Tennessee legislators approved a bill to prohibit sweepstakes casinos after a day marked by procedural clashes and negotiations, pushing the measure closer to becoming law. The proposal, SB 2136, cleared both chambers on April 23 following revisions agreed upon by a conference committee.
Lawmakers Resolve Disputes After Tense Session
Debate intensified as the House and Senate disagreed over changes earlier in the legislative process. The Senate had passed the bill unanimously in March, but the House later altered the measure by removing references to sweepstakes and virtual currency, instead focusing on gambling enforcement provisions. A proposal to study possible regulation of sweepstakes casinos did not move forward.
When the Senate rejected the amended version at the start of the April 23 session, the House declined to accept that position. This impasse sent the bill to a conference committee, where members from both chambers worked to reconcile differences. The committee produced a compromise, which the Senate approved 25-5. The House followed with a 69-17-1 vote, finalizing approval.
Final Language Defines and Prohibits Sweepstakes Games
The agreed version restores provisions aimed at sweepstakes casinos and introduces a definition of “online sweepstakes games.” The legislation specifies that such games:
“(A) Is available on the internet and is accessible on a mobile phone, computer terminal, or similarly accessible device;
(B) Utilizes a virtual-currency, dual currency, or multi-currency system allowing a player to:
(i) Play or participate with a currency, such as a virtual coin, token, or other representation of value, that is directly purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency or related product, service, or activity; and
(ii) Exchange the currency for a prize, award, cash, or cash equivalent, or the chance to win a prize, award, cash, or cash equivalent; and
(C) Simulates gambling of any kind, including, but not limited to, casino-style gaming such as slot machines, video poker, table games, lottery games, bingo, or unlicensed sports wagering.”
The bill declares that operating or promoting such games is illegal and describes the activity as an offense “against the public health, safety, and welfare of this state.” Violations fall under the Tennessee Consumer Protection Act of 1977, allowing civil enforcement alongside gambling penalties.
State Joins Broader Legislative Movement
If enacted, Tennessee would follow Indiana and Maine in banning sweepstakes casinos in 2026. These states define sweepstakes systems that rely on multiple currencies and mimic traditional gambling while offering cash or prize redemption.
Other states, including Iowa, Oklahoma, and Minnesota, have considered similar measures. In the previous year, Montana, Connecticut, New York, New Jersey, Nevada, and California passed laws addressing sweepstakes-style gaming. Idaho, Michigan, and Washington already maintain strict prohibitions through existing gambling regulations.
Final Steps Before Enactment
The bill now moves into final administrative stages before reaching the governor. Legislative leaders must complete enrollment and certification before executive review. Although the legislative session ended on April 24, procedural steps can continue beyond adjournment.
Once delivered, the governor has 10 days, excluding Sundays, to sign or veto the measure. If no action is taken, the bill becomes law. If enacted, the prohibition takes effect immediately.
Source:
“Tennessee Legislature Passes Sweepstakes Casino Ban After Rapid Conference Deal”, gamblinginsider.com, April 24, 2026
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