Tennessee legislators have passed a bill aimed at banning sweepstakes casinos, settling on a compromised version of SB 2136 after a day marked by procedural back-and-forth and last-minute revisions.
Key Takeaways
- Lawmakers approved SB 2136, which would outlaw online sweepstakes-style casino platforms that use virtual currencies and mimic real gambling.
- The House and Senate clashed over changes to the bill, but a conference committee ultimately restored the original anti-sweepstakes language.
- Operating or promoting these platforms would be a felony, enforced under the Tennessee Consumer Protection Act, with both civil and criminal consequences.
The measure cleared both chambers Thursday after a committee made up of members from both the House and Senate resolved earlier disagreements.
If enacted, the law would place Tennessee alongside other states in prohibiting sweepstakes-style gaming this year. It specifically targets online platforms that mimic casino gambling through virtual or multi-currency systems, bringing violations under the Tennessee Consumer Protection Act of 1977.
The Senate initially passed a version of the bill in March without opposition. However, the House made modifications, removing specific references to sweepstakes casinos and emphasizing gambling law enforcement generally. The Senate objected to the changes, forcing the creation of the bicameral committee to come up with a solution. Ultimately, the chambers approved an amended bill which incorporated the original language referring to sweepstakes gaming.
These platforms will be defined as online applications accessible via mobile devices where users can play using virtual currencies that may be- received for free but can later be redeemed for cash or prizes.
The legislation makes it a felony to operate or promote such platforms. Enforcement would fall under existing consumer protection laws, allowing authorities to pursue civil penalties in addition to standard gambling-related charges. The bill now moves to the formal enrollment stage before reaching Gov. Bill Lee.
If Lee does not act within 10 days, the measure will become law. Once enacted, it would take effect immediately.
