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It’s been a busy year already for Minnesota lawmakers as the state continues its ongoing battle for sports betting legalization. While the case of sports betting seems to be coming to a positive end, the opposition remains vocal and organized.
On Wednesday (Jan 8), the Senate Finance Committee led by Sen. John Marty held a hearing where academic experts were invited to debate the harms of sports betting. In what many regarded as a pivotal step in the quest for legalization, industry experts were surprisingly not invited, raising questions and criticisms about the comprehensiveness of the discussion and the potential biases in the debates.
Earlier this month, State Sen. Matt Klein (DFL-Dakota County) revealed in an interview with the Minnesota News Network his intention to introduce a new bill to legalize sports betting at the start of the new legislative session on Jan 14. According to Klein, this revised proposal builds on the previous bill that failed last May and features more responsible gambling safeguards, which was a major highlight of Wednesday’s hearing.
The Harms of Sports Betting Highlighted
Almost a dozen witnesses were present in the hearing, one of which was Scott Baker of Northwestern University, who shared that individual sports bettors were more likely to carry higher credit card balances, overdraw accounts, and save less money.
Brett Hollenbeck, a UCLA professor, also revealed data showing that lower credit scores and increased bankruptcies were more common in states with legalized sports betting markets.
Matt Litt, a litigator for sports betting victims, also spoke on the harms of sports betting and how predatory the industry is. He highlighted the case of his client, Amit Patel, who pleaded guilty in early 2024 to embezzling $22 million from the Jacksonville Jaguars. Litt revealed that Patel had received over $1 million in free bets from FanDuel and is now suing the operator, claiming it exploited his gambling addiction.
Emily Arnesen and Kyu Matsuzawa, two researchers from the University of Oregon, were also there to hammer on the societal impacts. Their study linked sports betting legalization to a 9% increase in incidents of intimate partner violence, specifically following losses by a local sports team.
‘A Media Stunt’
Despite the hearing’s high stakes, multiple sources confirm that industry experts were barred from the debates.
Brandt Iden, VP of government affairs at Fanatics, expressed his utter disappointment at the hearing and called it a complete media stunt. He said, “Setting aside the arguments either for or against the testimony presented, my larger concern was the lack of complete policy discourse and debate on the issue. As a former lawmaker and [Committee] Chairman, I know full well that the chair retains the ability to limit testimony in any fashion they wish.
“However, frankly, I think a media stunt like this does a disservice to the institution and is disrespectful to your colleagues who were duly elected to represent their communities, engage in thoughtful political debate on both sides of an issue, and ultimately make their own decisions as to what’s best for their constituencies.”
Fanatics is a key member of the Sports Betting Alliance (SBA), an organization that actively lobbies for the legalization of online gambling. Other prominent members include DraftKings, FanDuel, and BetMGM. The SBA has also responded to the hearing and the industry’s absence.
Blois Olson, the alliance’s Minnesota spokesman, said, “Senator Marty, a longtime opponent of sports betting, did not include the perspective of Minnesota sovereign tribal nations who are key stakeholders in gaming in the state.”
Sen. Marty Defends Decision
Despite the backlash from industry experts and lawmakers, Sen. Marty has defended his decision, stating that no previous hearing had focused on harm. However, this claim is somewhat misleading, as previous hearings, while not explicitly focused on harm, have included testimony from various responsible gambling advocates who raised similar concerns.
The senator also has support from the National Council on Problem Gambling, with its president, Susan Sheridan Tucker, stating in her testimony that the risks of sports betting outweigh the benefits.
It’s left to see if 2025 will bring a breakthrough for sports betting in the North Star State. While the push does have bipartisan support, with Rep. Zack Stephenson and Sen. Jeremy Miller among its champions, securing a consensus would still be challenging considering how politically divided the state senate is.
Source: Yogonet
