Minnesota’s 2026 legislative session ended with mixed results regarding gambling expansion. While the sports betting bill failed early in the session, lawmakers devoted considerable attention to proposals addressing prediction markets and online sweepstakes casinos.
A bill targeting prediction market platforms such as Kalshi and Polymarket advanced quickly through the Legislature. The measure seeks to classify certain contracts on sports, current events and other outcomes as gambling, and makes participation a felony. Supporters argued that allowing these markets to operate undermines Minnesota’s authority to determine which forms of gambling are legal, permits individuals as young as 18 to place wagers and generates no tax revenue for the state. MNAPG and the National Council on Problem Gambling maintain that these products function as gambling and should be subject to stronger consumer protections. Minnesota’s action has drawn national attention, and other states are exploring similar approaches.
In contrast, legislation to ban online sweepstakes casinos did not advance. Advocates raised concerns about their addictive potential, lack of regulation and impact on tribal gaming exclusivity, but lawmakers ultimately chose not to act.
Looking ahead, both sports betting and sweepstakes casino legislation are likely to return next year. With significant legislative turnover expected, MNAPG will continue educating policymakers about consumer protections and the need for funding for treatment, education, prevention and research.
Frequently Asked Questions
Is sports betting legal in Minnesota in 2026?
No. The sports betting bill failed early in the 2026 Minnesota legislative session, meaning sports betting remains illegal in the state.
What are prediction markets, and why are they controversial in Minnesota?
Prediction markets are platforms where individuals can wager on the outcomes of future events. In Minnesota, a 2026 bill sought to classify certain contracts on platforms like Kalshi and Polymarket as gambling, making participation a felony, due to concerns about accessibility to those under 18 and lack of tax revenue.
Are online sweepstakes casinos legal in Minnesota?
Legislation to ban online sweepstakes casinos did not advance in the 2026 session, despite concerns from advocates about their addictive potential, lack of regulation, and impact on tribal gaming exclusivity.