Minnesota is the latest state to take action against unlicensed sweepstakes casinos and offshore operators.
On Wednesday, Minnesota Attorney General Keith Ellison announced that his office resent a round of cease and desist orders to 14 unlicensed operators accepting customers in the state. Ellison is targeting online sweepstakes casinos and offshore operators for what he said was violating Minnesota consumer protection laws related to fraud and deceptive practices.
“Illegal online casinos and sweepstakes sites make big promises but deliver only risk to Minnesota consumers,” said Minnesota Department of Public Safety Commissioner Bob Jacobson. “Most are based outside the U.S. to avoid laws, regulation and enforcement measures. There’s no accountability, no protection for players and no way to know if the betting will be run fairly.”
Minnesota’s active gaming laws
The Attorney General is demanding that the operators exit Minnesota, as online gambling is prohibited in the state. Minnesota’s active gaming law bans online sports betting and online casinos. Retail casino gambling is legal in Minnesota but is limited to tribal casinos.
Minnesota also authorizes horse racing, the lottery and charitable gambling.
“Illegal gambling sites, particularly those that feature sports betting, mislead Minnesota residents,” said Ellison in a letter. “By patently offering illegal gambling to consumers in Minnesota, these sites deceptively suggest that such activity is legal in Minnesota.”
Ellison resent cease and desist orders to a diverse group of unlicensed operators:
- VG LuckyLand
- Zula Casino
- Fortune Coins
- BetAnySports
- BetUs
- Xbet
- BetNow
- BetWhale
- EveryGame Sportsbook
- BetOnline
- Slotsandcasino
- Bovada
- MyBookie.com
- Sportsbetting.com
The 14 unlicensed operators were sent letters in June from Ellison’s office and were notified of potential law violations for offering online sports betting and sweepstakes casinos.
Ellison resent the letters on Wednesday after the group failed to conform with his previous demand to “stop their operations or change their business practices to comply with Minnesota’s wagering laws.” Ellison notified the unlicensed brands of potential criminal violations and consequences that may include a lawsuit seeking injunction relief and civil penalties of up to $25,000 per violation. The operators also face potential disgorgement and/or restitution of any money received from the operation of illegal gambling websites.
“Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful,” said Ellison. “By continuing to operate online gambling sites in Minnesota, these operators are likely openly defying our state’s laws and I will not stand for it.”
Other states target unlicensed operators
The Washington State Gambling Commission sent a cease and desist in September to Bovada after the gambling site ignored the regulator’s first request to exit the state.
The commission has also sent cease and desist orders to MyBookie and BetOnline.
The Massachusetts Gaming Commission, the Arizona Department of Gaming and the Michigan Gaming Control Board are also taking action against unlicensed sweepstakes casinos and offshore sites by sending their own cease and desist orders.
