Minnesota House Bill HF4353

Minnesota 2025-2026 Regular Session

• Introduced: 3/16/26
• Refer: 3/16/26

Caption

Definition of advance deposit wagering modified, and advance deposit wagering proceeds provided.

Summary

HF4353 revises Minnesota’s pari-mutuel horse racing law, specifically the rules governing advance deposit wagering (ADW), which is wagering placed through an ADW provider on horse races conducted outside the state. The bill updates the statutory definition of “advance deposit wager” and restructures how source market fees from ADW are distributed among licensed racetracks. Under the bill, source market fees paid by ADW providers would be allocated between Minnesota racetracks based on breed focus: 28 percent to a racetrack that primarily conducts standardbred racing and 72 percent to a racetrack that primarily conducts Thoroughbred and Quarter Horse racing. The bill also requires that at least half of the fees tied to out-of-state races be reserved for breeders’ awards and purses, with a portion directed to the state breeders fund and the remainder to purse accounts under agreements with horsepersons’ associations. For in-state races, at least half of the fees must go to purse accounts. The bill further provides that no source market fees may be paid to a racetrack whose license has been revoked or not renewed, in which case those fees are redirected to the other licensed racetrack.

Impact

The bill amends Minnesota Statutes sections 240.01 and 240.131, changing the legal definition of advance deposit wagering and the statutory framework for distributing ADW source market fees. Its practical effect is to direct wagering-related revenue to support purses, breeders awards, and racetrack operations, while also creating a fallback rule for fee distribution if a racetrack loses its license. The bill primarily affects licensed racetracks, horsepersons’ associations, breeders, and ADW providers operating under Minnesota’s horse racing regulatory system.

Sentiment

Based on the bill text and available context, the measure appears to be a policy-driven industry support bill rather than a controversial overhaul. The stated legislative intent is to use ADW proceeds to strengthen Minnesota’s horse racing industry by improving purses, supporting breeding, and ensuring adequate regulation. No committee transcripts or recorded votes were provided, so there is no direct evidence of opposition or support in the available record, but the structure of the bill suggests it is intended to benefit racetracks and horse racing stakeholders.

Contention

The main potential points of contention are how the source market fees are divided between the state’s racetracks and how much of those proceeds must be reserved for breeders versus purses. Standardbred interests and Thoroughbred/Quarter Horse interests may scrutinize the 28/72 split, and horsepersons’ associations may focus on how purse-account agreements are implemented. Another possible issue is the redirection of fees away from any racetrack whose license is revoked or not renewed, which could become significant if a track loses licensure. No specific objections or supporters are documented in the provided materials.