Bad move
Sports betting sponsors claim the Minnesota Racing Commission’s vote to legalize historic horse racing is illegal.
poorly thought out”
According to Zack Stephenson, the lead sponsor of the House bill to legalize sports betting, the move was “poorly thought out.”
Sponsors also claim that legalizing historic horse racing will go against the state’s two racetracks: Canterbury Park in Shakopee and Running Aces in Columbus, as the Legislature considers legalizing mobile sports betting.
Facing opposition
On Monday, the Minnesota Racing Commission voted 5-1 to approve historical horse racing (HHR) machines at the two state racetracks. This is despite the move facing opposition from the state’s Indian tribes that operate casinos.
The two racetracks initially asked the Commission to approve the terminals in January.
the racetracks could install up to 500 HHR terminals
From May 21, the racetracks could install up to 500 HHR terminals. It’s projected that by doing so, they could bring in around $6m in their second year.
This new form of gambling lets players pick a digital horse without knowing the race they’re betting on, randomly selected from a past race. If the player wins, they receive a monetary prize.
Notably, a month before the vote, Minnesota’s Alcohol and Gambling Enforcement division director Carla Cincotta sent Kyle Gustafson, director of the Racing Commission, a letter saying the HHR devices are video slot machines.
Stephenson claimed that HHR machines are a “euphemism,” adding: “You don’t even have to watch the race. It’s a horse-themed slot machine.”
Sports betting in Minnesota
In February, Governor Tim Walz stated that he would sign legislation if lawmakers could push through a bill during the session that will run through May 20.
legal sports betting could generate about $400m in revenue for operators after a few years
However, his main issue is making sure that tribes and other prospective stakeholders are happy with the perspective plan. The Minnesota Department of Revenue estimates that legal sports betting could generate about $400m in revenue for operators after a few years, leading to $60m in annual tax revenue based on a 15% tax rate.
The push to legalize sports betting in the state is a constant balancing act. However, in light of the recent news, Walz said that he was “frustrated by the approach the commission took.”
Andy Platto, Executive Director of the Minnesota Indian Gaming Association (MIGA), said the move by the Commission was “an extreme violation of legislative authority” and that they “will be looking at all available options” to prevent the tracks from adding the games.