Minnesota Turns Up the Heat on Sweepstakes Casinos & Other Unlicensed Operators

Minnesota regulators have begun putting pressure on unlicensed gambling platforms, including sweepstakes casinos and offshore sportsbooks, by instructing them to either cease serving state residents or modify their practices.

Minnesota Department of Public Safety’s Alcohol and Gaming Enforcement (AGE) officials have revealed that they contacted over 20 operators on June 1, with “mixed results,” in outreach framed as notice to cease or modify offerings accessible in Minnesota.

AGE framed the effort as a broader push by the state to protect consumers and clear the path for any future regulated market, according to an interview with Covers.

However, unlike other state gambling regulators, AGE relies on notices and investigatory leverage instead of formal cease-and-desist (C&D) orders, making its efforts more challenging. The agency is the lead state regulator enforcing gambling laws and warning residents about illegal online gambling.

Some of the sweepstakes casinos that the AGE targeted include Stake.us, LuckyLand Slots, Fortune Coins, Zula Casino, Golden Heart Games, and McLuck Casino. CasinoBeats reviewed the terms and conditions of these platforms and found no evidence of compliance with Minnesota’s request.

Prediction Markets in the Frame

Minnesota’s enforcement action comes as Attorneys General across the US ask the Department of Justice to take decisive action against the growing threat of illegal offshore gambling operations. The state’s AG was among the 50 that signed the letter.

Additionally, Minnesota officials have highlighted concerns with prediction markets. Federally regulated platforms, such as Kalshi, are part of the national debate about whether they’re a form of illegal gambling. The CFTC, which oversees these platforms, faces pointed questions from US senators.

Minnesota’s AG was one of 34 state AGs who filed an amicus brief opposing Kalshi’s legal argument in its litigation with New Jersey’s regulators.

Regulators Have Found Success Elsewhere with C&D Orders

While the AGE doesn’t have C&D authority, some other states that do, either through the AG or gaming regulator, have found success in driving unlicensed operators out.

In New York, AG Letitia James‘s office announced that it had shut down 26 sweepstakes casinos. Soon after, the state Legislature passed a bill prohibiting dual-currency platforms.

In Louisiana, the Gaming Control Board sent more than 40 C&D letters to sweepstakes casinos. That action resulted in almost all exiting the state.

Other jurisdictions that have found success include Delaware and West Virginia. C&D orders have resulted in about 30 operators leaving each state.

In those states, most named operators withdrew their offerings following C&Ds. By contrast, in Minnesota, no operator has been publicly confirmed to have fully complied with the state’s outreach; AGE described the outcomes as “mixed,” and no formal C&Ds have been posted.

Minnesota’s One of the Last Sports-Betting Holdouts

Since 2018, almost 40 states have legalized sports betting in some form. Missouri will be the latest with a planned launch on December 1. Meanwhile, Minnesota remains one of the 11 jurisdictions without either retail or online sports betting. But that’s not due to lack of trying.

This year, three bills in the Senate and one in the House failed to advance past the initial committee stage. Additionally, a proposal to study the economic impact of sports betting was also unable to gain traction.

Perhaps the most traction was reached in 2024. Then, lawmakers reportedly reached an agreement, but ran out of time before they could vote on it. Gov. Tim Walz also publicly pledged support for legal sports betting.

A key issue in recent years has included the dispute between Minnesota’s tribal casino operators and the state’s racetracks. They can’t agree on who would control online wagering licenses. This division has repeatedly stalled otherwise viable bills.

Multiple bills were also introduced without much success in previous years.