Published on: April 27, 2026, 02:35h.
Updated on: April 27, 2026, 02:35h.
- Tennessee enacts a law prohibiting online sweepstakes casinos
- Tennessee, Indiana, and Maine have made sweepstakes casinos illegal in 2026
- Sweepstakes casinos exploit a dual-currency system to bypass gambling regulations
In 2026, Tennessee becomes the third state to enforce a ban on online sweepstakes casinos.
On a hectic final day of the 2026 legislative session, members of the Tennessee General Assembly finalized Senate Bill 2136/House Bill 1885.
After extensive discussions regarding the specific language drafted by a conference committee, the House of Representatives passed the bill with a vote of 69-17-1. The state Senate had previously approved the sweepstakes casino legislation with a 32-0 vote in early March.
Following Governor Bill Lee’s (R) endorsement, any website or application offering an online sweepstakes game—which includes games, contests, or promotions that employ a “virtual currency, dual-currency, or multi-currency system”—will be deemed illegal in Tennessee.
Sweepstakes Casinos Explained
Sweepstakes casinos often present themselves as free-to-play social gaming platforms. Players can engage in interactive table games and online slots using play money, while these platforms offer a secondary currency for purchase. This dual-currency system—where the additional credits are typically known as sweeps coins—enables users to cash out their sweeps coins.
“This new law provides the state with enhanced tools to investigate unscrupulous operators, hold them accountable, and shut down illegal activities that take advantage of consumers,” stated state Senator Ferrell Haile (R-Gallatin), the chief advocate of SB2136.
Tennessee Attorney General Johnathan Skrmetti, who previously issued numerous cease-and-desist orders to online sweepstakes casinos, expressed support for the passage of SB2136.
The only certainty with an online sweepstakes casino is that it intends to take your money. They strive to create an illusion of legitimacy, but ultimately they aren’t,” remarked Skrmetti.
“These platforms evade any regulatory scrutiny that could ensure their honesty or fairness. Our office is pleased to expel these dubious operations from Tennessee and will continue to safeguard residents from illegal gambling activities,” Skrmetti added.
Most sweepstakes casinos had already retreated from Tennessee due to warnings from the attorney general. Popular platforms like Chumba Casino, Stake, and Modo had all restricted access to users located in Tennessee.
Similar to numerous other states, Tennessee has never authorized online casino gambling. Only eight states have established iGaming regulations: Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Gaming consultancy Eilers & Krejcik estimates that online sweepstakes casinos generated around $4 billion in gross gaming revenue across the United States last year.
Three States Ban Sweepstakes in 2026
As most state legislatures conclude their sessions, only three states enacted laws to prohibit sweepstakes casinos in 2026. Tennessee joins Indiana and Maine in the effort to outlaw dual-currency sweepstakes games.
Lawmakers in Minnesota are also examining Senate File 4474, a proposal aimed at similarly banning online sweepstakes casinos. Minnesota’s 2026 legislative session continues until May 18.