Tennessee Finalizes Ban on Sweepstakes Casino Platforms

Online sweepstakes casinos can no longer legally operate in Tennessee after Governor Bill Lee approved legislation designed to block dual-currency gaming systems and unregulated casino-style products across the state.

The legislation, introduced as HB 1885/SB 2136, cleared the Tennessee legislature on April 23 during the final day of the 2026 session. Lawmakers forwarded the bill to the governor on May 11, and it officially became law on May 22 before the expiration of the state’s review deadline.

The new measure prohibits online platforms that offer casino-style products through virtual currency systems or multi-currency structures. Tennessee lawmakers specifically identified slot-style games, bingo, lottery-style products, table games, video poker, and unauthorized sports betting among the targeted categories.

State officials also placed violations under the Tennessee Consumer Protection Act of 1977. Amendments added during the legislative process further expanded enforcement authority, allowing regulators to investigate suspected operators and pursue action against companies that continue offering prohibited services.

Operators Pulled Out Ahead of the Law

The ban follows several months of increasing scrutiny directed toward sweepstakes gaming companies operating in Tennessee.

In late 2025, Tennessee Attorney General Jonathan Skrmetti issued cease-and-desist letters to multiple sweepstakes operators active in the state. That action triggered a wave of withdrawals and service restrictions from major brands tied to the sector.

Among the companies reducing or ending access for Tennessee residents were Chumba Casino, Fortune Coins, Global Poker, Hello Millions, High 5 Casino, Stake, WOW Vegas, Sportzino, Luckyland, McLuck, Modo, and Zula Casino.

A1 Development also restricted Tennessee access across several of its brands, including NoLimitCoins, Fortune Wheelz, Tao Fortune, FunzCity, Funrize, and Storm Rush.

Other operators adjusted their products as uncertainty surrounding the state’s regulatory position continued to build. VGW, which runs Chumba Casino, LuckyLand Slots, and Global Poker, started phasing out Sweeps Coin gameplay within Tennessee. Stake.us also announced plans to discontinue services in the state, while social sportsbook operators Thrillzz, KicKr, and Rebet withdrew their offerings.

Industry observers linked the exits to expanding legal pressure and concerns surrounding the future treatment of prize-based gaming models in Tennessee.

Attorney General Skrmetti publicly criticized the sector during the state’s earlier enforcement efforts. He stated: “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money.”

He also said: “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not. They avoid any oversight that could ensure honesty or fairness. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”

Another section of the attorney general’s statement warned operators that “illegal gambling will not be tolerated.”

Tennessee Joins Broader Enforcement Push

Tennessee’s decision adds to a growing number of states taking action against sweepstakes casinos and dual-currency gaming products.

Lawmakers and regulators in several jurisdictions have argued that these platforms closely resemble traditional gambling despite relying on virtual currencies instead of direct real-money wagering systems.

California, Connecticut, Louisiana, Montana, New Jersey, New York, Oklahoma, Indiana, Maine, and Nevada have all moved against sweepstakes casino operations through legislation or regulatory actions.

Louisiana recently approved similar restrictions after Governor Jeff Landry signed House Bill 883 into law. That legislation is scheduled to become effective on August 1.

The conference committee report attached to Tennessee’s legislation described sweepstakes casinos as systems that “utilize a system allowing players to play casino-style games with virtual currency and exchange the virtual currency for cash or other real-world prizes.”

The report also stated that such systems act as “a façade to hide the fact that players may engage in real-money gambling through the purchase and use of virtual currency.”

Supporters of the Tennessee legislation argued the new restrictions close loopholes that previously allowed operators to offer gambling-style products without falling under the state’s regulated gaming structure. Legislative staff reviewing the proposal concluded that the measure would not negatively affect Tennessee’s revenue.

Questions continue to surround how additional states may address sweepstakes casinos moving forward as regulators across the country keep examining the legality of dual-currency gaming systems.

Source:

Tennessee Enacts Statewide Ban on Sweepstakes Casinos, news.worldcasinodirectory.com, May 24, 2026