Minnesota (USA): gambling regulation and licensing
Part of United States
- Online sports bettingProhibited
- Online casinoProhibited
- Online pokerProhibited
- Online bingoProhibited
- Horse race bettingRegulated
- iLotteryMonopoly
- Prediction marketsProhibited
- Social casinoProhibited
- Daily fantasy sportsNot yet verified
- Land-based (reference)Regulated
- Regulator
- Minnesota Gambling Control Board
- Headline tax
- Not yet verified
- Licence required
- Yes
- Last verified
- 23 Sept 2026
Summary
Minnesota has no legal online sports betting, online casino or online poker, and runs the largest charitable gambling market in the United States. The criminal code defines a bet broadly and exempts only what the legislature has authorised: licensed charitable gambling under Chapter 349, pari-mutuel horse racing under Chapter 240, the State Lottery and private social bets (Minn. Stat. 609.75). Making an unlawful bet is itself a misdemeanour and sports bookmaking a felony. The Gambling Control Board licenses 1,153 nonprofit organisations, which sold $4.91 billion of pull-tabs, bingo, tipboards, paddlewheels and raffles in the year to 30 June 2025 and kept $713.2 million after prizes; electronic pull-tabs, played on handheld devices inside bars and bingo halls, took $2.55 billion. Organisations paid $196.2 million in state gambling taxes, mainly a combined net receipts tax that rises from 8% to 33.5% of annual net receipts. Casino gaming belongs to the eleven tribal nations under Class III compacts dating from October 1989, which cover video games of chance and blackjack, add other banked card games for six tribes since 2023, and give the State no revenue share. The only licensed remote betting is advance deposit wagering on out-of-state horse races through providers contracted with the two racetracks. In 2026 the legislature made hosting, facilitating or advertising a prediction market a felony from 1 August 2026, but a federal court enjoined enforcement against CFTC-registered exchanges on 27 July 2026. A tribal-only mobile sports betting bill and a Senate-passed ban on online sweepstakes casinos both failed in the 2026 session.
Common pitfalls
Treating the $4.91 billion as revenue: it is the amount wagered, and net receipts after prizes were $713.2 million. Treating electronic pull-tabs as online gambling: they are played on devices inside permitted bars and bingo halls and may not be linked between premises. Reading the prediction market injunction as striking down the law: it protects only CFTC-registered designated contract markets and only until final judgment. Assuming tribal compacts allow only video games and blackjack: six tribes now have card game addenda.
Key facts
- Regulator
- Minnesota Gambling Control Board (GCB)
- Regulator type
- Gaming board
- Headline tax
- Not yet verified
- Licence required
- Yes
- Minimum age
- 18+
- Tax base
- No online operator tax exists because no online casino or sports betting is licensed. Charitable gambling: bingo, raffles and paddlewheels pay 8.5% of gross receipts less prizes actually paid (297E.02, subd. 1). Pull-tabs (paper and electronic), tipboards and electronic linked bingo pay a combined net receipts tax on each organisation's fiscal year gross receipts less net prizes: 8% up to $87,500, then $7,000 plus 17% to $122,500, $12,950 plus 25% to $157,500, and $21,700 plus 33.5% of the excess (297E.02, subd. 6). Sports-themed tipboards are exempt. Organisations paid $196.2 million in state gambling taxes in FY2025; electronic pull-tabs made up 53% of combined net receipts and 1,165 organisations paid the tax. Pari-mutuel: 6% of amounts withheld from pools above $12 million a year, plus 1% of live handle to the breeders fund (240.15). Tribal casinos pay no state gaming tax under the compacts.
Legal framework
Primary statutes
Minnesota Statutes 609.75 to 609.763, Gambling
- Year
- 1963
- In force
- Yes
- Summary
- Defines a bet as a bargain to gain or lose on chance, even where accompanied by skill, and excludes only insurance, commodity and securities futures, bona fide contest prizes, compliant bingo and raffles, private social bets, pari-mutuel betting under chapter 240 and State Lottery tickets (609.75). Making a bet is a misdemeanour (609.755); running a gambling place or receiving bets is a gross misdemeanour punishable by up to 364 days and $3,000; sports bookmaking is a felony (609.76).
Minnesota Statutes 609.7615, Prediction markets
- Year
- 2026
- In force
- Yes
- Summary
- Effective 1 August 2026. Makes it a felony, for consideration and as part of a business, to create or operate a prediction market, to list events, hold funds, set prices or act as counterparty for consumer wagers, or knowingly to supply outcome data or location, payment or money transfer services to one; advertising products that promote such transactions is also a felony. Covered events include sports and esports, card and machine games, elections and non-financial government decisions, legal actions, deaths and popular culture. Contracts regulated under chapters 59A to 79A are excepted, and the futures exclusion in 609.75, subd. 3(2) no longer protects prediction markets. Enforcement against CFTC-registered designated contract markets is preliminarily enjoined.
