Minnesota lawmakers have introduced two measures that would outlaw prediction markets and online sweepstakes casinos while the state considers legalizing sports wagering.
Senate File 4474 and Senate File 4511 were filed Monday and referred to separate legislative committees. Senators Jordan Rasmusson, John Marty, Erin Maye Quade and Matt Klein are among the sponsors of both proposals. The legislation comes as policymakers again debate sports betting through a tribal-focused framework.
Bill Aims To Criminalize Event-Based Contracts
SF 4511 would classify certain prediction market activity as a felony. Minnesota law currently states that securities and futures commodities are not bets. The bill would amend that rule by excluding “wagers, bets, trades, contracts, or financial positions” tied to specific events.
The proposal lists contracts related to the outcomes of athletic competitions or events within those contests among those that would be banned. It also covers gaming or promotional activities “including an outcome that relates to a game, scheme, or promotion where a prize or something of value is awarded based on skill, merit, performance or chance, regardless of whether an entry fee is required.”
Contracts linked to people, elections, government actions, catastrophe, war, terrorism or death would also become felony offenses under the measure.
Advertising prediction markets as legal in Minnesota would be prohibited. The bill would also bar promotions on broadcast channels between 8 a.m. and 10 p.m., during live sporting events or through media where at least 10% of the audience is expected to be under 21.
Suppliers and affiliate partners that continue facilitating these contracts after receiving a cease-and-desist order from the Minnesota Attorney General would face felony charges. Anyone convicted would be unable to obtain a gaming license in the state for 10 years. If approved, the law would take effect Aug. 1, 2026.
Online Sweepstakes Casinos Face Ban
SF 4474 targets online sweepstakes-style games that use dual currencies and imitate casino gambling. Operating or promoting such games would be a felony.
The bill would also apply to businesses providing services such as payment processing, geolocation tools, gaming content or platform support to sweepstakes operators.
It defines an “online sweepstakes game” as a digital contest or promotion that uses a dual-currency system to simulate gambling. The proposal describes “dual-currency” as a payment structure allowing participation in simulated gambling for direct or indirect consideration with the chance to win prizes, cash or equivalents. Contests without any consideration would not fall under the definition.
Debate Continues Over Sports Betting Plan
The proposals arrive as Minnesota lawmakers again examine legalizing online sports betting. A separate measure, SF 4139, would allow regulators to issue 11 sports wagering licenses to the state’s gaming tribes, which could partner with commercial sportsbook operators.
That proposal would also ban prediction markets and restrict certain practices, including proposition bets on college sports and push notifications aimed at encouraging inactive users to gamble.
Source:
“Minnesota bills propose prediction markets, sweepstakes casinos bans”, sbcamericas.com, March 14, 2026
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