Minnesota is poised to become the 40th state to legalize sports betting in 2025, with State Sen. Matt Klein (DFL-Dakota County) planning to introduce new legislation when the Minnesota Legislature convenes on January 14.

The proposed legislation aims to create a regulated market that would:

• Grant exclusive retail and online sports betting rights to tribal nations
• Implement robust responsible gaming safeguards
• Share 22% of online sportsbook revenue with the state
• Generate an estimated $90 million annually in state tax revenue

The revenue sharing plan allocates:

• 45% to the General Fund
• 15% to horse racetracks
• 15% to tribal equalization fund
• 10% to problem gambling programs
• 10% for major sporting events
• 5% to youth sports

Minnesota's market potential is significant due to:

• Population of 5.8 million residents
• Strong sports culture with teams in all five major leagues (NFL, MLB, NBA, NHL, MLS)
• Proven track record hosting major events like Super Bowl LII and NCAA Final Four
• Existing tribal gaming infrastructure

While opponents express concerns about gambling addiction and social issues, Klein emphasizes the bill will include the strongest responsible gaming measures in the nation. The legislation aims to regulate existing betting activity that currently occurs through offshore markets while providing consumer protections and generating tax revenue for the state.

The 2024 effort nearly succeeded but stalled due to political complications. The 2025 version builds on previous compromises while strengthening safety measures, suggesting favorable odds for passage this session.

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