Minnesota Statutes Chapter 349, Lawful Gambling
- In force
- Yes
- Summary
- Licenses nonprofit organisations to conduct paper and electronic pull-tabs, bingo and linked electronic bingo, tipboards, paddlewheels and raffles at premises permitted by the Gambling Control Board, and licenses distributors, manufacturers and linked bingo game providers. Sets the electronic pull-tab device and game standards (349.12, subds. 12b and 12c), the on-premises and device limits (349.1721, subd. 4), the minimum age of 18 (349.181) and the $1,000 civil penalty per violation (349.151, subd. 4).
Minnesota Statutes Chapter 297E, Gambling Taxes
- Year
- 1994
- In force
- Yes
- Summary
- Imposes 8.5% on gross receipts less prizes for bingo, raffles and paddlewheels, and a combined net receipts tax on each organisation's fiscal year net receipts from pull-tabs, tipboards and electronic linked bingo, from 8% up to $87,500 to 33.5% on the excess over $157,500 (297E.02).
Minnesota Statutes Chapter 240, Horse Racing
- Year
- 1983
- In force
- Yes
- Summary
- Licenses racetracks, pari-mutuel betting, card clubs at racetracks (80 tables, $100 wager limit, 240.30) and advance deposit wagering providers (240.131). Since 2024 a racetrack may not offer historical horse racing, slot machines, video games of chance or other gambling devices (240.071).
Minnesota Statutes Chapter 299L, Alcohol and Gambling Enforcement
- Year
- 1989
- In force
- Yes
- Summary
- Establishes the Alcohol and Gambling Enforcement Division, its licensing of gambling device manufacturers, distributors and testing facilities (299L.07), its background check and inspection duties (299L.02) and its cease and desist powers (299L.03, subd. 12).
Minnesota Statutes Chapter 349A, State Lottery
- Year
- 1989
- In force
- Yes
- Summary
- Creates the State Lottery. It may not run sports lotteries (other than on horse races), sell pull-tabs, offer casino-style games or sell instant win tickets through a website (349A.13), or sell to anyone under 18 (349A.12).
Secondary instruments
- Year
- 1989
- In force
- Yes
- Summary
- Negotiated under 3.9221 and the federal Indian Gaming Regulatory Act. The video game compacts, first dated by the State on 20 October 1989, set a minimum player age of 18, remain in force until renegotiated or replaced, and contain no revenue-sharing or state tax provision. Separate blackjack compacts followed from 1991. Addenda approved in 2023 and 2024 for Bois Forte, Mille Lacs, Prairie Island, Shakopee Mdewakanton, Upper Sioux and White Earth allow other banked card games that the State permits for any purpose.
Key amendments
- 1 Jul 2024Laws 2023, chapter 64 capped what a distributor may charge an organisation for electronic pull-tab games at 25% of the gross profits from those games from 1 July 2024, and required electronic pull-tab manufacturers to file an annual system and organisation controls audit (349.163, subds. 11 and 12).
- 2024Laws 2024, chapter 119 barred licensed racetracks and their card clubs from historical horse racing, slot machines, video games of chance and other gambling devices (240.071; 240.30, subd. 8).
- 1 Jan 2025Electronic pull-tab standards passed in 2023 took effect after 31 December 2024: no spinning reels, bonus games or features that mimic a slot machine, and each ticket and each row of symbols must be opened by a separate manual action (349.12, subds. 12b and 12c). The Board attributes the 4.6% fall in FY2025 electronic pull-tab receipts to the transition.
- 26 May 2026Laws 2026, chapter 118, article 6 enacted the prediction market ban (609.7615) effective 1 August 2026, amended 609.75, subd. 3(2) so that the futures exclusion does not cover prediction markets, and extended the enforcement director's cease and desist powers to it. It repealed the broader version in chapter 97, article 8 (signed 18 May 2026), which had also covered short-term weather events.
- 27 May 2026Laws 2026, chapter 121 let unspent problem gambling money appropriated from lawful gambling tax revenue roll over to the next fiscal year (297E.02, subd. 3(c)).
Pending legislation
S.F. 4139 / H.F. 4204 (2026): Sports betting authorization and regulation
- Stage
- Not enacted. Introduced 4 March 2026; on 23 March 2026 a Senate floor motion to adopt the committee report failed 22-44 and the bill made no further progress before the regular session ended.
