Minnesota Senate Bill SF4714

Minnesota 2025-2026 Regular Session

• Introduced: 3/23/26
• Refer: 3/23/26

Caption

Advance deposit wagering definition modification

Summary

SF4714 revises Minnesota’s pari-mutuel horse racing law by changing the definition of “advance deposit wager” and by updating how source market fees from advance deposit wagering (ADW) are distributed. Under the bill, an advance deposit wager is defined as a wager placed through an ADW provider on a horse race conducted outside Minnesota. The bill also states legislative intent that ADW proceeds should support and improve the state horse racing industry through better purses, breeding support, and regulation. The bill establishes a fee-sharing formula for source market fees received by class A and class B licensees from ADW providers. It directs 28 percent of those fees to a licensed racetrack that primarily conducts standardbred racing and 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter Horse racing. For out-of-state races, at least half of the fees must be set aside for breeders’ awards and purses, with at least 33 percent of that set-aside paid into the state breeders fund and the remainder going to purse accounts. For in-state races, at least half of the fees must be set aside for purses. The bill also bars payment of source market fees to a racetrack whose license has been revoked or not renewed, redirecting those fees to the other licensed racetrack instead.

Impact

The bill would amend Minnesota Statutes sections 240.01 and 240.131, affecting the legal definition of advance deposit wagering and the distribution of ADW-related source market fees. It would create a more specific statutory framework for how revenues from online/off-track horse race wagering are allocated among racetracks, breeders, purse accounts, and the state breeders fund, while also tying payments to the licensing status of racetracks. The practical effect is to channel wagering revenue toward horse racing operations and breeding incentives in Minnesota, with different treatment for in-state and out-of-state races.

Sentiment

The available record suggests generally supportive or at least industry-oriented sentiment, with the bill framed as a way to strengthen Minnesota horse racing through improved purses, breeding support, and regulation. No committee transcript or recorded votes were provided, so there is no direct evidence of opposition or debate in the materials supplied. The bill’s structure indicates an effort to balance interests among standardbred and Thoroughbred/Quarter Horse tracks while preserving funding for breeders and purses.

Contention

The main potential points of contention are the allocation formula and the distribution of fees between the two racetrack categories, since the bill gives 28 percent to a standardbred track and 72 percent to a Thoroughbred/Quarter Horse track. Another possible issue is the requirement that at least 50 percent of fees from out-of-state races be reserved for breeders’ awards and purses, including a mandatory share for the state breeders fund, which could be debated by tracks, horsepersons’ associations, and breeders over how much revenue should go to each use. The provision denying fees to a racetrack whose license is revoked or not renewed could also be significant for affected licensees, though no specific opposition is documented in the provided materials.