Tennessee bans sweepstakes casinos under new law
Table of contents
- Governor Bill Lee signed SB 2136/HB 1885 into law on May 22, completing the state’s effort to outlaw dual-currency gaming platforms.
- The law targets online products that replicate slot-style games, table games, bingo, video poker, and lottery products through virtual or multi-currency systems.
- Tennessee is the third state to enact a sweepstakes casino ban in 2026, after Indiana and Maine.
Tennessee has officially banned online sweepstakes casinos after Governor Bill Lee signed SB 2136 and HB 1885 into law on May 22, closing the dual-currency gaming loophole in the Volunteer State.
Lawmakers passed the legislation on April 23, the final day of the state’s legislative session. Governor Lee signed the bill on May 22, ahead of the expiration of his 10-day decision window.
What the law covers
The new law bans online sweepstakes games that replicate traditional gambling products through virtual or multi-currency systems. Tennessee’s legislation specifically targets online products tied to slot-style games, table games, bingo, lottery products, video poker, and unlicensed sports wagering.
Legislators amended the bill’s language during negotiations to give state authorities enforcement powers under the Tennessee Consumer Protection Act of 1977. The House voted 69-17 to approve the measure; the Senate passed it 25-5.
Operators already gone
The law takes effect immediately, with no wind-down period for any remaining operators in the state.
Most major platforms had already exited before the bill was signed. In December 2025, Jonathan Skrmetti, Attorney General of Tennessee, sent cease-and-desist letters to nearly 40 sweepstakes casino operators, citing the state’s constitutional prohibition on lotteries and its consumer protection statutes.
Several operators, including Chumba Casino, Global Poker, McLuck, Stake.us, LuckyLand Slots, and WOW Vegas, withdrew from the state or reduced services following that action.
Skrmetti, in a December 2025 press release, said:
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not. They avoid any oversight that could ensure honesty or fairness. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
Part of a national trend
Tennessee is the third state to enact a sweepstakes casino ban in 2026, after Indiana and Maine. Indiana banned sweepstakes casinos in March, with enforcement beginning July 1. Maine followed in April, with its ban also taking effect in July. Oklahoma’s ban takes effect November 1.
The action also follows broader legislative activity from the previous year. California banned sweepstakes casinos on January 1, 2026, with New York enacting its own prohibition in December 2025. New Jersey, Connecticut, Montana, and Nevada all acted at various points prior.
With sweepstakes operators now excluded from a growing share of the US market, remaining platforms face an increasingly compressed addressable base. How additional state legislatures and attorneys general approach the dual-currency model in the months ahead will be closely watched by everyone across the sector.
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