>> ERIC: ONE OF THE HOT TOPICS AT THE LEGISLATURE THIS YEAR IS THE FUTURE OF GAMBLING IN MINNESOTA.

THERE IS AN EFFORT ONCE AGAIN TO LEGALIZE SPORTS BETTING IN THE NORTH STAR STATE, BUT THAT YEARS-LONG PUSH HAS HIT A NEW SNAG IN DEBATES OVER WHAT IS KNOWN AS "HISTORICAL HORSE RACING."

A DECISION BY THE MINNESOTA RACING COMMISSION LAST WEEK TO ALLOW THAT FORM OF GAMBLING AT THE CANTERBURY PARK AND RUNNING ACES RACETRACKS RESULTED IN LAWMAKERS INTRODUCING A NEW AMENDMENT SPECIFICALLY BANNING THE PRACTICE.

JOINING US NOW WITH HER PERSPECTIVE IS TRACIE WILSON, CFO OF RUNNING ACES.

WHY DO THE TRACKS NEED A PIECE OF THE SPORTS BETTING ACTION?

>> WELL, IT'S SO IMPORTANT.

I MEAN, WE'RE UNDER A HUGE THREAT.

IF THAT SPORTS BETTING GOES THROUGH WITHOUT THE RACETRACKS INCLUDED, THAT'S GOING TO HAVE A HUGE NEGATIVE IMPACT ON OUR REINHARDTS.

WHICH OF COURSE REINHARDTS SUPPORTS THE PURSES, WHICH SUPPORTS HE RACING INDUSTRY, ON DOWN.

SO WE NEED TO BE INCLUDED IN THAT SPORTS BETTING BILL.

THEY DON'T WANT TO INCLUDE US, SO WE NEED TO SOMEHOW BE FAIRLY COMPENSATED.

IF THEY WANT TO GIVE US MONEY OUT OF THE SPORTS BETTING BILL, BUT WHAT WE HAVE DONE IS WE HAVE SPENT A LOT OF TIME ON THIS NEW PARAMUTUAL HISTORICAL HORSE RACING PRODUCT.

IT'S A NEW FORM -- IT'S A MODERN FORM OF PARAMUTUAL BETTING.

SO WHAT YOU DO IS YOU GO TO -- JUST LIKE YOU GO TO A RACETRACK TODAY.

AND YOU BET ON THIS PARAMUTUAL TERMINAL.

AND IT'S ON, INSTEAD OF ON A RACE THAT'S GOING ON RIGHT NOW, IT'S ON A AST RACE.

SO YOU BET JUST LIKE IT.

YOU CAN HANDICAP.

NOW, OF COURSE THEY'RE GOING TO OBSCURE THE NAME OF THE RACE SO YOU CAN'T CHEAT.

>> Eric: CAN'T GO ON GOOGLE.

>> YOU CAN'T GOOGLE WHO WON.

BUT YOU'RE STILL GOING TO HAVE ALL OF THE ACTUAL HAND CAPPING INFORMATION.

YOU CAN HANDICAP THE RACES YOURSELF.

>> Cathy: NOW, THEY DO THIS IN KENTUCKY.

IT'S CALLED INSTANT RACING AND IT'S WILDLY SUCCESSFUL.

I THINK $10 BILLION HAS BEEN SPENT ON THIS ACROSS THE COUNTRY IN VARIOUS STATES.

SO THE RACING COMMISSION KIND OF APPROVED THIS.

AND IT SEEMED LIKE IT KIND OF BLIND-SIDED SOME OF THE LAWMAKERS.

WOULD HAT BE ACCURATE?

>> WELL, I DON'T THINK IT BLIND-SIDED ANYONE.

WE'VE BEEN WORKING ON IT.

WE INTRODUCED THIS APPLICATION IN JANUARY.

AND THE MINNESOTA RACING COMMISSION SPENT MONTHS VETTING IT.

THEY -- WE'VE HAD GAMING LABORATORIES COME IN AND REVIEW THE PRODUCT.

AND IT'S 100% PARAMUTUAL.

SO, YES, I THINK YOU'RE RIGHT THAT IT DID BLIND-SIDE THEM THAT THEY ACTUALLY TOOK A VOTE.