- What it changes
- Would have allowed the Commissioner of Public Safety to license up to 11 Indian tribes that run Class III casinos as mobile sports betting operators for 20 years, with up to 11 platform provider licences, and taxed online sports betting net revenue at 22%. Advertising rules would have required 1-800-GAMBLER on every advertisement and barred media where 30% or more of the audience is under 21.
S.F. 4474 / H.F. 4410 (2026): Online sweepstakes games prohibition
- Stage
- Not enacted. Passed the Senate 62-3 on 30 April 2026; referred to the House Public Safety Finance and Policy Committee on 4 May 2026 with no further action.
- What it changes
- Would have added to chapter 325F a ban on online sweepstakes games that simulate gambling and use a dual-currency system redeemable for prizes.
Case law
United States and CFTC v. State of Minnesota, No. 26-cv-2661; KalshiEX LLC v. Ellison, No. 26-cv-2778; QCX LLC v. Ellison, No. 26-cv-2841 (D. Minn.)
27 Jul 2026
The CFTC sued on 19 May 2026, the day after chapter 97 was signed, and Kalshi and Polymarket US followed. Judge Menendez granted preliminary injunctions on 27 July 2026, finding the plaintiffs likely to succeed on express preemption under the Commodity Exchange Act, and enjoined the State from enforcing 609.7615 against CFTC-registered designated contract markets until a final decision on the merits. Bond was waived.
Wolters v. Sweepsteaks Limited d/b/a Stake.us, No. 25-3280 (D. Minn.); appeal No. 26-2459 (8th Cir.)
1 Jul 2026
A putative class action seeking recovery of losses under 541.20 and consumer protection remedies against a sweepstakes casino. Judge Tunheim refused to compel arbitration because Minnesota prohibits the gambling alleged, so the terms of service were not shown to be a valid contract, and because Stake did not prove the plaintiff agreed to them. Stake appealed to the Eighth Circuit on 15 July 2026.
In re Minnesota Racing Commission's Approval of Running Aces Casino, Hotel & Racetrack's Request to Amend its Plan of Operation, No. A23-1738 (Minn. 2026)
21 Jan 2026
The Minnesota Supreme Court held that the Shakopee Mdewakanton Sioux Community has standing to challenge the Racing Commission's approval of electronic table games at the Running Aces card club, because the statutes restrict commercial video games of chance and gambling devices to tribes with compacts. Evenly divided on the merits, it affirmed the Court of Appeals, leaving the approval in place.
Licensing
- Licence required
- Yes
- Application window
- Not yet verified
- Local establishment required
- Not yet verified
- Local server required
- Not yet verified
- Bank guarantee or bond
- Advance deposit wagering providers must post a surety bond, irrevocable letter of credit or other guarantee in an amount set by the Racing Commission (240.131, subd. 4).
- Certification requirements
- Each electronic pull-tab game must carry a certificate from a Board-approved testing laboratory that the game and device meet Minnesota statutes and rules (349.12, subd. 12c(b)).
- Barriers to entry
- There is nothing for a commercial online casino, poker or sportsbook operator to apply for. Casino gaming is reserved to the tribes by compact, charitable gambling to licensed nonprofits at physical premises, and no sports wagering statute exists. The commercial entry points are supplying electronic pull-tab or bingo systems as a licensed manufacturer, distributor or linked bingo provider, licensing gambling devices with the Alcohol and Gambling Enforcement Division, or advance deposit wagering on out-of-state horse races under a racetrack contract.
Licence types
Lawful gambling organisation licence and premises permit (Gambling Control Board)
- Scope
- Nonprofit organisations in existence for three years with at least 15 active members may conduct pull-tabs, bingo, tipboards, paddlewheels and raffles; each site needs a premises permit. 1,153 organisations held licences and 3,193 premises permits were in force at 30 June 2025.
- Term
- Perpetual until revoked, suspended, terminated or lapsed
- Annual fee
- $350 as of 23 Sept 2026
- Fee basis
- $350 a year for the licence (waivable below $100,000 of gross receipts), $150 a year per premises permit, and a monthly regulatory fee of 0.125% of gross receipts (349.16, subds. 6 and 6a; 349.165).
Distributor licence (Gambling Control Board)
- Scope
- Required to sell, lease or furnish gambling equipment, including electronic pull-tab game systems, to licensed organisations; ten distributors were licensed at 30 June 2025. A distributor may not charge more than 25% of the gross profits from the electronic pull-tab games it supplies unless the Board approves (349.163, subd. 11).
