Tennessee Legislature Passes Sweepstakes Casino Ban After Rapid Conference Deal
After a chaotic day, Tennessee lawmakers passed a bill that would ban sweepstakes casinos.
Tennessee has moved one step closer to banning sweepstakes casinos, after the Legislature approved SB 2136 on April 23, following a day of floor rejections, a conference committee standoff, and the adoption of a final compromise measure.
The bill, SB 2136, now awaits formal enrollment before heading to Gov. Bill Lee’s desk. If he signs it, Tennessee will become the third state in 2026, after Indiana and Maine, to formally ban sweepstakes casinos.
After a Chaotic Day, Lawmakers Reach Final Agreement
The April 23 session was marked by back-and-forth between the House and Senate.
The Senate had unanimously passed the bill in early March. The House later advanced HB 1885, ultimately substituting it with the Senate bill ahead of a final vote.
However, the House adopted an amendment that removed language relating to virtual currency and sweepstakes and instead focused on the state’s gambling regulations and enforcement statutes. A separate amendment that would have ordered a study on the possible regulation of sweepstakes casinos was withdrawn.
The first action on April 23 was the Senate’s rejection of the House-amended version, arguing that the original version was preferable. In turn, the House then refused to recede from its version, sending the bill to a conference committee.
The committee, composed of members from both chambers, including the two bills’ sponsors, quickly resolved the differences and issued a conference committee report. The Senate approved it 25-5, while the House passed it 69-17-1.
Final Version Explicitly Targets Sweepstakes Casinos
The conference committee version reinstates and codifies the language targeting sweepstakes casinos.
The legislation creates a statutory definition for “online sweepstakes games,” stating:
(A) Is available on the internet and is accessible on a mobile phone, computer terminal, or similarly accessible device;
(B) Utilizes a virtual-currency, dual currency, or multi-currency system allowing a player to:
(i) Play or participate with a currency, such as a virtual coin, token, or other representation of value, that is directly purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency or related product, service, or activity; and
(ii) Exchange the currency for a prize, award, cash, or cash equivalent, or the chance to win a prize, award, cash, or cash equivalent; and
(C) Simulates 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.”
The bill further states that the operation, conducting, or promotion of online sweepstakes games is unlawful and constitutes an offense “against the public health, safety, and welfare of this state.”
Violations are treated as breaches of the Tennessee Consumer Protection Act of 1977, which allows for civil enforcement in addition to existing gambling laws.
Tennessee Joins Growing List of States Targeting Sweeps
If enacted, Tennessee would become the third state in 2026 to formally ban sweepstakes casinos, following Maine and Indiana.
Like Tennessee, the two states’ approach focuses on defining and prohibiting sweepstakes games. Their statutes focus on systems that use dual- or multi-currency payment models and simulate traditional casino gaming while allowing players to redeem winnings for cash or prizes.
Other states that have advanced legislation targeting sweepstakes casinos include Iowa, Oklahoma, and Minnesota.
Last year, six states – Montana, Connecticut, New York, New Jersey, Nevada, and California- enacted laws targeting the sector. Additionally, Idaho, Michigan, and Washington have been off-limits due to strict gambling laws and enforcement actions.
What’s Next?
The adopted conference committee report now represents final legislative approval.
The next steps are formal enrollment and certification by legislative leadership before the measure heads to the governor’s desk.
Although Tennessee’s 2026 legislative session ends on April 24, enrollment and signatures can occur after the adjournment date. Once the governor receives the bill, he has 10 days (excluding Sundays) to sign or veto it. If Gov. Lee takes no action, SB 2136 becomes law automatically.
If enacted, the bill takes effect immediately.
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