Sports Gambling In Minnesota: Current Laws, What Could Change

The United States Supreme Court struck down a federal law Monday that requires states to ban gambling. The 1992 Professional and Amateur Sports Protection Act made it unlawful for a state to sponsor, operate, advertise, promote, license, or authorize by law sports wagering.

Four states were exempted from the law – Nevada, Montana, Delaware, and Oregon.

The 7-2 ruling will allow other states, including Minnesota, to legalize sports gambling. The Minnesota Legislature will have to change the current state laws that ban gambling, however.

In April, the Minnesota House voted down a bill to legalize fantasy sports betting in the state.

What kind of gambling activities are currently legal in Minnesota?

Tribal casinos in Minnesota operate under a combination of state law, tribal ordinance, and tribal-state compacts. Minnesota lawmakers created the state lottery in 1989.

Outside of licensed charitable organizations, gambling that consists of "consideration, chance and prize is illegal," according to the Minnesota Department of Public Safety (DPS). "Removing one of those three elements would often make that activity legal."

Establishments that host licensed charitable gambling, such as pull-tabs, can risk losing their license if football boards or other illegal gambling is conducted on the premises.

Private, Social Bets

Most bets are illegal in Minnesota.

A "bet" is defined as "a bargain whereby the parties mutually agree to a gain or loss by one to the other of specified money, property or benefit dependent upon chance, although the chance is accompanied by some element of skill." According to the law, any card game where the participants pay to play, and have a chance to win money, would constitute a "bet" and, therefore, be illegal gambling.

The criminal gambling statute creates an exception for "a private, social bet."

According to the DPS, a private social bet cannot be part of "organized, commercialized or systematic gambling."

Any gambling that happens in a business could constitute illegal gambling if the owner of the establishment receives "indirect benefit of increased patronage."

Authorities avoid prosecution of events such as penny-ante card games among friends in at someone's home, small spontaneous wagers between friends, and other spur-of-the-moment private transactions.

Once those wagers occur on a regular basis at a business establishment, it is difficult to characterize them as "social bets," and the location of the event runs a substantial risk of violating the law.

Online gambling

Online sports betting and online casinos that take your money and offer prizes via the web are illegal in Minnesota. There are websites available that operate outside of the United States to purposefully avoid laws and enforcement.

Not only is it a crime to participate, there are consumer protection concerns as well. When you send money, you are giving your personal financial and banking information to unknown persons that are not licensed or regulated in handling it. If you do win, there is no recourse if they do not pay you.

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