A bill that was months in the making finally cleared its last hurdle in Tennessee when Gov. Bill Lee signed Senate Bill 2136 on May 22. The legislation effectively outlaws online sweepstakes casinos across the state.
Key Takeaways
- Gov. Lee signed SB 2136 this week, immediately banning sweeps casinos in Tennessee.
- The law targets dual-currency casino-style platforms, rejecting their classification as lawful promotional sweepstakes.
- Attorney General Jonathan Skrmetti gains enforcement authority under the Tennessee Consumer Protection Act.
The legislation had been working its way through the Capitol since its introduction Feb. 2. It passed the Senate on March 3 and the House on April 23 before being transmitted to the governor's desk May 11.
The law targets online sweepstakes casinos by amending its definition to include “gambling in the form of a game, contest, or promotion that utilizes a virtual-currency, dual-currency, or multi-currency system.”
Prohibited activities under the measure include slot simulations, video poker, table games, bingo, and unlicensed sports wagering. Legal sports betting, the Tennessee Education Lottery, and fantasy sports products are not affected.
Enforcement authority lies with Attorney General Jonathan Skrmetti, whose office had already issued cease-and-desist letters to nearly 40 platforms in late December 2025. All of them came into compliance before the bill cleared both chambers. Several platforms had pulled out of the state entirely as far back as November.
Violations fall under the Tennessee Consumer Protection Act of 1977, enabling civil penalties and broad investigative powers for the attorney general. The law took effect immediately upon signing, with Tennessee becoming the ninth state to enact this type of ban.
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Louisiana targets sweeps through racketeering bill
Tennessee's approach to sweepstakes casinos focused on prohibition, but another Southern state moved against unregulated gaming with considerably sharper legal teeth in the same month.
Louisiana Gov. Jeff Landry signed House Bill 53 earlier this month, expanding the state's racketeering statutes to bring a range of illegal gambling activities under the purview of organized crime enforcement. Before HB 53, prosecutors typically pursued gaming violations as standalone offenses.
The new law allows them to treat those same operations as continuing criminal enterprises, opening the door to much heavier consequences.
The updated racketeering framework covers "unauthorized electronic sweepstakes machines, computer-assisted wagering, sports participant bribery, and illegal cockfighting." Penalties are steep. Convictions can carry up to 50 years in prison and fines of up to $1 million.
Operations involving more than $10,000 carry a mandatory minimum of five years with no eligibility for probation, parole, or a suspended sentence.
A companion measure, House Bill 883, was signed separately May 15 and specifically targets mobile and online dual-currency casino games designed to replicate slot machines and digital poker.
Together, the two bills represent Louisiana's most aggressive posture yet toward unregulated gaming. HB 53 takes effect Aug. 1, putting operators on a short timeline to come into compliance with state law.
