Tennessee lawmakers moved forward on Tuesday with legislation that would prohibit online sweepstakes-style casino games, adding the state to a list of jurisdictions considering similar action.
The Senate Commerce and Labor Committee voted 8-0 to advance SB 2136 to the full Senate without debate. The measure, sponsored by Senate Pro Tempore Ferrell Haile, seeks to classify digital sweepstakes games as illegal gambling under state law.
The proposal now heads to the Senate floor. A companion measure, HB 1885, filed by state Rep. Scott Cepicky, is scheduled for a hearing in the House Departments & Agencies subcommittee on March 3.
Scope of the proposed ban
SB 2136 would apply to any sweepstakes operator “operating, conducting, or commercially promoting online sweepstakes games” or other digital gambling products in Tennessee without a license. The bill also extends to payment processors and other entities that support or facilitate such operations.
The legislation states that it “prohibits gambling; the operation of gambling devices; and the operation, conducting, or commercial promoting of online sweepstakes games and other forms of online or app-based gambling as offenses against the public health, safety, and welfare of this state.”
If enacted, violators could face restraining orders, injunctions, private lawsuits, and criminal penalties. Regulators would also have the authority to investigate sportsbook licensees suspected of offering sweepstakes-style products.
The bill maintains exceptions for annual events conducted by nonprofit organizations authorized by the General Assembly, as well as the state lottery, online sports wagering, and daily fantasy sports.
Expanded enforcement authority
Before the committee vote, Haile introduced an amendment outlining additional authority for the Tennessee Attorney General’s Office. The legislation would grant the office civil enforcement authority to “seek civil injunctions against operators who are already criminally prohibited but not clearly subject to civil enforcement.”
Haile said the measure also targets platforms “operating without age verification and oversight.”
Both the Attorney General’s Office and the Tennessee Sports Wagering Council have expressed support for the bill.
At the end of last year, Tennessee Attorney General Jonathan Skrmetti said his office had “successfully halted” multiple online sweeps operators. Skrmetti said the AG’s office had “actively” followed up on nearly 40 cease-and-desist letters sent to sweeps operators, which included VGW, which runs Chumba Casino and Luckyland Slots, and MW Vegas, which runs WOW Vegas and Stake.
National legislative trend
Tennessee is among several states considering restrictions on dual-currency sweepstakes platforms. Indiana lawmakers are moving toward approval of a final version of legislation that would allow regulators to impose fines on operators and players, effectively prohibiting the model in that state. Maine and Maryland are also reviewing similar proposals.
Several states already explicitly prohibit sweepstakes-style casino games, while regulators in others have issued cease-and-desist letters.
Most major US sweepstakes operators have ceased operations in more than a dozen states, including Tennessee.
Real-money online casino gaming operates in eight states and is expected to launch in Maine. Lawmakers and regulators in multiple jurisdictions have argued that sweepstakes platforms divert tax revenue from licensed real-money operators and do not provide the consumer protections required of iCasino licensees.
In sportsbook-only markets such as Tennessee, where there are no retail or online casinos, policymakers have sought to address platforms that allow users to play with “gold coins” and purchase “sweeps coins” that can be redeemed for cash or prizes.
With committee approval secured, SB 2136 now awaits consideration by the full Senate, while its House counterpart proceeds through the lower chamber.
Original article: https://www.yogonet.com/international/news/2026/02/25/117762-tennessee-legislation-to-outlaw-digital-sweepstakes-games-advances-to-full-senate
