Minnesota AG Takes Aim At Sweepstakes Casinos, Requests Shutdowns

In Minnesota, Attorney General Keith Ellison announced that letters have been sent to 14 operators to cease offering all casino, sportsbook, and sweepstakes casino-style games. 

Ellison's Comments, SGLA Response

In the announcement that the letters were sent out, Ellison provided a comment saying the following: 

“Online platforms offering sportsbooks and casino games run by out-of-state and overseas operators may make it look as though online gambling is legal and safe in Minnesota, but let me be clear: it is not,” said Attorney General Ellison. “Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful. By continuing to operate online gambling sites in Minnesota, these operators are likely openly defying our State’s laws and I will not stand for it. I want to thank Commissioner Jacobsen and the Alcohol and Gambling Enforcement Division of the Department of Public Safety for partnering with my office and me on this issue.” 

Additionally, Minnesota Department of Public Safety Commissioner Bob Jacobson added that "Illegal online casinos and sweepstakes sites make big promises but deliver only risk to Minnesota consumers."

The Social Gaming Leadership Alliance issued a response stating the following: 

“While the popularity of Social Plus games has attracted some bad actors, SGLA partners maintain strict age verification standards, industry-leading responsible gameplay tools and best-in-class financial crime safeguards,” said Jeff Duncan, Executive Director of SGLA, in that statement. “The millions of players who have enjoyed Social Plus games for more than a decade deserve a safe, regulated environment, which is why we are working with Minnesota legislators to promote enhanced regulatory standards for the industry and potential revenue opportunities for the state.

“We look forward to continuing this engagement, while also correcting any misinformation and confusion about our industry of Social Plus games. … SGLA stands ready to work with Minnesota officials to bring in new tax revenue and create a higher level of consumer protection to ensure safe participation for the hundreds of thousands of Minnesota adults who play Social Plus games for fun and entertainment.”

The operators that received letters include VG LuckyLand, Zula Casino, Fortune Coins, BetAnySports, BetUs, XBet, BetNow, BetWhale, EveryGame Sportsbook, BetOnline, Slotsandcasino, Bovada, MyBookie.com, and Sportsbetting.com.

Letter Sent Revealed

The letters that were sent to these operators have surfaced, and regardless of whether it was an offshore site or a sweepstakes casino, the letters are essentially the same. However, one is titled "Illegal Social Sweepstakes Casino Websites in Minnesota
 and the other is "Illegal Gambling Websites in Minnesota."

In the sweepstakes casino letter, there is a section that reads: "Social sweepstakes casino websites offer casino-style games such as slots, poker, and roulette, and use a two-coin system of virtual currency. Consumers can buy virtual currency in packages that include coins that can be used for free game play (sometimes called “gold coins”) and coins that can be redeemed for cash or prizes, such as gift cards (sometimes called “sweeps coins”). A consumer typically receives the same amount of sweeps coins as the dollar value of the purchase; for example, a $10 purchase of virtual currency includes some number of gold coins and $10 in sweeps coins."

The letter went on to state that the outlet needed to cease operations by December 1, 2025. 

Minnesota is the latest state, without formal legislation, to come down hard on sweepstakes casinos, along with Louisiana, Maryland, Mississippi, and Tennessee. 

We'll see if these operators oblige by the Dec. 1 deadline.