Tennessee has enacted a statewide prohibition on online sweepstakes casinos after Governor Bill Lee signed legislation aimed at operators using dual-currency systems and casino-style gaming products outside the state’s regulated framework.
The measure officially became law on May 22 after lawmakers approved HB 1885/SB 2136 during the final day of the legislative session on April 23. The bill was then sent to the governor on May 11 before receiving final approval within the state’s 10-day review period.
The legislation targets online gaming products that imitate traditional gambling activities through virtual currencies or multi-currency models. Tennessee’s new restrictions apply to platforms connected to slot-style games, online table games, bingo offerings, lottery-style products, video poker, and unauthorized sports betting operations.
Violations will now fall under the Tennessee Consumer Protection Act of 1977. During negotiations, lawmakers also revised the bill to expand enforcement powers and allow regulators to investigate operators suspected of violating the rules.
Gambling Platforms Begin Exiting Tennessee
The legislation arrives after months of mounting pressure on sweepstakes casino operators within the state. Toward the end of 2025, Tennessee Attorney General Jonathan Skrmetti sent cease-and-desist notices to several companies offering sweepstakes-style gaming services to Tennessee residents.
A number of operators later restricted or ended access in the state. The list included Chumba Casino, Fortune Coins, Global Poker, Hello Millions, High 5 Casino, Stake, WOW Vegas, Sportzino, Luckyland, McLuck, Modo, and Zula Casino.
A1 Development also stopped servicing Tennessee customers through several of its brands, including NoLimitCoins, Fortune Wheelz, Tao Fortune, FunzCity, Funrize, and Storm Rush.
Other businesses started limiting their sweepstakes products as scrutiny intensified. VGW, the company behind Chumba Casino, LuckyLand Slots, and Global Poker, began reducing Sweeps Coin gameplay options in Tennessee. Stake.us later confirmed plans to remove the state from its service coverage. Social sportsbook platforms including Thrillzz, KicKr, and Rebet also withdrew from the market.
The departures followed growing uncertainty surrounding how Tennessee authorities would approach prize-based gaming products and dual-currency systems. Operators adjusted their offerings while legal and regulatory attention toward the sector increased nationwide.
Attorney General Skrmetti previously criticized the industry in a public statement, saying: “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money.”
He also stated: “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. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
Another section of the statement warned companies that “illegal gambling will not be tolerated” in Tennessee.
More States Continue Targeting Dual-Currency Gaming
Tennessee now joins a broader national movement targeting sweepstakes casinos and dual-currency gaming models. Regulators and lawmakers across several jurisdictions have argued that these products function similarly to real-money gambling despite using virtual currencies instead of direct cash wagers.
States including California, Connecticut, Louisiana, Montana, New Jersey, New York, Oklahoma, Indiana, Maine, and Nevada have also introduced or approved measures targeting sweepstakes-style casino products.
Louisiana recently approved its own legislation focused on the sector after Governor Jeff Landry signed House Bill 883 into law. That measure is scheduled to take effect on August 1.
The conference committee report attached to Tennessee’s legislation described sweepstakes casinos as platforms that “utilize a system allowing players to play casino-style games with virtual currency and exchange the virtual currency for cash or other real-world prizes.”
The same report added that these systems serve as “a façade to hide the fact that players may engage in real-money gambling through the purchase and use of virtual currency.”
Supporters of the Tennessee legislation argued that the measure closes regulatory gaps that previously allowed operators to continue offering casino-style products without oversight typically applied to regulated gambling businesses. Legislative staff reviewing the proposal also determined the measure would not negatively affect state revenue.
The debate surrounding sweepstakes casinos continues to expand across the United States as additional lawmakers and regulators examine how dual-currency gaming systems operate and whether they fall within existing gambling laws.
Source:
Tennessee Enacts Statewide Ban on Sweepstakes Casinos, news.worldcasinodirectory.com, May 24, 2026
