A group of Minnesota senators wants to make sweepstakes casinos a felony under state law. The proposal, Senate File 4474, would ban online sweepstakes games that use a dual-currency system and simulate casino-style gambling. It would also go beyond operators by targeting companies that help these platforms run, including payment processors, geolocation providers, and media affiliates.
The bill was introduced on March 12, 2026, and it comes at a time when more states are moving against sweepstakes casinos. Minnesota lawmakers are also considering a separate sports betting bill, so the new proposal shows they may be open to legal gambling in some forms while taking a much harder line against unlicensed online casino-style products.
What the Minnesota Bill Would Ban
The heart of SF 4474 is its definition of an online sweepstakes game. The bill says this is a game, contest, or promotion that is available online or on a mobile device, uses a dual-currency payment system, and lets players exchange that currency for a prize, cash, a cash equivalent, or a chance to win one.
That language is important because it goes after the model used by sweepstakes casinos. These sites often offer one type of currency for standard play and another type that can be redeemed under the site’s rules. Supporters of the bill say that setup is being used to get around regular gambling laws.
The proposal also says a person or entity would be banned from operating, conducting, or promoting an online sweepstakes game in Minnesota. In simple terms, it is not only aimed at the website itself. It is also meant to stop the wider business network that helps the site function.
Who Else Could Be Affected
One of the biggest parts of the bill is how far it reaches beyond sweepstakes operators. SF 4474 says an applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate would also be prohibited from supporting the operation or promotion of an online sweepstakes game in Minnesota.
That could make the bill especially serious for the industry. Even if a company is not running a sweepstakes casino directly, it may still provide software, payment tools, location checks, advertising, or traffic. Under this proposal, those support roles could also come under pressure.
The bill also says the commissioner of public safety and the attorney general must deny a person from starting or continuing operations if that person, or an affiliate, knowingly accepts revenue tied directly or indirectly to an online sweepstakes game. The same section says those officials must enforce penalties after finding prohibited activity.
The article reporting on the bill says lawmakers want to make the conduct a felony, which is why the proposal is getting so much attention. That reflects a tougher tone than some other states, which have focused first on civil penalties or cease-and-desist letters.
Why the Bill Matters Now
Minnesota’s proposal lands during a bigger national crackdown. In recent months, several states have passed or advanced bills against sweepstakes casinos, and others have sent warning letters to operators. Minnesota now appears ready to join that group, rather than waiting to see how other states handle the issue.
At the same time, lawmakers are considering SF 4139, a separate bill that would legalize online sports betting through tribal partnerships. That creates an interesting contrast. Minnesota may be moving toward legal gambling in one area while trying to shut down what it sees as unauthorized gambling in another.
For players, nothing changes yet. SF 4474 is only a proposed bill, and it still needs to move through the legislative process. But if it advances, sweepstakes casinos may start reviewing whether Minnesota is worth the legal risk. For operators and vendors, the key issue is how broad the bill is. It is written to reach not only the platforms, but also many of the businesses that support them, affecting the legality of sweepstakes casinos.