There’s a lot going on in iGaming at the moment.
Ever since COVID-19, people in the US have been hooked by online games featuring gambling, leading to a trend where the iGaming market is forecast to be worth between $10.8 billion and $13.7 billion by 2027.
Most notably has been the rise of “sweepstakes casinos”, a new type of online casino where you bet virtual coins instead of real money. It’s a concept that Gen Z and Millennial players particularly seem to enjoy, allowing sites like Chumba Casino and the Drake-backed Stake.us to reach millions of users.
On the surface, these casinos are relatively harmless. However, there’s still an element of gambling involved with them, as players can win anything from cash transfers to Amazon gift cards. And in a time where the US economy is struggling, a growing number of players are turning to these casinos in hopes of hitting the jackpot.
Of course, every state has its own approach to online gambling games. With sweepstakes casinos specifically, though, they’re still a relatively new invention (they didn’t really get popular until around 2020). This is why it wasn’t until recently that states have finally taken notice of them, with many since attempting to implement bans. So, where exactly does Minnesota stand in all of this?
More States Banning Sweepstakes Casino Games, But Minnesota Continues to Allow Them
There seems to be a growing sense that we need to take online gambling more seriously. This, at least, is reflected in the fact that a big number of states have started to crackdown on sweepstakes casinos, like those listed on sweepsplays.com, with 8 of them — yes, 8 —recently introducing bills to have them banned. New York, Connecticut, Louisiana and Nevada are just some of them. Montana has even had its own bill passed into law, meaning sweepstakes casinos can no longer operate there. Interestingly, though, Minnesota is one of the states yet to propose any sort of ban on sweepstakes casinos. This could potentially change in the future, but for now, Minnesota doesn’t seem to have a problem with this new type of iGaming site.
When it comes to traditional online casinos, Minnesota still doesn’t allow those ones. In other words, anyone looking to play slots or poker with real money in Minnesota will continue to be disappointed. But it’s because of this why so many Minnesota residents have started using sweepstakes casinos instead, as these sites offer the same casino-style games, just without the involvement of real cash.
Minnesota Did Attempt to Ban Loot Boxes Back in 2018
Minnesota is continuing to let sweepstakes casinos slide for the current moment. In 2018, the state attempted to ban loot boxes in video games for players under 18.
The way loot boxes work is gamers spend real money to receive randomized virtual items in return, not knowing what they’ll get. It’s not that different from playing at a roulette table, which is ultimately why Minnesota attempted to ban them back in 2018, showing that the state is far from pro-gambling, despite allowing sweepstakes casinos to keep operating there.
Unfortunately, Minnesota’s attempts to ban gambling-like loot boxes in video games failed to come to fruition. A few other states tried it, too, but also to no avail. And it’s entirely possible that we’ll see a similar thing repeated with sweepstakes casinos, with some states trying — and failing — to have them outlawed. After all, online gambling games are a big revenue driver, so getting rid of them altogether is a conflict of interest in many cases.
Minnesota Pushed to Legalize Online Sports Betting
One of the biggest signs that Minnesota won’t ban sweepstakes casinos in the future is that the state recently pushed to have online sports betting legalized. The activity is legal in over 38 states in America, with Minnesota being one of the last remaining ones to allow it. Tied votes and committee roadblocks stopped it from passing this time around, though, but the state is expected to try again in 2026.
When a state is actively pushing to let its residents legally bet on sports, the chances of it then launching an attack on sweepstakes casinos, or other types of online gambling games in general, are pretty low. Plus, Minnesota residents can already participate in Daily Fantasy Sports (DFS) and horse betting, so the state seems to be moving in an incredibly pro-gambling direction following its recent rise in popularity, especially in North America.
Popular online sweepstakes casino games won’t be disappearing anytime from Minnesota, that’s for sure. Laurence Escalante, the billionaire behind sites like Chumba Casino and LuckyLand Slots, is worried about the ongoing bans from other states, but it’s safe to say Minnesota isn’t going to be joining that list, at least for now. Instead, we’re likely going to see iGaming sites continue to boom in the state, and there’s every chance in the world that sports betting could also be arriving in Minnesota by this time next year.
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