Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioMinnesota Attorney General (AG) Keith Ellison has formally warned 14 illegal gambling operators – including three sweepstakes casinos, VGW’s LuckyLand Slots, Zula Casino, and Fortune Coins – to stop offering their products in the state, stating that they “may violate Minnesota consumer-protection laws that prohibit deceptive, fraudulent, unfair or unconscionable practices.”
The notice, issued on Nov. 5, follows a joint investigation by Ellison’s office and the state’s Alcohol and Gambling Enforcement (AGE) Division. AGE had previously sent letters to the same operators to alert them to potential criminal-law violations and to cease operation.
AGE also sent similar letters to Stake.us, McLuck, and Golden Hearts Games. However, Ellison’s letter did not include those companies. All three still list Minnesota as an eligible state.
According to the AG, his office is “aware that companies are operating websites that offer social sweepstakes casinos in Minnesota.” His letter now directs them to “immediately stop offering such sites to Minnesota residents.”
Sweepstakes Casinos Called Illegal Lotteries
The enforcement letter outlines why Minnesota considers sweepstakes-casino models unlawful. “Social sweepstakes casino websites offer casino-style games such as slots, poker, and roulette, and use a two-coin system of virtual currency,” the letter explains. “Consumers can buy virtual currency … that can be redeemed for cash or prizes, such as gift cards.”
The Attorney General’s Office argues that these sites meet the state’s definition of a lottery. That’s because they combine “a prize,” “chance,” and “consideration” — the three statutory elements under Minn. Stat. § 609.75.
As the letter states, “On [website] where consumers can buy virtual currency for the chance to win cash or a prize, these elements are satisfied.”
Misleading ‘Free-to-Play’ Claims
Ellison’s office also claims sweepstakes casinos mislead the public. “Although they prominently advertise that consumers can ‘play for free,’ these games are designed to draw players into buying virtual currency for a chance to win cash prizes or other rewards,” the AG wrote.
“The use of two types of currency is a thinly veiled attempt to disguise the games as free-to-play entertainment… Further, these sites’ prominent invitations to ‘play for free’ may mislead consumers into believing that they are legal under State law.”
The AG warns that in addition to criminal violations, sweepstakes casinos may violate Minnesota’s consumer-protection state laws against “fraud, unfair or unconscionable practice[s], false pretense, false promise, misrepresentation, misleading statement or deceptive practice.”
Broader Pattern of State Crackdowns
Minnesota’s AG aligns with a growing national trend. While mostly gambling regulators have moved against sweepstakes casinos, several other Attorneys General have targeted the platforms. That has resulted in most to leaving those states.
In June, New York Attorney General Letitia James announced that her office shut down 26 operators. At the same time, a bill banning the platforms was moving through the Legislature, resulting in most sweepstakes casinos leaving the state.
In the same month, West Virginia’s John McCuskey revealed that he had sent 47 subpoenas to sweepstakes casinos. His actions have resulted in around 30 operators exiting the Mountain State.
In early July, Louisiana’s top prosecutor, Liz Murrill, declared sweepstakes casinos illegal. In addition, the Louisiana Gaming Control Board targeted over 40 platforms. Since then, dozens of sweepstakes casinos have left the state. In addition, the Louisiana Department of Revenue sued VGW and WOW Vegas for $44 million in unpaid taxes.
Enforcement Outlook
Ellison’s office gives the operators until Dec. 1, 2025, to confirm in writing that they have stopped operating in the state. If they don’t comply, the AG may pursue “injunctive relief, restitution and/or disgorgement of money received … civil penalties of up to $25,000 per violation, and recovery of attorney fees and costs.”
The latest enforcement push marks the state’s most explicit declaration yet that sweepstakes-casino operations — even those claiming “social” or “free-to-play” status — fall outside Minnesota’s legal framework for gambling.
