Gov. Lee Signs Tennessee Ban on Sweepstakes Casinos Into Law

Tennessee’s ban on sweepstakes casinos is now official after Governor Bill Lee signed the measure into law on Friday, the last day he had to act. 

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Lawmakers had raced to pass HB 1885/SB 2136 before their session ended on April 23, sending the bill to the governor on May 11. That triggered a ten‑day window, excluding Sunday, for him to either approve or reject the legislation. 

Staff had earlier reviewed the proposal and concluded that the ban would not affect state revenue.

What does SB 2136 cover?

The new Tennessee law takes direct aim at sweepstakes casinos, a model where operators give players two forms of virtual currency. One type can be bought, while the other is handed out free through promotions or alongside purchases. Both currencies could then be used in casino‑style games, with winnings sometimes redeemed for cash.

Sponsors had marketed this setup as legal sweepstakes, but under SB 2136, running or promoting such platforms is now prohibited in the state.

The ban applies to slot simulations, video poker, table games, bingo, and unlicensed sports wagering. Importantly, the law does not touch legal sports betting, fantasy sports, the Tennessee Education Lottery, nonprofit gaming, or free‑to‑play games. 

Tennessee joins a growing list of states cracking down on sweepstakes casinos. Eight others, including California, New Jersey, and New York, have already enacted bans, while Montana became the first to pass a statute last year.

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In addition, attorneys general in Illinois and Minnesota have used existing consumer protection and gambling laws to issue cease‑and‑desist orders against operators.

The path to the ban

Tennessee’s move against sweepstakes casinos began months before the new law was signed. In late 2025, Attorney General Jonathan Skrmetti sent cease‑and‑desist letters to operators across the state, forcing many of them to shut down or leave.

Platforms such as Chumba Casino, Global Poker, Blazesoft, Luckyland, Stake, and others were among those named. At the time, Skrmetti warned, “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not. They avoid any oversight that could ensure honesty or fairness.”

He added that his office was “glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.” 

Even after many operators exited, lawmakers pressed ahead with legislation to make the ban permanent. Negotiations stretched into 2026 and ended with a conference committee compromise that both chambers approved. 

The House backed the measure by a vote of 69‑17. In its report, the committee described sweepstakes casinos as platforms that “serve as a façade to hide the fact that players may engage in real‑money gambling through the purchase and use of virtual currency.” 

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Source: SBC Americas