Minnesota lawmakers introduced two bills today (16 March) aimed at restricting both prediction market contracts and online sweepstakes-style casino games.
The proposals target emerging online wagering products that operate outside Minnesota’s existing regulated gambling framework, which could soon include regulated mobile sports betting.
Senate File 4511 amends current Minnesota gaming laws by adding new criminal prohibitions for operating certain prediction markets in the state.
It covers businesses that allow individuals to buy, sell, or trade financial bets based on what might happen in the future.
According to the proposal, these would be classed a felony if the bets depend on the results of sports, casino games, political events, public policy, or major disasters.
Under Minnesota law, a felony conviction can include imprisonment as well as fines.
The language also captures events involving individuals, including death or injury, placing a broad range of event-based trading products within the scope of the prohibition.
The legislation also addresses marketing practices associated with these platforms.
It would make certain advertising activity illegal, including promotion during live sports broadcasts, daytime and evening television programming, or media placements where a meaningful share of the audience is under the age of 21.
Additional provisions would allow enforcement action against businesses and service providers that continue processing payments or supporting operations after receiving a cease-and-desist order from the state attorney general.
Individuals or companies convicted under the statute could also face a 10-year prohibition on obtaining gaming-related licences in Minnesota.
Lawmakers set the proposed effective date for the new offences as 1 August 2026, applying to offences committed on or after that date.
Existing exceptions for pari-mutuel horse racing and private social transactions outside organised gambling would remain unchanged.
Sweepstakes gaming ban also in the works
Meanwhile, Senate File 4474 targets online sweepstakes platforms that simulate casino-style gambling while using dual virtual currencies.
Indiana became the latest state to ban sweepstakes casinos after Gov. Mike Braun signed similar legislation last week.
The bill would prohibit any person or business from operating, promoting, or conducting online sweepstakes games accessible within Minnesota.
The measure defines such games as internet or mobile products that combine simulated gambling mechanics with a dual-currency structure that allows players to compete for real-world rewards.
The legislation also extends liability beyond operators themselves.
Payment processors, banks, platform providers, geolocation services, media partners, and other assistants who aid the banned services might face consequences if they knowingly support these operations.
Under the bill, state authorities would be empowered to stop businesses from beginning or running sweepstakes operations when they take money related to these games.
Violations would be subject to penalties already established under Minnesota consumer protection law.