Tennessee has failed to pass legislation explicitly banning sweepstakes casinos. Lawmakers in the Senate and House could not reach a consensus on a bill to send to Governor Lee Marks before the legislative session ended on Friday.
The House had been progressing a bill that would have prohibited online sweepstakes games that utilize dual-currency systems. The Senate also approved the ban last month.
Just as it looked like the state would officially ban the platforms, some last-minute spanners in the works stalled the bill’s progress.
Amended Bill Stalls Progress
In a change of tact, the House approved an amendment to HB1885 that removed any mention of sweepstakes casinos, voting 67-20 in favor of HA1152.
The amended legislation focused more generally on illegal gambling rather than specifically targeting sweepstakes casinos.
The Senate rejected the amendment. A proposal to commission a study of the impact of legalizing and regulating sweepstakes casinos in Tennessee also failed to be approved.
Current Status of Tennessee Sweepstakes Casinos
While no official law was passed to outlaw sweepstakes casinos, the majority of operators have already exited the state.
CasinoBeats confirmed that at least 39 platforms now list Tennessee as a restricted jurisdiction. This comes after Attorney General Jonathan Skrmetti sent a host of cease-and-desist letters to companies, claiming they are operating illegal gambling businesses.
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” said Attorney General Skrmetti. “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.”
Louisiana Renews Efforts to Ban Platforms
Like in Tennessee, Louisiana has taken action against sweepstakes casinos under current laws. Nevertheless, lawmakers have again proposed an official ban on platforms through new legislation.
The House approved the latest bill in a 99-0 vote last week. The approval comes despite Louisiana Governor Jeff Landry vetoing similar legislation last year.
Landry cited the existing laws that prohibit illegal gambling in the state, as well as the powers of the Attorney General and the Gaming Control Board to take enforcement action. As in Tennessee, the state sent dozens of cease-and-desist letters to operators it deemed to be operating illegally.
A check on major platforms revealed that 60 companies list Louisiana as a restricted state, far more than Tennessee, but fewer than in states that have officially banned sweepstakes casinos.
In California and Nevada, where bans were passed last year, 67 platforms have exited the state. It suggests that while states such as Tennessee and Louisiana may have sufficient powers to drive out most operators, passing legislation is the most effective way to stop the controversial gambling businesses.
