Minnesota steps up action against unlicensed online casino operators

The office of Minnesota Attorney General Keith Ellison has issued a new round of cease and desist orders to 14 offshore and unlicensed online casino and sweepstakes operators, directing them to immediately halt operations targeting state residents.

Officials said the action follows repeated warnings earlier this year that several of the operators were violating state gambling laws by offering games and promotions without authorisation. The Attorney General’s office confirmed that non-compliance could lead to civil penalties of up to USD 25,000 per violation, along with potential injunctions and other legal measures.

The list of entities receiving notices includes a mix of international casino sites and sweepstakes-style operators that had already been cautioned in June 2025. Authorities said investigations revealed continued marketing to Minnesota residents through websites and social media, despite earlier directives to stop.

Under state law, online gambling remains illegal unless specifically authorised by the legislature. Officials said the growing number of unlicensed platforms poses a consumer risk as these sites often operate outside the state’s jurisdiction, making it difficult for players to recover losses or challenge unfair practices.

“The purpose of this enforcement action is to protect Minnesotans from unregulated gambling sites that expose consumers to financial and privacy risks,” the Attorney General’s office said in a statement.

Minnesota’s latest move adds to a series of enforcement efforts by state regulators seeking to clamp down on offshore gaming operators. With federal legislation on online gambling yet to be enacted, states such as Michigan, New York and Texas have been using consumer-protection and deceptive-trade-practice statutes to restrict access to unlicensed platforms.

Regulators in several states have also begun working with payment processors and internet service providers to block transactions linked to illegal gambling. Legal experts said the Minnesota action could act as a deterrent to other operators attempting to bypass state laws by basing their operations offshore.

The enforcement drive is expected to reshape the operating landscape for gaming companies that rely on sweepstakes and social-style casino models to reach U.S. players in non-regulated jurisdictions. Analysts said offshore operators may now face higher compliance costs and limited access to U.S. audiences as more states adopt similar enforcement strategies.

Consumer advocates welcomed the move, saying it would help prevent players from engaging with unlicensed operators that provide little or no oversight of funds or data protection. However, they cautioned that stronger consumer education and clear legal pathways for regulated gambling would be needed to ensure players avoid risky sites.