Tennessee Proposal Seeks to Shut Down Sweepstakes Casinos in the State

Tennessee lawmakers are taking a clearer stance on sweepstakes casinos, pushing legislation that aims to shut down the model entirely across the state. The proposal comes after months of enforcement activity and growing concern around platforms that mimic casino play without holding gambling licenses.

Good to Know

• Tennessee lawmakers introduced a bill to ban sweepstakes casinos statewide
• Violations could trigger civil penalties up to $15,000 per incident
• The proposal follows recent enforcement actions by the attorney general

House Bill 1885 landed in the Tennessee General Assembly with a direct goal. The measure seeks to treat sweepstakes casinos as illegal online gambling rather than promotional gaming. Representative Scott Cepicky introduced the bill, framing the sweepstakes model as a workaround that allows casino-style play through virtual currency systems.

Under the proposal, sweepstakes casinos would fall under the Tennessee Consumer Protection Act of 1977. That shift matters. Classification under consumer protection law opens the door to civil enforcement, financial penalties, and broader oversight beyond traditional gambling statutes.

Each violation could carry a civil fine of as much as $15,000 if the bill becomes law. The language describes sweepstakes casinos as platforms that rely on virtual currencies while still allowing players to convert winnings into cash or physical prizes. Lawmakers argue that structure mirrors real-money gambling while avoiding licensing requirements.

The bill text lays out a wide enforcement net. It designates illegal gambling activity as a consumer protection violation, expands the authority of the sports wagering council to investigate unlawful gaming, and grants additional investigative reach to the attorney general and reporter. Multiple sections of Tennessee law would change, including provisions tied to state government, enforcement powers, and consumer protections.

Momentum behind the proposal did not appear overnight. In December, Attorney General Jonathan Skrmetti issued cease-and-desist letters to nearly 40 sweepstakes casino operators. Several platforms exited the Tennessee market or shut down operations following those notices. HB 1885 would turn that enforcement approach into formal statute rather than relying on individual actions.

A parallel effort is underway in the Senate. Senator Ferrell Haile introduced Senate Bill 2136 as a companion measure, keeping the proposal aligned across both chambers of the General Assembly. Neither bill has reached a vote so far, but sponsors aim to move them together through the legislative process.

Tennessee action fits within a wider national pattern. Lawmakers and regulators in states such as California, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia have either passed restrictions or introduced bills targeting sweepstakes casinos. The common thread centers on concerns around unlicensed gambling activity disguised through promotional currency systems.

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