- Term
- Annual
- Annual fee
- $7,000 as of 23 Sept 2026
- Fee basis
- $7,000 a year; distributor salesperson licence $150 a year (349.161, subd. 4).
Manufacturer licence (Gambling Control Board)
- Scope
- Required to sell gambling equipment for use in Minnesota; a manufacturer may not also be a distributor. Electronic pull-tab manufacturers must file an annual system and organisation controls audit, and each electronic game needs certification by a Board-approved testing laboratory. Eight manufacturers were licensed at 30 June 2025.
- Term
- Annual
- Annual fee
- $10,000 as of 23 Sept 2026
- Fee basis
- $10,000 a year (349.163, subd. 2).
Linked bingo game provider licence (Gambling Control Board)
- Scope
- Required to provide the linked bingo system, prize management or linked bingo paper; fees charged to organisations may not exceed 15% of gross profits without Board approval (349.1635). Three providers were licensed at 30 June 2025.
Gambling device manufacturer, distributor and testing facility licence (Alcohol and Gambling Enforcement Division)
- Scope
- Required to manufacture, sell, lease or provide a gambling device, including to tribal casinos, or to operate a testing facility (299L.07, subd. 1).
- Term
- 1 year
- Fee basis
- $1,500 or $2,000 for used-device distributors, $5,000 or $7,500 for manufacturers and distributors of new devices depending on whether they handle more than 100 a year, and $5,000 for a testing facility (299L.07, subd. 6).
Class C licence for advance deposit wagering (Racing Commission)
- Scope
- Required to accept advance deposit wagers on out-of-state horse races from Minnesota residents; the provider needs a Commission-approved contract of up to three years with a licensed racetrack, a bond or other financial guarantee, and an approved plan of operation (240.131).
- Term
- Annual
- Application fee
- $10,000 as of 23 Sept 2026
- Annual fee
- $2,500 as of 23 Sept 2026
- Fee basis
- $10,000 initial application fee and $2,500 a year thereafter (240.10(c)), plus a 2% regulatory fee and a 0.25% breeders fund fee on Minnesota residents' wagers (240.131, subd. 7).
Taxation
- Headline GGR tax
- Not yet verified
- Effective date
- Not yet verified
- Player winnings tax
- Gambling winnings, including lottery prizes and internet gambling winnings, are subject to federal and Minnesota income tax; residents are taxed on all winnings and nonresidents on winnings from Minnesota. Losses are deductible only by itemisers, up to reported winnings, and not for the state alternative minimum tax.
- VAT treatment
- The lawful gambling taxes are in lieu of sales tax on the organisation's retail sale of pull-tabs and tipboards; sales tax applies to the distributor's sale of pull-tabs and tipboards at the retail price (297E.02, subds. 1 and 3(b)).
- Tax base
- No online operator tax exists because no online casino or sports betting is licensed. Charitable gambling: bingo, raffles and paddlewheels pay 8.5% of gross receipts less prizes actually paid (297E.02, subd. 1). Pull-tabs (paper and electronic), tipboards and electronic linked bingo pay a combined net receipts tax on each organisation's fiscal year gross receipts less net prizes: 8% up to $87,500, then $7,000 plus 17% to $122,500, $12,950 plus 25% to $157,500, and $21,700 plus 33.5% of the excess (297E.02, subd. 6). Sports-themed tipboards are exempt. Organisations paid $196.2 million in state gambling taxes in FY2025; electronic pull-tabs made up 53% of combined net receipts and 1,165 organisations paid the tax. Pari-mutuel: 6% of amounts withheld from pools above $12 million a year, plus 1% of live handle to the breeders fund (240.15). Tribal casinos pay no state gaming tax under the compacts.
Earmarked levies
- Problem gambling appropriation: 1% of lawful gambling tax and fee revenue deposited in the General Fund (Commissioner of Human Services: 0.5% for the compulsive gambling treatment programme and 0.5% for a grant to the state affiliate of the National Council on Problem Gambling; unspent amounts roll over since Laws 2026, chapter 121)
- Lawful gambling monthly regulatory fee: 0.125% of gross receipts (Lawful gambling regulation account (Gambling Control Board))
- Advance deposit wagering regulatory and breeders fund fees: 2% and 0.25% of amounts wagered by Minnesota residents (Racing Commission racing and card-playing regulation account and breeders fund)
Compliance
- Minimum age
- 18+
- National self-exclusion
- Not yet verified
- KYC timing
- Before play for electronic pull-tabs; at account opening for advance deposit wagering.
- Session limits
- Electronic pull-tab devices may operate only from 8 a.m. to 2 a.m., one device per player (349.1721, subd. 4(c), (k)).
