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Senate committee clears bill to ban dual‑currency online sweepstakes casinos
Summary
Senate File 4474 would prohibit online sweepstakes platforms that use dual‑currency systems to operate casino‑style games for prizes; tribal gaming groups supported the bill, social‑gaming companies asked for more time to engage lawmakers. The committee voted to send the bill to Finance.
A Senate committee on Thursday recommended passage of legislation aimed at stopping online sweepstakes platforms that disguise real‑money casino games behind dual‑currency systems.
Senate File 4474 would narrow Minnesota’s sweepstakes law to bar operators who require consideration, run casino‑style games and award prizes through dual‑currency mechanics intended to replicate gambling. Andy Plato, executive director of the Minnesota Indian Gaming Association, testified that such sites are unregulated and deceptive and urged the committee to protect consumers and tribal operators.
Representatives of social‑gaming businesses said lawful social sweepstakes (where no consideration is required, and play is clearly free) should remain permitted and asked for more time to work on regulatory updates. “Social games are regulated and we comply with consumer‑protection standards,” Sarah Ericsson said for a U.S.‑based social gaming association, urging a measured approach and further study to update sweepstakes law for digital platforms.
Committee members generally supported the measure’s narrow drafting to preserve promotional sweepstakes used by legitimate businesses while targeting operators that run casino‑style games for real money. After testimony and discussion the committee moved the bill and referred it to the Finance Committee for further work.
No roll‑call tally was recorded in the transcript for the vote; committee minutes show the motion carried by voice vote and the bill forwarded to Finance.
