Tennessee Bill moves to ban online sweepstakes casinos

With House Bill 1885, a bill introduced by Representative Scott Cepicky, Tennessee lawmakers are attempting to shut down online sweepstakes casino websites.

According to the bill, these dual-currency platforms are a rapidly expanding type of illicit gambling that is being promoted to customers as free-to-play, legal entertainment.

A new statutory definition of an “online sweepstakes game” is created by HB 1885, specifically targeting websites that use virtual coins alongside redeemable currency.

The bill states that an online sweepstakes game is defined as one that employs a virtual currency system that players can either directly purchase, obtain for free by purchasing another currency, or receive through bonuses or promotions, and then exchange for prizes, cash, or cash equivalents.

Platforms that simulate 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, are covered by the bill.

The operation, conducting, or commercial promotion of online sweepstakes games and other forms of online or app-based gambling are illegal and are offences against the public health, safety, and welfare of this state, as stated by HB 1885’s prohibition section.

Others that assist these sites in running are also targeted by HB 1885. It would be unlawful to support, facilitate, or aid in the running of online sweepstakes games in Tennessee, which would expose partners, vendors, and other middlemen to liability.

Beyond just facing criminal gambling charges, those running or aiding such operations in Tennessee also face civil penalties and injunctions. The Tennessee Consumer Protection Act comes into play here, viewing these violations as unfair or deceptive practices.

Tennessee’s new bill places it among a number of states that, as of 2026, have either begun enforcement actions or proposed legislation targeting dual-currency or sweepstakes-style gambling platforms. These states include Maine, Florida, Indiana, Utah, Mississippi, Maryland, Virginia, Oklahoma, and Iowa.

The proposal comes on the heels of a crackdown spearheaded by Attorney General Jonathan Skrmetti. His office issued cease-and-desist letters to almost 40 sweepstakes casinos in late 2025. The Attorney General’s office reported that all the affected platforms either shut down the sweepstakes features or agreed to cease operations within the state.