The Minnesota Racing Commission has recently notified us of new requirements for Source Market Fees for residents of Minnesota.
Previously, HorseTourneys had received a waiver of a portion of these source market fees owed to the state on play at HorseTourneys and HorsePlayers. Effective July 1, 2021, we are now responsible for the full amount of prescribed source market fees for ADW providers in the state.
Due to our extremely low blended takeout rate (approximately 11 percent blended), HorseTourneys is unable to absorb this source market fee requirement in our existing expense structure. As a result, the State Fee on deposits for Minnesota residents has been increased to six (6) percent of deposited funds. This is only applied to your deposits, not to your entry fees on either site.
We regret that costs for Minnesota residents have increased, but please understand that this additional State Fee is required for us to be able to serve Minnesota residents. We will advise if there is any change to the source market fee requirement moving forward.