SF 4511
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/10/2026 04:48 p.m.
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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 299L.03, subdivision 12; 349.155, subdivision 3; 609.75, subdivision
3; proposing coding for new law in Minnesota Statutes, chapter 609.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 299L.03, subdivision 12, is amended to read:
Subd. 12.
Cease and desist orders.
(a) When it appears to the director that any person
has engaged in or is about to engage in any act or practice constituting a violation of this
chapter, deleted text begin ordeleted text end any rule or order issued under this chapter, new text begin or section 609.7615, new text end the director may
issue and cause to be served on the person an order requiring the person to cease and desist
from new text begin the new text end violations deleted text begin of this chapter, or any rule or order issued under this chapterdeleted text end . The order
must give reasonable notice of the rights of the person to request a hearing and must state
the reason for the entry of the order. Unless otherwise agreed between the parties, a hearing
must be held not later than seven days after receiving the request for a hearing. Within 20
days of receiving the administrative law judge's report and subsequent exceptions and
argument, the director shall issue an order vacating the cease and desist order, modifying
the order, or making it permanent, as the facts require. If no hearing is requested within 30
days of service of the order, the order becomes final and remains in effect until modified
or vacated by the commissioner. All hearings under this subdivision must be conducted in
accordance with sections 14.57 to 14.69 of the Administrative Procedure Act. If the person
to whom a cease and desist order has been issued under this subdivision fails to appear at
a hearing after being notified of the hearing, the person is deemed in default and the
proceeding may be determined against the person on consideration of the cease and desist
order, the allegations of which are deemed to be true.
(b) When it appears to the director that any person has engaged in or is about to engage
in any act or practice constituting a violation of this chapter, deleted text begin ordeleted text end any rule adopted or subpoena
or order issued under this chapter, new text begin or section 609.7615, new text end the director may bring an action in
the district court in the appropriate county to enjoin the acts or practices and to enforce
compliance deleted text begin with this chapter or any rule, subpoena, or order issued or adopted under this
chapterdeleted text end , and may refer the matter to the attorney general. On a proper showing, the court
shall grant a permanent or temporary injunction, restraining order, or writ of mandamus.
The court may not require the director to post a bond.
Sec. 2.
Minnesota Statutes 2024, section 349.155, subdivision 3, is amended to read:
Subd. 3.
Mandatory disqualifications.
(a) In the case of licenses for manufacturers,
distributors, distributor salespersons, linked bingo game providers, and gambling managers,
the board may not issue or renew a license under this chapter, and shall revoke a license
under this chapter, if the applicant or licensee, or a director, officer, partner, governor, or
person in a supervisory or management position of the applicant or licensee:
(1) has ever been convicted of a felony or a crime involving gambling;
(2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use of
a firearm, or (iii) making terroristic threats;
(3) is or has ever been connected with or engaged in an illegal business;
new text begin
(4) was convicted of a violation of section 609.7615 in the previous ten years;
new text end
deleted text begin (4)deleted text end new text begin (5)new text end owes $500 or more in delinquent taxes as defined in section 270C.72;
deleted text begin (5)deleted text end new text begin (6)new text end had a sales and use tax permit revoked by the commissioner of revenue within
the past two years; or
deleted text begin (6)deleted text end new text begin (7)new text end after demand, has not filed tax returns required by the commissioner of revenue.
The board may deny or refuse to renew a license under this chapter, and may revoke a
license under this chapter, if any of the conditions in this paragraph are applicable to an
affiliate or direct or indirect holder of more than a five percent financial interest in the
applicant or licensee.
(b) In the case of licenses for organizations, the board may not issue a license under this
chapter, and shall revoke a license under this chapter, if the organization, or an officer or
member of the governing body of the organization:
(1) has been convicted of a felony or gross misdemeanor involving theft or fraud; deleted text begin or
deleted text end
(2) has ever been convicted of a crime involving gamblingnew text begin ; or
new text end
new text begin (3) was convicted of a violation of section 609.7615 in the previous ten yearsnew 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
Sec. 3.
