replacement cost not reimbursed by
79.14insurance for the fire or catastrophe or compensation not received from a governmental unit
79.15under the eminent domain proceeding, if the board has first specifically authorized the
79.16expenditure; or
79.17 (26) a contribution to a 501(c)(19) organization that does not have an organization license
79.18under section 349.16 and is not affiliated with the contributing organization, and whose
79.19owned or leased property is not a permitted premises under section 349.165. The 501(c)(19)
79.20organization may only use the contribution for lawful purposes under this subdivision or
79.21for the organization's primary mission. The 501(c)(19) organization may not use the
79.22contribution for expansion of a building or for bar-related expenditures. A contribution may
79.23not be made to a statewide organization representing a consortia of 501(c)(19) organizations.;
79.24or
79.25 (27)(i) an expenditure made after June 30, 2024, and before August 1, 2029, for the
79.26repair, maintenance, or improvement of real property and capital assets owned by the
79.27following organizations or for the replacement of a capital asset owned by the following
79.28organizations that can no longer be repaired:
79.29 (A) American Legion;
79.30 (B) Veterans of Foreign Wars of the United States (VFW);
79.31 (C) Jewish War Veterans of the United States of America;
79.32 (D) Military Order of the Purple Heart;
79.33 (E) AMVETS;
79Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 80.1 (F) Marine Corps League;
80.2 (G) Paralyzed Veterans of America; or
80.3 (H) Disabled American Veterans;
80.4 (ii) the expenditure is limited to 50 percent of gross profits from the previous fiscal year.
80.5The fiscal year is July 1 through June 30. Any unused allowances may carry forward pursuant
80.6to the requirements in item (iii);
80.7 (iii) for qualifying organizations whose gross receipts exceed $400,000 per year, the
80.8organization may carry forward unused allowances for up to two years. For qualifying
80.9organizations whose gross receipts do not exceed $400,000 per year, the organization may
80.10carry forward unused allowances for up to three years. Any organization carrying forward
80.11funds must identify the planned project for which the funds will be used prior to carrying
80.12forward the unused allowances; and
80.13 (iv) total expenditures for the fiscal year may not exceed the limit imposed under item
80.14(ii) unless the board has specifically approved the expenditures that exceed the limit due to
80.15extenuating circumstances beyond the organization's control. An expansion of a building
80.16or any capital improvements within the building regardless of use of the improvement are
80.17allowed under this provision. This provision applies only to capital improvements to the
80.18existing building square footage and does not apply to the new construction of a new or
80.19replacement building.
80.20 (b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25),
80.21must be 51 percent completed within two years of the date of board approval; otherwise the
80.22organization must reapply to the board for approval of the project. "Fifty-one percent
80.23completed" means that the work completed must represent at least 51 percent of the value
80.24of the project as documented by the contractor or vendor.
80.25 (c) Notwithstanding paragraph (a), "lawful purpose" does not include:
80.26 (1) any expenditure made or incurred for the purpose of influencing the nomination or
80.27election of a candidate for public office or for the purpose of promoting or defeating a ballot
80.28question;
80.29 (2) any activity intended to influence an election or a governmental decision-making
80.30process;
80.31 (3) a contribution to a statutory or home rule charter city, county, or town by a licensed
80.32organization with the knowledge that the governmental unit intends to use the contribution
80.33for a pension or retirement fund; or
80Article 7 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 81.1 (4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of
81.2not complying with lawful purpose restrictions or requirements.
81.3 EFFECTIVE DATE.This section is effective the day following final enactment.
81.4 ARTICLE 8
81.5 PARI-MUTUEL HORSE RACING
81.6 Section 1. Minnesota Statutes 2024, section 240.01, subdivision 1b, is amended to read:
81.7 Subd. 1b.Advance deposit wager."Advance deposit wager" means a wager placed
81.8through an advance deposit wagering provider on a any horse race that is conducted inside
81.9or outside of the state.
81.10Sec. 2. [240.1563] RACING ECONOMIC DEVELOPMENT ACCOUNT.