- Central monitoring system
- Electronic pull-tab game systems must let the Board and the Department of Revenue receive game results as prescribed (349.12, subd. 12d), and the Board monitors daily electronic game activity. Linked bingo systems must allow the Board to monitor them electronically.
- KYC requirements
- Before playing electronic pull-tabs a player must show valid picture identification with date of birth, and anyone cashing out $600 or more must show a driving licence or similar ID, retained on a prize receipt for 3.5 years (349.1721, subd. 4(h), (i)). Advance deposit wagering providers must verify that account holders are natural persons aged at least 18 (240.131, subd. 5(a)(3)).
- Stake limits
- Electronic pull-tab tickets cost at least 25 cents each and games hold no more than 7,500 tickets (349.12, subd. 12c). Racetrack card club wagers are capped at $100, or $300 where only one wager is allowed (240.30, subd. 8).
- Mandatory player messaging
- Racetracks must post the state compulsive gambling helpline number at each point of sale of pari-mutuel tickets (240.13, subd. 2(b)) and card clubs must post it in the card club (240.136) and train staff to identify problem gamblers (240.30, subd. 6(a)(7)). Lottery promotional materials and retailers must show the approximate odds of winning each prize (349A.09, subd. 1).
- Reporting obligations
- Licensed organisations report monthly to the Gambling Control Board, electronically and for each premises, on gross receipts, expenses, profits and expenditure of profits, and monthly to the Department of Revenue (349.19, subd. 5); tax returns are due by the 20th of the following month (297E.02, subd. 3). Advance deposit wagering providers file an annual independent audit with the Racing Commission (240.131, subd. 5).
- Game content restrictions
- Electronic pull-tab games may not have spinning reels, free plays, bonus games or other features that mimic a slot machine, and each ticket and each row of symbols must be revealed by a separate manual action (349.12, subds. 12b and 12c, in force since 1 January 2025). Devices are limited to six per premises with 200 seats or fewer, 12 above that and 50 in bingo halls (349.1721, subd. 4(b)). Racetracks may not offer historical horse racing, slot machines or video games of chance (240.071).
Minimum age by vertical
- Land-based (reference): 18+
- Horse race betting: 18+
- iLottery: 18+
Advertising
- Advertising permitted
- Not yet verified
- Mandatory warnings
- Lottery service businesses: "This business is not affiliated with and is not an agent of the Minnesota State Lottery." (299L.09).
- Penalties for breach
- Prediction market advertising: felony (609.7615, subd. 3). Lottery promotion: misdemeanour (609.755).
Restrictions
- From 1 August 2026, advertising or marketing financial or technological products that promote prediction market transactions is a felony (609.7615, subd. 3); enforcement against CFTC-registered designated contract markets is preliminarily enjoined.
- Disseminating information about a lottery, other than one run by an adjoining state, with intent to encourage participation is a misdemeanour (609.755(3)).
- Lottery service businesses that buy tickets for subscribers must state in all advertising, including online solicitations, "This business is not affiliated with and is not an agent of the Minnesota State Lottery." (299L.09).
- State Lottery advertising must be consistent with the dignity of the state and may only explain games, prizes, odds, where to buy, the programmes funded and winners; it may not present the Lottery as relief from financial difficulty or as an investment, exploit a specific group, use a current elected state official, misrepresent the chance of winning or denigrate non-players. Lottery promotional materials and retailers must show the approximate odds of winning each prize (349A.09).
- No statutory advertising code applies to charitable gambling or horse racing beyond these provisions; the 2026 sports betting bill would have introduced one for sports betting but was not enacted.
Payments
- Credit card ban
- Not yet verified
- Crypto stance
- Not yet verified
- Permitted methods
- Cash for pull-tabs, tipboards, bingo and paddlewheels at licensed premises, Cheques and debit cards for raffles only, Advance deposit wagering accounts funded in advance, with no credit extended by the provider
- Payment blocking regime
- From 1 August 2026 it is a felony knowingly to provide money transfer or payment processing services, or location services, to a prediction market for consumer wagers (609.7615, subd. 2(5)); enforcement against CFTC-registered designated contract markets is preliminarily enjoined. There is no general payment blocking regime for other unlicensed gambling.
- Currency restrictions
- A licensed organisation may not accept cheques or debit cards for gambling equipment or for the chance to play any form of lawful gambling except raffles (349.2127, subd. 7). Advance deposit wagering providers must accept wagers only against funds on deposit (240.131, subd. 5(a)(4)).
