Fantasy sports bill shelved

The push to legalize online fantasy sports betting in Minnesota is over for this session, after the state Senate sponsor abruptly pulled the bill.

Sen. Sandy Pappas, DFL-St. Paul, withdrew her bill Thursday following a contentious hearing in the Senate tax committee. She said she would try again next session.

The bill would have defined fantasy sports as games of skill and not gambling in state law. It also included several consumer protection and regulatory provisions.

Pappas said after the hearing that it was clear she didn’t have the votes and she didn’t want the bill defeated.

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“It’s done for this session, but I think that the public needs to weigh in,” Pappas said. “If they feel it’s important that we have some consumer protections on fantasy sports so that basically we have legitimate businesses operating in the state of Minnesota, then I think the Legislature will need to revisit this.”

Online operators of the sports games sought the law to clarify what they contend is already a legal activity.

Paul Charchian, president of the Fantasy Sports Trade Association, told lawmakers that codifying the legality of those contests is an important step for the state.

“If you kill this bill, the state has no say in the operation of fantasy sports contests and it remains legal just like it is now,” Charchian said. “Pass this bill and we have a framework for regulation and consumer protection.”

Opponents of the daily online games argued that the bill would be a major expansion of legalized gambling in Minnesota.

Tom Prichard of the Minnesota Family Council warned that the bill would open the door to all types of gambling.

"You need to be very careful about going down this road of expanding gambling in a very dramatic way,” Prichard said. “Once online gambling gains a foothold in our state, I think ‘Katy, bar the door.’”

Senate Tax Chair Rod Skoe, DFL-Clearbrook, said he too opposed the bill and warned it would likely be rejected by the full Senate. Skoe suggested that there should be a discussion to restrict online fantasy sports.

“It’s pretty clear to be that this is gambling, and it’s an expansion of gambling,” Skoe said.

The House passed the fantasy sports bill earlier this session.