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Gaming Edge’s TL;DR
- Minnesota senators have introduced SF 4511, a bipartisan bill that would criminalize operating prediction markets, potentially making operators and certain service providers felons.
- This proposal is one of the strictest in the US and has direct implications for bettors and businesses that run or support prediction- market platforms.
- The measure arrives amid ongoing federal litigation over prediction markets and could reshape how platforms, payment processors, and advertisers operate in Minnesota.
Minnesota Senate File 4511, posted on March 13, would criminalize the operation and promotion of prediction markets rather than treat violations as civil matters.
Sponsor Sen. John Marty said the bill aims to “stop prediction markets from taking over here if the federal courts won’t stop them,” calling prediction market sports betting “illegal and clearly gambling.”
The bill makes operating a prediction market a felony and expands criminal exposure to advertising that targets under-21 audiences, falsely implies legality, or appears near schools and public property. It also targets ancillary businesses – payment processors, geolocation services, platform providers, and media affiliates – that facilitate or promote prohibited markets.
The measure covers markets tied to sports, casino-style games, people, elections, catastrophes, and even death, making it broader than some state proposals.
Law would have major impact on sportsbooks with prediction markets
If enacted, SF 4511 could significantly alter the betting landscape in Minnesota and affect operators nationwide that serve Minnesota users.
Traditional sportsbook companies such as DraftKings, FanDuel, and Fanatics already offer prediction-style products and could face felony exposure or long-term licensing penalties under a bad actor provision that bars convicted entities from receiving a state gambling license for 10 years. Payment processors, advertisers, and other service providers risk criminal charges after a state cease-and-desist, potentially disrupting deposit and payout systems for players.
The law could mean reduced availability of prediction products and more conservative ad targeting by platforms to avoid Minnesota territory. From a regulatory perspective, legal experts say state-level bans may clash with ongoing federal litigation. Gaming attorney Daniel Wallach warned such bills are “premature and counterproductive,” and could actually give platforms federal standing to sue.
Operators will weigh compliance costs, geofencing measures, and legal risk when deciding whether to continue offering products to Minnesota customers.
SF 4511 has been referred to the Senate Judiciary and Public Safety Committee but has no hearing scheduled yet.
Based on reporting by Brian Pempus for GamblingHarm.org.
