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A motion that could have slowed Minnesota’s latest sports betting bill was defeated last week. The bill remains on its current course, though the road ahead remains uncertain.
Senate File 4139, introduced by Sen. Nick Frentz, aims to legalize sports betting in Minnesota. When Frentz introduced the bill earlier this month, he requested it be referred to the Committee on Commerce and Consumer Protection. That request was granted, but Sen. Jordan Rasmusson challenged the decision.
At a Senate Committee on Rules and Administration hearing, Rasmusson filed a motion to move the bill to the Committee on State and Local Government instead. Senators from both parties testified, but Rasmusson’s motion failed. The bill now returns to the Commerce committee.
Procedural clash: Why the commerce committee referral matters
His argument drew support from members of the State and Local Government committee itself. Sens. Erin Maye Quade and John Marty both testified in favor of the motion. Neither senator is new to the issue; both have opposed sports betting legislation in the past. Along with Rasmusson, the two helped block a sports betting bill last year during the Taxes Committee stage.
How prediction markets changed the SF 4139 debate
A new factor has shifted the 2026 debate: the rise of federal approval for prediction markets like Kalshi and Polymarket. Frentz recently argued that because these platforms are increasingly accessible, Minnesota must pass SF 4139 to ensure the state can regulate and tax this activity rather than leaving it to federal oversight or offshore entities.
Conversely, Marty has doubled down on his opposition by introducing companion legislation to ban prediction markets. He frames these platforms as “unregulated sportsbooks” that lack essential consumer guardrails.
MN lawmakers advance sweepstakes casino ban
In a parallel move this week, House and Senate committees advanced bills (HF 4437 and SF 4474) that would effectively ban sweepstakes-style online casinos and prediction markets. Proponents of SF 4139 are using these bans as leverage, suggesting that the state should move to eliminate unregulated actors while simultaneously establishing a legal, tribal-led framework for sports wagering.
The proposed bans would make it a felony to operate or promote dual-currency games that simulate casino-style gambling. This crackdown is intended to “occupy the field,” ensuring that the 11 federally recognized tribes maintain exclusivity and that all betting in the state is subject to Minnesota’s strict consumer protections.
The long road to legalization: Will 2026 be the year?
Minnesota has explored legalization since 2019, following the US Supreme Court ruling that gave states the authority to regulate sports betting. Previous attempts have failed in committee or on the floor.
While the 2025 attempt died early, this year’s version arrived with broader support. Republicans Jeremy Miller, Eric Pratt, and Julia Coleman signed on as co-sponsors alongside Frentz, giving the bill a bipartisan profile. Despite that backing, the bill must still pass through several more committees. As first reported by Legal Sports Report, the 2026 session ends May 18, leaving a narrow window for these complex negotiations to conclude.