81.11 Subdivision 1.Account established; use of funds.(a) The racing economic development
81.12account is established in the special revenue fund. The account shall consist of any amounts
81.13deposited pursuant to sections 297J.02 and 297K.02. The amounts deposited into the account
81.14are appropriated to the commissioner of agriculture to make distributions under this
81.15subdivision. The amount available for distribution is the amount available as of June 30 of
81.16the distribution year. The commissioner must provide money annually as follows:
81.17 (1) the first $12,500,000 must be distributed as follows:
81.18 (i) 40 percent to a licensed racetrack licensed under chapter 240 that primarily conducts
81.19standardbred horse racing; and
81.20 (ii) 60 percent to a licensed racetrack licensed under chapter 240 that primarily conducts
81.21thoroughbred and quarter horse racing; and
81.22 (2) any amounts exceeding $12,500,000 must be distributed as follows:
81.23 (i) 28 percent to a licensed racetrack licensed under chapter 240 that primarily conducts
81.24standardbred horse racing; and
81.25 (ii) 72 percent to a licensed racetrack licensed under chapter 240 that primarily conducts
81.26thoroughbred and quarter horse racing.
81.27 (b) Money distributed under paragraph (a) must be used for only the following purposes:
81.28 (1) 50 percent must be used for purse accounts for thoroughbred, standardbred, quarter
81.29horse, and Arabian horses; and
81.30 (2) 50 percent may be used for the following purposes:
81Article 8 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 82.1 (i) to pay dues and other fees to the Horseracing Integrity and Safety Authority to remain
82.2compliant with the Horseracing Integrity and Safety Act imposed under United States Code,
82.3title 15, sections 3051 to 3060;
82.4 (ii) to pay breeders' awards for Minnesota-bred thoroughbred, standardbred, quarter
82.5horse, and Arabian horses, provided that such awards are permitted under section 240.18;
82.6 (iii) to pay reimbursements to the Minnesota Racing Commission for the cost of providing
82.7state stewards and veterinary expenses;
82.8 (iv) to pay for infrastructure projects or capital expenditures that are directly tied to
82.9improving facilities in which horses race, practice, are treated, or are housed;
82.10 (v) to assist in the transition of Minnesota-bred horses into retirement;
82.11 (vi) to fund research projects conducted by persons affiliated with a university or
82.12governmental research agency or institution related to equine illness and disease,
82.13performance-related accidents and injuries, and improvements of breeding techniques;
82.14 (vii) to fund health programs for jockeys, stewards, drivers, trainers, and backstretch
82.15employees who have direct involvement with the care and preparation of racing horses;
82.16 (viii) to pay for labor only for those employees who have direct involvement with the
82.17care and preparation of racing horses; and
82.18 (ix) to be used for horse racing-related expenses limited to track and backside labor
82.19costs, racing contracts, simulcast fees, backside and track utilities, water, and fuel and
82.20regulatory costs relating to horse racing, horseman bookkeeping, racing and backside rental
82.21equipment, repairs and maintenance of track and backside, and racing and backside supplies.
82.22 (c) Money distributed under paragraphs (a) and (b) must not be used:
82.23 (1) to fund lobbying, litigation, or advertisements; or
82.24 (2) for the expansion or operation of card club operations or gaming that is unrelated to
82.25horse racing as defined in section 240.01, subdivision 8.
82.26 (d) Any money remaining in the account at the end of each fiscal year does not cancel.
82.27Interest and income earned on money in the account, after deducting any applicable charges,
82.28shall be credited to the account.
82.29 Subd. 2.Reports required.(a) By January 15 of each year, each racetrack that receives
82.30a distribution under this section must submit a report to the commissioner of agriculture
82.31that includes the amount of money that was spent in each category in subdivision 1,
82.32paragraphs (a) and (b), and documentation sufficient to establish that the money was spent
82Article 8 Sec. 2.
REVISOR JSK/KR 25-0126501/13/25 83.1on or encumbered for eligible uses. The commissioner may request financial statements or
83.2other information necessary to verify that money was spent on eligible uses.
83.3 (b) By February 1 of every odd-numbered year, the commissioner of agriculture must
83.4submit a report to the chairs and ranking minority members of the legislative committees
83.5with jurisdiction over pari-mutuel horse racing and sports wagering authorized in chapter
83.6299L, detailing expenditures made by racetracks under subdivision 1, paragraph (a).
