Minnesota Moves to Criminalize Alternative Gaming and Prediction Markets

Minnesota Moves to Ban Alternative Gaming Models

Minnesota lawmakers are taking a clear position on new gaming models — and the message is firm. A group of state senators introduced two bills targeting sweepstakes casinos and prediction markets. The proposals may change how digital gaming works across the state. 

They also come as lawmakers review plans to allow online sports betting. Pressure is rising — and the outcome remains uncertain.

Prediction Markets Face Strict Felony Charges

The first bill, Senate File 4511, focuses on prediction markets tied to real events. These markets let users place trades on outcomes like elections or global events. Under the proposal, these activities would become felony crimes in Minnesota. 

The bill bans wagers linked to politics, wars, and human life. Sports outcomes and casino-style games also fall under the ban — with few exceptions. Even contests that mix skill and chance may not be allowed. This wide scope could affect many existing business models.

Operators who ignore state orders could face fast legal action — and serious penalties. A conviction would block companies from getting gaming licenses for ten years. The law may take effect on August 1, 2026, if passed.

Advertising Rules Target Broad Media Channels

Beyond operations, the bill sets strict rules on advertising and promotion. These rules may affect marketers, media groups, and partners. Ads for prediction markets would face limits during key daytime hours. Promotions between 8 a.m. and 10 p.m. could lead to felony charges.

Live sports broadcasts would also ban such ads. This step shows concern about large audiences during these events. Ads also cannot appear where under-21 users make up ten percent or more. This rule applies to both online and offline channels. The reach is wide — and the goal appears clear.

Sweepstakes Casinos Also Under Fire

The second bill, Senate File 4474, targets sweepstakes casinos using dual-currency systems. These systems often copy real gambling while avoiding legal rules. Lawmakers now want to stop this method — and remove the gap in the law.

The bill would ban casinos offering virtual coins that turn into real cash prizes. It also covers games that look like normal casino products. The proposal goes further by targeting support services as well. It includes:

• Payment processors and financial groups

• Geolocation service providers

• Game developers and content suppliers

Sports Betting Plans Move Alongside Restrictions

At the same time, lawmakers are reviewing a separate sports betting bill. Senate File 4139 would allow legal betting through tribal agreements. The plan includes eleven licenses for recognized tribal gaming groups. These groups could partner with large sportsbook operators if approved.

However, the bill still keeps strong safety rules — including limits on certain bets. Prediction markets and college prop bets would stay banned. Hence, Minnesota seems to be drawing a clear line. Legal betting may move ahead — while other models face removal.