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Gaming Edge’s TL;DR
- Minnesota lawmakers advanced bipartisan bills to outlaw online sweepstakes casinos that use dual-currency systems. The legislation has national relevance for US bettors and operators as more states move to close sweepstakes loopholes and restrict platforms that simulate casino gambling.
Minnesota’s House and Senate both advanced bills this week aimed at outlawing online sweepstakes casinos that use a dual-currency model to mimic casino play.
House File 4410 defines “online sweepstakes games” as digital contests that allow users to pay real money for a secondary currency and exchange wins for prizes, and it would prohibit offering, promoting or facilitating those games in-state.
The bills also target ancillary services – including banks, payment processors, platform providers and media affiliates — by restricting their ability to support sweepstakes operators. Enforcement powers would sit with the Department of Public Safety and the Attorney General’s office, with violators facing existing Minnesota penalties for prohibited gaming.
Supporters argued the measure clarifies the law and protects consumers: “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.
Tribal and gaming stakeholders backed the clarification as protecting legitimate promotions while cracking down on real-money casino simulation, per Andy Platto of the Minnesota Indian Gaming Association.
Bill meant to protect consumers
The bills could meaningfully reduce the availability of sweepstakes-style, dual-currency games in Minnesota and signal heightened scrutiny in other states.
Operators running dual-currency models face restrictions not just on their consumer-facing products but on payment and platform partners, which could cut off revenue streams and increase compliance costs.
Supporters say this protects consumers from unregulated gambling disguised as promotions. Opponents warn the opposite risk – legitimate social gaming companies could exit the state, leaving players to seek offshore or unregulated alternatives.
ARB Interactive CEO Patrick Fechtmeyer warned an outright ban would push consumers to riskier platforms, while Lexi Morgan of the Social Gaming Leadership Alliance emphasized existing compliance measures such as age verification. Practically, players who use sweepstakes casino-style apps may see services curtailed or withdrawn, and operators may pursue legal or legislative remedies.
The move also pressures payment processors and affiliates to reassess partnerships to avoid enforcement exposure.
Based on reporting by Ryan Butler for Covers.