Enforcement
- ISP blocking
- Not yet verified
- DNS blocking
- Not yet verified
- Payment blocking
- Not yet verified
- App store takedowns
- Not yet verified
- Administrative penalties
- The Gambling Control Board may censure, suspend or revoke licences and impose civil penalties of up to $1,000 per violation, or up to $10,000 for organisations that fail the lawful purpose spending minimum (349.151, subd. 4; 349.15). Civil penalties and fines deposited in FY2025 totalled $61,400. The Alcohol and Gambling Enforcement director may issue cease and desist orders and seek injunctions (299L.03, subd. 12).
- Criminal penalties
- Making a bet: misdemeanour (609.755). Maintaining a gambling place, receiving bets or supplying unlicensed gambling devices: gross misdemeanour, up to 364 days and $3,000 (609.76, subd. 1). Sports bookmaking and cheating by a licensee: felony (609.76, subds. 2 and 3). Prediction market hosting, facilitation or advertising: felony from 1 August 2026 (609.7615). Possessing more than ten unstamped pull-tab deals, false statements to the Board and unlawful expenditures above $2,500: felony (349.2127).
- Operator liability
- Operators of unlawful gambling face criminal liability under 609.76 and, from 1 August 2026 for prediction markets, under 609.7615, which also reaches data, location and payment suppliers. Losers may sue the winner to recover money lost in unlawful gambling (541.20), the basis of the Wolters class action against Stake.us. The racetracks may sue anyone accepting unauthorised pari-mutuel wagers from Minnesota residents for an injunction and presumptive damages of 10% of the wagers accepted, and the Racing Commission may sue for an injunction and the fees that would have been payable to the State (240.131, subd. 8).
- Player liability
- Making a bet that is not excluded by 609.75, subd. 3 is a misdemeanour (609.755(1)), so placing wagers with unlicensed sportsbooks or online casinos is an offence for the player. Players under 18 commit a misdemeanour by playing charitable gambling (349.181). The prediction market statute creates no offence for users.
Notable actions
- State of Minnesota (prediction market statute), in suits by the CFTC, Kalshi and Polymarket US27 Jul 2026
District of Minnesota preliminarily enjoined enforcement of 609.7615 against CFTC-registered designated contract markets until a final decision on the merits.
- Sweepsteaks Limited d/b/a Stake.us1 Jul 2026
Motion to compel arbitration denied in a class action seeking recovery of gambling losses under 541.20; appeal to the Eighth Circuit filed 15 July 2026.
- Minnesota Racing Commission approval of electronic table games at Running Aces21 Jan 2026
Minnesota Supreme Court confirmed the Shakopee Mdewakanton Sioux Community's standing to challenge expansions of racetrack gambling but, evenly divided on the merits, left the approval in place.
- Offshore and sweepstakes gambling websites serving Minnesota5 Nov 2025
The Attorney General published a statement directing illegal gambling websites to stop offering services in Minnesota, stating that social sweepstakes casinos using virtual coins for cash and prizes are prohibited under Minnesota law (as recorded in the Wolters opinion).
- Lawful gambling licensees (fiscal year 2025 total)30 Jun 2025
Civil penalties and fines from consent orders and citations deposited in the General Fund.
Fine: $61,400 as of 30 Jun 2025
Market data
Figures on this record are drawn from official regulator data.
- Online GGR
- Not yet verified
- Reporting year
- 2025
- Year-on-year growth
- 0.2%
GGR by vertical
- Land-based (reference): $713,198,082 as of 30 Jun 2025
Timeline
20 Apr 1989
Laws 1989, chapter 44 authorises the Governor to negotiate Class III compacts with tribes (now 3.9221)
20 Oct 1989
State dates the first Class III video games of chance compacts, including Bois Forte and Prairie Island
7 Mar 2024
Interior Department approves the Shakopee Mdewakanton Sioux Community addendum for Class III banked card games
1 Jul 2024
25% cap on distributor charges for electronic pull-tab games takes effect
1 Jan 2025
New electronic pull-tab game standards from the 2023 session take effect
5 Nov 2025
Attorney General directs illegal gambling websites, including sweepstakes casinos, to stop serving Minnesota
25 Nov 2025
Gambling Control Board FY2025 report: gross receipts $4.91 billion, down 0.5%, the first fall since FY2020
21 Jan 2026
Minnesota Supreme Court decides the Running Aces electronic table games case
23 Mar 2026
Tribal mobile sports betting bill S.F. 4139 fails on the Senate floor, 22-44
30 Apr 2026
Senate passes the online sweepstakes ban S.F. 4474, 62-3; it stalls in the House
18 May 2026
Governor signs chapter 97, the first prediction market ban
19 May 2026
CFTC sues Minnesota to block the prediction market law
26 May 2026
Governor signs chapter 118, which re-enacts the ban as 609.7615 in narrower form
1 Jul 2026
District court refuses to compel arbitration in Wolters v. Stake.us
27 Jul 2026
District court enjoins enforcement of 609.7615 against CFTC-registered exchanges
1 Aug 2026
Prediction market statute takes effect for platforms not covered by the injunction
Outlook
The merits of the prediction market cases (United States v. Minnesota, KalshiEX v. Ellison and QCX v. Ellison) remain before Judge Menendez in the District of Minnesota; the preliminary injunction holds until final judgment, so CFTC-registered exchanges can keep serving Minnesota users while unregistered platforms face the new felony. The Eighth Circuit appeal in Wolters v. Sweepsteaks Limited (No. 26-2459) will test whether sweepstakes casino terms are void under Minnesota gambling law, which matters for loss recovery claims under 541.20. The 2025 to 2026 Legislature's regular session has ended, so sports betting (S.F. 4139 would have given up to 11 tribes 20-year mobile licences at a 22% tax on net revenue) and the sweepstakes ban (S.F. 4474) would need to be reintroduced in 2027. The Gambling Control Board's fiscal year 2026 annual report will show how electronic pull-tabs fared in their first full year under the 2025 game standards.
