Tennessee lawmakers took one other step towards banning sweepstakes-style online casinos Tuesday as House Bill 1885 moved ahead within the state legislature.
Members of the Home Departments & Companies Subcommittee voted 8–0 on March 17 to advocate the measure for passage with modification. The panel then despatched the proposal to the Home State & Native Authorities Committee for additional consideration, in response to legislative monitoring information.
HB1885 serves because the Home companion to Senate Invoice 2136, which has already cleared key stages in the Tennessee Senate. If the laws finally turns into regulation, it might broaden the state’s potential to analyze and pursue firms working sweepstakes-style on-line on line casino platforms and different unlawful web playing operations.
Tennessee invoice targets sweepstakes-style on-line casinos
Lawmakers say the invoice is designed to deal with a rising variety of web platforms utilizing what they describe as a “promotional sweepstakes” construction to supply casino-style video games whereas sidestepping conventional playing guidelines.
The proposal lays out a proper definition for an “on-line sweepstakes recreation.” Within the invoice, the time period refers to a web-based promotion that makes use of digital foreign money and lets individuals trade that foreign money for “a prize, award, money, or money equal, or the prospect to win” such rewards.
Underneath the laws, a number of actions linked to these platforms could be unlawful in Tennessee. This consists of providing or accepting wagers from folks within the state, working or selling on-line sweepstakes video games, distributing playing gadgets, or permitting such gadgets to run on property beneath somebody’s management. The measure additionally targets companies or people who assist or facilitate sweepstakes playing operations.
The invoice states that these actions quantity to “offenses towards the general public well being, security, and welfare of this state.” It additionally ties violations to the Tennessee Shopper Safety Act, giving the state extra grounds to pursue civil penalties and enforcement actions towards operators.
On the similar time, lawmakers made clear that current authorized gaming choices would stay untouched. Sports activities wagering regulated beneath the Tennessee Sports Gaming Act, fantasy sports activities contests, nonprofit gaming actions, and the state lottery would nonetheless be permitted beneath the proposal.
The measure additionally will increase investigative authority for the Tennessee lawyer basic and reporter. If HB1885 turns into regulation, the lawyer basic may require paperwork, demand sworn statements, and compel testimony from people or firms suspected of violating state playing legal guidelines.
Anybody who tries to keep away from or hinder an investigation, together with by destroying or altering information, may face civil penalties of as much as $1,000 per doc. The proposal additionally offers the Tennessee Sports activities Wagering Council expanded authority to analyze complaints and pursue violations involving each licensed operators and different events tied to on-line playing exercise.
The push for brand new laws follows rising scrutiny of sweepstakes on line casino platforms in Tennessee. In late 2025, the Tennessee Attorney General’s Office sent cease-and-desist letters to dozens of operators, warning that their platforms appeared to violate state playing and shopper safety legal guidelines.
Some firms started leaving the market after the enforcement effort. Sweepstakes gaming operator VGW, which runs manufacturers together with Chumba On line casino and LuckyLand Slots, stated it might cease providing sweepstakes play in Tennessee as stress from regulators elevated.
Regulators are more and more inspecting sweepstakes-style on line casino fashions that use twin digital currencies and permit sure credit to be redeemed for money or prizes.
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