Tennessee Officially Bans Sweepstakes Casinos

Tennessee has formally outlawed on-line sweepstakes casinos after Governor Invoice 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 authorized the invoice on the ultimate day obtainable for motion following its passage by the legislature earlier this yr.

Lawmakers authorized HB 1885/SB 2136 on the ultimate day of Tennessee’s legislative session on April 23 earlier than sending it to the governor on Could 11. The laws acquired last approval on Could 22, earlier than the expiration of the state’s 10-day choice interval.

The brand 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.

Underneath the brand new legislation, violations fall underneath the Tennessee Client Safety Act of 1977. Legislators additionally amended the language throughout negotiations to offer state regulators authority to research operators and implement the foundations.

Operators Already Leaving Tennessee

The laws follows months of rising stress on sweepstakes operators in Tennessee. In late 2025, Tennessee Legal professional Common Jonathan Skrmetti issued cease-and-desist letters to a number of firms providing sweepstakes-style gaming merchandise within the state.

A number of main operators withdrew or lowered providers following that motion, together with Chumba On line casino, Fortune Cash, International Poker, Whats up Tens of millions, Excessive 5 On line casino, Stake, WOW Vegas, Sportzino, Luckyland, McLuck, Modo, and Zula On line casino.

A1 Improvement later joined the checklist of operators leaving Tennessee, shutting down entry to manufacturers together with NoLimitCoins, Fortune Wheelz, Tao Fortune, FunzCity, Funrize, and Storm Rush for Tennessee customers.

Different firms additionally started scaling again sweepstakes choices. VGW, which operates Chumba On line casino, LuckyLand Slots, and International Poker, began phasing out Sweeps Coin gameplay within the state. Stake.us introduced plans to take away Tennessee from its service checklist, whereas social sportsbook operators akin to 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. Trade 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 one factor you will be certain about with a web based sweepstakes on line casino is that it’s going to take your cash.”

He additionally added: “They work onerous to make these sweepstakes casinos look reliable, however on the finish of the day they don’t seem to be. They keep away from any oversight that would guarantee honesty or equity. Our Workplace was glad to chase these shady operations out of Tennessee and can maintain working to guard Tennesseans from unlawful playing.”

One other part of the assertion warned that operators contemplating entry into Tennessee ought to perceive that “unlawful playing is not going to be tolerated.”

A part of a Wider Nationwide Development

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 perform as unregulated playing regardless of counting on digital currencies as a substitute of direct money wagering.

The brand new Tennessee legislation follows comparable bans authorized 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 Home Invoice 883 into legislation. That measure takes impact on August 1.

In line with SBC Americas, the convention committee report tied to Tennessee’s laws described sweepstakes casinos as platforms that “make the most of a system permitting gamers to play casino-style video games with digital foreign money and trade the digital foreign money for money or different real-world prizes.” The report additional acknowledged that these programs act as “a façade to cover the truth that gamers might interact in real-money playing by the acquisition and use of digital foreign money.”

Supporters of the Tennessee ban argued that the legislation closes gaps that allowed operators to perform exterior conventional playing oversight. Legislative workers reviewing the measure beforehand concluded the ban would haven’t any destructive influence on state income.

Questions stay about how further states might method sweepstakes gaming shifting ahead, particularly as extra legislatures and regulators proceed analyzing the dual-currency mannequin utilized by operators throughout the sector.