In a written statement, lottery director Ed Van Petten, said that he was disappointed in the Senate's vote.
The Minnesota lottery online games launched last year without explicit legislative approval.
Van Petten describes the the online platform as an essential way to reach the next generation of players, who prefer to do transactions online rather than in person.
A similar bill was passed by the Legislature in 2014, but Gov. Mark Dayton vetoed it. Dayton isn't saying if he'll block this year's bill, but lawmakers aren't ruling out an override attempt if he does.