The proposed bill seeks to amend the Minnesota Constitution by adding a new section to Article XIII that would authorize sports betting within the state. This amendment stipulates that sports betting can only be conducted by federally recognized Indian Tribes operating under a Tribal-state gaming compact or by licensed horse racing tracks. Additionally, the bill mandates the establishment of a regulatory framework for sports betting and imposes a tax rate of 20 percent on the amounts wagered, excluding winnings paid out to bettors. The revenues generated from this tax are required to be allocated equally to fund substance use disorder programs, local charitable organizations supported by licensed lawful gambling entities, horse racing purses, and the state general fund.

Furthermore, the bill outlines that the proposed constitutional amendment will be presented to voters during the 2026 general election. The ballot question will ask whether the Minnesota Constitution should be amended to legalize sports betting under the specified conditions, impose a tax on it, and designate the tax revenue for the aforementioned purposes.