Tennessee has formally outlawed on-line sweepstakes casinos after Governor Bill Lee signed laws focusing on dual-currency gaming platforms and casino-style on-line merchandise working exterior the state’s regulated playing framework. The measure turned legislation after the governor authorised the invoice on the ultimate day accessible for motion following its passage by the legislature earlier this 12 months.
Lawmakers authorised HB 1885/SB 2136 on the ultimate day of Tennessee’s legislative session on April 23 earlier than sending it to the governor on May 11. The laws obtained last approval on May 22, earlier than the expiration of the state’s 10-day resolution interval.
The new legislation bans on-line sweepstakes video games that replicate conventional playing merchandise by digital or multi-currency programs. Tennessee’s laws particularly targets on-line merchandise tied to slot-style video games, desk video games, bingo, lottery merchandise, video poker, and unlicensed sports activities wagering.
Under the brand new legislation, violations fall below the Tennessee Consumer Protection Act of 1977. Legislators additionally amended the language throughout negotiations to offer state regulators authority to research operators and implement the principles.
Operators Already Leaving Tennessee
The laws follows months of rising strain on sweepstakes operators in Tennessee. In late 2025, Tennessee Attorney General Jonathan Skrmetti issued cease-and-desist letters to a number of corporations providing sweepstakes-style gaming merchandise within the state.
Several main operators withdrew or diminished providers following that motion, together with Chumba Casino, Fortune Coins, Global Poker, Hello Millions, High 5 Casino, Stake, WOW Vegas, Sportzino, Luckyland, McLuck, Modo, and Zula Casino.
A1 Development later joined the record of operators leaving Tennessee, shutting down entry to manufacturers together with NoLimitCoins, Fortune Wheelz, Tao Fortune, FunzCity, Funrize, and Storm Rush for Tennessee customers.
Other corporations additionally started scaling again sweepstakes choices. VGW, which operates Chumba Casino, LuckyLand Slots, and Global Poker, began phasing out Sweeps Coin gameplay within the state. Stake.us introduced plans to take away Tennessee from its service record, whereas social sportsbook operators reminiscent of Thrillzz, KicKr, and Rebet additionally exited the market.
The coordinated withdrawals got here amid rising uncertainty round how Tennessee would regulate prize-based gaming platforms. Industry observers pointed to mounting authorized and regulatory scrutiny as operators adjusted their positions within the state.
AG Skrmetti beforehand criticized the sector in a public assertion, saying: “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money.”
He additionally added: “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.”
Another part of the assertion warned that operators contemplating entry into Tennessee ought to perceive that “illegal gambling will not be tolerated.”
Part of a Wider National Trend
Tennessee joins a rising variety of states which have moved in opposition to sweepstakes casinos and dual-currency gaming programs. Legislators and regulators throughout the nation have more and more argued that the merchandise operate as unregulated playing regardless of counting on digital currencies as a substitute of direct money wagering.
The new Tennessee legislation follows related bans authorised in California, Connecticut, Louisiana, Montana, New Jersey, New York, Oklahoma, Indiana, Maine, and Nevada.
Louisiana just lately enacted its personal laws focusing on sweepstakes casinos after Governor Jeff Landry signed House Bill 883 into legislation. That measure takes impact on August 1.
According to SBC Americas, the convention committee report tied to Tennessee’s laws described sweepstakes casinos as platforms that “utilize a system allowing players to play casino-style games with virtual currency and exchange the virtual currency for cash or other real-world prizes.” The report additional said that these programs act as “a façade to hide the fact that players may engage in real-money gambling through the purchase and use of virtual currency.”
Supporters of the Tennessee ban argued that the legislation closes gaps that allowed operators to operate exterior conventional playing oversight. Legislative workers reviewing the measure beforehand concluded the ban would haven’t any damaging impression on state income.
Questions stay about how further states might strategy sweepstakes gaming transferring ahead, particularly as extra legislatures and regulators proceed analyzing the dual-currency mannequin utilized by operators throughout the sector.
