The Senates of Tennessee and Oklahoma have passed bills that target sweepstakes casinos as state-level crackdowns on dual-currency platforms increase.Tennessee’s Senate...
Tennessee bill seeking to ban sweepstakes moves forward
House Bill 1885, which seeks to ban sweepstakes casinos in Tennessee, has passed a House subcommittee with an 8-0 vote and has now moved to the State and Local Government Committee for further consideration.
The bill targets platforms that use virtual currencies for slots, poker, bingo, and unlicensed sports betting, especially in cases where winnings can be traded for cash or prizes. The proposal suggests imposing civil fines of up to $15,000 in case of violations.
Additionally, HB 1885 aligns with Senate Bill 2136, which was already passed by the Senate, as this means that lawmakers are working together to prohibit sweepstakes-style gaming.
The state of Tennessee is claiming that sweepstakes function very similarly to traditional casinos, and the legal definition of gambling, which includes payment, chance, and prize, is especially concerning for lawmakers. According to regulators, although operators claim that participants can play for free, data shows that most users still pay to take part in sweepstakes.
The $15,000 fines are set for each violation of the law, and with every transaction or every user interaction being counted as a separate offence, the penalties could make up huge sums. Regulators also plan to work with internet service providers and payment processors to quickly block access to non-compliant platforms.
This is not Tennessee’s first attempt at sweepstakes casinos, as the Attorney General had shut down 40 sweepstakes casinos in late December 2025.
Tennessee is looking to introduce legislation that will restrict access to mobile sports betting on or near college campuses after 20 NCAA players were charged in a...
