Minnesota Senate doubles wagering tax in sports betting bill

Minnesota Senate doubles wagering tax in sports betting bill

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Minnesota Senate doubles wagering tax in sports betting bill

Minnesota Senate Committee Approves Mobile Sports Betting Bill, Doubles Tax Rate to 20%

A plan that would legalize mobile sports betting statewide was approved by the Minnesota Senate’s tax committee, which also decided to raise the tax rate on sports betting from ten to twenty percent.

SF1,949, the measure, is currently on its way to the Senate finance committee after passing via other Senate committees. A comparable procedure will be followed in the House of Representatives if it is approved by the Senate.

The legislation’s future is unknown because previous attempts to pass it through the Senate have failed. Whether to grant all eleven tribes in the state the sole authority to operate horsetracks in addition to sports betting is a crucial question. The Minnesota Indian Gaming Association is against the tracks that are now included in the Senate version.

A legal sports betting measure has the endorsement of Governor Tim Walz.

In addition, operators can write off the entire promotional play for the first two years under the amended tax rate of one hundred percent. After that, the write-off percentage will decrease by twenty-five percent each year for the next four years, until it hits zero percent.

The amendment also proposes a distribution of the tax money from sports betting, with ten percent going toward programs aimed at addressing problem gambling, five percent going toward the state’s racetracks, twenty percent going toward charitable foundations, fifteen percent going toward promoting tourism, five percent going toward the Minnesota High School League, and forty-five percent going toward the general fund.

Three additional suggested adjustments were rejected, but the committee still approved the measure by voice vote. The proposed reforms aim to modify the allocation of income, curtail financial support for horse tracks, do away with promotional write-offs, and institute a competitive bidding procedure for licenses that include a minimum forty percent tax rate.

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