Minnesota Sweepstakes Casino Ban Moves One Step Closer

Minnesota Sweepstakes Casino Ban Moves One Step Closer

A Minnesota sweepstakes casino ban has advanced after the state Senate cleared a new bill. However, there is a race on to get the ban onto the statute books, with just weeks before the legislative session ends.

Under the new law, Senate Bill 4474 would outlaw dual-currency sweepstakes casino sites. Currently, Minnesota has not regulated online casinos. It does not distinguish between real-money casinos and sweeps casino sites.

At a Glance:

  • SB 4474 sent to the House for clearance
  • Race is on to clear legislation before May 18
  • Bill targets sweepstakes casinos and affiliates
  • Stronger enforcement rules for authorities

Cease-and-desist notices not working in Minnesota

Minnesota lawmakers moved to enact a complete ban on sweepstakes casinos following months of warnings to operators.

Attorney General Keith Ellison had issued multiple cease-and-desist letters, warning sweepstakes casinos against operating in Minnesota. Those letters went unnoticed, however, leaving senators little choice.

There seems to be no desire to license and regulate sweepstakes casinos in Minnesota, either. Instead, lawmakers are pushing for a blanket ban. Plus, the legislation goes further, sending a clear warning to sweepstakes casino operators who break the law.

Under the proposals, support networks are to be targeted, including:

  • Game suppliers
  • Media affiliates
  • IP hosts
  • Payment processors

The Commissioner of Public Safety will enforce the ban, with fines of up to $25,000 per offense.

Wave of states move to ban sweepstakes casinos in 2026

Minnesota isn’t alone in pushing for a sweepstakes casino ban. Four states have moved to ban sweepstakes in recent weeks.

Louisiana advanced HB 883 this month, which would ban sweepstakes casinos. Gov. Jeff Landry squashed a similar bill last year.

However, HB 53 — which includes stronger “racketeering” rhetoric — has gained traction and is under review by the Louisiana Legislative Bureau.

Finally, Oklahoma’s SB 1159 advanced this week, with Gov. Kevin Stitt facing options to sign it, veto it, or take no action. The bill becomes law should the governor do nothing.

Minnesota sweepstakes ban joined by prediction markets crackdown

The Minnesota Senate also has prediction markets in its sights, another bone of contention for states across the country. Lawmakers want to ban prediction market platforms, making the operation of one a felony.

As with sweepstakes casinos, the plan is to outlaw prediction markets rather than to regulate them. There are no plans to allow Minnesota to issue licenses to controversial prediction platforms.

However, Minnesota is considering legalizing and regulating sports betting. Despite dozens of U.S. states legalizing online sportsbooks in recent years, Minnesota has not joined them.

Ultimately, there was no vote on regulating online sports betting in the current session.