Sweepstakes casino proposal stalls in Minnesota as 2026 session ends

Minnesota lawmakers left a proposed sweepstakes casino ban unfinished, as other states like Tennessee and Oklahoma enacted similar restrictions earlier this year.

Minnesota lawmakers concluded the 2026 regular session without passing Senate File 4474, a measure that would have prohibited sweepstakes coin gameplay.

The bill passed the Senate on April 30 but did not advance after being assigned to a House committee on May 4. The regular session ended on May 18.

The proposal was introduced in mid-March after the legislative session opened on February 17, leaving limited time for further legislative action.

SF 4474 first advanced from the Commerce and Consumer Protection Committee in late March following testimony from tribal gaming interests and representatives of the sweepstakes gaming industry.

Supporters of the ban argued that dual-currency casino-style platforms are operating in violation of Minnesota gambling laws. Opponents argued that the bill could affect more than online casino-style games, citing concerns about promotional sweepstakes, loyalty programs and reward systems used by consumer brands.

The legislation also assigned responsibility to businesses supporting sweepstakes gaming operations. Those provisions covered financial institutions, payment processors, geolocation providers, gaming suppliers and media affiliates.

The bill later cleared the Senate Judiciary and Public Safety Committee and the State and Local Government Committee. Lawmakers also waived a committee deadline, allowing the measure to remain active despite the compressed legislative calendar.

Although a special session remains legally possible in Minnesota, only the governor has authority to call one.

Tennessee adopts consumer protection approach

While Minnesota's proposal stalled, Tennessee enacted Senate Bill 2136 through the Tennessee Consumer Protection Act.

The measure defines an online sweepstakes game around internet-based gambling using virtual currency that can be exchanged for prizes, cash, or cash equivalents.

Violations are treated as unfair or deceptive acts, giving the attorney general authority to enforce the law through consumer protection statutes.

The legislation followed action by Attorney General Jonathan Skrmetti, whose office sent cease-and-desist letters to nearly 40 online sweepstakes casinos in late 2025.

Gov. Bill Lee signed the bill into law on May 22.

Oklahoma approves criminal penalties

Oklahoma lawmakers also approved restrictions through Senate Bill 1589.

The legislation amended the state's gambling statute by adding online casino-style games, including platforms using dual-currency systems.

Its provisions apply not only to operators but also to geolocation providers, gaming suppliers, platform providers, promoters and media affiliates that support the games.

Violations are punishable as Class C2 felonies. Penalties include fines ranging from $500 to $2,000 and may also include jail time depending on the severity of the offense.

Gov. Kevin Stitt vetoed the bill on May 7, but lawmakers overrode the veto on May 14, allowing the measure to become law.