A brief letter by a significant player in the sphere of legal gambling has altered the politics around the issue of sports gambling in Minnesota. At least for today.
Last week, Charles Vig, the chair of the Minnesota Indian Gaming Association, wrote Gov. Tim Walz and the four legislative leaders to state the nation’s gambling tribes were not interested in adding sports gambling to their offerings.
But he didn’t stop there. In the letter, Vig said the tribes will oppose passage of legislation to add Minnesota to the growing list of countries with legalized sports gambling. “The Minnesota Indian Gaming Association continues to oppose the expansion of off-reservation gaming, including the legalization of sports betting,” he wrote.
The seven casino-owning tribes in Minnesota join a group of unusual allies in opposing sports betting statements this year, including groups such as Citizens Against Gambling Expansion, which concerns about the ill effects of gaming, such as dependency.
The tribes don’t possess a veto over non-tribal gambling, but their voices are influential, especially among DFLers like Gov. Tim Walz and the new House majority. Under federal law, states must bargain in good faith to allow tribes to offer the same types of gambling that is legal off-reservation.
Until a U.S. Supreme Court decision last spring cleared the way for states to provide sports gambling like what is lawful in Nevada casino gambling books, that law wasn’t an issue in Minnesota. It is. By a 6-3 majority, the court ruled in Murphy v. NCAA that Congress exceeded its power by preventing states from legalizing and regulating sports betting. The case was brought by New Jersey, which wanted to give a boost to its fighting Atlantic City casinos, and had tried a set of legal moves to end the federal ban against sports betting in most states except Nevada.
In the vast majority opinion, Justice Samuel Alito, Jr. wrote that Congress has the authority to pass laws to regulate sports betting itself. However, when it decides not to, every nation is free to do so, and many have done just that.
A draft bill circulated in the Minnesota capitol at the end of the 2018 session but no formal invoice was ever filed and no hearings were held. Supporters of the legislation, led by Sen. Roger Chamberlain, R-Blaine, have been coordinating a bill for this particular session,.
Chamberlain, who’s chair of the Senate Taxes Committee, was surprised and a little disappointed in the tribes’ position, which he found out about through Twitter. “We met together and while they are not necessarily in alignment they are clearly concerned about losing their economic base, the economic engine,” Chamberlain said. “We understand that. We have reassured them that we’re not interested in harming that interest or jeopardizing tribal compacts.”
State Sen. Roger Chamberlain
Courtesy of Senate Media Services
State Sen. Roger Chamberlain, R-Blaine, stated cellular gambling must be a part of the state law since that’s where a lot of the gambling action is.
However, Chamberlain said he is optimistic that it remains subject to negotiations, and he said he thinks it could be a win for the nation, the tribes and for non-tribal gambling. “There is no reason to shut the rest of the state and the rest of the potential consumers and players and operators from taking part in a totally safe and legal business,” he explained. “We hope to get to a location where everyone can agree and I believe we can.”
Once it appears clear that tribes would have the ability to give sports betting in their own casinos if it is made legal for non-tribal gaming, legal advisors notice that sports betting sets up some tough choices such as tribes. The primary issue is that betting on sports — about the results of matches, on scores and other results — is not especially lucrative for casinos. Another is that under federal law, tribes may simply offer gambling within the boundaries of bookings. This makes the most-promising facet of sports gambling — remote betting online or via mobile devices — might be off limits to these, but to not non-tribal sports novels.
Chamberlain said cellular gambling must be part of this state law since that’s where much of the betting action is. Part of the rationale for legalizing it state by state is to catch a few of the bets now made illegally.
“In this market and culture you need mobile access to become profitable,” Chamberlain said.
Online betting would also make gambling available in rural and remote areas of the state that might not have casinos or even commercial sports books near. One possible solution for those tribes would be to declare the gaming takes place where a participant’s telephone is, but where the computer server which processes the bet is located. That is far from solved law, however.
“We can find our way around these problems and get it done,” Chamberlain said.
Vig is chairman of the Shakopee Mdewakanton Sioux Community of Minnesota, which owns the Mystic Lake and Little Seven casinos, did not shut the door on eventual tribal interest in sport betting. He did, however, ask the country to move slowly.
“While there is a desire by some to look at this issue during the current session, it appears that the general public interest would be served by careful analysis of sports betting’s implications within this state, evaluation of other nations’ experiences where sports betting gambling has been legalized, and comprehensive consultation with the large number of stakeholders interested in it,” Vig wrote.
A spokesman for the Minnesota Indian Gaming Association said pioneers weren’t available for interviews and that Vig’s letter are their only statement on the issue.
State Rep. Laurie Halverson
State Rep. Laurie Halverson
The seat of the home committee that would consider any sports betting statements said the tribal institution’s letter doesn’t alter her position on the problem. Rep. Laurie Halverson, DFL-Eagan, said that there are still no patrons in her caucus pushing a bill. Ever before the tribes made their position known, Halverson stated she intended to be cautious and deliberate on the topic.
“I’ve yet to see language or possess whatever introduced,” she said.
But she anticipates legislation will surface, and she wants to possess at least an info hearing so lawmakers can comprehend the consequences and listen from both backers and competitions. “I think we are all in learning mode,” she said. “When something is this brand new, that’s the legislative model generally. Things take time and we have to be deliberative about these major modifications to Minnesota law.”
In a press conference Wednesday, Walz stated his fundamental position on the problem will be to legalize and regulate. But he explained that should come just after a procedure for hearings and discussion. “I trust adults to make mature decisions,” he said of gambling. “I also realize that addiction comes in many forms, whether that’s alcohol, tobacco or cannabis or sports betting and these can have social consequences that are fairly catastrophic.
“If the Legislature chooses to take that up, we’re definitely interested in working together to get it right,” Walz said.
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