Minnesota Lawmakers Propose Sweepstakes Casino and Prediction Markets Ban
Posted on: March 17, 2026, 09:52h.
Last updated on: March 17, 2026, 09:52h.
- Legislation in Minnesota would prohibit online sweepstakes casinos
- A second bill would limit what federally regulated prediction markets can trade in Minnesota
Minnesota does not permit commercial casino gambling, sports betting, or iGaming, but options to make a wager on the internet remain rampant through unregulated and/or gray gaming platforms. Several state lawmakers have had enough.
This week, Minnesota Senators introduced legislation to prohibit online sweepstakes casinos and federally regulated prediction markets from offering certain trading contracts within the state.
Senate File 4474 would criminalize social casinos from utilizing a “dual-currency system of payment allowing the player to exchange the currency for a prize, award, cash, cash equivalent, or chance to win a prize, award, cash, or cash equivalent.” SB4474 was introduced by Minnesota Sen. Jordan Rasmusson (R-Fergus Falls) and cosponsored by three Democrats and another Republican.
Senate File 4511 would prohibit prediction markets from offering contracts in Minnesota that involve the outcomes of sports, politics, including elections, catastrophes like war, terrorism, violence, and state emergencies, and death. The owners and operators of prediction markets that don’t comply would be subjected to felony charges.
SF4511 was introduced by Sen. John Marty (D-Ramsey) and cosponsored by three Democrats and Rasmusson.
Sweeps Sweep Away Warnings
Minnesota, like so many other states, remains targeted by controversial sweepstakes casinos. The online websites claim to be free-to-play social gaming operations, but their inclusion of a secondary digital currency that can be purchased, commonly called sweeps coins, has spurred many critics.
Sweepstakes casinos allow sweeps coins to be played on online slot machines and table games, including live dealer. The websites contend that sweeps coins cannot be “cashed in” but only redeemed for prizes. The condition seeks to maintain the operators’ claims that they’re running online sweepstakes — not traditional casino gambling.
However, the sweeps coins, along with prizes like gift cards, can be redeemed for cash withdrawals. Critics, including Minnesota Attorney General Keith Ellison (D), say sweepstakes casinos are “illegal gambling websites.”
Online platforms offering casino games run by out-of-state and overseas operators may make it look as though online gambling is legal and safe in Minnesota, but let me be clear: it is not. Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful,” Ellison said in a November 2025 warning.
“By continuing to operate online gambling sites in Minnesota, these operators are likely openly defying our state’s laws, and I will not stand for it,” Ellison added.
Social sweepstakes casinos have nonetheless continued to allow their websites and apps to be accessed within Minnesota. Leaders like Chumba Casino, Stake, and Modo all remain live in the state.
Prediction Market Controversy
No topic in the US gaming space is more discussed currently than prediction markets. The online trading markets, regulated by the Commodity Futures Trading Commission, began offering event contracts tied to sports last year.
Under the Trump administration, the CFTC has sought to allow prediction markets to engage in sports trading. Federal legislation backed by Democrats seeks to restore states’ rights to dictate their own laws on sports betting.
SF4474 has been directed to the Senate Commerce and Consumer Protection Committee for initial review. SF4511 resides with the Senate Judiciary and Public Safety Committee.
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