Tennessee Passes Law Enforcing Statewide Ban On Sweepstakes Casinos

Tennessee has officially banned online sweepstakes casinos after Governor Bill Lee signed Senate Bill 2136 into law on 22 May. It was passed through both legislative chambers before reaching the governor’s desk on 11 May for signing.

The bill targets sweepstakes casino platforms operating with dual virtual currency systems. Under this model, players purchase one type while receiving another through promotions or bundled offers.

Both currencies can then be used to access casino-style games, with some winnings redeemable for cash or cash equivalents. Operators have argued that these platforms function as promotional sweepstakes.

New law targets dual-currency casino gaming platforms

Under the new legislation, operating or promoting sweepstakes casino platforms in Tennessee is now prohibited. The state becomes the latest US jurisdiction to restrict sweepstakes casinos.

The bill covers slot-style games, video poker, table games, bingo products and unlicensed sports betting. However, it does not affect Tennessee’s legal sports betting market, fantasy sports, nonprofit gaming, free-to-play, or the Tennessee Education Lottery.

Similar bans have already been implemented in states including California, Connecticut, Indiana, Iowa, Maine, Montana, New Jersey and New York. Montana became the first state to enact a direct legislative ban through SB 555 last year.

Attorney General receives broader sweepstakes enforcement powers

Tennessee’s enforcement authority will fall under Attorney General Jonathan Skrmetti. Violations will be treated as breaches of the Tennessee Consumer Protection Act, allowing civil enforcement without criminal prosecution.

The law also grants the attorney general expanded investigative powers, including the ability to compel written statements, examine witnesses under oath and inspect materials from investigations. Skrmetti had already moved against sweepstakes operators before the bill became law.

In December 2025, his office issued cease-and-desist letters to nearly 40 platforms accused of offering illegal gambling services within the state.

Most affected operators either disabled their sweepstakes products in Tennessee or agreed to withdraw from the market entirely.

Major operators already exited Tennessee market

Several leading sweepstakes casino brands already left Tennessee before lawmakers finalised the legislation. Platforms including Stake.us, High 5 Casino and RealPrize exited the state as early as November 2025.

“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not,”  Skrmetti noted.

Tennessee has officially banned sweepstakes casinos within the state after passing Senate Bill 2136 into law. The bill also limits access to slots, table games, video poker, bingo, and unlicensed sports betting. Several top sweepstakes platforms already left the state in anticipation of this enforcement action.

Further updates on regulatory developments will be available in the Regulation Section.