To learn more about Minnesota’s Alcohol and Gambling Enforcement division and how it oversees gambling activity in the state, Northern Light reached out to Jon Anglin, director of the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement (AGE) division. Below is our Q&A.
NL: Many people know your agency regulates alcohol, but fewer understand your role in gambling. Can you describe your responsibilities when it comes to gambling oversight in Minnesota?
JA: People like to jokingly call us the “fun police” because they think we take all the fun away from people. It’s a name that has stuck for 20 years. We work with organizations such as the Minnesota Lottery, the Racing Commission, which regulates card rooms and racetracks, and the Gambling Control Board (GCBP) to ensure the legality of gaming activities. For the GCB, we review lottery fraud, card cheats, horse cheats, etc. We check casinos to make sure they’re in compliance with the state’s Tribal-state compacts with games such as blackjack and video games of chance. A large aspect of our work is handling illegal gambling that may occur from online gambling, fundraising fraud and illegal activity that occurs on social media platforms, such as with sweepstakes, etc. We handle all complaints and investigate as appropriate.
NL: How has your agency’s work changed over the past five to 10 years as the gambling landscape has become increasingly digital?
JA: Our work has only gotten bigger. In addition to everything going on in every corner of Minnesota, the digital footprint is much bigger with social media. Social casinos, online gambling platforms known by different names including fantasy and sweepstakes, have moved online and expanded. This has essentially opened up the world to Minnesota, whereas it used to be that gambling just occurred at the corner bar. This means that someone’s overseas site is now in Minnesota.
NL: What challenges does your agency face in addressing offshore gambling operators that are located outside U.S. jurisdiction?
JA: We face a lot of challenges. As an example, maybe 10-15 years ago when I was a special agent in the division, the FBI called and said people were receiving large amounts of money in Minnesota from an online casino that was paying out, which doesn’t happen all the time. The company was overseas, the owners were overseas and the bank accounts were across the U.S. with one in Minnesota. The company claimed it was legal gambling because it was just sweepstakes. However, AGE determined it was illegal. Multiple states got involved and they got the bank to stop them from proceeding. We face the same problem today but the number is so much higher. We asked several agents to start counting potentially illegal online casinos, but they had to stop counting at five thousand. We only have three special agents to cover all this. The bottom line is that we don’t have the tools to really stop or disrupt all these entities. If the owner, the website and the bank accounts are in another country, what tools do we have to stop it from being in schools, where kids are, your home or anywhere in Minnesota? Ultimately, these overseas entities don’t have consumer protections, meaning we can’t protect Minnesotans from underage gambling, gambling addiction, not getting paid out, etc.
We could make it more difficult for these entities if we had authority over payment processors and could give the payment processors notice and say, “This is illegal.” They can stop the money. That would make it difficult and would be disruptive to these entities. Also, if we had the ability to reach out to advertisers and say these entities are illegal and not licensed in the state, we could tell internet service providers that it’s illegal. Tools like that could go a long way in making it more difficult and keep legal gambling in the state where we have consumer protections. When it’s illegal, for example, people who struggle with problem gambling can’t self-exclude from gaming activities.
NL: What would you like Minnesota consumers to understand before placing a bet with an offshore gambling site?
JA: These sites always say they’re legal, though they might say “void where prohibited.” If it doesn’t seem like a legal one, it’s more than likely illegal and consumers can call our agency.
NL: Do you receive complaints related to fantasy sports (realizing this not within your jurisdiction)?
JA: We receive complaints on fantasy. A lot depends on how you define fantasy. Everyone has a different definition. They moved from the original idea of matching team total numbers to over/unders, number of touchdowns to be scored, etc. — and then moved into prediction markets. The definition is always moving. It’s not always fantasy when someone says it is. The question for people playing these games to ask is whether it’s really gambling or not. Gambling is either a bet or lottery. If it’s a bet, people agree to lose something of value.
NL: How does your agency view these platforms such as sweepstakes casinos and online casinos, and what distinguishes them from legal, regulated gambling?
