Two Minnesota bills aimed at prohibiting online sweepstakes and prediction markets offering contracts on sports, elections, disasters, and current events have advanced out of committee for further discussion.
Prediction Markets Under Fire
Sponsors of House File 4437 seek to ban the operation, hosting, and promotion of prediction platforms that offer, among other products, sports event contracts.
The bill was unanimously approved by the House Public Safety Finance and Policy Committee and now moves to the Commerce Committee, where it could be taken up in the coming days. A similar measure is also expected to be considered by a Senate committee soon.
Companies operating these platforms, as well as payment processors and other affiliated entities, could face criminal charges if they continue operations after being ordered to stop. The bill also restricts advertising, particularly in locations where minors are likely to be exposed, and would prevent anyone convicted under the law from obtaining a gaming license for 10 years.
Minnesota Still Weighing Legal Sports Betting
Platforms like Kalshi and Polymarket have gained mainstream attention after introducing sports event contracts ahead of Super Bowl 2025. It has been reported that over 80% of their volume has been tied to sports-related contracts.
Meanwhile, Minnesota lawmakers are also considering separate legislation that would legalize mobile sports betting. The state remains one of 11 without regulated sports wagering.
Emma Greenman, a co-sponsor of the bill, stated that the rapid expansion of these platforms has led to widespread gambling activity without proper safeguards.
Sweepstakes Casinos in the Spotlight
SF 4474 aims to ban online sweepstakes-style games and crack down on revenue tied to offshore gambling. Under the bill, an “online sweepstakes game” is defined as any game, contest, or promotion that is accessible online or via mobile devices, uses a dual-currency system, allows players to exchange that currency for prizes or cash (or chances to win them), and mimics casino-style or other gambling activities.
The legislation would ban operating, promoting, or running these types of games within the state. It also extends liability to companies that support these platforms, including payment processors, geolocation services, platform providers, and media partners.
Expanded Liability for Payment and Media Partners
Regulators would be required to enforce penalties under Minnesota’s consumer prize-promotion law (Statute 325F.755), which outlines consequences for violations. The Senate Commerce and Consumer Protection Committee ultimately approved SF 4474 and moved it forward to the Judiciary Committee.
During a Senate Commerce and Consumer Protection Committee hearing titled “Effectively Online Gambling,” bill sponsor Sen. Jordan Rasmusson argued that many sweepstakes casinos already function as gambling products, even if they are marketed as promotions. He described the bill as a clarification of existing law and a move to prohibit dual-currency, casino-style systems. He also pointed out that several other states have taken steps to restrict or ban similar platforms.
Supporters of the bill—including tribal representatives and charitable gaming groups—said these platforms take advantage of loopholes to avoid licensing requirements, taxes, and consumer protections that apply to regulated gambling operators.
Industry Pushback
Opposition has emerged from industry stakeholders.
Patrick Fechtmeyer argued that the legislation may not effectively eliminate the practice, noting that sweepstakes platforms are often legal and free to enter.
Meanwhile, Lexi Morgan warned that the bill could overreach by potentially targeting legitimate promotional sweepstakes. She emphasized that such restrictions could negatively impact businesses that rely on these promotions to engage customers and drive revenue.
