On March 25, 2026, the state of Minnesota intensified its restrictive stance on digital gambling with the advancement of two key bills: SF 4474 and HF 4437, aimed at banning sweepstakes casinos and sports-related prediction markets.
Both initiatives reflect a bipartisan effort. The House bill HF 4437 is backed by Representatives Emma Greenman, Peter Fischer, Gregory Davids, Brad Tabke, and Cedrick Frazier. Meanwhile, Senate bill SF 4474 is sponsored by Senators Jordan Rasmusson, John Marty, Erin Maye Quade, Warren Limmer, and Matt Klein.
The legislation targets two fast-growing segments operating in regulatory gray areas. SF 4474 focuses on banning sweepstakes casinos, which use virtual currencies or promotional systems to simulate gambling without formal licenses. HF 4437 seeks to prohibit prediction markets tied to sports outcomes, often structured as financial contracts rather than traditional bets.
Minnesota’s current framework is key to understanding the move. The state does not allow online sports betting or digital casinos, limiting legal gambling primarily to tribal land-based casinos. However, demand persists. The broader U.S. market exceeds $120 billion in annual handle, and neighboring states with legal betting frameworks continue to capture cross-border activity.
Senator Jordan Rasmusson
A major precedent came in 2025, when Attorney General Keith Ellison — the state’s chief legal officer — ordered multiple unlicensed operators to cease activity, reinforcing enforcement against illegal digital platforms.
If enacted, these bills would not expand the market but further restrict it, eliminating emerging digital formats before legalization. The strategy signals a clear policy direction: Minnesota is prioritizing control over expansion, tightening its regulatory perimeter in advance of any future online betting framework.
