Senates in Tennessee and Oklahoma, two states that have not legalized online gambling, have approved bills to regulate sweepstakes casinos.
Key Takeaways
- Tennessee's SB 2136 classifies online sweeps games as unlawful gambling under consumer protection law.
- Oklahoma's SB 1589 expands criminal liability to operators and affiliated service providers.
- Both bills reflect accelerating legislative action against dual-currency sweepstakes platforms.
In Tennessee, SB 2136, introduced by Sen. Ferrell Haile, defines an online sweepstakes game as a form of online gambling that uses a virtual-currency system allowing a player to exchange currency for a prize, award, cash, a cash equivalent, or the chance to win them.
The legislation states that gambling, possession of gambling devices, and the operation or promotion of online sweepstakes games or other app-based gambling are unlawful and offenses against public health, safety, and welfare.
Violations would constitute unfair or deceptive acts under the Tennessee Consumer Protection Act and would grant Attorney General Jonathan Skrmetti investigative authority over the violations. Skrmetti announced last December that his office issued cease-and-desist letters to nearly 40 sweepstakes operators, leading many to exit Tennessee.
SB 2136 now moves to the House after a unanimous vote Mar. 2.
Oklahoma’s SB 1589, introduced by Sen. Todd Gollihare and Rep. Scott Fetgatter, amends the state’s gambling laws to include online casino games. According to the measure, online casino games are any games accessed on the internet where the risk of losing something of value resembles gambling. Such value includes money under a dual-currency system that can be traded for prizes or cash.
The bill not only adds liability to the online casino games, but also for geolocation providers, gaming suppliers, platform providers, promoters, and media partners. Violations would be treated as Class C2 felonies, carrying fines from $500 to $2,000 and possible imprisonment.
The proposed legislation advances to the House after another unanimous vote Mar. 2 and would take effect Nov. 1, 2026.
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Indiana awaits governor's decision on sweeps ban
Momentum against sweepstakes casinos continues elsewhere in the U.S., including in Indiana, where lawmakers finalized HB 1052 and sent it to Gov. Mike Braun. A conference committee resolved outstanding language that had hindered the bill's progress, clearing the measure for final approval.
If signed, the bill would authorize the Indiana Gaming Commission to issue cease-and-desist letters and impose fines up to $100,000 per violation. Braun has seven days to sign or veto the bill, though it could still become law without his signature after that period.
HB 1052 defines a sweepstakes game as one utilizing a dual-currency or multi-currency payment system in which a player may exchange money for a cash prize, cash award, cash equivalent, or the chance to win them. Rep. Ethan Manning removed earlier provisions that would have imposed criminal penalties.
The conference committee agreed to language focusing on dual-currency and multi-currency systems while affirming the commission's enforcement authority. Both chambers approved the revised measure by wide margins - 68-21 in the House and 46-4 in the Senate.
