Published on: March 17, 2026, at 09:52 AM.
Updated on: March 17, 2026, at 09:52 AM.
- Proposed legislation in Minnesota aims to ban online sweepstakes casinos.
- A separate proposal seeks to restrict federally regulated prediction markets’ offerings in Minnesota.
Despite the absence of commercial casino gambling, sports betting, or iGaming in Minnesota, numerous unregulated online gambling options thrive. Frustrated by this situation, several lawmakers are taking action.
Recently, Minnesota Senators introduced measures to outlaw online sweepstakes casinos and federally governed prediction markets from conducting specific trades in the state.
Senate File 4474 seeks to criminalize social casinos from using a “dual-currency payment system that permits players to exchange currency for prizes, cash, cash equivalents, or chances to win such items.” This bill was put forth by Senator Jordan Rasmusson (R-Fergus Falls) and has bipartisan support.
Senate File 4511 aims to restrict prediction markets from offering contracts linked to outcomes in sports, politics (including elections), disasters like war and terrorism, violent acts, state emergencies, and mortality. Failure to comply would lead to felony charges for market operators.
SF4511 was introduced by Senator John Marty (D-Ramsey), with backing from three Democratic peers and Rasmusson.
Concerns Over Sweepstakes Casinos
Similar to many states, Minnesota faces challenges from contentious sweepstakes casinos. These online platforms tout themselves as social gaming sites but utilize a secondary digital currency known as sweeps coins, igniting controversy.
These casinos allow players to use sweeps coins in various online casino games, including slots and table games. They argue that sweeps coins cannot be converted into cash but can only be exchanged for prizes, maintaining their stance as sweepstakes rather than traditional gambling.
Critics argue otherwise, stating that sweeps coins and other prizes, such as gift cards, can indeed be turned into cash. Minnesota Attorney General Keith Ellison (D) has described sweepstakes casinos as “illegal gambling operations.”
“While online platforms providing casino games operated by out-of-state entities may create the illusion of legal and safe online gambling in Minnesota, this is not the case. Attempting to present poker chips as virtual currencies does not alter the fact that these operations are unlawful,” Ellison stated in a warning issued in November 2025.
He further noted, “These operators are likely violating our state’s laws by continuing to run online gambling sites in Minnesota, and I will not tolerate it.”
Nevertheless, social sweepstakes casinos continue to operate within Minnesota, with major players like Chumba Casino, Stake, and Modo still available to users in the state.
The Prediction Market Debate
Currently, prediction markets have become one of the most talked-about subjects in the US gaming industry. These markets, regulated by the Commodity Futures Trading Commission, began to introduce event contracts tied to sports over the past year.
During the Trump administration, the CFTC aimed to permit prediction markets to engage in sports trading. Newly proposed federal legislation by Democratic leaders seeks to restore states’ autonomy in determining their own regulations regarding sports betting.
Both Senate Bills 4474 and 4511 are currently under review by the Senate Commerce and Consumer Protection Committee and the Senate Judiciary and Public Safety Committee, respectively.