Sweepstake casino ban applies to platforms that offer dual-currency system
Tennessee Governor Bill Lee signed SB 2136 into law on May 22, formally banning online sweepstakes casinos and making the state the ninth in the country to do so.
The measure, sponsored by Sen. Ferrel Haile, was introduced January 23, while its House counterpart, HB 1885, sponsored by Rep. Scott Cepicky, was introduced January 21. Both had made quick progress through their respective legislative chambers, passing on April 23 before being sent to the governor.
The legislation targets operators offering a dual-currency system that allows players to exchange virtual currency for real-world prizes or cash awards. Operators have long maintained that this structure qualifies as a lawful promotional sweepstakes rather than gambling.
Tennessee’s new law rejects that argument outright. Slot simulations, video poker, table games, bingo, and unlicensed sports wagering are all prohibited under the statute. Legal sports betting, fantasy sports, and state lottery products remain unaffected.
Enforcement sits with Attorney General Jonathan Skrmetti, who had already been moving against the industry months before the bill cleared the legislature. In late December, he issued cease-and-desist letters to nearly 40 sweepstakes casino platforms operating in the state.
All of them either shut down the relevant features or committed to doing so by a set deadline. Several major platforms, including Stake.us and High 5 Casino, had already pulled out of Tennessee entirely by November 2025.
Violations are treated as breaches of the Tennessee Consumer Protection Act, allowing the attorney general to pursue civil penalties and to exercise broad investigative authority, including the power to examine witnesses under oath.
The Tennessee ban took effect immediately upon signing.