THEY TOOK THAT VOTE ON APRIL 1ST, WHICH WAS A MONDAY.

AND THEN ON THURSDAY, RIGHT AWAY, REPRESENTATIVE STEPHENSON DROPPED THE BILL THAT IS EXCLUSIVELY TARGETING THE RACING INDUSTRY AND IT'S NOT ONLY MAKING IT ILLEGAL FOR THIS NEW HORSE RACING, BUT IT'S NOW GOING XE OUR CURRENT EXISTING ARD ROOM GAMES AND GAMING, WHICH IS HAVING -- THAT'S GOING TO CRUSH THE INDUSTRY.

THAT WILL PUT US OUT OF BUSINESS.

>> Eric: THE TRIBES HAVE A DECISION TO MAKE ABOUT EXPANDING GAMBLING, OR WHATEVER THEY DO CAN BE DONE BY THE TEST OF THE STATE.

IS THERE A TRIBE TRACK MUTUAL PLACE THERE SOMEWHERE?

>> WELL, I SURE THINK THAT THERE'S ENOUGH SMART PEOPLE IN ST. PAUL TO BE ABLE TO FIGURE OUT HOW TO GET US ALL TOGETHER AND HAVE A WIN-WIN-WIN.

I MEAN, THERE'S NO REASON HORSE RACING CAN'T THRIVE.

THERE'S NO REASON TRIBAL CASINOS CAN'T THRIVE.

SO I REALLY THINK IT'S IMPORTANT FOR THE LEGISLATORS TO LOOK AT THIS.

THEY CAN'T TARGET THE RACING INDUSTRY WITH THIS UNFAIR BILL.

AND THEY HAVE TO DO SOMETHING ABOUT SPORTS BETTING.

I MEAN, THE SPORTS BETTING, IF THAT GOES THROUGH WITHOUT US, WE NEED SOMETHING.

WE -- THIS NEW PRODUCT WILL DO IT.

>> Cathy: OR IF YOU CAN'T GET THAT PRODUCT, WOULD YOU THEN LOBBY FOR DIRECT SUBSIDIES FOR BOTH TRACKS?

>> WELL, WE OBVIOUSLY DON'T WANT TO HAVE DIRECT SUBSIDY.

THIS NEW PRODUCT, THAT'S GOING TO SUSTAIN THE INDUSTRY, RIGHT?

WE WOULDN'T NEED A SUBSIDY.

BUT YES, IF THEY'RE GOING TO TAKE AND CARVE US OUT OF SPORTS BETTING AND THEY'RE NOT GOING TO GIVE US THIS PRODUCT THAT THE MINNESOTA RACING COMMISSION HAD THE LEGAL AUTHORITY TO PRIVATE FOR US, THEY'RE GOING TO HAVE TO.

>> Eric: KEY STATE LAWMAKERS DISAGREE WITH THAT.

THEY SAY THEY EXCEEDED THEIR AUTHORITY.

>> THEY DO SAY THAT, BUT IT'S 100%, AND THEY HAVE THE AUTHORITY.

THE MINNESOTA RACING COMMISSION HAS THE AUTHORITY TO APPROVE THIS NEW, MODERN FORM OF PARAMUTUAL BETTING.

>> Eric: BUT IT'S NOT A SLOT MACHINE IN YOUR VIEW?

>> IT'S ABSOLUTELY NOT A SLOT MACHINE.

>> Cathy: IT LOOKS LIKE A SLOT MACHINE.

>> I HEAR WHAT THEY'RE SAYING, BUT WHO'S DEFINING WHAT SOMETHING CAN LOOK LIKE?

I MEAN, IT'S JUST KIND OF CRAZY, RIGHT?

,I MEAN, THIS IS AMODERN FORM OL BETTING.

AND JUST BECAUSE IT LOOKS SIMILAR, I DON'T THINK THERE'S ANYTHING N OUR LAWS TODAY THAT SAYS JUST BECAUSE YOU LOOK SIMILAR, YOU CAN'T DO THAT.

I MEAN, THAT'S JUST -- IT SEEMS CRAZY.

>> Eric: WELL, WE'LL WATCH AND LEARN