HF 4437

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 11:49 a.m.

A bill for an act
relating to public safety; prohibiting certain wagers and other activities regarding
prediction markets; providing criminal penalties; amending Minnesota Statutes
2024, sections 609.75, subdivision 3; 609.76, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 609.75, subdivision 3, is amended to read:

Subd. 3.

What are not bets.

The following are not bets:

(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance;

(2) a contract for the purchase or sale at a future date of securities or other commodities new text begin ,
except as provided by section 609.76, subdivision 9 new text end ;

(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest
for the determination of skill, speed, strength, endurance, or quality or to the bona fide
owners of animals or other property entered in such a contest;

(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;

(5) a private social bet not part of or incidental to organized, commercialized, or
systematic gambling;

(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22,
by an organization licensed by the Gambling Control Board or an organization exempt from
licensing under section 349.166;

(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240;
and

(8) the purchase and sale of State Lottery tickets under chapter 349A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 609.76, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Prediction markets; certain transactions and activities prohibited. new text end

new text begin (a) As
used in this subdivision, "public property" means property owned by the state or a home
rule charter or statutory city, county, town, school district, metropolitan or regional agency,
public corporation, political subdivision, or special district, as defined in section 6.465.
new text end

new text begin (b) Whoever allows, or maintains or operates a business, organization, or other entity
that allows participants to place, enter, or execute wagers, bets, trades, contracts, or financial
positions, including but not limited to the purchase of securities, commodities, or other
similar financial products, is guilty of a felony if the transaction depends on the outcome
of future events and relates to the following:
new text end

new text begin (1) sports, including contracts that relate to the outcomes of specific athletic events or
nonathletic sporting events or events within an athletic event or nonathletic sporting event
or events;
new text end

new text begin (2) contests or casino-style gaming, including an outcome that relates to a game, scheme,
or promotion where a prize or something of value is awarded based on skill, merit,
performance, or chance, regardless of whether an entry fee is required;
new text end

new text begin (3) people, including an outcome that relates to an event or events happening to a natural
person or group of people;
new text end

new text begin (4) politics, including an outcome that relates to a federal, state, or county election, or
the actions or conduct of the federal, state, or county government and the government's
agencies, employees, and officers;
new text end

new text begin (5) catastrophe, including an outcome that relates to war, national or state emergencies,
natural or human-made disasters, acts of terrorism or violence, or public health crises; or
new text end

new text begin (6) death, including an outcome that relates to death, assassination, or mass casualty
events.
new text end

new text begin (c) Whoever erects, maintains, or causes to be maintained advertisements or marketing
materials related to financial or technological products that promote prohibited transactions
identified in this subdivision is guilty of a felony if:
new text end

new text begin (1) the advertisement is broadcast between the hours of 8:00 a.m. and 10:00 p.m. local
time or during a live broadcast of a sporting event;
new text end

new text begin (2) the advertisement or marketing materials appear in any print or digital publication
or on the radio, television, or any other medium if ten percent or more of the audience of
that medium is reasonably expected to be individuals who are under age 21, as determined
by reliable, current audience composition data;
new text end

new text begin (3) the advertisement includes clear statements related to the legality of the underlying
conduct even though the underlying conduct is not considered authorized gaming activity
under state law;
new text end

new text begin (4) the operator certified, declared, or otherwise indicated their product is legal within
the state in order to place the advertisement or marketing materials even though the
underlying conduct is not considered authorized gaming activity; or
new text end

new text begin (5) the advertisement is published, displayed, disseminated, or distributed on public
property or within 500 feet of a school or playground.
new text end

new text begin (d) Any individual, applicant, entity, financial institution, payment processor, geolocation
provider, gaming content supplier, third-party processor, platform provider, or media affiliate
that continues to knowingly accept, facilitate, or process payments in connection with the
participation of another person in unauthorized gaming activity after being issued a cease
and desist letter from the attorney general under this subdivision is guilty of a felony.
new text end

new text begin (e) Any person or business who was convicted under this subdivision may not be issued
any gaming-related license, unless ten years has passed since the date of conviction.
new text end

new text begin (f) Paragraph (b), clause (1), does not apply to pari-mutuel betting on horse racing as
authorized in chapter 240 or to private social transactions that are not part of or incidental
to organized, commercialized, or systemic gambling or activities otherwise prohibited under
this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end