Minnesota Investigates Unlicensed Online Gambling Operators

Minnesota has not legalized online sports betting or casinos, but regulators are still busy trying to push out offshore sportsbooks and sweepstakes platforms.

Good to Know

• Minnesota regulators contacted 20+ operators about illegal activity.
• Bovada has ignored Minnesota’s request to stop operations.
• Lawmakers expect another sports betting push in 2026.

The Alcohol and Gaming Enforcement division (AGE) has been reaching out to operators since June, warning them to change or shut down. Special agent Jon Anglin explained:

“In Minnesota … we’re in the same boat as all the other states. And we’re doing similar things as other states.”

Prediction Strike and Alltroo complied, but most ignored the request. Offshore giant Bovada remains available in Minnesota, even though it has pulled out of other states. Washington regulators have already sent Bovada a second cease-and-desist order after non-compliance.

Limited Authority but Lasting Impact

AGE cannot issue formal cease-and-desist orders, but it can record violations and use them later. Retiring director Carla Cincotta noted:

“Failure to either comply with Minnesota law or cease those operations here will definitely impact a licensing decision in the future.”

Investigations are ongoing, with undercover agents collecting evidence despite few consumer complaints.

Prediction Markets Are Warned

Kalshi and Crypto.com, both federally regulated, have drawn state concern for offering event contracts tied to sports. Minnesota’s attorney general joined 33 others in opposing Kalshi’s legal effort, warning:

“Eliminating the States’ ability to regulate online sports betting would pose very serious risks to the States’ citizens.”

Minnesota lawmakers have repeatedly failed to pass sports betting legislation, but a 2026 bill is expected. Advocates argue legalization would add consumer protections and curb offshore competition.

For now, regulators are reminding players that unlicensed sites offer no safeguards. As Cincotta put it:

“There’s no consumer protection, there’s no recourse if they are victimized.”

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