A Minnesota proposal that would grant 11 sports wagering licenses to tribal operators has surfaced alongside new legislation targeting prediction markets and sweepstakes casinos.

Lawmakers are reviewing Senate File 4139, a bill that would authorize state regulators to issue sports wagering licenses to the state’s gaming tribes. Under the proposal, tribes could partner with commercial sportsbook operators to offer online sports betting.

The measure also includes provisions that would ban prediction markets. It also restricts prop bets on college sports and prohibits push notifications designed to encourage inactive users to place wagers.

At the same time, legislators have introduced two additional measures addressing unregulated gaming formats operating online.

Bills propose bans on prediction markets and sweepstakes casinos

Sens. Jordan Rasmusson, John Marty, Erin Maye Quade, and Matt Klein are four of the five sponsors of Senate File 4474 and Senate File 4511. Both bills were filed on Monday and referred to different legislative committees.

SF 4511 would make it a felony to offer markets for trading tied to sports, casino-style games, politics, people, and other events.

SF 4474 targets sweepstakes-style platforms. The measure would make it a felony to operate or promote online dual-currency games that simulate casino-style or other forms of gambling.

Prediction markets bill defines prohibited event contracts

SF 4511 proposes amendments to Minnesota law governing securities and futures commodities. Current law states that securities and futures commodities are not considered bets. The bill would create an exception covering certain event-based contracts.

The proposal applies to “wagers, bets, trades, contracts, or financial positions” tied to specific categories.

Contracts related to the outcomes of athletic or sporting events, or to events occurring within those contests, are listed among the prohibited categories.

The bill also names contests or casino-style gaming, “including an outcome that relates to a game, scheme, or promotion where a prize or something of value is awarded based on skill, merit, performance, or chance, regardless of whether an entry fee is required.”

Offering contracts tied to individuals, political events such as elections or government actions, catastrophe, war, terrorism, and death would also constitute a felony offense.

If passed and signed into law, the measure would take effect on August 1, 2026.

Advertising restrictions included in prediction markets proposal

The legislation also addresses promotion and marketing practices tied to prediction markets.

Advertising these markets as legal in Minnesota would constitute a felony offense. The proposal also prohibits advertising through broadcast media between 8 a.m. and 10 p.m. local time or during live sporting event broadcasts.

Restrictions would also apply to advertising displayed on public property or distributed through media channels where at least 10% of the audience is “reasonably expected” to be under the age of 21.

The bill applies to operators, along with supplier and affiliate partners. Entities that continue facilitating event contracts listed in the legislation after receiving a cease-and-desist letter from Minnesota’s Attorney General would face felony liability.

A conviction under the bill would also prevent a person or entity from obtaining a gaming license in Minnesota for 10 years.

Sweepstake platforms and suppliers face felony penalties

SF 4474 addresses online sweepstakes platforms that use dual-currency systems.

The bill defines an “online sweepstakes game” as an online game, contest, or promotion that utilizes a dual-currency system and simulates casino-style or another form of gambling.

Under the proposal, any person or entity would be prohibited from operating or promoting such games in Minnesota.

The legislation lists several types of businesses that could face felony charges for involvement with these platforms. These include financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates.

SF 4474 also defines “dual-currency” as a payment system that allows a person to participate in a simulated gambling program for direct or indirect consideration with the chance to win a prize, cash, or cash equivalent.

The definition states that “dual-currency” does not include a contest in which no consideration is provided, either directly or indirectly.

Legislative activity appears across multiple jurisdictions

Lawmakers in other jurisdictions have introduced measures addressing prediction market platforms.

Active bills have been filed in states including New York, Hawaii, and Illinois. Several proposals have also been introduced in Congress in recent weeks.

In Iowa, a bill proposing a $10 million licensing fee for platforms such as Kalshi and a 20% tax on event contract revenue received unanimous approval from the Senate Ways and Means Committee on March 11.

Several states enacted bans on online sweepstakes gaming in 2025. Indiana Gov. Mike Braun signed the first state sweepstakes prohibition of 2026 into law on March 12.