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Minnesota lawmakers target online sweepstakes casinos

Minnesota lawmakers are moving a bipartisan bill that would effectively ban online 'sweepstakes casinos' that mimic slots and table games while skirting the state’s gambling laws, a change that would hit Twin Cities users and at least one Minnesota‑run operator. The measure, which has cleared committees in both the House and Senate, is backed by the Minnesota Indian Gaming Association, which calls the sites unregulated and illegal platforms that advertise in the state and pay out cash winnings through a two‑currency system. Sen. Jordan Rasmusson says the bill is aimed at closing a loophole that is 'effectively allowing online gambling' while still preserving traditional promotional sweepstakes used in marketing. Opposing the bill, ARB Interactive CEO Patrick Fechtmeyer — a Minnesota native whose company employs more than 200 tech workers — warns that an outright ban will simply push Minnesotans to some 1,100 offshore operators with even fewer consumer protections. For metro residents, the fight will determine whether online casino‑style play remains accessible at all inside Minnesota’s borders or is driven deeper into the shadows while the state continues to rely on tribal casinos, pulltabs and the lottery for legal gambling.

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📌 Key Facts

  • Bill to ban online sweepstakes casino games has advanced through committees in both Minnesota House and Senate with bipartisan support.
  • Minnesota Indian Gaming Association backs the ban, arguing sweepstakes casinos are illegal, unregulated gambling platforms operating in the state.
  • ARB Interactive CEO Patrick Fechtmeyer, a Minnesota native, says his sweepstakes company employs more than 200 people and warns a ban would push players to roughly 1,100 offshore operators.
  • Online sweepstakes gaming drew more than $8.5 billion in spending from American players in 2024, according to industry analysts.

📊 Relevant Data

Tribal gaming operations in Minnesota generate $1.7 billion in annual economic activity for the state.

New study finds tribal gaming industry spurs $1.7 billion in economic activity for Minnesota — MPR News

Millennials account for around 60% of all players and money spent on online gaming in the US.

Alternative Data Illuminates Who, Where Of US Online Gambling Spending — Legal Sports Report

15% of adults ages 18–34 reported concerning gambling behavior, compared to 2% of those 55+.

National Council on Problem Gambling Survey Shows Drop in Problem Gambling Risk, Highlights Ongoing Challenges — National Council on Problem Gambling

The problem gambling prevalence rate among online gamblers is 21.9%, which is five times higher than the overall rate of 4%.

Problematic online gambling among adolescents: A systematic review about prevalence and related measurement issues — PMC

Tribal gaming leaders report that prediction markets and online gaming are reducing tribal casino revenue and threatening sovereignty.

Tribal Gaming Leaders: Prediction Markets Already Hurting Revenue — Covers

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March 25, 2026