Minnesota Lawsuit, Louisiana Sweeps Bills Lead Gambling Bills This Week
Minnesota’s new prediction market ban immediately triggered a federal lawsuit, while governors in Louisiana and Iowa signed gambling-related bills, and Tennessee’s sweeps deadline arrived.
Despite legislative sessions winding down across the country, several major gambling-related bills became law this week, including Minnesota’s first prediction market ban and sweeps-related measures signed into law in Louisiana and Iowa.
Here are the gambling bills that mattered this week.
Minnesota Prediction Market Ban Draws CFTC Lawsuit
Minnesota Gov. Tim Walz signed SF 4760, an omnibus public safety bill that includes broad restrictions on prediction markets.
The law makes it a felony to create, operate, or intentionally facilitate a prediction market “for consideration and as part of a business.” It prohibits bets on sports, elections, government action, weather, wars, assassinations, and popular culture.
The Commodity Futures Trading Commission (CFTC) moved immediately and sued Minnesota. It argued the law interferes with the agency’s “exclusive jurisdiction” over federally regulated derivatives markets.
The CFTC also argues the law deems illegal traditional event contracts tied to weather and agriculture, which have been traded for decades.
Why it matters:
Minnesota became the first state to pass a ban on prediction markets. However, the law’s enforceability is already being challenged as Minnesota becomes the latest battleground in the growing federal-versus-state dispute over prediction markets.
Louisiana Signs Two Sweeps-Related Measures
Louisiana Gov. Jeff Landry signed two sweepstakes-related bills, HB 53 and HB 883.
The former adds certain gambling crimes, including “gambling by electronic sweepstakes device,” as predicate offenses under the state’s racketeering law. The bill takes effect Aug. 1, 2026.
Landry also signed HB 883, which amends the state’s “gambling by computer” statute to include online and mobile games simulating gambling activity that utilize dual-currency payment systems where players can exchange virtual currency for cash or prizes.
Why it matters:
Louisiana is now combining direct sweepstakes prohibitions with broader criminal enforcement tools to target sweepstakes casinos.
Iowa Signs Illegal Sweepstakes Enforcement Bill
Iowa Gov. Kim Reynolds signed SF 2289. The measure expands the Iowa Racing and Gaming Commission’s authority to pursue unlicensed gambling operators, including those offering “illegal sweepstakes.”
The law gives regulators clearer authority to issue cease-and-desist orders and seek court relief against unlicensed gambling activity.
Why it matters:
While Iowa did not pass a direct dual-currency sweepstakes ban, the law gives regulators stronger tools to act against platforms they view as illegal gambling operators.
Tennessee Governor Faces Deadline on Sweeps and Prediction Market Bills
In Tennessee, Gov. Bill Lee faces a deadline today to act on SB 2136, a sweeps-related bill, and SB 1992, a prediction market measure, after lawmakers transmitted both bills early last week.
SB 2136 would prohibit “online sweepstakes games.” It defines them as online games that use a virtual currency system and simulate gambling of any kind, allowing players to redeem the currency for cash or cash prizes.
SB 1992, meanwhile, would create a Class E felony for influencing the outcome of an event while holding a financial interest in a related prediction market contract.
Why it matters:
If Lee signs SB 2136 or allows it to become law without a signature, Tennessee would join a growing group of states enacting anti-sweepstakes laws. Additionally, if SB 1992 becomes law, Tennessee would become one of the first states to enact insider trading legislation for prediction markets.
Federal Lawmakers File Prediction Market and Gambling Ad Bills
At the federal level, Rep. Ritchie Torres introduced the Campaign Funds Integrity Act of 2026, which would prohibit candidates, authorized committees, and other political committees from using campaign funds to participate in prediction markets or enter into event contracts.
Sens. Katie Britt and Richard Blumenthal also introduced the GAME Act. The measure would prohibit social media companies and other online advertising platforms from targeting minors with sports betting ads. In their announcement, the lawmakers specifically referenced prediction markets alongside sportsbooks.
Why it matters:
Federal lawmakers continue to introduce legislation on prediction market integrity, a growing concern on both sides of the aisle.
Connecticut Signs Responsible Gaming and Prediction Market Study Bill
Connecticut Gov. Ned Lamont signed HB 5229, which expands responsible gaming and advertising restrictions for licensed operators.
The measure prohibits gambling advertising in college athletic facilities and on university-operated digital platforms, unless it is directed at a general audience. The bill also strengthens rules around underage targeting, self-excluded players, and direct marketing practices.
Additionally, HB 5229 orders a state study on prediction markets. The study includes their impact on underage users, problem gambling, state revenue, and licensed sportsbooks.
Why it matters:
Connecticut is tightening its consumer protection statutes regarding online gambling.
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