83.7 EFFECTIVE DATE.This section is effective the day following final enactment.
83.8 ARTICLE 9
83.9 APPROPRIATIONS; MISCELLANEOUS
83.10Section 1. Minnesota Statutes 2024, section 245.98, subdivision 2, is amended to read:
83.11 Subd. 2.Program.The commissioner of human services shall establish a program for
83.12the treatment of compulsive gamblers and their families. The commissioner may contract
83.13with an entity with expertise regarding the treatment of compulsive gambling to operate the
83.14program. The program may include the establishment of a statewide toll-free number,
83.15resource library, public education programs; regional in-service training programs and
83.16conferences for health care professionals, educators, treatment providers, employee assistance
83.17programs, and criminal justice representatives; and the establishment of certification standards
83.18for programs and service providers. The program must include culturally competent outreach,
83.19education, and service models that are informed by the lived experiences of communities
83.20disproportionately affected by problem gambling. The commissioner may enter into
83.21agreements with other entities and may employ or contract with consultants to facilitate the
83.22provision of these services or the training of individuals to qualify them to provide these
83.23services. The program must include up to 60 hours of intervention services for a family
83.24member or concerned significant other who is a Minnesota resident and is negatively
83.25impacted by problem or compulsive gambling. The program may also include inpatient and
83.26outpatient treatment and rehabilitation services for residents in different settings, including
83.27a temporary or permanent residential setting for mental health or substance use disorder,
83.28and individuals in jails or correctional facilities. The program may also include research
83.29studies. The research studies must include baseline and prevalence studies for adolescents
83.30and adults to identify those at the highest risk. The program must be approved by the
83.31commissioner before it is established.
83Article 9 Section 1.
REVISOR JSK/KR 25-0126501/13/25 84.1 Sec. 2. [245.983] COMPULSIVE AND PROBLEM GAMBLING SUPPORT.
84.2 (a) The commissioner of human services must distribute the money appropriated pursuant
84.3to sections 297J.02 and 297K.02 as follows:
84.4 (1) one-third is for the compulsive gambling treatment program established under section
84.5245.98 which must also be available for up to 60 hours of intervention services for a family
84.6member or concerned significant other who is a Minnesota resident and is negatively
84.7impacted by problem or compulsive gambling;
84.8 (2) one-third is for emergency services grants under section 256K.49; and
84.9 (3) one-third is for a grant to the state affiliate recognized by the National Council on
84.10Problem Gambling to increase public awareness of problem gambling, provide education
84.11and training for individuals and organizations providing effective treatment services to
84.12problem gamblers and their families, and conduct research relating to problem gambling.
84.13 (b) Money appropriated by this subdivision must supplement and must not replace
84.14existing state funding for these programs. Money appropriated from the sports betting
84.15revenue account under this subdivision is available until expended.
84.16 (c) Any money unused at the end of each fiscal year does not cancel.
84.17Sec. 3. Minnesota Statutes 2024, section 609.761, subdivision 3, is amended to read:
84.18 Subd. 3.Social skill game.Sections 609.755 and 609.76 do not prohibit tournaments
84.19or contests that satisfy all of the following requirements:
84.20 (1) the tournament or contest consists of the card games of chance commonly known as
84.21cribbage, skat, sheepshead, bridge, euchre, hasenpfeffer, pinochle, gin, 500, smear, Texas
84.22hold'em, or whist;
84.23 (2) the tournament or contest does not provide any direct financial benefit to the promoter
84.24or organizer;
84.25 (3) the value of all prizes awarded for each tournament or contest does not exceed $200;
84.26and
84.27 (4) for a tournament or contest involving Texas hold'em:
84.28 (i) no person under 18 years of age may participate;
84.29 (ii) the payment of an entry fee or other consideration for participating is prohibited;
84.30 (iii) the value of all prizes awarded to an individual winner of a tournament or contest
84.31at a single location may not exceed $200 each day; and
84Article 9 Sec. 3.
REVISOR JSK/KR 25-0126501/13/25 85.1 (iv) the organizer or promoter must ensure that reasonable accommodations are made
85.2for players with disabilities. Accommodations to the table and the cards shall include the
85.3announcement of the cards visible to the entire table and the use of Braille cards for players
85.4who are blind.
85.5 EFFECTIVE DATE.This section is effective the day following final enactment.
85.6 Sec. 4. DEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.
85.7 $8,316,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
85.8of public safety to perform the duties required to establish and regulate mobile sports betting
85.9under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota
85.10Statutes, chapter 349C. The base for this appropriation is $5,486,000 in fiscal year 2026
85.11and $5,466,000 in fiscal year 2027 and each fiscal year thereafter.
85.12Sec. 5. DEPARTMENT OF REVENUE; APPROPRIATION.
85.13 $10,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
85.14of revenue to perform the duties necessary to establish and enforce the taxation of mobile
85.15sports betting and fantasy contests under Minnesota Statutes, chapters 297J and 297K. The
85.16base for this appropriation is $2,023,000 in fiscal year 2026 and $1,740,000 in fiscal year
85.172027 and each fiscal year thereafter.
