Minnesota bill proposes tribal-led online sports betting framework with 22% tax rate
Table of contents
- Senate File 4139 would allow up to 11 Native American tribes to apply for 20-year online sports betting licences.
- The bill proposes a 22% tax on net revenue and a minimum wagering age of 21.
- Bipartisan sponsors include DFL Sen. Nick Frentz, Republican Sens. Jeremy Miller, Nathan Murphy, and Julia Coleman.
A new bill in the Minnesota Senate proposes a tribal-led framework for legalizing online sports betting in the state. Senate File 4139 was introduced on 4 March 2026 and has been referred to the Senate Committee on Commerce and Consumer Protection Finance and Policy and the Rules and Administration Committee.
Structure of the proposed market
Under the bill, the Minnesota commissioner of public safety would regulate mobile sports wagering. The commissioner could issue up to 11 online sports betting operator licenses, exclusively available to Native American tribes that currently operate Class III gaming at brick-and-mortar casinos in the state.
Each license would be valid for 20 years. Tribes would be permitted to partner with one licensed mobile sportsbook platform provider per license. Tribal licensing fees are set at $2,125 per year. Platform providers would pay a one-time fee of $250,000 and renewal fees of $83,000 every two years.
The minimum wagering age would be 21. The bill proposes a 22% tax on net revenue, calculated as total wagers minus winnings paid and the fair market value of non-cash prizes.
Tax proceeds would be distributed across several areas: 50% would offset taxes on charitable gambling revenue, 15% would go to the horse racing industry, 15% to tribes without sportsbook partners holding more than a 10% market share, 15% to grants supporting major sporting events and regional sports access programs, 4% to responsible gambling initiatives, and 1% to amateur sports integrity efforts.
Restrictions on operations
The bill includes several consumer protection provisions. Prop bets involving minors or youth athletes would be prohibited. College prop bets may also be restricted where a relevant sports governing body formally requests limitations, though the bill does not impose a blanket ban on all college event wagering.
Push notifications from sportsbook apps would be limited to alerts about potentially fraudulent account activity or responsible gambling and identity verification matters.
Credit card funding of sportsbook accounts would be prohibited. The legislation also explicitly excludes peer-to-peer wagers placed on betting exchanges from the definition of legal sports wagering.
Tribes could also offer in-person sports betting at their casinos, provided they negotiate updated gaming compacts with the state. Wagers placed on tribal land would not be subject to state taxes.
A familiar legislative challenge
The bill carries bipartisan support. Sen. Nick Frentz (DFL) is the lead sponsor, joined by Republican Sens. Jeremy Miller, Nathan Murphy, and Julia Coleman. Several of these lawmakers have previously backed sports betting legislation in Minnesota.
However, the path to passage remains narrow. Minnesota legislators have debated sports betting authorization for several years without success. The current session is expected to prioritize other issues, including alleged fraud linked to government services and proposals for firearms restrictions following the assassination of former House Speaker Melissa Hortman.
DFL House Leader Zack Stephenson recently told Axios that sports betting is “issue No. 27 on the agenda this year.”
A framework designed for consensus
Despite the political headwinds, the bill’s design reflects an effort to balance competing interests across Minnesota’s gambling ecosystem. The tribal-led structure addresses sovereignty concerns and aligns with the state’s existing gaming compact framework.
Revenue distribution provisions extend to charitable gambling, horse racing, and problem gambling, sectors that have historically raised objections to sports betting expansion.
The bill also mandates a state-funded study on gambling activity before the market launches. Data on existing wagering patterns and problem gambling prevalence must be collected and analyzed before mobile sports betting can go live. A follow-up study reviewing the impact of legal sports betting on gambling disorders would be updated every three years.
For operators watching from outside the state, the bill signals that Minnesota continues to move toward a regulated sports betting market — but on its own terms and timeline.
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