Anti-sweepstakes bill passes in Tennessee, heads to Governor’s desk for final approval

The Tennessee House of Representatives has advanced Senate Bill 2136/House Bill 1885 to the desk of Governor Bill Lee, marking the next step in outlawing sweepstakes casinos across the state. 

Following a 69-17 majority vote, Lee will have 10 days to advance or reject the legislation, and could also allow the bill to become law without his final approval. Given Senate Bill 2136/House Bill 1885 passed on the final day of legislative sessions, however, any rejection from Lee would conclude all efforts to ban sweepstakes casinos for the remainder of 2026. 

Tennessee could join states such as California, New Jersey and New York in outlawing sweepstake casino operations, as the legislation seeks to prohibit sweepstakes casinos utilizing virtual-, dual- or multi-currency systems of payment.

Senate Bill 2136/House Bill 1885 would look to identify sweepstakes casinos which mimic other forms of gambling, such as bingo, lottery games, slot machines, table games, unlicensed sports wagering and video poker.

State legislators claimed online sweepstakes casinos and other online gambling platforms “serve as a façade” to hide real-money gaming operations through the purchase and use of virtual currency. 

Regulators in Tennessee would be given the authority to investigate and enforce the new law as part of Senate Bill 2136/House Bill 1885, which also clarifies that violations of the rule fall under the Tennessee Consumer Protection Act of 1977.

Earlier in April, Maine enacted legislation prohibiting online sweepstakes games, establishing civil penalties and linking violations to the state's unlawful gambling provisions.

The measure, SP 825, LD 2007, was signed into law by Maine Governor Janet Mills after clearing both chambers of the Maine Legislature. It creates a new section in state law which bans any person from operating, promoting or supporting the operation or promotion of an online sweepstakes game.