PR in the Philippines

(AsiaGameHub) –   Two legislative proposals are moving forward in Minnesota that would ban sweepstakes casinos and prediction markets covering a broad spectrum of events, including sports.

The Minnesota Senate has already given its approval to bill SF4511, which would significantly limit prediction markets within the state. This legislation was received by the House on Monday and has been referred to the Commerce, Finance, and Policy committee.

Last week, the Senate also passed SF4474, a bill proposing a ban on sweepstakes casinos. This bill has been assigned to the Public Safety Finance and Policy committee. House representatives have until May 18 to advance the bills to Governor Tim Walz.

Prediction Market Prohibition

The legislation concerning prediction markets would prohibit companies from offering markets related to the following:

• All athletic competitions, including horse racing
• Events such as wars, natural disasters, mass shootings, and other tragic or violent occurrences
• The outcomes of legal proceedings
• Elections
• Entertainment-related markets, such as award ceremonies and release dates
• Mention markets
• Short-term weather phenomena

The Senate approved the legislation with a 56-10 vote last week. According to Sen. John Marty, one of the bill’s sponsors, the vote indicated lawmakers’ belief that prediction markets have become unmanageable.

“It shows that people of both parties, people who are pro-gambling and anti-gambling together, can recognize that the prediction markets are ripe for conflict of interest, things like insider trading for politicians, for others. It’s a huge thing ripe for scandal. And it’s gone out of control,” Marty stated.

The ongoing debate across the US regarding whether prediction markets constitute legal trading or illegal gambling continues to attract significant attention.

Minnesota currently prohibits both retail and online sports betting, and Sen. Marty highlighted that the bill aims to establish that prediction markets are considered illegal gambling.

“We’re saying no, these are bets, sports bets, bets on politics, things that are currently illegal,” he remarked during a hearing last month.

Minnesota Senator Wagering on Himself Sparks Ban

The US Senate recently imposed a unanimous ban on all Senators participating in prediction markets. This action followed an instance where Minnesota Sen. Matt Klein placed a wager on himself to win his primary election on Kalshi.

Klein reached a settlement with Kalshi, agreeing to a $539.85 fine and a five-year prohibition from the platform. He expressed support for the ban on Senators using prediction markets, commenting that his experience, “like many other Minnesotans, points to the need for clearer rules and regulations for these types of markets.”

Kalshi also took action against a California gubernatorial candidate for placing a bet on themselves on the platform.

“As a candidate in a race, you can (and probably should) follow and use Kalshi’s market forecast, but you should not trade on it,” the company stated when announcing it had fined Kyle Langford over $2,000 and banned him from the platform for five years.

Sweepstakes Ban Also Progressing

Amidst its stringent anti-gambling laws, Minnesota is also moving to close another legal avenue that permits residents to gamble online. Similar to the prediction market ban, lawmakers approved a prohibition on sweepstakes casinos last week.

The legislation defines an online sweepstakes casino as “a game, contest, or promotion that:

• (1) is available on the Internet or accessible via a mobile device, computer terminal, or similar access device;
• (2) uses a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash, cash equivalent, or an opportunity to win a prize, award, cash, or cash equivalent; and
• (3) simulates casino-style or another form of gambling“

Currently, only a limited number of platforms restrict access to their sites in Minnesota. If enacted, the bill would grant the state’s Attorney General the authority to pursue action against operators and promoters.

Indiana and Maine have already passed legislation banning sweepstakes casinos this year, joining several other states that prohibited these platforms last year. However, lawmakers in Tennessee did not approve legislation specifically criminalizing operators. Despite this, the state has already taken enforcement measures against numerous companies, though some continue to operate.

The two bills in Minnesota are gaining momentum in a state that has adopted a firm anti-gambling stance. There appears to be minimal interest in expanding the state’s gambling industry, as a proposal to legalize sports betting did not advance earlier this year.