At the Indian Gaming Association’s Mid-Year Conference, held at Mystic Lake Casino near Minneapolis, tribal leaders from across the country gathered to address a growing threat to tribal gaming operations—unregulated gambling platforms, particularly prediction markets and online sweepstakes.
Andy Platto, Executive Director of the Minnesota Indian Gaming Association, voiced deep concern about these illegal offerings. “Tribes are under threat from tons of illegal gambling products and at this conference, tribes took notice and started fighting back,” he said. Speaking in a personal capacity, Platto pointed to the rapid expansion of online products that resemble sports betting and iCasinos—despite both being illegal in Minnesota.
Prediction Markets Add Pressure on Lawmakers
The issue escalated with the recent launch of Underdog’s sports wagering platform in Minnesota, coinciding with the start of the NFL season. According to Platto, this marks a new phase in the expansion of unregulated betting.
“This is the first time a sports betting provider has a legal product for Minnesotans to bet on the line and spread and totals,” he said. “They’re picking off the states that don’t have legal sports betting markets.”
Minnesota’s legislature is set to revisit the issue in February. A new bill would give the state’s 11 tribal nations exclusive rights to mobile sportsbook licenses. Tribes could launch their own platforms or partner with companies like DraftKings or FanDuel. The bill could bring in an estimated $88 million annually through a 22% tax rate.
Platto warned that if prediction markets continue to expand unchecked, they could undermine support for legal, regulated sports betting. “No one wants to use prediction markets when there’s a legal sports betting product,” he said. “That’s why the legislature needs to pass the bill.”
Federal Action Needed for Prediction Market Regulation
While sweepstakes issues can be handled at the state level, Platto stressed that prediction markets require federal intervention. State authorities often point to Commodity Futures Trading Commission guidance that limits their regulatory reach.
“Many states will point to the guidance from the CTFC and say the state has no regulatory role and that we can’t even shut them down,” Platto said. “But the feds could do something and that’s where we have to do the work.”
Broader Economic Challenges Also Loom
Beyond illegal betting, the conference also focused on inflation, federal funding cuts, and tariffs affecting tribal budgets and development. James Klas, of consulting firm KlasRobinson Q.E.D., noted that despite high costs and delays, tribes continue to pursue expansion and renovation projects. Many tribal casinos are decades old and in need of modernization.
“There’s some lingering repositioning post-COVID,”Klas said, highlighting changes like the removal of buffets and increased demand for renovated spaces.
While some commercial operators are delaying development, Klas said tribal gaming remains active. “There’s concern and reason to be vigilant, but people are in good spirits and forward looking and not hunkered down.”
Conference Chair Victor Rocha underscored the urgency for tribes to act decisively: “We’re in a fight… They’re trying to take our markets away.” Rocha added that the IGA will bring this message to the Global Gaming Expo in Las Vegas next month, calling for collective tribal advocacy amid growing industry uncertainty.
Source:
“Minnesota tribal conference addresses online sports betting in state amid entry of prediction markets”, cdcgaming.com, Sep 15, 2025.
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