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Tennessee enacts sweepstakes casino ban as Gov. Lee signs SB 2136

Gov. Bill Lee signed SB 2136, which took effect immediately and makes operating or promoting a dual-currency sweepstakes casino a violation of the Tennessee Consumer Protection Act enforced by the attorney general.

Bill
SB 2136 / HB 1885
Signed
May 22, 2026
Effective
Immediately
Votes
Senate 32-0; House 69-17
Enforcement
Attorney General, under the Consumer Protection Act

Tennessee Gov. Bill Lee signed Senate Bill 2136 on May 22, putting a ban on online sweepstakes casinos into state law with immediate effect. The Senate approved the bill 32-0 in March and the House passed its companion, HB 1885, 69-17 in April, according to Casinos.com; after a conference agreement, it reached the governor on May 11.

The law makes it illegal to operate or promote platforms that use two virtual currencies, one sold and one given away, when some winnings can be redeemed for cash or prizes. It covers slot simulations, video poker, table games, bingo and unlicensed sports wagering. Licensed sports betting, fantasy sports, the Tennessee Education Lottery, nonprofit gaming and free-to-play games are exempt.

Violations count as breaches of the Tennessee Consumer Protection Act, so Attorney General Jonathan Skrmetti can seek civil penalties. The law also gives his office investigative tools, including the power to demand written statements and question witnesses under oath.

Much of the market was already gone. Skrmetti's office sent cease-and-desist letters to nearly 40 sweepstakes casinos in December 2025, and each recipient either disabled sweepstakes features or agreed to a wind-down date. Stake.us, High 5 Casino and RealPrize were among the brands that had left Tennessee by November 2025.

Tennessee joined Indiana, Maine and Oklahoma in enacting bans during 2026 legislative sessions, and Louisiana's two sweepstakes laws were signed the same month.

What it means for players

  • Dual-currency sweepstakes casinos are illegal in Tennessee, and most major brands already block the state.
  • Licensed sports betting, fantasy contests, the state lottery and free-to-play games are unaffected.
  • Sites that still accept Tennessee players for prize play are operating against state law.

Sources

This summary is for information only and isn't legal advice. Laws and operator policies change; check the primary sources above and each casino's current sweepstakes rules.

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