Opened in 1992 and expanded in 2017, Mystic Lake Hotel Casino is not only the largest casino in the state, but with 150,000 square feet of gaming space, it’s one of the largest casinos in the United States largest casinos in the United States. It is the largest casino in Minnesota, and the closest one to Minneapolis. The king of Minneapolis casinos is the Mystic Lake Casino Hotel – a Native American casino 25 miles southwest of downtown Minneapolis (35 from downtown Saint Paul). Mystic Lake is the closest casino to Minneapolis In addition, there are two nearby racetracks/cardrooms. While there aren’t any casinos right in the heart of the twin cities, the Minneapolis/Saint Paul area has three nearby casinos south of town.