- Legal bets could be worth $531 million for state
- AGA says federal ban is “failing”
The American Sports Betting Coalition and the American Gaming Association have released data from an Oxford Economics study that shows legal sports betting could be worth more than $530 million to the state of Minnesota.
The AGA claims that illegal sports betting is occurring to the tune of $150 billion already, and states such as New Jersey could benefit from the economic boost that a legal market would bring – as well as protecting consumers who currently use unlicensed out-of-state operators.
Across the nation, legal betting on sports could raise as much as $26 billion for the economy.
Limits on gambling in Minnesota due to federal laws
Minnesota is not one of the four states which are exempt from federal laws on sports betting. Only Montana, Delaware, Oregon and Nevada are permitted to override federal laws and regulate sports betting under state authorities.
However, close to half of the US public are in favor of legal sports betting and many states are lobbying for federal gambling reforms that would allow states to decide whether they can allow betting games. New Jersey is leading the way, with its challenge to federal law expected to be heard later this year.
Currently, Minnesota residents are allowed to take part in charitable gaming, as long as the raffle or lottery is run under strict regulatory conditions.
A state lottery is also operated, and the state permits betting on horse races at licensed racetracks – including simulcast electronic bets. Gamblers who currently wish to place sports bets have to do so through operators outside of the state – which is technically illegal under current laws. The state does permit tribal casino operations, which are also strictly regulated.
States move to legalize sports betting
An increasing number of states are recognizing the potential value of legal sports betting, and the public is also warming to the idea of state-organized gambling. A Greenberg Quinlan Rosner study found recently that 6 in 10 Americans would support legal sports betting, and nearly three quarters of sports fans favor the bid to legalize gaming.
When New Jersey’s case against the federal ban is heard in the near future, the court will hear supporting evidence from 19 states. The AGA have also filed expert testimony, using Minnesota as a case study.
The group claims that legal gambling in Minnesota would have an economic impact of $531 million, would generate $107 million in annual taxes, and could create more than 3,000 local jobs.
Nationwide, legal sports betting may create more than 150,000 jobs and could bring federal agencies an additional $5.3 billion in taxes per year – enough to offset the entire cost of the 2028 Olympics in LA!
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