A proposal to outlaw sweepstakes casino games played with a dual currency system survived scrutiny from a Minnesota Senate committee on Tuesday. The legislation, Senate File 4474, will receive further consideration before potentially heading to the Senate floor for a vote of the full chamber just days before an important deadline in the body.
Committee members advance bill restricting sweepstakes in Minnesota
The Senate Commerce and Consumer Protection Committee advanced SF4474 unanimously on Tuesday after a hearing featuring testimony from the measure’s primary sponsor and four others. Sen. Jordan Rasmusson, who serves on the committee, is joined by the committee’s chair Sen. Matt D. Klein in authoring the proposal.
SF4474 advances to the Senate Judiciary and Public Safety Committee for further consideration. It is currently on the schedule for that committee’s March 27 hearing at 9:30 a.m. local time.
A deadline is fast approaching for SF4474 to become law in 2026.
Crucial committee deadline is Friday in St. Paul
According to the Minnesota House of Representatives, 5 p.m. local time on March 27 is when “committees must act favorably on bills in the house of origin and committees must act favorably on bills, or companions of bills, that met the first deadline in the other body.” That means the Senate Judiciary Committee must vote to recommend SF4474 by that time on Friday in order for the full Senate to vote on the measure.
The session runs through May 18, which may provide sufficient time to get SF4474 to Gov. Tim Walz if members approve. The content of Tuesday’s hearing suggests that there may be sufficient support in the Senate at minimum.
The only dialogue between Senate Commerce and Consumer Protection Committee members that transpired during Tuesday’s hearing happened between Rasmusson and Sen. Nick A. Frentz, who is the current Senate Assistant Majority Leader.
Frentz asked Rasmusson whether Rasmusson has “engaged all these stakeholders that are testifying against this bill and brought them together.” Rasmusson replied that he has “met with every single group that has requested a meeting on this bill, including opponents who have testified against it today.”
Frentz continued by stating that the information was “exactly what I was looking for,” and Rasmusson affirmed that he is “happy to continue meeting with proponents and opponents of the bill.”
Those were poignant statements in response to opposition testimony during the hearing.
SF4474 opposition testimony calls for refinement of regulatory structure
During the hearing, two individuals gave oral testimony in opposition to SF4474. Those people were Patrick Fechtmeyer, who is the CEO of ARB Interactive, and Lexi Morgan, representing the Social Gaming Leadership Alliance (SGLA).
Fechtmeyer stated that SF 4474, if enacted, “closes a door on the opportunity to create a modern, enforceable framework that can both protect consumers and generate significant tax revenue.” He requested that the committee “give all stakeholders the time to come together and work toward a thoughtful, balanced solution that respects where technology is going over the next 20 years.”
Morgan echoed those sentiments, claiming that the SGLA believes “that Minnesota sweepstakes laws should be updated for the digital age to provide further guardrails.” Morgan elaborated that the SGLA wants “to work with members of this committee in the coming months to create legislation that will protect Minnesota customers and generate substantial tax revenue.”
Proponents of SF4474 who participated in oral testimony included Andy Platoo, the Executive Director of the Indian Gaming Association. Platoo played a video featuring capture of gameplay on sweepstakes casino websites that criticized the games as dangerous and accessible for underage players.
Platoo added that “sweepstakes casinos use a deceptive dual currency model to claim legality, but these are casinos for real money without any authorization from the state.” That dual currency system comprises the substance of SF4474’s tenets.
How SF4474 would impact Minnesota’s statutes
In his opening testimony, Rasmusson explained the rationale behind SF4474. According to him, the proposal “would clarify what a proper sweepstakes is in Minnesota, and it would ban dual currency online sweepstakes games.”
Rasmusson added that SF4474 “would not ban social casino games” but rather merely “ensure that legitimate promotional sweepstakes can continue in the state of Minnesota while closing a loophole that is effectively allowing online gambling.”
The current text of SF4474 adds a prohibition to the Minnesota code on “operating, conducting, or promoting an online sweepstakes game in Minnesota.” It defines an online sweepstakes game as “a game, contest, or promotion that is available on the Internet or accessible on a mobile device, computer terminal, or similar access device; utilizes a dual-currency system of payment allowing the player to exchange the currency for a prize, award, cash, cash equivalent, or chance to win a prize, award, cash, or cash equivalent; and simulates casino-style or another form of gambling.”
SF4474 includes language preventing licensed service providers like payment processors from acting as vendors for sweepstakes casinos. It also requires Minnesota officials to take action against any vendors servicing them.
SF4474 could face another committee vote in the coming days, with the possibility for the file to be held over until the 2027 session remaining. To date, Minnesota Senate members have demonstrated strong support for the proposal.
