Tennessee Joins List Of States Moving To Ban Sweepstakes Casinos

Jan 30th, 2026 3:35 PM EDT

(Alamy Images)

Tennessee lawmakers moved to ban sweepstakes casinos during this current legislative session.

House Bill 1885, introduced by Scott Cepicky, takes direct aim at dual-currency “sweepstakes” platforms that lawmakers say are nothing more than unregulated online gambling dressed up as free-to-play entertainment.

The bill labels these sites a fast-growing form of illicit gambling, accusing operators of marketing casino-style games as legal fun while quietly allowing players to exchange virtual currency for real-world cash and prizes.

How HB 1885 Defines Sweepstake Casinos

HB 1885 creates a new statutory definition of an “online sweepstakes game,” zeroing in on platforms that use virtual coins alongside redeemable currency.

Under the proposal, a sweepstakes game is any system where players can:

Buy virtual currency directly
Receive it for free when purchasing another currency
Obtain it through bonuses or promotions

And then convert those coins into cash, prizes, or cash equivalents.

In other words: if it looks like gambling, plays like gambling, and pays out like gambling, Tennessee wants it treated like gambling.

What the Bill Would Ban

The bill’s reach is broad. It covers any platform that simulates gambling of any kind, including:

Slot machines
Video poker
Table games
Bingo and lottery-style games
Unlicensed sports wagering

HB 1885 explicitly states that operating, promoting, or conducting online sweepstakes games—or any similar online or app-based gambling—is illegal and considered an offense against the state’s public health, safety, and welfare as Tennessee lawmakers look to ban sweepstakes casinos.

And the net doesn’t stop with operators.

Vendors and Partners Also in the Crosshairs

HB 1885 makes it unlawful to support, facilitate, or aid sweepstakes platforms in Tennessee. That means payment processors, marketing affiliates, software vendors, and other middlemen could all face liability for helping these sites operate. This strategy to ensnare vendors and financial partners follows a pattern used by other states in battling multiple forms of what they consider illegal gaming.

Violators wouldn’t just be looking at criminal gambling charges. The bill also opens the door to civil penalties and injunctions under the Tennessee Consumer Protection Act, classifying sweepstakes violations as unfair or deceptive business practices.

Part of a National Crackdown

Tennessee would join a growing list of states taking action against dual-currency and sweepstakes-style gambling platforms. As of 2026, enforcement actions or proposed legislation have emerged in Maine, Florida, Indiana, Utah, Mississippi, Maryland, Virginia, Oklahoma, and Iowa.

New York and California moved to shutter dual-currency, sweepstakes/social casinos last year.

The timing is no accident.

The proposal follows an aggressive enforcement push led by Jonathan Skrmetti, whose office sent cease-and-desist letters to nearly 40 sweepstakes casinos in late 2025. According to the Attorney General’s office, every targeted platform either shut down its sweepstakes features or exited the state entirely.

Message received—and now Tennessee lawmakers are trying to put it into statute.

About the Author

Bill Speros

More About Bill

Bill is an award-winning journalist and editor whose career includes stops at USA Today Sports Network / Golfweek, Cox Media, ESPN, Orlando Sentinel and Denver Post. He's been covering the North American regulated gambling market for almost a decade and has his finger on the pulse for all industry news involving sportsbooks, online casinos, prediction markets and more. Bill placed his first bet at age 11, and his first job was as a paper boy delivering the Boston Herald and Boston Globe. By age 16, he was playing blackjack and getting comped drinks on the Las Vegas Strip. When home, his weekend rotation included trips to Wonderland Greyhound Park and Raynham Greyhound Park. After 30 years in legacy media, Bill wedded his passion for journalism and storytelling with a lifetime of wagering by working at Gambling.com.