Tribal Leaders Warn of Illegal Threats as Minnesota Considers Sports Betting
Minnesota's tribal gaming leaders have raised concerns about illegal gambling products as the state again considers legalizing sports betting.
Andy Platto, executive director of the Minnesota Indian Gaming Association, said tribes in states without legal sports betting face mounting challenges from prediction markets and sweepstakes casino offerings.
Speaking at the Indian Gaming Association Mid-Year Conference at Mystic Lake Casino, Platto warned that prediction markets are taking wagers on sports and sweepstakes are operating like online casinos, which Minnesota prohibits.
The state legislature is expected to revisit Minnesota sports betting legislation in February. The proposal would give Minnesota's 11 tribal nations exclusive rights to mobile sports betting licenses, allowing them to launch independently or through partnerships with operators such as DraftKings, FanDuel, and BetMGM.
Platto noted that prediction market operator Underdog recently began accepting sports wagers online in Minnesota, a first for the state. He argued that creating a regulated market would curb illegal offerings and generate an estimated $88 million annually at a 22% tax rate.
Tribal leaders and industry experts at the conference also discussed the need for coordinated action at the federal level to address prediction markets. Platto said states often defer to Commodity Futures Trading Commission (CFTC) guidance, which limits their authority to shut down such platforms.
Alongside sports betting, attendees also addressed broader issues, including rising tariff costs, federal budget cuts, and uncertainty over government funding.
Legislative efforts stalled
While tribal leaders push for regulated wagering, progress at the State Capitol remains slow. Earlier this year, the Senate Taxes Committee rejected a proposal that would have only studied the potential legalization of sports betting.
The measure was part of a broader tax spending bill but was dismissed as premature by committee chair Ann Rest, who argued the subject was not developed enough to warrant a formal review.
The rejection followed a February decision by the Senate State Government Committee to block a separate proposal that would have allowed sports betting exclusively at Minnesota's 11 tribal casinos. That plan would have prohibited wagering elsewhere in the state.
Legislative gridlock has complicated the issue further. Negotiations between Gov. Tim Walz and legislative leaders over a two-year budget bill delayed progress on several policy measures, including sports betting.
The regular session ended on May 19 without a finalized budget, forcing the prospect of a special session to address unresolved matters. While sports betting has been debated for six years in Minnesota, divisions within the legislature have prevented it from moving forward. Some lawmakers suggest it may take another election cycle before sports betting gains enough traction to pass.
