Tennessee Senate Panel Unanimously Backs Sweepstakes Casino Ban in Stunning 8-0 Vote

Tennessee is sending a strong message to the state’s sweepstakes casino operators and the broader industry in general. Its Senate Committee on Commerce & Labor recently voted unanimously, 8-0, in favor of advancing SB2136, which would ban sweepstakes casinos.

The proposal passed the committee with ease, with strong bipartisan support and the backing of the Tennessee Sports Wagering Council and the Attorney General’s office.

Tennessee’s latest move is part of a wider national crackdown—several states have already passed similar bans, or are actively pursuing tighter regulations on the popular gaming class.

What is in SB2136?

The Senate committee’s decision to push for the sweepstakes casino ban is no longer surprising for many observers. This legislative agenda has the backing of the Tennessee Sports Wagering Council and the Attorney General’s office, with the support of legislators from both aisles. 

The bill, together with HB1885, would classify online sweepstakes games as illegal gambling under state laws, rather than promotional and “free-to-play” entertainment. 

Currently, these gaming platforms offer casino-style games such as slots, blackjack, and other arcade games, under a “no-purchase required scheme”.

However, state regulators see it as another form of real-money gambling. Once approved, it will authorize enforcement against operators, including injunctions, criminal penalties, and private lawsuits. 

How This Will Impact Players and Operators

Tennessee’s potential sweepstakes casino ban could impact players and operators in different ways.

• Loss of access. Sweepstakes casino sites, like LuckyLand and Chumba Casino will restrict access once the ban takes full effect. A few operators have already exited the state due to regulatory pressure.

• Operators may pull out cash prize games. Redemptions will stop, and only free-to-play games using Gold Coins (GCs) may remain accessible.

• Account balances and withdrawals. Operators will now require their players to check and use their balances, and initiate redemptions.

Tennesees’s recent action against sweepstakes casinos isn’t surprising. In late 2025, the state’s Attorney General issued letters to over 40 operators, leading many to stop coins-to-cash redemptions, and some stopped operations.

REFERENCES

• SB2136