Gambling Trends
A Brief History of Gambling in Minnesota
Minnesota is not an early adopter of gambling or its expansion. In 1945, Minnesota cautiously ventured into legalized gambling with nonprofit bingo for charities. Gambling expansion wasn’t considered until the late 1970s when the lottery was first proposed. Voter approval didn’t come until the late 1980s, with lottery sales starting in 1990 and Powerball in 1992. Today, the Minnesota Lottery has over 3,000 sales outlets.
In 1982, voters approved pari-mutuel betting, leading to the Minnesota Racing Commission’s creation and Canterbury Downs’ opening in 1985. Running Aces Casino followed in 2008. Compacts for tribal casinos began in 1989. Currently, 11 sovereign nations own and operate 21 casinos in Minnesota.
The most significant recent expansion came in 2012 with the approval of video pull tabs to fund the Vikings stadium. By 2019, statewide pull tab sales exceeded $2.2 billion. In 2024, the legislature made significant changes to video pull tabs to take effect in 2025. The tribes successfully argued that video pull tabs now included similar features to slot machines. The courts ruled this was an infringement to tribal rights and their exclusive use of slot machines. Charitable gambling remains an important revenue source for many of the state’s 1,100+ registered charitable organizations
SCOTUS Overturns Sports Betting Ban
In May 2018, the Supreme Court of the United States overturned a longtime ban which prohibited all states except for Nevada from offering sports betting. Since the ban was lifted in November 2020, 22 states plus Washington, D.C., have approved sports betting. Minnesota is considering bills that would legalize sports betting, but as of December 2020 none have been passed.
Sports Betting
In 2018, The Supreme Court overturned a longtime ban restricting sports betting to Nevada. Since then, 38 states plus Washington D.C., have legalized sports betting (as of 2025). Sports betting remains illegal in Minnesota, despite ongoing legislative talks. MNAPG remains committed to prioritizing education, prevention and intervention strategies, as well as advocating for strong consumer protections ahead of any gambling expansion.
It’s anticipated that sports betting bills will be re-introduced in the Minnesota 2025 legislative session. Check our social media platforms for more current information.
Find the latest information about sports betting in Minnesota
Esports Gambling
Since emerging in the early 1990s, esports has rapidly grown in popularity, with viewership exceeding 640 million in 2025. The majority of viewers are ages 10-35, a demographic difficult to reach through traditional media. Unlike sports betting, esports betting has largely avoided regulatory scrutiny.
As interest and revenue in esports surges post-COVID-19, the threat of gambling addiction is real and should be addressed. Though considered sports for marketing and visa purposes, wagering on esports is considered sports betting. Many governments have yet to implement laws recognizing this expansion or its risks. Esports betting remains illegal in the United States.
Online Gambling
Advanced technology has enabled gaming operators to build massive platforms for social casino games, esports and a variety of video games designed for entertainment. Online gaming, often played in solitude, lacks barriers or interruptions, which can lead to excessive time and financial losses.
Online gambling platforms are not legal in Minnesota. If a Minnesotan is placing bets online, they are likely using illegal, offshore websites that operate without U.S. licenses. These are unregulated, meaning operators are not obligated to list odds, may embed predatory features into games and might withhold winnings when you try to cash out.
Many online games are also unregulated and attract children and adults alike. While these platforms market “free play,” advancing in a game often requires an online purchase. Though many players engage in these games responsibly, about 4% of the population may develop gambling problems.
Convergence of Gambling and Gaming
Addictive behavior from excessive gaming can resemble gambling disorder. What may start as a fun pastime can transform into a fixation, impacting work and family life. The connection between the two addictions becomes apparent when gambling elements are woven into video games, known as loot boxes.
In 2018, gaming disorder was included in the World Health Organization’s International Classification of Diseases (ICD). This recognition only includes games without built-in gambling elements. However, wth 2.5 billion active gamers worldwide – and an estimated 8.6 million U.S. gamers experiencing gaming addiction – there is an increasing need for clinicians to address this issue.
