Indiana and Tennessee have become the latest states to crack down on unregulated sweepstakes casinos, both making headway towards a possible ban this week.
The states follow in the footsteps of six other states that have successfully banned sweepstakes casinos in the past year.
Key Takeaways
- Tennessee, Indiana working to ban sweepstakes casinos in 2026.
- Indiana’s gaming commission is looking for more power to send cease-and-desist letters to operators.
- Tennessee AG sent cease-and-desists in December.
Tennessee’s bill, House Bill 1885, introduced by Rep. Scott Cepicky, considers sweepstakes casinos to be a growing form of illegal gambling in the state. It defines sweepstakes as an “online sweepstakes game” that uses a virtual currency system for participation, which can be exchanged for cash, a cash equivalent, or a prize.
The bill also maintains that customers are being marketed to the idea that the games are legal and free to play, which is not the case.
In addition to enforcement against operators, HB 1885 also makes it illegal to “support, facilitate, or assist” in operations, meaning vendors, partners, and other intermediaries could face repercussions, including civil penalties and injunctive relief.
Tennessee’s attorney general has been working to crack down on the platforms since last year, sending cease-and-desist letters to 40 companies in December, prompting operators to either restrict access to their platforms or set a date to leave the state.
Over in Indiana, the House Public Policy Committee unanimously approved its online sweepstakes ban proposal, House Bill 1052, introduced by Rep. Ethan Manning.
The bill was amended before being sent to the full House, with the wording changing from “dual-currency” to “multi-currency” and the penalties changing from criminal to civil.
Earlier in the month, the committee held a hearing on whether regulation would be a better option. Still, Indiana Gaming Commission General Counsel Natalie Huffman said she would like sweepstakes explicitly banned, allowing the regulator to send cease-and-desist letters to the platforms.
Other states are also considering banning the platforms in 2026, including Maryland and Florida.
While sweepstakes bans are only just getting started in Indiana and Tennessee, in December last year, New York’s Governor, Kathy Hochul, signed anti-sweepstakes legislation into law, prompting operators to hastily exit the state.
The law, signed on Dec. 5, took immediate effect, making the operation and promotion illegal. Additionally, supporting sweepstakes casinos in the state also becomes unlawful, including for financial institutions, geolocation providers, and media affiliates.
