A bill targeting online sweepstakes casinos has been making headway in the Tennessee legislature, as lawmakers advanced House Bill 1885 by unanimous vote, sending it out of the House Finance, Ways, and Means Committee.
Key Takeaways
- Tennessee advanced legislation to ban sweepstakes-style online casinos after a unanimous committee vote.
- The bill classifies virtual-currency gambling systems and app-based wagering as unlawful under state law.
- Enforcement powers would expand under consumer protection laws, increasing penalties and investigative authority.
The bill now heads to the Calendar and Rules Committee for review on Thursday. The measure, introduced earlier in the year by Rep. Scott Cepicky and also sponsored by Rep. Clay Doggett, seeks to address promotional sweepstakes offered by unregulated internet gambling platforms without infringing on the regulations of legal gaming establishments.
The measure defines online sweepstakes casinos as platforms that are “marketed as legal, free-to-play, social gaming platforms and that utilize a promotional sweepstakes model.”
It goes further to define the model as any platform that allows users to play casino-style games with virtual currency that can then be traded for virtual cash and other real-world prizes.
Enforcement provisions also form a core part of the measure. By folding violations into the Tennessee Consumer Protection Act of 1977, the bill expands the Attorney General's authority.
Investigators could compel sworn statements, examine business records, and take legal action to prevent the destruction of evidence. Civil penalties would also increase, including fines of up to $1,000 per document for falsified or concealed records. The measure further removes a prior six-month statute of limitations, extending the window for enforcement actions.
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Minnesota also tracking toward ban
Minnesota lawmakers are moving along a similar path, with a ban on sweepstakes casinos expected to pass before the legislative session ends next month. The proposal has encountered little resistance, signaling bipartisan alignment on restricting unregulated gaming platforms.
The Senate bill could reach a full floor vote in the coming weeks, with a companion House measure viewed as procedural. If approved, Minnesota would join states such as Indiana and Maine in outlawing dual-currency sweepstakes models that regulators increasingly view as loopholes.
Industry opposition has been limited. Sweepstakes operators have continued to argue their models comply with existing law, but those claims have gained little traction in legislative hearings.
The Senate measure is likely to pass, move through the House, and land on the governor's desk before adjournment. The broader signal is difficult to ignore, as multiple states move in the same direction, closing off unregulated gaming channels while delaying or abandoning expansion efforts.
At the same time, efforts to legalize Minnesota sports betting have stalled. No bill has advanced out of committee this session, underscoring a shift in priorities. Lawmakers appear focused on tightening controls rather than expanding legal gambling options, with some discussions also touching on potential restrictions tied to prediction markets.
