The Minnesota House and Senate advanced online sweeps casino ban bills this week, the latest moves in a growing nationwide trend to prohibit these games.
- Minnesota advanced bipartisan bills to ban online sweepstakes casinos, targeting operators and payment processors.
- The bill defines dual-currency games simulating casino gambling as illegal while preserving free-to-play promotions.
- Opponents warn the ban could push responsible social gaming companies out of state, leaving players vulnerable to unregulated platforms.
Supporters in the legislature say these platforms operate as unregulated gambling, exploiting loopholes in current state law. Both bills passed out of their respective committee with unopposed, bipartisan support.
The Senate and House versions now head to another set of committees before potentially advancing to votes on their respective chamber floors. Though the legislation still has several additional steps before they can pass into law, this week’s moves reaffirm support in Saint Paul and other statehouses across the country.
Bill details
House File 4410 defines “online sweepstakes games” as any digital contest that uses a dual-currency system to simulate casino-style gambling. The bill prohibits operators from offering, conducting, or promoting these games in the state.
The legislation also restricts support services, including financial institutions, payment processors, platform providers, and media affiliates, from facilitating sweepstakes casino operations. The Department of Public Safety as well as the Attorney General's office would have enforcement powers, including to take legal action against operators knowingly generating revenue from these platforms.
Violators are subject to penalties already defined under Minnesota law for prohibited gaming activity, but lawmakers supporting the bill called it a necessary tool to distinguish between legal promotions and deceptive gambling.
“What I want to be able to determine is who's operating legally, who is not operating legally and let's go after the ones that are not operating legally,” said Rep. Gregory Davids, one of the bill’s sponsors, during a House committee hearing Wednesday.
In testifying in support of the House bill, Andy Platto, executive director of the Minnesota Indian Gaming Association, said the language clarifies Minnesota law while preserving legal sweepstakes promotional tools.
“This bill protects Minnesota consumers and rightfully clarifies that these real money casinos are illegal,” Platto said.
Opposition remains
Opponents cautioned that the bill could drive legitimate social gaming companies out of Minnesota while doing little to stop illegal offshore operators.
ARB Interactive CEO Patrick Fechtmeyer said banning these games would push players toward less regulated and unsafe platforms. He urged the legislature to defer the bill to allow stakeholders to craft a balanced framework that protects consumers and generates tax revenue.
“Companies like ours, companies that have roots in Minnesota ... will exit, leaving consumers completely unprotected and vulnerable,” said Fechtmeyerr, whose company owns Publishers Clearing House.
Lexi Morgan of the Social Gaming Leadership Alliance echoed the concern, saying social gaming companies comply with federal and state regulations, including age verification and consumer protections.
“If this bill is passed, it will push our association, and long-standing, responsible social plus companies out of the state, only to be replaced by illegal operators with exploitative business practices,” Morgan said.
Lawmakers in Minnesota said their bills will permit popular free-to-play games such as Candy Crush while cracking down on dual-currency casino games that allow users to pay real cash that can be exchanged for prizes won while playing the game. More than a dozen states have passed sweeps bans or are taking actions to remove them from their borders.
