Minnesota Attorney General Keith Ellison announced today that he has sent letters to 14 operators of illegal gambling websites, directing them to stop offering online gambling in Minnesota because they may violate Minnesota consumer-protection laws that prohibit deceptive, fraudulent, unfair or unconscionable practices. These websites include social sweepstakes casinos that use virtual coins to play casino games for cash and prizes, as well as websites offering sports betting, poker, and other types of gambling, all of which are prohibited under Minnesota’s laws (Minn. St. 609.755-609.76). An example of the letters that Attorney General Ellison sent are available here: social sweepstakes casino letter – undisguised gambling website letter.
The Alcohol and Gambling Enforcement Division of the Minnesota Department of Public Safety sent letters to these same 14 sites in June of this year to alert them to potential criminal-law violations that arise with online gambling, particularly with social sweepstakes casinos. The letters asked the sites to stop their operations or change their business practices to comply with Minnesota’s wagering laws, but the sites have not done so. In addition to the potential criminal violations that the AGE Division identified in its June letters, the letters that Attorney General Ellison sent today highlight Minnesota civil consumer-protection laws that the sites may be violating.
“Online platforms offering sportsbooks and casino games run by out-of-state and overseas operators may make it look as though online gambling is legal and safe in Minnesota, but let me be clear: it is not,” said Attorney General Ellison. “Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful. 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. I want to thank Commissioner Jacobsen and the Alcohol and Gambling Enforcement Division of the Department of Public Safety for partnering with my office and me on this issue.”
“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 United States 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. Through our Alcohol and Gambling Enforcement division, we will work with the Attorney General to hold these operators accountable, protect Minnesotans and ensure the integrity of Minnesota’s gaming industry.”
The gambling operations that received letters from Attorney General Ellison include social sweepstakes casinos, where consumers can play casino games like slots or roulette and redeem virtual currency, often called “sweeps coins,” for cash or prizes. Players get sweeps coins when they buy a package of virtual currency, including sweeps coins and gold coins. The sale of sweeps coins to play a game of chance for a real-world prize turns these sites — which often claim to be only entertainment — into illegal gambling.
You can read the full article at The Office of Minnesota Attorney General.