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Minnesota lawmakers passed two gambling bills on April 30, targeting online sweepstakes casinos and prediction markets with wide bipartisan support. Both bills now head to the House before the May 18 session deadline.
Good to Know
Minnesota does not allow online gambling, and Senate lawmakers used that point to back two bills in one day. SF 4474 would ban dual-currency sweepstakes casinos, while SF 4511 would ban prediction markets tied to sports, elections, court rulings, weather, wars, awards, and other future events.
The sweepstakes bill focuses on casino-style products that use two currencies, including one that players can redeem for cash, prizes, or cash-like rewards. Liability would not stop with operators. Payment processors, financial firms, geolocation providers, content suppliers, platform providers, and media affiliates could also face legal risk if they help those platforms serve Minnesota players.
Attorney General Keith Ellison already tested the issue last November when he sent cease-and-desist orders to 14 online gambling companies, including Fortune Coins, LuckyLand, and Zula Casino. Some platforms continued operating. SF 4474 would give Ellison and the Commissioner of Public Safety clearer power to pursue felony charges.
A loophole may still exist. The bill targets dual-currency sweepstakes models, so single-currency versions could test the law if Minnesota enacts it.
Prediction markets face a separate ban under SF 4511. The bill would make it a felony to create, run, promote, or support platforms that let consumers trade on listed future events. It keeps carve-outs for insurance, commodity futures, bingo, horse racing, lottery tickets, and private social bets.
Senator John Marty framed the issue plainly. He said: “Prediction markets are nothing more than gambling, but they have found loopholes to circumvent our laws and allow sports betting on their platforms.”
Legal fights are likely. Senate Minority Leader Johnson warned that federal challenges have followed similar state actions. According to him, “they’re going to be coming to Minnesota soon. It’s almost a guarantee that every state that’s passed this so far has dealt with a lawsuit.”
Senator Jordan Rasmusson also backed the ban despite the wider legal uncertainty.“We are seeing the rapid expansion of these prediction markets, we are seeing an expansion of corruption that follows,” Rasmussen noted.
One subplot added awkward timing. DFL Senator Matt Klein co-sponsored the prediction market bill and voted for both bans after previously admitting he placed a $50 bet on his own congressional primary race on Kalshi. Kalshi fined him and suspended him for five years. Klein said: “This was a mistake, and I apologize.”
The House now has companion bills on file, HF 4410 for sweepstakes casinos and HF 4436 for prediction markets. Neither has advanced far, though lawmakers could take up the Senate versions directly. Gov. Tim Walz has not publicly stated his position.
Tribal gaming groups support both bills, along with religious and civic organizations that often oppose gambling expansion. Minnesota gambling remains mostly limited to tribal casinos, horse racing, and cardrooms, so the state lacks the same commercial casino lobbying split seen elsewhere.