What’s A Loot Box?
Loot boxes are virtual treasure chests containing undisclosed items, like customizable characters or special weapons (“skins”). Players may buy loot boxes to boost game performance, show status to others or unlock exclusive content. These in-game purchases use real money, but operators often don’t disclose the contents or odds of getting desired items. This creates a gambling element: players risk something of value in the hopes of gaining something of greater value.
Occasional purchases may not lead to a gambling problem. However, growing isolation, time loss and a need for escape can contribute to the development of an addiction.
- Signs are already indicating this generation (born between 1997 and 2015) will approach gambling in a very different way than any other generation. They have a very different concept of winning. Winning is not necessarily tied to money, but whether or not the outcome is a positive, fun, engaging experience. This changes the meaning of loss, from money to the quality of the experience. This generation has grown up with social media and multi-player games with an emphasis on interaction, showing off their skills and raising their social profile as a result.
- Historically we have taken the view that problem gamblers develop these traits as a result of gambling. For this new generation, however, these traits will have already developed and been established long before they ever reach the age where they can gamble. They have been raised to seek value adds in whatever they do. They like to try things for free before committing. Games that provide “free” bets will be attractive. They respond to marketing reward schemes and have spent a great deal of time playing video games — all aspects of developing problem behavior.
- This generation doesn’t have the money now, but unless we tackle this challenge, we are looking at the prospect of a new generation of players pre-programmed to be problem gamblers.
Source: Christina Thakor-Rankin, Principal Consultant, 1710 Gaming Eventus International September, 2020
The American casino industry wants gambling regulators to enact cashless payment systems like debit or credit cards and apps like Apple Pay, Google Pay and PayPal. While there hasn’t been widespread adoption of digital payment methods at casinos or other U.S. gambling facilities, the American Gaming Association points to some advantages, including helping patrons set limits and track spending, and reducing the number of currency transaction reports that casinos have to file with the government:
Cited benefits and opportunities of cashless systems:
- Health and safety: Reduces handling of physical cash.
- Player data: Offers insights into patron behavior and offers opportunities to set limits and promote healthy play messages.
- Increased security: Lowers risks of money laundering.
Red flags to adopting cashless systems:
- Credit card risks: Credit and debit cards aren’t the same. Credit card limits are often much higher than debit cards, which may enable excessive betting.
- Player awareness: Cashless systems reduce a person’s awareness of spending.
- Potential overspending: The impact of cashless systems on spending habits is unclear. The United Kingdom recently banned credit card use at casinos due to public backlash.
The National Council on Problem Gambling’s Guidelines for Payments Processing help guide the industry’s approach to solutions on this issue. According to NCPG, payment limits can serve as an important responsible gambling tool emphasizing player control, information and shared responsibility.
See the full NCPG Guidelines for Payment Processing here.
- Would propose linking directing to NCPG Guidelines, viewable under Healthy Play submenu of Research page: https://mnapg.org/professionals/research/
There’s a paradigm shift emerging from thought leaders who focus on responsible gambling. For years, it was the player’s sole responsibility to protect themselves from harmful play.
There’s now a growing acknowledgement that operators and regulators can and should do more in reducing the harm a vulnerable player may experience. Both brick-and-mortar establishments and online platforms are showing signs of taking a more serious approach to implementing robust responsible gambling programs because they know it will help their businesses.
These newer programs aim to making gambling healthier and safer for those who choose to play, focusing on:
- Supporting harm reduction and safer gambling through informed play and robust responsible gambling tools
- Reducing harms to affected others by identifying risk behaviors
- Addressing financial harms with updated credit and cash policies
- Reinforcing ideal consumer behaviors
- Ensuring staff receive thorough training
By transitioning to more inclusive language and practices, these programs seek to diminish stigma and encourage those to seek the help they need to get healthy.