SF4511

Purpose

This bill aims to regulate prediction markets by prohibiting certain wagers and related activities, and it proposes criminal penalties. It also makes changes to how certain gambling-related activities are classified under Minnesota law.

Main Provisions

• Amends Minnesota Statutes 2024 section 609.75 subdivision 3 to redefine what counts as a “bet” by adding a list of exclusions.
• The bill adds a new subdivision to Minnesota Statutes 609.76 (specifics not shown in the excerpt).
• The overall effect is to clarify which activities are not considered bets, which can influence enforcement and penalties related to gambling and prediction markets.

Notable Changes to Existing Law

• The bill explicitly lists several activities as not being bets:
  • A contract to insure, indemnify, guarantee, or compensate another for a loss that depends on chance.
  • A contract for the purchase or sale at a future date of securities or other commodities (with an exception noted for 609.76 subdivision 9).
  • Offers of purses, prizes, or premiums to actual contestants in bona fide contests for skill, speed, strength, endurance, quality, or the bona fide owners of animals or property in such contests.
  • The game of bingo when conducted in compliance with specified Minnesota bingo laws.
  • Private social bets not part of or incidental to organized gambling.
  • Operation of equipment or conduct of a raffle by an organization licensed by the Gambling Control Board or exempt from licensing.
  • Parimutuel betting on horse racing conducted under chapter 240.
  • The purchase and sale of State Lottery tickets under chapter 349A.
• These exclusions shape what is considered a “bet” for purposes of the referenced statutes and related penalties.

Implications

• By clarifying what is not a bet, the bill narrows or refines the scope of activities that could be regulated or punished as gambling under the state’s criminal law.
• The bill’s focus on prediction markets and associated penalties suggests potential enforcement against certain prediction-market activities, while preserving exemptions for many traditional gambling and ancillary activities.

Relevant Terms prediction markets bets wagers criminal penalties Minnesota Statutes 2024 section 609.75 subdivision 3 section 609.76 subdivision What are not bets insurance contracts indemnity future contracts securities commodities bona fide contest skill bingo private social bet raffle Gambling Control Board parimutuel betting horse racing chapter 240 State Lottery chapter 349A prediction market activities