MN Bills Propose Ban on Prediction Markets and Sweepstakes

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Mar 16, 2026, 8:00 am ET

Read Time: 4 minutes

MN Bills Propose Ban on Prediction Markets and Sweepstakes

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Minnesota lawmakers have introduced new legislation that could significantly reshape the state's evolving gambling landscape. The proposals aim to prohibit prediction markets and sweepstakes casinos, two gaming formats that currently operate outside traditional gambling regulation.

The bills arrive as policymakers continue debating broader Minnesota gambling reforms. Lawmakers have increasingly voiced concerns about unregulated wagering platforms that resemble betting products offered by US online casinos and sportsbooks. As a result, legislators are now seeking to close perceived regulatory gaps.

Minnesota Lawmakers Move to Restrict Prediction Markets and Sweepstakes Casinos

Minnesota legislators introduced two separate measures targeting alternative online gaming models. The proposals seek to block platforms that allow residents to participate in speculative wagering without formal state oversight.

Supporters argue that both prediction markets and sweepstakes casinos function similarly to conventional gambling products. However, they often operate under legal frameworks that differ from those governing US online casinos and US online sportsbooks.

Lawmakers believe these platforms could undermine consumer protections and weaken potential tax revenue from regulated Minnesota gambling markets. Therefore, the new MN bills attempt to shut down those activities entirely rather than regulate them.

Senate File 4511

Senate File 4511 (SF 4511) focuses on banning prediction markets within Minnesota. These platforms allow users to trade contracts based on real-world outcomes, including sports events and political results.

Users typically buy "yes" or "no" shares representing the likelihood of a particular event. Prices shift based on market demand and collective expectations.

However, Minnesota lawmakers argue these markets effectively replicate sports betting. As a result, the proposal would prohibit platforms that offer contracts tied to sporting outcomes or similar event results.

If enacted, SF 4511 would make it illegal to operate or facilitate prediction market contracts within the state. The bill could also target companies that support these platforms, including payment processors or marketing partners.

Legislators view the measure as a consumer protection effort. They believe the law would prevent unregulated operators from offering products that resemble wagering available through licensed US online sportsbooks.

Senate File 4474

Meanwhile, Senate File 4474 (SF 4474) addresses the growing popularity of sweepstakes casinos.

These platforms typically operate with a dual-currency model. Players receive virtual coins for entertainment purposes and promotional currencies that may be redeemed for prizes.

Although sweepstakes casinos often claim compliance with promotional sweepstakes laws, critics argue they replicate the gameplay of US online casinos.

SF 4474 would prohibit sweepstakes-style casino platforms that allow players to redeem promotional currency for cash or prizes. Supporters say the bill would prevent operators from bypassing established Minnesota gambling regulations.

Together, SF 4511 and SF 4474 represent a broader legislative push to eliminate alternative wagering models operating outside state oversight.

Minnesota's Sports Betting Context

These proposals also arrive as lawmakers consider legalizing sports betting in Minnesota.

A separate measure, SF 4139, seeks to establish a regulated mobile betting market. The bill would allow federally recognized tribes to obtain licenses and partner with commercial operators.

Under that proposal, up to 11 tribal operators could launch mobile sportsbooks statewide. The legislation would also impose a 22% tax rate on net betting revenue.

Some policymakers argue that the growth of prediction markets increases pressure to legalize regulated wagering. They believe a legal framework such as the new MN bills would give consumers a safer alternative.

What Happens Next?

Before becoming law, both SF 4511 and SF 4474 must move through several legislative stages.

First, the MN bills must pass committee review in the Minnesota Senate. Lawmakers will debate the measures and may propose amendments.

If approved by committees, the proposals would then require a full Senate vote. Afterward, the Minnesota House of Representatives would need to consider and pass companion legislation.

Finally, the governor would need to sign the bills into law.

For now, the measures signal Minnesota's growing effort to regulate emerging wagering models. As debates continue, the future of prediction markets, sweepstakes casinos, and broader Minnesota gambling policy remains uncertain.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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