Minnesota Lawmakers Push Forward Bills Targeting Sweepstakes and Prediction Platforms

Minnesota lawmakers are advancing two bills aimed at shutting down sweepstakes casinos and prediction market platforms, becoming one of the state’s most direct moves yet against gray area gaming products.

The proposals reflect a growing effort across the U.S. to control in unregulated online gambling formats that operate outside traditional state regulation.

Focus on Unregulated Gaming Models

The legislation targets sweepstakes style platforms that use virtual currencies and prize systems, as well as prediction markets that allow users to trade on real world outcomes.

Supporters of the bills argue these products closely look like traditional gambling but operate without the same consumer protections, licensing requirements, or tax contributions. Minnesota officials have already taken steps to pressure unlicensed operators, warning companies to stop offering these services in the state.

Lawmakers say the goal is to close what they view as regulatory gaps, ensuring that any form of wagering follows established state systems.

Part of a Wider Regulatory Push

Minnesota’s action comes as more states move to take action on sweepstakes casinos and similar platforms. Across the country, 2026 has seen a noticeable shift toward enforcement, with lawmakers prioritizing restrictions on unlicensed products over growing new gambling markets.

Prediction markets, in particular, have drawn increased attention. Critics argue they function similarly to sports betting, especially in states like Minnesota where traditional sportsbooks are not yet legal, where they are raising concerns about oversight, fairness, and consumer risk.

Balancing Regulation and Future Market Plans

Minnesota remains one of the few states without a fully regulated sports betting market, though discussions around legalization continue. Lawmakers are discussing how to structure a future market that includes tribal partnerships and delivers consumer protections while revenue remains stable for the state.

In that context, the push to restrict sweepstakes and prediction platforms can be seen as part of a bigger strategy, giving space for a more controlled, regulated environment before any expansion takes place.

What's Next For This Industry

The bills will continue moving through the legislative process, where amendments and industry feedback could have a say in their final form. If passed, they would significantly limit access to sweepstakes casinos and prediction market products within the state.

For now, Minnesota joins a growing list of jurisdictions taking a harder position on gray market gaming, saying that tighter rules are likely to have a say in the next phase of U.S. gambling regulation.

Stay tuned to UMG Gaming for the latest updates on sweepstakes regulation, prediction market policy, and legislative changes across the U.S. gaming industry.