Minnesota Lawmakers Offer Bipartisan Sweepstakes Casino Ban

^{Minnesota lawmakers will soon decide whether to ban online sweepstakes in the state. (Photo: Leonid Andronov / Alamy)}

A group of five state senators has introduced Senate File 4474, a bill that would ban sweepstakes casinos using the controversial dual-currency model.

SF 4474 passed the Commerce and Consumer Protection Committee on Wednesday and is now referred to the Committee on Judiciary and Public Safety.

Hearing Follows Cease and Desist Letters

As in many other states, Minnesota officials have been expressing their concerns over sweepstakes casinos for some time now. In November 2025, Minnesota Attorney General Keith Ellison issued cease-and-desist letters to 14 major sweepstakes operators, arguing that they may be violating state consumer protection laws.

“Online platforms offering sportsbooks and casino games run by out-of-state and overseas operators may make it look as though online gambling is legal and safe in Minnesota, but let me be clear: it is not,” Ellison said at the time. “Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful.”

During a committee meeting earlier this month, the Minnesota Indian Gaming Association testified that sweepstakes casinos operate without regulation and avoid the gambling laws that commercial and tribal operations are subjected to. And while the casino sites may claim to operate under sweepstakes laws, one of the bill’s sponsors said there is a clear distinction that requires legislative action.

“What we’re trying to do is ensure that legitimate promotional sweepstakes can continue in the state of Minnesota while closing a loophole that’s effectively allowing online gambling,” state Sen. Jordan Rasmusson (R-Fergus Falls) said during the committee hearing.

Sweepstakes Operator: Ban Would Only Send Consumers Offshore

Sweepstakes operators argue that their dual-currency model ensures that they are a distinct product from gambling sites. Players can only directly purchase play money, often called “gold coins,” while currency that can be redeemed for cash and prizes – typically called “sweeps coins” – are only available via free giveaways or as a bonus for purchasing gold coins.

But since sweeps coins are usually given about dollar for dollar as a “bonus,” opponents of these sites say that users are really paying for them so that they can enjoy real money gambling – an argument consumers appear to agree with.

However, operators say that banning their sites would only make the situation worse for consumers.

“If this bill is passed, it will not eliminate this activity,” ARB Interactive CEO Patrick Fechtmeyer, whose business is based in Minnesota, told state senators. “Instead, it’ll push Minnesotans to the more than 1,100 offshore operators who hide behind shell companies and don’t comply with consumer protections or sweepstakes laws.”

SF 4474 has already passed out of committee in both the Minnesota House and Senate. It is unclear whether or when the legislation will receive a full vote in either chamber this year.