Minnesota, Mar 26: Lawmakers in the US state of Minnesota have advanced two key bills aimed at restricting sweepstakes-style online casinos and banning certain prediction market activities, amid growing concerns over unregulated gambling.
The proposals cleared committee stages on March 24 and will now move forward for further legislative consideration.
One of the measures, Senate File 4474, seeks to prohibit online sweepstakes games that mimic casino-style gambling.
The bill targets platforms that use dual-currency systems, allowing users to exchange virtual credits for cash or prizes.
Speaking during a committee hearing, bill sponsor Senator Jordan Rasmusson said such platforms effectively function as online gambling.
He argued that they meet the essential criteria of gambling, including payment, chance, and the possibility of winning a reward.
Supporters of the bill, including tribal gaming representatives and charitable gaming groups, said these platforms exploit legal loopholes to avoid licensing requirements, taxation and consumer protection norms applied to regulated gambling operators.
However, industry representatives opposed the move, warning that a ban could drive users towards offshore and unregulated platforms.
They maintained that sweepstakes models often allow free participation and operate within legal promotional frameworks.
The committee approved the bill and referred it to the Judiciary Committee for further review.
In a parallel move, the House advanced a separate bill, HF 4437, that aims to ban certain types of prediction market contracts tied to real-world events.
The proposed legislation would prohibit betting markets linked to sports outcomes, political events, specific individuals, and sensitive scenarios such as wars, natural disasters or mass casualty incidents.
It also includes restrictions on advertising, particularly those targeting younger audiences. Introducing the bill, Representative Emma Greenman expressed concern over what she described as a rapid expansion of gambling-like platforms without adequate safeguards.
She noted that such platforms operate by matching users on opposite sides of a bet and charging fees, effectively acting as intermediaries without being subject to standard regulatory oversight.
Greenman also highlighted risks related to consumer protection, including the absence of age restrictions, anti-money laundering checks and responsible gambling measures.
She warned that such markets could raise ethical concerns and potentially influence real-world events.
Despite questions from lawmakers regarding enforcement and legal complexities, the committee approved the bill and sent it for further consideration by another legislative panel.
The developments come amid a broader push across several US states to tighten regulations on emerging digital gambling formats.
