Tennessee Advances Bill to Ban Sweepstakes Casinos 

Tennessee lawmakers recently advanced legislation aimed at banning online sweepstakes casinos. The bill, SB 2136, is designed to remove uncertainty around these platforms, which officials say closely resemble traditional gambling despite operating under promotional frameworks.

Contentious Bill Passes after Conference Committee

The Tennessee Senate and House went back and forth over the language of the bill, and at one point the House suggested adopting an amendment that removed all sweepstakes and virtual currency references. A conference committee composed of members of both chambers ultimately resolved any differences. The final legislation explicitly refers to sweepstakes games as an offense “against the public health, safety, and welfare of this state.” It was approved 69-17-1 by the House and 25-5 by the Senate.

The bill classifies violations as deceptive business practices under state consumer protection laws, giving regulators stronger legal footing to pursue enforcement.

Sweepstakes casinos rely on a dual-currency system. Players purchase virtual coins for entertainment purposes, while a secondary currency can be redeemed for real-world prizes or cash. Lawmakers argue that this structure effectively mirrors real-money wagering but with different marketing.

The bill must still be signed into law by Tennessee Governor Bill Lee to take effect.

Bill Grants AG Greater Enforcement Authority

The expansion of enforcement powers is a central feature of the bill. The Tennessee attorney general would have broader authority to investigate suspected violations, request documentation, and take action against non-compliant operators.

This builds on earlier efforts by Tennessee state officials. In recent months, regulators issued cease-and-desist notices to multiple sweepstakes operators, prompting many sweepstakes sites to withdraw from the Tennessee market. The new legislation formalizes that approach and establishes clearer penalties for violations.

However, the bill does not affect all forms of online gambling in Tennessee. Legal sports betting remains authorized, along with other regulated options like the state lottery. The focus is aimed solely at sweepstakes-style platforms that operate outside established regulatory systems.

Other States Have Eliminated Sweepstakes Casinos

Tennessee’s decision aligns with actions taken in several other states that have recently cracked down on sweepstakes casinos, like Louisiana. Maine and Indiana banned sweepstakes casinos earlier this year, while six others, including New York and California, passed laws targeting the sector in 2025.

Supporters of the bill say it strengthens consumer protections by eliminating systems that may confuse players about the risks involved. By clearly defining these platforms as illegal, the state aims to reduce player exposure to unregulated gaming environments.