Tennessee Gov. Lee signs bill to ban sweepstakes casinos
Tennessee has officially banned online sweepstakes casinos after Governor Bill Lee signed Senate Bill 2136 into law. The bill was combined with House Bill 1885 (HB 1885), which was finally passed by the governor after being overwhelmingly endorsed by state legislators. With this move, Tennessee becomes the seventh US state to prohibit sweepstakes casino operations, joining California, Connecticut, New Jersey, New York, Montana, and Louisiana in taking action against the sector.
The new law prohibits dual-currency sweepstakes gaming platforms that offer casino-style games using virtual coins and promotional systems that lawmakers said closely resemble real-money gambling. Tennessee lawmakers argued that many of these platforms were operating as unlicensed gambling services.
Strong bipartisan support helped the proposal pass the state legislature. After passing a House subcommittee 8-0, HB 1885 went on to pass the Senate 32-0 and the House State and Local Government Committee 21-0. The law was finalised by a conference committee after discussions over legal definitions and enforcement authorities, and it subsequently passed the House by a vote of 69 to 17.
Key provisions of SB 2136 and HB 1885
Tennessee has passed House Bill 1885 and Senate Bill 2136, demonstrating its strong opposition to sweepstakes casinos. The laws essentially shut down the majority of sweepstakes platforms that operate in the United States by prohibiting online or app-based activities that mimic casino-style gambling and employ virtual currencies that may be redeemed for prizes or cash. Claims that these companies’ promotional currency methods turned them into legal sweepstakes rather than gambling were rejected by lawmakers.
Additionally, the Tennessee Consumer Protection Act of 1977 gave regulators and the attorney general broader power to investigate operators and prosecute infractions. Bipartisan dissatisfaction with the expansion of unregulated online gambling is reflected in the political action. Although Tennessee still permits regulated sports betting, lawmakers wanted more stringent regulation to stop casino-style gaming from occurring outside of state jurisdiction.
Governor signed the legislation
In contrast to his previous strategy in 2019, when he allowed the state’s sports betting bill to pass without his signature, Governor Bill Lee made the decision to sign Tennessee’s sweepstakes casino ban into law. He actively supported the crackdown on unregulated online gaming this time. He had ten days to act after lawmakers presented the bill on 11 May, and he signed it on the last day, highlighting how divisive the matter was.
Attorney General Jonathan Skrmetti’s tireless efforts behind the scenes were a major factor in Tennessee’s decision to outlaw sweepstakes casinos. His staff began mailing cease-and-desist letters to operators servicing state residents before lawmakers had even finished the legislation, which forced numerous platforms to quietly leave Tennessee entirely. Skrmetti also did not hold back when discussing it. He openly referred to these casinos as “shady” and stated that his office will not put up with illegal gambling being disguised as lawful.
Tennessee’s sweepstakes casino ban
There is no space for doubt in Tennessee’s new gambling legislation. Sweepstakes systems that imitate casino games, including slots, video poker, bingo, lottery-style games, table games, and unlawful sports betting, are prohibited. Instead of blocking specific goods, lawmakers decided to restrict the entire ecosystem while maintaining strong monitoring for licensed online sports betting.
Even before lawmakers imposed a formal ban in 2026, sweepstakes casino operators were forced to leave the state after Tennessee’s attorney general initiated a cease-and-desist campaign against them in late 2025. Well-known websites including Chumba Casino, Fortune Coins, Global Poker, Luckyland, Stake, and others swiftly left; some stopped selling currencies, while others stopped accepting redemptions for prizes.
US states expand sweepstakes crackdown
The legal landscape around sweepstakes casinos in the US has changed significantly since 2025. In many places, what used to be a grey area is now strictly forbidden. California’s AB 831, which went into effect in January 2026, was a critical turning point in the prohibition or regulation of these platforms in California, Connecticut, New Jersey, New York, and Montana.
Without even waiting for official bans, police operations in Michigan, Delaware, and Louisiana were sufficient to drive away operators. By 2026, Indiana and Oklahoma had passed laws similar to Tennessee’s complete ban. Instead of passing outright bans, Florida, West Virginia, and Maryland opted to apply regulatory pressure and initiate investigations.
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