Minnesota Attorney General Targets Offshore Sportsbooks

In a state still debating whether to legalize sports betting, Minnesota Attorney General Keith Ellison is taking direct aim at illegal online gambling operators.

Ellison announced Wednesday that his office has issued cease-and-desist letters to 14 offshore and unregulated gambling websites offering sports betting and casino-style games to Minnesotans. The move underscores a growing state-level crackdown on illegal online gambling across the United States — even as lawmakers in St. Paul remain deadlocked over how to legalize and regulate the activity. The targeted sites include several well-known offshore operators such as BetUS, Bovada, and MyBookie, along with sweepstakes-style casinos like Fortune Coins and Zula Casino.

“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,” Ellison said in a statement. “Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful.”

 

 

Repeat Warnings Ignored

The letters follow an earlier enforcement step by the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division, which contacted the same 14 operators in June about potential legal violations. Ellison said the platforms continued to operate despite those warnings.

According to the Attorney General’s Office, the operators may be in violation of both criminal gambling laws and consumer protection statutes. “Illegal online casinos and sweepstakes sites make big promises but deliver only risk to Minnesota consumers,” said 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.”

The enforcement action comes as Minnesota remains one of the few Midwestern states without legalized sports betting. Lawmakers have debated the issue for years, but political divisions and competing interests have blocked passage of a bill. Earlier this year, state senator Matt Klein (DFL–Mendota Heights) introduced legislation to legalize sports betting under a framework supported by the state’s 11 tribal nations. That approach — backed by the Democratic-Farmer-Labor Party — would grant tribes exclusive rights to operate sportsbooks. Republican lawmakers have sought to include the state’s horse racing tracks in any legalization plan, a sticking point that has repeatedly derailed negotiations. Despite early optimism and a bipartisan framework heading into the 2025 session, a small but determined coalition of legislators opposed to gambling expansion prevented the bill from advancing.

Klein accused lawmakers of “abandoning” Minnesotans and the tribes by failing to act. Still, industry analysts say Minnesota remains one of the most likely states to pass a sports betting bill in the coming years, with one source estimating the odds at “50-50” for 2026.

 

A Broader National Trend

Minnesota’s actions mirror a national pattern of state authorities moving against unregulated gambling operators amid delayed or stalled legislative efforts. In 2024, several states — including California, Connecticut, Montana, and New Jersey — enacted laws banning sweepstakes-style online casinos. Attorneys general in New York and Louisiana have also issued cease-and-desist orders to dozens of similar operators.

Louisiana Governor Jeff Landry vetoed his state’s prohibition bill, saying regulators already had enforcement powers. The Louisiana Gaming Control Board later sent 40 cease-and-desist letters to unregulated operators. Meanwhile, states such as Maryland, Michigan, and Arizona have stepped up investigations into offshore gambling activity.

 

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.

 

Minnesota’s Next Move

While Ellison’s letters mark a clear warning to illegal operators, they also highlight the state’s growing enforcement gap: Minnesotans continue to wager online through unregulated platforms while lawmakers debate how to bring the market above board. Until legislation passes, Ellison’s office appears intent on maintaining pressure.“By continuing to operate online gambling sites in Minnesota, these operators are likely openly defying our State’s laws,” Ellison said. “I will not stand for it.”