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Tennessee Legislator Files Bill to Ban Online Sweepstakes Casino Games
Proposal would add the operation or promotion of games to explicit violations of the state's consumer protection law and empower prosecutors in Tennessee.
Tennessee has joined the contingent of states that have at minimum considered a ban on casino-style, sweepstakes-based online games with the introduction of a bill toward that end. The filing takes aim at the dual-currency model most online sweepstakes casinos operate with and could give investigators in Tennessee broader powers within the scope of unlicensed gaming.
Tennessee bill could establish formal ban on sweeps games
While Tennessee Attorney General Jonathan Skrmetti has already taken action against the operators of multiple online sweepstakes casinos using existing statutes, HB 1885 would leave no doubt about the legality of such platforms in the state. The bill specifically calls out fundamental aspects of the sweepstakes gaming model.
One of those call-outs is any digital currency that can be "directly purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency or related product, service, or activity." The bill also includes online games that resemble bingo, casino-style gaming, or sports wagering.
HB 1885 states that operating or promoting such a site would constitute a violation of the Tennessee Consumer Protection Act of 1977. Potential penalties for violations include fines in excess of $15,000 for each conviction.
Enactment of HB 1885 could also lead to larger-scale investigations into the operation of unlicensed platforms for casino games online as well.
HB 1885 deepens investigatory powers related to illegal gaming
HB 1885 expands the powers of prosecutors in Tennessee related to suspected illegal gaming. Under the bill's tenets, any person suspected of participating in unlicensed gaming must "furnish and make available for examination all documentary material and information relevant to the subject matter of the investigation" along with supply a statement to prosecutors.
The bill provides for a fine of $1,000 for non-compliance with these requirements. In other states, simply the initiation of legislation like this has been sufficient to get certain sweepstakes casino operators to stop selling digital currency packages to residents.
Skrmetti's office says that nearly 40 operators responded to his enforcement actions by limiting operations in Tennessee or presenting a plan to wind them down. There is no legal framework for any of the best online casino apps in the state currently.
Licensed online gaming is limited to sports wagering in Tennessee. Lawmakers have not even initiated conversations that could lead to residents enjoying bonuses like the PlayStar Casino promo code to date.
Should HB 1885 become law in Tennessee, the legal status of online casino games in the state will be more defined as outside of the permissible scope of gaming. Any entity currently participating in sweepstakes gaming might find it difficult to become part of any potential future expansion of regulated Tennessee gaming as well.
