Minnesota Senate Sees First Sports Betting Bill of 2026

A legal sports betting market in Minnesota could soon become a reality.

A group of four Senators in the North Star State has introduced SF4139, which proposes to legalize mobile sports betting. The bill would allow for 11 tribes to obtain licenses, allowing them to partner with commercial operators. Sportsbooks would be subject to a 22% tax rate, putting them close to the national average.

The tax revenue Minnesota generates from sports betting would be used to fund the following programs:

• 50% to the Commissioner of Revenue to fund charitable gaming programs

• 15% to the racing economic development account to support horse racing

• 15% to the sports betting equalization fund designated for non-betting tribes

• 15% to the sports marketing and awareness account to promote tourism, sports, and events in the state

• 4% to the commissioner of human services to support responsible gambling programs

• 1% to the amateur sports integrity and participation fund

Unlike the recently launched Missouri sports betting market, the bill in Minnesota would add more restrictions on sportsbooks. The biggest is the prohibition of player prop betting involving college athletes. It also promises heavy restrictions on how and when sportsbooks can advertise. 

The bill is currently under review by the Senate Commerce and Consumer Protection Committee.

Minnesota Cracks Down on Offshore Sportsbooks

The proposal of SF4139 comes just days after Minnesota’s Alcohol and Gaming Enforcement Division (AGE) sent out warnings to 21 operators to cease operations in the state. On top of threatening legal action, the regulator also warned operators who refuse will not be considered for a license once the industry becomes legal.

While the state is among many taking action against offshore sportsbooks, the timing poses some risk for Minnesota. The future of SF4139 is far from certain, which means bettors using offshore sportsbooks may not have a legal market to transition to. That would likely lead them to make the switch to sports prediction markets, which remain a legal way to wager on sports.