Frequently asked questions
- Is online sports betting legal in Minnesota?
- No. No statute authorises it, a sports wager is a bet under 609.75, and making a bet is a misdemeanour while sports bookmaking is a felony. The 2026 bill for tribal mobile sports betting, S.F. 4139, failed in the Senate.
- Can prediction markets offer contracts to Minnesota users?
- Minn. Stat. 609.7615 makes operating, facilitating or advertising a prediction market a felony from 1 August 2026, but on 27 July 2026 a federal court enjoined enforcement against CFTC-registered designated contract markets until the cases are decided. Platforms that are not CFTC-registered are not covered by the injunction.
- Are sweepstakes casinos legal in Minnesota?
- The Attorney General has said social sweepstakes casinos are prohibited, and a federal court held in July 2026 that Minnesota prohibits the gambling alleged against Stake.us. An express statutory ban passed the Senate in 2026 but was not enacted.
- How is charitable gambling taxed?
- Bingo, raffles and paddlewheels pay 8.5% of gross receipts less prizes. Pull-tabs, tipboards and electronic linked bingo pay a combined net receipts tax on annual net receipts, from 8% up to $87,500 to 33.5% above $157,500. Organisations paid $196.2 million in state gambling taxes in FY2025.
- Can a commercial operator get a licence?
- Not for online casino, poker or sports betting. The routes in are supplying charitable gambling equipment as a licensed distributor ($7,000 a year) or manufacturer ($10,000 a year), licensing gambling devices with the Alcohol and Gambling Enforcement Division, or advance deposit wagering on horse racing under a Class C licence and a racetrack contract.
- How big is the market?
- Licensed charitable gambling took $4.91 billion in gross receipts and $713.2 million in net receipts after prizes in the year to 30 June 2025, according to the Gambling Control Board. Tribal casino revenue is not published by the State.
Sources
- Minnesota Statutes 609.75, Gambling; definitions (lottery, bet, what are not bets, gambling device, sports bookmaking, video game of chance)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 609.755, Gambling; misdemeanor (making a bet, selling lottery chances, disseminating lottery information)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 609.76, Gambling; gross misdemeanor; felony (gambling places, receiving bets, sports bookmaking, cheating)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes Chapter 349, Lawful Gambling and Gambling Devices
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 297E.02, Gambling taxes; tax imposed (as amended by Laws 2026, chapter 121, article 6, section 22)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes Chapter 299L, Alcohol and Gambling Enforcement
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 349A.13, State Lottery; restrictions (no sports lotteries, casino-style games or online instant tickets)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 349A.12, State Lottery; prohibited acts (sales to persons under 18)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 349A.09, Lottery advertising (odds statements, permitted and prohibited content)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes Chapter 240, Horse Racing (including 240.071 prohibited acts, 240.13 pari-mutuel betting, 240.131 advance deposit wagering, 240.15 taxes, 240.30 card clubs)
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 3.9221, Indian tribes; compacts to be negotiated
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Minnesota Statutes 541.20, Recovery of money lost
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - Laws of Minnesota 2026, chapter 97 (S.F. No. 4760), public safety; article 8, prediction markets; signed 18 May 2026
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026Published 18 May 2026 - Laws of Minnesota 2026, chapter 118 (S.F. No. 3432), public safety; article 6, prediction markets (new section 609.7615); signed 26 May 2026
