Minnesota Senate Committee Advances Sweepstakes Casino Ban Bill to Judiciary State

Minnesota — A Minnesota Senate committee has moved forward a bill that would ban online “sweepstakes” casino-style games, setting up a wider fight over how the state should handle a fast-growing corner of digital gambling.

Senate File 4474 cleared the Senate Commerce and Consumer Protection Committee after a March 24, 2026 hearing. The proposal now heads to the Senate Judiciary Committee as lawmakers continue to weigh its impact.

It focuses on platforms that use what lawmakers describe as a “dual-currency” system. Under the language, that means a setup where someone can take part in simulated gambling while paying some form of consideration and becoming eligible for “a prize, award, cash, cash equivalent, or chance to win a prize.”

It also defines an “online sweepstakes game” as any online or mobile product using that system while it “simulates casino-style or another form of gambling.”

Minnesota Committee Considers Sweeping Sweepstakes Prohibition

The prohibition itself states that “a person or entity is prohibited from operating, conducting, or promoting an online sweepstakes game in Minnesota.”

The measure also blocks a wide list of companies tied to the industry, including any “applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.”

In effect, the bill aims to cut off both the games and the support network behind them.

Sen. Jordan Rasmusson introduced the legislation earlier in March with bipartisan support from Sens. John Marty, Erin Maye Quade, Warren Limmer, and Matt Klein. Legislative summaries describe it as an “online sweepstakes games prohibition provision.”

During the hearing, Rasmusson said the goal is to draw a clearer line around what qualifies as a legal sweepstakes.

“Today, Minnesota, like many states, allow sweepstakes as a promotional marketing tool,” Rasmusson said, pointing to examples like McDonald’s Monopoly. But he said some companies are “using Minnesota sweepstakes law to effectively offer online gambling.”

He walked lawmakers through how the model works, describing systems where players buy “gold coins” and receive bonus “sweeps coins,” which he said “can be played for real cash prizes” on games such as “slots, blackjack and roulette.”

“The bill before the committee would clarify what is a sweepstakes, what is a proper sweepstakes in Minnesota, and it would ban dual currency online sweepstakes games,” he said.

Why it matters: This legislation reflects a growing concern over the unregulated expansion of online gambling in Minnesota. By targeting dual-currency systems, lawmakers aim to protect consumers and clarify the legal landscape surrounding sweepstakes.

What to watch:

• Further developments in the Senate Judiciary Committee.
• Potential pushback from online gambling advocates and industry stakeholders.
• Future implications for similar legislation in other states.

Key figures:

• Sen. Jordan Rasmusson, Minnesota State Senator — Introduced the bill to clarify and prohibit dual-currency online sweepstakes games.

Source credibility: ReadWrite is a reliable technology news outlet known for its analytical reporting on emerging trends and policies.

Published: March 25, 2026 11:11 AM

Source: ReadWrite — https://go.noligarchy.us/fmbANk