JA: Sweepstakes involving Coke, Mountain Dew, McDonald’s cheeseburgers, etc., are legal because they aren’t selling product to have the sweepstakes. They’re offering a sweepstakes to help sell the product. If sweepstakes don’t involve selling the product, what are you purchasing? Platforms such as online casinos say you’re purchasing entertainment to play slot machines. So how is that any different than just playing slots? All of that is illegal according to the law.
It’s important to note that AGE is not out to get the person playing these games. We want to go after the place that’s providing this illegal game. We’re here to protect Minnesotans and to make sure they get their money, that the underage population is protected and that there are protections for people experiencing gambling addiction. I’ve heard stories of people losing $75,000 and their houses.
NL: What do you think the chances are that new legislation will be passed that will give the agency the tools to put an end to sweepstakes/online casinos?
JA: It’s hard for me to speculate on that so I can’t give you a guess.
NL: How does your agency view prediction market platforms, particularly when they involve sporting events?
JA: Given ongoing lawsuits in Minnesota with regard to prediction markets, I can’t answer that. However, the statement below summarizes our position on the matter.
Minnesota law provides several lawful forms of gambling under established state regulatory frameworks. The Minnesota Department of Public Safety remains committed to carrying out its statutory responsibilities in a manner that protects public safety, consumers and the integrity of regulated gambling. The lawsuits regarding the prediction markets statute are ongoing and so we will not have further comment on the lawsuits.
NL: What trends are you seeing in complaints or consumer reports related to gambling? Have those changed in recent years?
JA: Everything has moved to online. The main complaint we hear about is people not getting their money. They’ll say, “I won $10,000 and am not getting it.” Ninety-nine percent of these complaints are from non-regulated areas. Unlike legal games in Minnesota, there is concern about the integrity of those non-regulated online games, meaning they might not be fair with payouts, there may be manipulation, cheating on slots and cards, etc.
NL: As the gambling landscape continues to evolve, what policy or enforcement challenges do you anticipate over the next few years?
JA: It’s difficult to handle the online activity without having tools. With three special agents, someone might not notice a difference if we take down one out of five thousand sites. I think our best efforts should be dedicated to addressing consumer protections and to providing more education by telling people what’s illegal and why.
NL: What do Minnesotans gain by choosing legal gambling rather than illegal or offshore options?
JA: If you enjoy gambling that’s legal in Minnesota, know that it can also benefit local communities. Lawful gambling, such as pull-tabs, helps support charities, local hockey associations, baseball fields and other community projects. That’s very different from illegal or offshore gambling, where money often leaves Minnesota.
Legal gambling also comes with consumer protections. If you gamble legally in Minnesota and aren’t paid what you’re owed, there are avenues for help. With illegal or overseas gambling, it can be much more difficult to resolve those kinds of problems.
NL: Is there anything Minnesotans should know about gambling in the state that you feel is often misunderstood?
JA: Just know that what people see online — whether it’s cards or social casinos — isn’t necessarily what it appears to be. People can always call our division to determine if something is illegal.
We want to educate Minnesotans for their own protection. Legal, regulated gambling in Minnesota provides resources to help with problem gambling and protects consumers from risks such as unfair betting. Minnesota allows the following legal gambling activities:
- Licensed charitable gambling, including pull tabs, paddlewheels, tip boards, bingo and raffles.
Minnesota Lottery. - Pari-mutuel betting on horse races. A pari-mutuel betting system is where all the money bet is pooled together. After taking out costs, the remaining money is divided among the winners, based on how much they bet.
- Tribal gaming.
Illegal online sports betting and online casinos deservedly get a lot of attention for their risks, but there are other illegal gambling activities as well. Illegal gambling in Minnesota has the following three elements:
- Consideration: Something of value is given, directly or indirectly, to participate.
- Chance: The game must be based predominately on chance.
- Prize: The player must be able to get something of value if the player wins.
Blackjack, dice, roulette or poker are among the games that meet those criteria. Using gambling devices, such as roulette wheels or slot machines, is also illegal.