Minnesota Lawmakers File Mobile Betting Bill With Unique Marketing Restrictions

Minnesota Lawmakers have filed a new bill to regulate mobile sports betting and daily fantasy sports (DFS). Interestingly, the bill would prohibit mobile betting operators from sending push notifications to mobile users. 

U.S. Senator Nick Frentz has introduced Senate Bill 3414. If it becomes law, it would allow residents and state visitors over 21 to legally place bets.

Key Minnesota Mobile Betting Licensing Requirements

It would also tie mobile sports betting and daily fantasy sports to existing, federally recognized tribes. 

Under the bill, the state’s regulatory body, the Minnesota Gambling Control Board, would also be able to issue 11 mobile sports betting operator licenses. To be eligible to receive them, tribes would have to conduct Class III casino gaming.

Entities seeking a license must go through the state’s licensing process, assuming they meet the requirements. Tribes granted a license would pay a yearly fee of $2,125.

Push Notifications and Problem Gambling Protections

The bill would introduce additional marketing requirements, such as forbidding license holders to market their services as “risk-free,” depicting underage gambling in their materials, or in any way seeking to attract customers under 21.

They must also display toll-free problem gambling helpline numbers and offer access to a problem gambling helpline 24/7.

For most states, these are standard measures already in place. However, Minnesota will also have a unique ban on push notifications. The authorities see push notifications as a way to entice users back onto an app, influencing them to take risks rather than having them gamble of their own free will.

SB 3414 shares many similarities with an earlier bill introduced in January. Senator Matt Klein introduced SB 757, which also focused on mobile sports betting and DFS and tied them to recognized tribes.

Like the new proposal, SB 757 offered up to 11 mobile sports betting licenses, with a 22% tax rate on net sports betting revenue. 

One difference between the two bills is that SB 757 distributes the tax revenue from wagering differently. It requires 45% of tax revenue to be sent to the gaming commissioner, 15% to the Racing Economic Development Account, and 15% to the Sports Betting Equalization Account.

10% of revenue would be used to bring major sporting events to the state, 5% would be allocated toward youth sports programs, and the final 10% would be reserved for Human Services.

However, the bill did not advance out of the state and local government committee after a 6-6 vote. Hawaii is the most likely state to join the plethora of existing states with a sports wagering offering, with recent reports suggesting the state’s Governor is unlikely to veto its passage.

Prediction market platforms like Kalshi can offer sports event contracts in all 50 states. However, the firm has faced significant pushback and has already been ordered to cease operations in six states. Thus far, Kalshi has filed lawsuits against three state regulators who seek to prohibit the company’s operations.  

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 Minnesota Lawmakers have filed a new bill to regulate mobile sports betting and daily fantasy sports (DFS). Interestingly, the bill would prohibit mobile betting operators from sending push notifications to mobile users.  U.S. Senator Nick Frentz has introduced Senate Bill 3414. If it becomes law, it would allow residents and state visitors over 21 to
The post Minnesota Lawmakers File Mobile Betting Bill With Unique Marketing Restrictions appeared first on CasinoBeats.