85.18Sec. 6. DEPARTMENT OF HUMAN SERVICES; APPROPRIATION.
85.19 The base appropriation is $216,000 in fiscal year 2026 and $422,000 in fiscal year 2027
85.20and each fiscal year thereafter to the commissioner of human services to administer the
85.21money appropriated under Minnesota Statutes, section 297J.02.
85.22Sec. 7. OFFICE OF THE ATTORNEY GENERAL; APPROPRIATION.
85.23 $702,000 in fiscal year 2025 is appropriated from the general fund to the Office of the
85.24Attorney General to perform the duties required to support state agencies regarding the
85.25regulation of mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80,
85.26and fantasy contests under Minnesota Statutes, chapter 349C. This is an ongoing
85.27appropriation.
85Article 9 Sec. 7.
REVISOR JSK/KR 25-0126501/13/25 86.1 Sec. 8. STUDY ON MOTIVATIONS AND BELIEFS OF YOUNG ADULT
86.2GAMBLERS; APPROPRIATION.
86.3 Subdivision 1.Appropriation.$150,000 in fiscal year 2025 is appropriated from the
86.4general fund to the commissioner of public safety for a grant to a nonprofit organization to
86.5conduct a study on the gambling motivations and beliefs of young adult gamblers. The
86.6commissioner may not use any amount of this appropriation to administer the grant. This
86.7is a onetime appropriation.
86.8 Subd. 2.Award.The commissioner shall award the grant to a nonprofit, gambling-neutral
86.9organization with experience raising public awareness about problem gambling and providing
86.10professional training for those who work with problem gamblers.
86.11 Subd. 3.Focus group.(a) The grant recipient shall convene a focus group of 40
86.12individuals who are at least 18 years of age but not more than 35 years of age and who have
86.13experience gambling in Minnesota.
86.14 (b) Membership of the focus group shall reflect the geographical and demographic
86.15diversity of Minnesotans who are 18 to 35 years of age.
86.16 (c) The focus group shall identify the reasons that young adults gamble and the ways in
86.17which they engage in gambling, including whether they wager on sporting events; participate
86.18in fantasy sports; purchase lottery tickets; visit casinos; engage in online gambling; participate
86.19in card playing as defined in Minnesota Statutes, section 240.01, subdivision 5; engage in
86.20pari-mutuel betting as defined in Minnesota Statutes, section 240.01, subdivision 14; or
86.21participate in lawful gambling authorized under Minnesota Statutes, chapter 349.
86.22 Subd. 4.Qualitative survey.Following completion of the focus group described in
86.23subdivision 3, the grant recipient shall create a qualitative survey and obtain responses from
86.24a sample of at least 50,000 individuals.
86.25 Subd. 5.Report.By January 15, 2026, the grant recipient shall submit a report to the
86.26chairs and ranking minority members of the legislative committees with jurisdiction over
86.27public safety, the legislative committees with jurisdiction over taxes, the committee in the
86.28house of representatives with jurisdiction over commerce, the committee in the senate with
86.29jurisdiction over state government finance and policy, the committee in the house of
86.30representatives with jurisdiction over ways and means, and the committee in the senate with
86.31jurisdiction over finance. The report shall summarize the actions and findings of the grant
86.32recipient and shall make recommendations for policies and the use of financial resources
86.33to prevent and address problem gambling by young adults.
86Article 9 Sec. 8.
REVISOR JSK/KR 25-0126501/13/25 Page.Ln 1.16LAWFUL SPORTS BETTING..............................................................ARTICLE 1
Page.Ln 35.10TAXATION OF SPORTS BETTING.....................................................ARTICLE 2
Page.Ln 38.6FANTASY CONTESTS.........................................................................ARTICLE 3
Page.Ln 59.25TAXATION OF FANTASY CONTESTS..............................................ARTICLE 4
Page.Ln 62.17CRIMES RELATED TO SPORTS BETTING.......................................ARTICLE 5
Page.Ln 71.1SPORTS AND ACTIVITIES GRANTS................................................ARTICLE 6
Page.Ln 75.1CHARITABLE GAMBLING.................................................................ARTICLE 7
Page.Ln 81.4PARI-MUTUEL HORSE RACING.......................................................ARTICLE 8
Page.Ln 83.8APPROPRIATIONS; MISCELLANEOUS...........................................ARTICLE 9
1
APPENDIX
Article locations for 25-01265