The Governor of Tennessee, Bill Lee, has enacted a law that bans online sweepstakes casinos, positioning the state among the many U.S. regions that are tightening regulations on casino-like gaming sites that utilize virtual currencies and promotional schemes.
This legislation, which merges Senate Bill 2136 with House Bill 1885, forbids the operation of dual-currency sweepstakes platforms that offer games akin to conventional casino gambling, such as slots, video poker, bingo, lottery-type games, and table games.
Tennessee is now the seventh state in the U.S. to outlaw sweepstakes casino activities, joining California, Connecticut, New Jersey, New York, Montana, and Louisiana.
Legislators contended that these platforms closely mirror unauthorized real-money gambling activities, even though they utilize promotional currencies and virtual tokens.
The bill received overwhelming bipartisan backing, passing through a House subcommittee with a unanimous 8-0 vote, the Senate with a 32-0 tally, and the House State and Local Government Committee with a 21-0 margin, before final approval in the House by a 69-17 vote.
Additionally, the law enhances enforcement capabilities under the Tennessee Consumer Protection Act of 1977, granting regulatory bodies and the attorney general expanded powers to investigate and take action against violators.
Tennessee Attorney General Jonathan Skrmetti was instrumental in this crackdown, as his office sent cease-and-desist notices to sweepstakes operators in late 2025, which led several companies to exit the state prior to the formal enactment of the law.
Companies that left Tennessee included Chumba Casino, Fortune Coins, Global Poker, Luckyland, and Zula Casino, among others.
“With an online sweepstakes casino, the only guarantee is a loss of your funds,” Skrmetti stated in a news release from December. He added that these platforms are crafted to seem legitimate while lacking authentic consumer protections.
Governor Lee finalized the bill on May 11, making use of the full 10-day review period granted to him.
While Tennessee continues to allow regulated online sports betting, it has not moved forward with legislation to approve online casino gaming. During Tennessee’s legislative session in 2026, no regulated iGaming bills were proposed.
Some analysts caution that the lack of a regulated online casino framework may drive gamers to offshore betting platforms that do not provide U.S. consumer safeguards.
Since California’s AB 831 came into effect in January 2026, there’s been a greater trend in the U.S. to impose restrictions on sweepstakes casinos. Indiana and Oklahoma are also considering comprehensive bans, while Florida, West Virginia, and Maryland are opting for regulatory investigations and enforcement activities over outright prohibitions.
For Tennessee residents seeking legal online casino options, Michigan remains the closest regulated iGaming market. Other states with legalized online casino gambling include New Jersey, Pennsylvania, West Virginia, Delaware, Rhode Island, and Connecticut.