OK Bans Sweepstakes Casinos; MN Bans Prediction Markets

Oklahoma’s Legislature overrode Gov. Kevin Stitt’s veto of SB 1589, enacting a law that outlaws “online casino games” where users risk a “representative of value.” The language covers dual-currency systems used by sweepstakes casinos. The House provided exactly the 68 votes required for a two-thirds majority to sustain the override. Stitt vetoed the bill, arguing it would “criminalize everyday apps people use for fun” and that its “vague and overbroad approach” would create uncertainty for businesses. SB 1589 takes effect on November 1, 2026.

Oklahoma is the third state in 2026 to pass a law targeting dual-currency sweepstakes platforms, following measures in Indiana and Maine. Tennessee formally transmitted SB 2136 to Gov. Bill Lee; that bill would prohibit online sweepstakes games that let users exchange virtual currency for cash or prizes. The Louisiana Legislature sent HB 883 to Gov. Jeff Landry; the bill would expand the state’s “gambling by computer” statute to cover online and mobile games that use dual-currency systems. Louisiana also passed HB 53 earlier in the session, which expands racketeering and enforcement tools related to illegal gaming.

Minnesota lawmakers amended the public safety omnibus, SF 4760, to include language banning certain prediction markets. The prediction market provisions were added by inserting text from a separate Senate bill during conference committee negotiations. Lawmakers retained that language in the final compromise, and the bill now awaits Gov. Tim Walz’s signature or veto.

Tennessee sent SB 1992 to Gov. Lee; the bill creates criminal penalties for manipulation and insider-trading-related conduct involving event contracts. At the federal level, Representatives Ritchie Torres and Seth Moulton introduced the Campaign Event Contract Integrity Act, which would bar campaign staff and political insiders from trading on political prediction markets using nonpublic information. House Oversight Committee Chairman Representative James Comer confirmed the committee has begun collecting information on suspicious trades tied to geopolitical events.

Wisconsin Gov. Tony Evers signed an executive order prohibiting state employees from using nonpublic government information to trade on prediction markets. Governors in California, Illinois and New York have issued similar executive orders.

Colorado lawmakers finalized SB 131 and sent it to Gov. Jared Polis. The bill bans sportsbooks from sending push notifications or text messages soliciting bets or deposits, limits the number of deposits a player can make each day, requires operators to share anonymized data with regulators, restricts youth-adjacent advertising, and bans credit card deposits. Earlier drafts proposed bans on certain proposition bets and limits on how operators treat sharp bettors; those provisions were removed during negotiations.

Several states in 2026 have passed or transmitted bills to governors addressing sweepstakes casinos, prediction markets and sportsbook operations.