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026Published 26 May 2026 - Laws of Minnesota 2026, chapter 121, article 6, section 22 (amending 297E.02, subdivision 3, problem gambling appropriation); signed 27 May 2026
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026Published 27 May 2026 - S.F. No. 4139 (2026), Sports betting authorization and regulation: bill status, 94th Legislature
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - S.F. No. 4139 (2026), as introduced: bill text
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026Published 3 Mar 2026 - S.F. No. 4474 (2026), Online sweepstakes games prohibition: bill status, 94th Legislature
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026 - S.F. No. 4474 (2026), first engrossment: bill text
Minnesota Revisor of Statutes
Tier 1Accessed 23 Sept 2026Published 7 Apr 2026 - United States and CFTC v. State of Minnesota, No. 26-cv-2661; KalshiEX LLC v. Ellison, No. 26-cv-2778; QCX LLC v. Ellison, No. 26-cv-2841 (D. Minn.): Order on Plaintiffs' Motions for Preliminary Injunction, 27 July 2026
United States District Court for the District of Minnesota
Tier 1Accessed 23 Sept 2026Published 27 Jul 2026 - KalshiEX LLC v. Ellison, No. 26-cv-2778 (D. Minn.): Judgment in a Civil Case entering the preliminary injunction, 27 July 2026
United States District Court for the District of Minnesota
Tier 1Accessed 23 Sept 2026Published 27 Jul 2026 - Wolters v. Sweepsteaks Limited d/b/a Stake.us, No. 25-3280 (D. Minn.): Memorandum Opinion and Order Denying Motion to Compel Arbitration, 1 July 2026
United States District Court for the District of Minnesota
Tier 1Accessed 23 Sept 2026Published 1 Jul 2026 - Wolters v. Sweepsteaks Limited, No. 25-cv-3280 (D. Minn.): Notice of Appeal to the Eighth Circuit, 15 July 2026
United States District Court for the District of Minnesota
Tier 1Accessed 23 Sept 2026Published 15 Jul 2026 - In re Minnesota Racing Commission's Approval of Running Aces Casino, Hotel & Racetrack's Request to Amend its Plan of Operation, No. A23-1738 (Minn. 21 January 2026)
Minnesota Supreme Court
Tier 1Accessed 23 Sept 2026Published 21 Jan 2026 - Minnesota Gambling Control Board, Annual Report Fiscal Year 2025 (1 July 2024 to 30 June 2025)
Minnesota Gambling Control Board
The report describes the electronic pull-tab cost cap as 25% of the games' net receipts; the statute (349.163, subd. 11) caps distributor charges at 25% of gross profits. The record follows the statute.
Tier 1Accessed 23 Sept 2026Published 25 Nov 2025 - CFTC Release 9233-26, CFTC Sues Minnesota to Block State Law, 19 May 2026
Commodity Futures Trading Commission
Tier 2Accessed 23 Sept 2026Published 19 May 2026 - Department of Revenue, Analysis of S.F. 5045 (E-Pull Tab Dedication), 20 April 2026
Minnesota Department of Revenue
Tier 2Accessed 23 Sept 2026Published 20 Apr 2026 - Gambling Winnings (individual income tax guidance)
Minnesota Department of Revenue
Tier 1Accessed 23 Sept 2026 - Minnesota Racing Commission website (Canterbury Park and Running Aces offices and licensing)
Minnesota Racing Commission
Tier 1Accessed 23 Sept 2026 - Minnesota Tribal-State Gaming Compacts: archived compacts, technical amendments and addenda for the eleven tribal nations
Minnesota Legislature (Legislative Reference Library)
Tier 1Accessed 23 Sept 2026 - Tribal-State Compact for Control of Class III Video Games of Chance on the Bois Forte Band of Lake Superior Chippewa Reservation (dated by the State 20 October 1989)
Minnesota Legislature (Legislative Reference Library)
Tier 1Accessed 23 Sept 2026Published 20 Oct 1989 - Tribal-State Compact for Control of Class III Video Games of Chance on the Prairie Island Sioux Community Reservation (dated by the State 20 October 1989, by the Community 15 November 1989)
Minnesota Legislature (Legislative Reference Library)
Tier 1Accessed 23 Sept 2026Published 15 Nov 1989 - Addendum to the Shakopee Mdewakanton Sioux Community Tribal-State Compact for Control of Class III Blackjack, for Class III Card Games, with Department of the Interior approval of 7 March 2024
Minnesota Legislature (Legislative Reference Library)
Tier 1Accessed 23 Sept 2026Published 7 Mar 2024