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Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioLawmakers in Tennessee‘s House voted to advance legislation banning sweepstakes casinos out of a subcommittee. The state’s Senate has already approved legislation prohibiting the platforms, making it likely that a ban will be enacted.
On Tuesday, the House Departments & Agencies Subcommittee voted 8-0 in favor of HB1885. It now moves to the House State & Local Government Committee.
The bill is identical to Senate Bill 2136, which was unanimously approved by Senators earlier this month. The legislation defines an online sweepstakes game as a platform that utilizes a virtual-currency system allowing players to engage in “gambling of any kind, including, but not limited to, casino-style gaming such as slot machines, video poker, table games, lottery games, bingo, or unlicensed sports wagering,” which can later be exchanged for “a prize, award, cash, or cash equivalent.”
If it passes, violators could receive a civil fine of up to $15,000 per violation.
Operators Have Largely Exited Tennessee
At least 36 sweepstakes casino platforms now list Tennessee as a restricted territory, including major operators such as VGW, Stake, Modo, and High 5 Games.
The state’s Attorney General, Jonathan Skrmetti, has already been taking action against companies it views as operating illegally under current laws.
Skrmetti sent over 40 cease-and-desist letters last year, leading to a mass exodus from the state. Not all companies complied, however. Rebet still does not include Tennessee as a restricted jurisdiction despite receiving one of the letters. In addition, Baba Casino relaunched in the state in September, despite previously blocking access.
Skrmetti has supported the legislation to further clarify that the dual-currency gambling sites are illegal. The bill will allow his office to ramp up enforcement action against any companies that continue to operate.
Other States Clamping Down on Sweeps
Tennessee is among several states pushing legislation to explicitly ban sweepstakes casinos. Indiana has passed a bill prohibiting the platforms, while Minnesota introduced new legislation this week.
As Maine legalizes online casinos, the state has also advanced a bill targeting sweepstakes casinos. Lawmakers in Florida, Oklahoma, Illinois, and Hawaii are also considering bills that would ramp up actions against unregulated gambling operators.
States that successfully enacted laws against the platforms last year include New Jersey, Connecticut, New York, California, and Montana. Laws in Idaho and Washington also restrict companies from operating.
The crackdown looks set to continue and poses a risk to the survival of many businesses. Some companies that have been forced to shut down include Betty Sweeps, Luckybird, and ToraTora Casino. As more states enact bans, several other platforms could follow.
