Tennessee Pushes Sweepstakes Casino Ban Closer to Finish Line

Tennessee lawmakers are moving quickly toward a formal ban on sweepstakes casinos, adding more pressure to the dual-currency model that has been losing ground in several states.

Good to Know

• A House committee advanced the bill by a 21-0 vote, with one member present but not voting.
• A companion bill already cleared the Senate by 32-0 earlier in March.
• Operators and third-party vendors could face civil and criminal penalties once the law takes effect later in 2026.

Tennessee Keeps the Bill Moving Without Resistance

The Tennessee House State and Local Government Committee advanced the measure on Tuesday with no debate and no visible pushback. From there, the bill heads to the Finance, Ways and Means Committee and then likely to the full House floor.

That puts Tennessee close to final approval, especially after the Senate companion bill passed unanimously earlier in the month. So far, the legislation has moved with broad bipartisan support and almost no opposition.

The bill would formally ban online sweepstakes casinos that use the dual-currency setup. It would also give the state a clearer path to take enforcement action against operators and related vendors.

Tennessee is already one of roughly a dozen states where many major sweepstakes operators no longer take customers. Lawmakers are now moving to put that position into statute.

Tennessee Keeps Sports Betting but Not Online Casino Play

Tennessee allows legal online sports betting, but the state does not have legal retail casinos. It also has not seriously pursued legal real-money online slots or table games.

That leaves lawmakers taking a harder line on sweepstakes casinos instead of opening the door to a regulated online casino market.

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