Lawmakers pass bill to ban online sweepstakes casinos in Tennessee

Changes could be coming to which online gambling platforms are accessible by Tennessee residents, as state lawmakers in a conference committee agreed to pass legislation to prohibit dual-currency online sweepstakes casinos from operating in the Volunteer State. While not yet official, legislation sits on the desk of Gov. Bill Lee, who has 10 days – not including Sundays – to decide the bill's fate.

Online sweepstakes platforms have been a hot top for many states in the U.S., obviously including Tennessee, which does not have legal real money online casino operators. Senate Bill 2136 and House Bill 1885 were both filed earlier this year to ban those dual-currency sites.

Ultimately, it came down to a conference committee that resulted in a 69-17 vote by state House representatives for passage. Lee could sign off on the legislation or allow it to become law without a signature. Then again, the governor could choose to reject the offering, meaning Tennessee lawmakers would need to wait until next year to take another run at the ban.

As legislators looked at it, online sweepstakes casinos, generally speaking, use a system that allows users to play titles that resemble online casino games for real money in an attempt to accrue virtual currency, which they could exchange for cash or other real-world prizes.

According to the Social Gaming Leadership Alliance, a trade group that consists of a number of online sweepstakes casinos, operators in this space generated some $10 billion in 2024.

Lawmakers concluded, though, that these sweepstakes casino operators and other similar online gambling platforms "served as a façade" to hide the reality that players can engage in real-money gambling.

The Tennessee bill would ban any virtual-, dual- and multi-currency games that imitate other forms of gambling. That includes the likes of bingo, lottery, real money online slots, table games, video poker and sports betting.

On top of that, the Senate bill allows Tennessee state regulators to investigate and enforce the new law, while any violations would fall under the Tennessee Consumer Protection Act of 1977.

If passed, Tennessee would join a growing list of states that have banned dual-currency sweepstakes casinos. Maine and Indiana have already seen their respective governors sign off on legislation to outlaw online sweepstakes casinos, which go into effect in July. Eight other states enacted prohibitions in 2025, while two others – Iowa and Louisiana – await gubernatorial signatures.

Grant Lucas