Tennessee lawmakers advanced an online sweeps ban bill Wednesday unanimously and without debate, positioning another state to ban these games.
- Tennessee lawmakers unanimously advanced a bill to ban dual-currency online sweepstakes casinos, signaling strong bipartisan support.
- The proposal would classify sweeps games as illegal gambling, allowing for criminal penalties, injunctions, and action against operators and facilitators.
- Tennessee joins a growing national crackdown as states move to eliminate sweeps casinos seen as bypassing gambling laws and consumer protections.
The Senate Commerce and Labor Committee advanced the bill to the floor 8-0 without discussion. The uncontested, bipartisan vote underscored lawmakers’ widespread support for banning these types of dual-currency sweepstake-style games.
The state attorney general’s office and gaming regulators also back the bill. Senate Pro Tempore Ferrell Haile, the upper chamber’s leader, is the bill’s sponsor.
Though the legislation must still pass the full Senate as well as the House, Wednesday’s vote sets up a growing number of states for what could be a relatively noncontroversial and expeditious passage of a ban on sweeps casinos.
Nationwide bans continue
Tennessee is contending with Indiana - and several other states - to be the next to pass a sweeps casino ban bill.
Indiana lawmakers in the Senate and House are poised to approve a final, identical bill that would allow regulators to impose fines on operators and players, effectively banning these games from the state. Maine and Maryland are among a handful of other states that are considering similar prohibitions.
These states are set to join a half-dozen other states that explicitly ban these games, while gaming regulators in a growing number of states have issued cease-and-desist letters.
States as of this month where most major sweeps casino companies don't operate (more will follow):
— Ryan Butler (@ButlerBets) February 24, 2026
California
Connecticut
Delaware
Idaho
Louisiana
Michigan
Mississippi
Montana
Nevada
New Jersey
New York
Tennessee
Washington
West Virginia
Most major U.S. operators have already ceased operating in more than a dozen states, including Tennessee.
The crackdown comes as real-money online casino gaming is live in eight states and soon to begin in Maine. State gaming regulators and policymakers have worked to combat sweeps-style games, arguing they take away tax money from licensed real money operators without offering consumer protections required by iCasino licensees.
A growing number of sportsbook-only states have also sought to outlaw these games, which allow users to play for free with “gold coins” but then use real money to buy “sweeps coins” they can exchange for cash or prizes. Sweeps casino opponents have argued these games circumvent state law through this structure and are also a form of real-money gambling.
Tennessee bill details
Tennessee’s proposal largely mirrors similar ban efforts.
If passed, the bill codifies digital sweepstakes games as an illegal gambling form. Violators could be subject to restraining orders, injunctions, and private lawsuits, as well as criminal penalties.
SB 2136 applies to any sweeps operator “operating, conducting or commercially promoting online sweepstakes games” or other digital games without a license in the state. It also extends to any entity such as payment processors that support, facilitate, or assist the operations of these games.
State regulators would also be able to investigate any sportsbook licensee suspected of offering sweeps games.