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 commoditiesnew text begin ,
except as provided in section 609.7615new 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.
new text end
Sec. 4.
new text begin
[609.7615] PREDICTION MARKETS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) As used in this section, the following terms have the
meanings given.
new text end
new text begin
(b) "Athletic event" means a sports game, match, or activity, or series of games, matches,
activities, or tournaments involving the physical proficiency of one or more players or
participants. Athletic event includes horse racing as defined in section 240.01, subdivision
8.
new text end
new text begin
(c) "Esports event" means a competition between individuals or teams using video games
in a game, match, contest, or series of games, matches, or contests, or a tournament, or by
a person or team against a specified measure of performance which is hosted at a physical
location or online.
new text end
new text begin
(d) "Game of skill" means a game, match, or tournament, or a series of games, matches,
and tournaments involving the dexterity or mental skill of one or more players or participants.
Game of skill includes an esports event.
new text end
new text begin
(e) "Prediction market" means a system that allows consumers to place a wager on the
future outcome of a specified event that is not determined or affected by the performance
of the parties to the contract, including but not limited to:
new text end
new text begin
(1) an athletic event or game of skill, or portions thereof or individual performance
statistics therein;
new text end
new text begin
(2) any game played with cards, dice, equipment, or any mechanical or electronic device
or machine;
new text end
new text begin
(3) war, state or national emergencies, natural or human-made disasters, mass shootings,
acts of terrorism, or public health crises, or the ancillary effects thereof;
new text end
new text begin
(4) any event or events happening to a natural person or group of people;
new text end
new text begin
(5) a federal, state, or local election, or the actions or conduct of the federal, state, or
local government and the government's agencies, employees, and officers;
new text end
new text begin
(6) legal actions, including but not limited to a civil or criminal suit, grand jury action,
jury trial, settlement, plea, or conviction;
new text end
new text begin
(7) the death, assassination, or attempted killing of a person or group of persons, or mass
casualty events;
new text end
new text begin
(8) the weather;
new text end
new text begin
(9) events in popular culture, including but not limited to awards and the date a piece
of entertainment will be released; and
new text end
new text begin
(10) whether a person will make a particular statement.
new text end
new text begin
(f) "Wager" means a contract, including a prediction market contract, whereby the parties
to the contract agree to a gain or loss by one to the other of money, property, or benefit.
new text end
new text begin Subd. 2. new text end
new text begin Prediction markets; hosting prohibited. new text end
new text begin
A person is guilty of a felony if the
person, for consideration and as part of a business, directly or indirectly:
new text end
new text begin
(1) creates a prediction market;
new text end
new text begin
(2) operates, manages, or makes available a platform or system that allows consumers
to make wagers in a prediction market;
new text end
new text begin
(3) identifies or lists events for use in a prediction market;
new text end
new text begin
(4) holds, controls, or directs the disposition of funds or other things of value used to
enter into or settle wagers made in a prediction market;
new text end
new text begin
(5) determines, administers, or enforces the terms, pricing, or settlement of wagers in a
prediction market;
new text end
new text begin
(6) regularly or continuously offers or enters into wagers with participants in a prediction
market;
new text end
new text begin
(7) sets, influences, or adjusts the prices, odds, or terms at which participants may enter
into or exit wagers in a prediction market;
new text end
new text begin
(8) acts, directly or indirectly, as a counterparty to participants' positions; or
new text end
new text begin
(9) provides data, information, or verification services, including the provision of event
outcomes to facilitate the conducting of an illegal activity under this section.
new text end
new text begin Subd. 3. new text end
new text begin Prediction markets; advertising prohibited. new text end
new text begin
Whoever advertises or markets
financial or technological products that promote transactions prohibited under this section
is guilty of a felony.
new text end
new text begin Subd. 4. new text end
new text begin Violation of cease and desist notice. new text end
new text begin
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 director of alcohol and
gambling enforcement under section 299L.03, subdivision 12, is guilty of a felony.
new text end
new text begin Subd. 5. new text end
new text begin Exceptions. new text end
new text begin
Subdivision 2 does not apply to:
new text end
new text begin
(1) activities that are not bets under section 609.75, subdivision 3; and
new text end
new text begin
(2) contracts authorized and regulated under chapters 59A to 79A.
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