Skip to content
iGaming Times

Independent industry intelligence in your inbox. We will email you a link to confirm your subscription, and every newsletter carries a one-click unsubscribe link.

Sub-national
North America

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.

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

  1. 20 Apr 1989

    Laws 1989, chapter 44 authorises the Governor to negotiate Class III compacts with tribes (now 3.9221)

  2. 20 Oct 1989

    State dates the first Class III video games of chance compacts, including Bois Forte and Prairie Island

  3. 7 Mar 2024

    Interior Department approves the Shakopee Mdewakanton Sioux Community addendum for Class III banked card games

  4. 1 Jul 2024

    25% cap on distributor charges for electronic pull-tab games takes effect

  5. 1 Jan 2025

    New electronic pull-tab game standards from the 2023 session take effect

  6. 5 Nov 2025

    Attorney General directs illegal gambling websites, including sweepstakes casinos, to stop serving Minnesota

  7. 25 Nov 2025

    Gambling Control Board FY2025 report: gross receipts $4.91 billion, down 0.5%, the first fall since FY2020

  8. 21 Jan 2026

    Minnesota Supreme Court decides the Running Aces electronic table games case

  9. 23 Mar 2026

    Tribal mobile sports betting bill S.F. 4139 fails on the Senate floor, 22-44

  10. 30 Apr 2026

    Senate passes the online sweepstakes ban S.F. 4474, 62-3; it stalls in the House

  11. 18 May 2026

    Governor signs chapter 97, the first prediction market ban

  12. 19 May 2026

    CFTC sues Minnesota to block the prediction market law

  13. 26 May 2026

    Governor signs chapter 118, which re-enacts the ban as 609.7615 in narrower form

  14. 1 Jul 2026

    District court refuses to compel arbitration in Wolters v. Stake.us

  15. 27 Jul 2026

    District court enjoins enforcement of 609.7615 against CFTC-registered exchanges

  16. 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

  1. Tier 1Accessed 23 Sept 2026
  2. Tier 1Accessed 23 Sept 2026
  3. Tier 1Accessed 23 Sept 2026
  4. Tier 1Accessed 23 Sept 2026
  5. Tier 1Accessed 23 Sept 2026Published 3 Mar 2026
  6. Tier 1Accessed 23 Sept 2026Published 7 Apr 2026
  7. Tier 1Accessed 23 Sept 2026Published 27 Jul 2026
  8. Tier 1Accessed 23 Sept 2026Published 1 Jul 2026
  9. Tier 1Accessed 23 Sept 2026Published 15 Jul 2026
  10. 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
  11. Tier 2Accessed 23 Sept 2026Published 19 May 2026
  12. Tier 2Accessed 23 Sept 2026Published 20 Apr 2026
  13. Tier 1Accessed 23 Sept 2026

Spotted something out of date? Report a correction.

This page is industry reference information and not legal advice.

Cookie Preferences

Choose which cookies you want to accept. Essential cookies are required for the website to function properly.

Required

Necessary for the website to function. Cannot be disabled.

Help us understand how visitors interact with our website.

Used to deliver relevant advertisements and track ad performance.

Remember your preferences and settings for a better experience.