Tennessee Proposes Banning Sweepstakes Casinos as States Continue Crackdowns

Tennessee lawmakers have proposed a ban on sweepstakes casinos, making it the tenth state to target the platforms with legislation already in 2026.

Rep. Scott Cepicky introduced HB1885 on Wednesday, which states that the “operation, conducting, or commercial promoting of online sweepstakes games and other forms of online or app-based gambling are unlawful and are offenses against the public health, safety, and welfare of this state.”

It 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.”

This attempts to create a sweeping definition to cover all sweepstakes casinos and gambling platforms using the dual-currency model to bypass state laws and operate without a license.

It exposes violators to civil penalties and injunctive relief rather than relying solely on criminal gambling statutes, granting additional power to the state’s Sports Wagering Council (SWC) and Attorney General. If approved by the House, Senate, and Governor, it would come into force immediately.

Many Sweeps Operators Left Last Year

Tennessee has already forced many operators to exit the state, including popular platforms such as Chumba, High 5, Stake, and Pulsz. Others, such as Baba Casino, Ace, and Spinfinite, resumed operations in Tennessee and other states that have not explicitly banned the platforms, such as Alabama and Georgia.

Attorney General Jonathan Skrmetti celebrated the withdrawal of most companies following a spate of cease-and-desist letters being issued by his office. In a press release at the end of last year, his office said they had sent over 40 companies orders to halt operations.

Skrmetti said there will be no let-up in the fight against illegal gambling, and the new legislation would further empower his office to take action. He warned residents about gambling on platforms that remain accessible, stating, “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money.”

He added, “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.”

Tennessee: Latest State to Propose Legislation in 2026

While six states successfully passed bills to explicitly ban sweepstakes last year, the trend has continued in 2026. The legislation introduced in Tennessee marks the tenth state where a bill has been introduced to tackle gambling companies operating through the sweepstakes loophole.

Tennessee joins the following states:

• Maine
• Florida
• Indiana
• Utah
• Mississippi
• Maryland
• Virginia
• Oklahoma
• Iowa

Additionally, operators in Alabama have been targeted by 21 new lawsuits. Skrmetti says the “growing national crackdown reflects widespread concern over platforms using sweepstakes language as a loophole to run unregulated gambling operations.”

He went on to warn operators that, “Other sweepstakes casinos currently operating in Tennessee or contemplating entering the Tennessee marketplace should consider themselves on notice that illegal gambling will not be tolerated.”