Gambling Laws in Minnesota

Minnesota gambling laws are pretty restrictive. While most forms of land-based gambling are legal and abundant, just about all types of online gambling are illegal in the state.

What Types of Gambling Are Legal in Minnesota?

Generally speaking, most forms of offline gambling are legal in the state. However, the Minnesota laws on online gambling make internet-based activities illegal.

Laws are outlined in Minnesota Statutes 349.11 and 609.75, with the Minnesota Gambling Control Board overseeing and licensing the industry.

Playing Online and Offline Casino Games

Gambling in land-based casinos is a legal activity in Minnesota, but only at one of the 18 tribal venues within the state.

Minnesota was the first US state to allow tribal casinos to operate after passing the Indian Gaming Regulatory Act in 1988. Still, they failed to mention taxation, which effectively allowed the tribes to operate casinos fee-free. Treasure Island Resort and Casino, Grand Casino Hinckley and Mystic Lake Casino Hotel are amongst the state's largest and most popular venues.

Minnesota laws on online gambling are pretty clear, with the activity deemed illegal in the state. The laws include a provision to confiscate computers used on any online gambling sites.

Gambling on Poker

Poker gambling is legal in Minnesota, with games offered at many tribal establishments. The state's two racinos also offer, but no-limit games are prohibited.

Online poker gambling is illegal even though it is considered a game of skill in the state.

Bingo

Bingo games are legally offered at the state's tribal casinos as well as those run by charitable organisations.

Playing at bingo casinos online is not permitted though there is no record of players from the state ever being prosecuted for doing so.

Purchasing Lotto Tickets

Lottery gambling is legal, with the Minnesota State Lottery authorised to offer tickets for popular national draw games. These include Powerball and Mega Millions, scratch cards, instant games and raffles.

Between 2013 and 2015 the state permitted residents to play online lottery games for real money. This was then outlawed and even the existing state lotto company isn't allowed to sell tickets via its website.

Gambling Socially and Online Crypto Casinos

Social games of poker that take place within private residences are permitted as long as there is no commercial profit made.

Like other US states, Minnesota doesn't currently regulate modern forms of gambling, such as loot boxes and skins gambling. However, there is much debate on the national level about such activities.

Minnesota does not recognise cryptocurrencies as legal tender, so none of the state's gambling venues accept them as payment. Residents who wish to gamble with the virtual tokens can do so at many offshore crypto casinos, though this would be deemed illegal.

What Are the Minnesota Sports Betting Laws?

Many attempts have been made over the years to open up the sports betting market in the state. But there doesn't appear to be any appetite to pass such bills. Similarly, online sports betting is also illegal in Minnesota, although many sites still accept members from the state.

Daily fantasy sports betting is similarly deemed illegal. However, hugely popular sites such as FanDuel and DraftKings still offer their services to Minnesotans, as there has yet to be a legal challenge.

The only form of legal sports betting is parimutuel horse race betting, offered at the state's two licensed racetracks: Canterbury Park and Running Aces Casino and Racetrack.

Minnesota Gambling Age Restrictions

This is set to 18, but those gambling at premises licensed to sell alcohol must be at least 21 years of age.

Tax Regulations in Minnesota

These require all residents to pay income tax at the rate of 6.875%, and this applies to gambling winnings too. At the federal level, those receiving gambling winnings will incur a 24% tax withheld by operators.

History of Gambling Laws

The earliest mention of gambling laws in Minnesota was in 1857 when it was specifically stated that the sale of lottery tickets was not authorised.

Bingo games operated for charitable purposes were legalised in 1945. The law was clarified in 1963 to confirm the legality of social games as long as they were unrelated to commercial operations. The first tribal bingo hall opened in 1981.

Parimutuel horse race betting was legalised in 1982, with the Minnesota Racing Commission launched in 1983.

The Minnesota State Lottery was created in 1988, the same year as the Indian Gaming Regulatory Act was passed, allowing tribal casinos to operate. Licensed racetracks were allowed to operate card clubs in 1999, and Texas Hold'em tournaments were permitted in bars and restaurants from 2005. In 2012, racetracks were legally permitted to start offering banked card games.

Since overruling the Professional and Amateur Sports Protection Act in 2019, several sports betting bills have been proposed, including one in 2023. Still, none have successfully been passed to date.

Key Facts

• Casino gambling is legal in Minnesota, with the state home to 18 tribal casinos.

• Online casino gambling is illegal.

• Poker gambling is legal, but online poker remains illegal.

• Bingo gambling is legal, but only via charitable organisations and tribal casinos.

• Online bingo gambling is illegal.

• Lottery gambling is legal via the Minnesota State Lottery.

• Online lottery gambling is illegal.

• Sports betting is illegal both offline and online.

• Parimutuel horse racing is legal.

• Daily fantasy sports betting is deemed illegal, but providers still accept players from Minnesota.