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A group of Minnesota state senators recently revealed two pieces of legislation targeting alternative gaming platforms. These proposals aim to outlaw prediction markets and online sweepstakes casinos entirely across the state. This week, Senators Jordan Rasmusson, John Marty, Erin Maye Quade, and Matt Klein formally supported these two proposals. The state senate is actively considering legalizing regular betting on sports online, which corresponds with this regulatory reform. Both newly filed bills would elevate the operation and promotion of these specific unregulated platforms to felony offenses.
Senate File 4511 Proposes Felony Charges and License Bans for Prediction Markets
The first legislative proposal directly targets platforms that offer financial trading on real-world outcomes. Senate File 4511 makes it a felony to facilitate wagers on political elections, global catastrophes, acts of war, or human lives. The sweeping legislation also strictly prohibits trading contracts based upon specific athletic outcomes or traditional casino-style games. Even contests awarding prizes based on a mixture of skill and chance face complete prohibition under this language. Any operator or affiliate partner ignoring official state cease-and-desist orders faces immediate criminal prosecution. Additionally, convicted entities will automatically lose their candidacy to hold any state gaming licenses for 10 full years. If the process passes this update, the new limits will activate on August 1, 2026.
Restrictions on Advertising Target Affiliate Marketers and Broadcasters
This prediction market legislation includes incredibly strict marketing restrictions alongside its operational bans. Broadcasting advertisements for these trading platforms between eight in the morning and ten at night would become a felony offense. Operators also cannot display these promotional materials during any live sporting event broadcasts whatsoever. Furthermore, the bill prohibits physical and digital advertising in any medium where individuals under twenty-one reasonably constitute ten percent of the audience. These sweeping promotional restrictions target third-party affiliate marketers and media partners just as heavily as the primary platform operators.
Senate File 4474 Aims to Criminalize Dual-Currency Sweepstakes and Their Suppliers
The second piece of legislation focuses entirely on simulated digital casino platforms operating within the jurisdiction. Senate File 4474 strictly outlaws any online sweepstakes games utilizing dual-currency virtual economies to bypass traditional gambling laws. The statutory language explicitly targets promotional systems that allow participants to win actual cash prizes through simulated casino gaming. This proposed felony ban extends its regulatory reach far beyond just the primary operators. The legislation directly criminalizes financial institutions, payment processors, geolocation software providers, and gaming content suppliers supporting these platforms. This state-level action reflects a rapidly growing national trend against these models, mirroring a similar sweepstakes ban signed by Indiana’s governor just days ago.
Parallel Sports Betting Legalization Efforts
These highly restrictive measures arrive alongside renewed legislative efforts to authorize conventional sports wagering. Lawmakers are currently reviewing a separate tribal-focused digital betting framework under Senate File 4139. This specific legislation would grant eleven exclusive sports wagering licenses directly to the state’s recognized gaming tribes. These sovereign nations could then establish lucrative operational partnerships with massive commercial sportsbook brands. Interestingly, this legalization bill includes its own strict consumer protection measures, effectively banning prediction markets, college sports prop bets, and aggressive mobile push notifications simultaneously.
Source: SBC News
