Sports betting and fantasy contests authorized, licenses established, local restrictions prohibited, taxation and penalties provided, pari-mutuel horse racing authorized, and money appropriated.

HF 1842 authorizes sports betting and fantasy contests in Minnesota while establishing licensing requirements for operators and prohibiting local governments from banning these activities. The bill creates a tax system for sports betting and fantasy contests, requires operators to obtain state licenses, and includes specific rules for mobile betting applications and in-game wagers. It clarifies that standard fantasy sports contests (based on real athlete performance) are permitted, but esports events must meet additional criteria. The legislation also updates tax rates for pari-mutuel horse racing and requires reports on gambling revenue, affecting operators, tribal casinos, and residents aged 21+ who place bets.