Revenue projections from current legislation paint a clearer picture of the windfall a Minnesota sports betting industry could bring to state coffers.
Rep. Zack Stephenson filed HF 2000 last year. The bill would allow the state’s tribes to operate online and retail sportsbooks. It’s one of three Minnesota sports betting bills in the legislature.
Part of the legislation process is a fiscal note from the Legislative Budget Office. As part of those reports, the office estimates how much tax revenue the state could collect from the bill. Here’s what the LBO expects to generate over the next three fiscal years.
- Fiscal Year 2024-25: $22.7 million
- FY 2026: $29.1 million
- FY 2027: $45.5 million
These estimates only account for tax revenue from sports betting. The state could also save millions of dollars in other areas as the new tax revenue helps satisfy the state’s needs. As a result, politicians wouldn’t need to touch the reserves in other funds.
Sports betting tax dollars would boost problem gambling funds
With new tax revenue boosting the state, the LBO estimates sports betting could also save Minnesota $3.8 million over 2024 and 2025.
In Fiscal Year 2026, saving projections reach $12.8 million. In FY 2027, they reach an estimated $13.7 million.
The projections also estimate the following contributions to responsible gambling initiatives and programs:
- 2024: $1.6 million
- 2025: $3 million
- 2026: $7.7 million
- 2027: $8.2 million
These projections should be taken with a grain of salt. Revenue only begins once sports betting launches, after all.
LBO estimates are in line with Department of Revenue numbers
The numbers produced by the LBO are generally in line with March 2023 projections from the Department of Revenue. There were a few slight differences, but they are pretty close to what the LBO expects.
The department expects $13.46 million during the 2025 fiscal year before jumping to $29.96 million the following fiscal period and $40.1 million in the 2027 fiscal year.
Regardless of estimates, Minnesota would undoubtingly prosper if sports betting is legalized this year. HF 2000 is one of three options currently on the table, including a bill from Sen. Jeremy Miller dubbed Minnesota Sports Betting 2.0. that is awaiting a hearing from the Senate Committee on State and Local Government and Veterans.
