SF4474

Purpose

The bill aims to ban online sweepstakes games in Minnesota. It defines what counts as an online sweepstakes game and sets rules about who can operate or support such games. It also targets revenue connected to these games, including activity tied to illegal markets, and creates enforcement mechanisms to prevent the start or continuation of any online sweepstakes operations.

Definitions

• Dualcurrency: A payment system that lets a person participate in a simulated gambling program for consideration (including for related products or activities) and become eligible for a prize, cash, or a chance to win a prize. A dualcurrency system does not include contests where no consideration is given.
• Online sweepstakes game: A game or promotion available on the Internet or accessible via mobile devices or similar technology, using a dualcurrency payment system that can be exchanged for a prize or cash and that simulates casino-style or other gambling.
• Prize: The reward defined in the statute related to the online sweepstakes (as described in the law).

Prohibition of Online Sweepstakes Games and Revenue from Illegal Markets

• Prohibition: It is illegal to operate, conduct, or promote an online sweepstakes game in Minnesota.
• Prohibited supporters: Entities such as licensees, financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, or media affiliates are prohibited from supporting the operation or promotion of an online sweepstakes game in Minnesota.
• Enforcement and denial of operations: The commissioner of public safety and the attorney general must deny a person (or their affiliate) the ability to start or continue online sweepstakes operations if that person knowingly accepts revenue from an online sweepstakes game.
• Penalties: Violations are enforceable under the penalties described in section 325F.755 subdivision 7.

Violations and Penalties

• The violations tied to online sweepstakes activities follow the enforcement framework already described in the related statute (325F.755 subdivision 7). This means there are defined penalties for engaging in or assisting with prohibited online sweepstakes activities.

Significant Changes to Existing Law

• Creates a new prohibition and enforcement framework within Minnesota Statutes chapter 325F specifically targeting online sweepstakes games that use a dualcurrency system and simulate gambling.
• Expands the scope to include entities that might support or facilitate online sweepstakes operations (e.g., geolocation providers, payment processors, platform providers, and media affiliates) and imposes affirmative denial actions by state authorities against entities involved with revenue from such activities.
• Ties enforcement to existing penalties under 325F.755, providing a clear path for penalties and enforcement.

Relevant Terms online sweepstakes game, dualcurrency, prize, gambling, Minnesota, prohibition, revenue, illegal markets, geolocation provider, payment processor, gaming content supplier, platform provider, media affiliate, enforcement, penalties, 325F.755.