Tennessee Joins Maine and Indiana in Banning Online Sweepstakes Casinos
Posted on: April 27, 2026, 02:35h.
Last updated on: April 27, 2026, 02:35h.
- Tennessee has passed legislation to ban online sweepstakes casinos
- Tennessee, Indiana, and Maine have outlawed sweepstakes casinos in 2026
- Sweepstakes casinos use a dual-currency credit system to circumvent gambling laws
Tennessee is the third state in 2026 to pass legislation banning online sweepstakes casinos.
During a frenzied final day of the 2026 legislative session, lawmakers in the Tennessee General Assembly came to terms on Senate Bill 2136/House Bill 1885.
After some back and forth regarding specific language proposed by a conference committee, the state House of Representatives voted 69-17-1 in favor of moving the statute to Gov. Bill Lee’s (R) desk. The state Senate had voted 32-0 in favor of the sweepstakes casino bill in early March.
With Lee’s signature, any website or app that offers an online sweepstakes game, defined as a game, contest, or promotion that utilizes a “virtual currency, dual-currency, or multi-currency system,” will become prohibited in the Volunteer State.
Sweepstakes Casinos
Sweepstakes casinos claim they’re free-to-play social gaming operations. Players can gamble on interactive table games and online slots with fun money, but sweepstakes offer a secondary currency for purchase. The dual-currency arrangement, with the secondary credits often called sweeps coins, allows players to redeem their sweeps coins for cash withdrawals.
“This legislation gives the state stronger tools to investigate bad actors, hold them accountable, and shut down unlawful operations that exploit consumers,” said state Sen. Ferrell Haile (R-Gallatin), the chief sponsor of SB2136.
Tennessee Attorney General Johnathan Skrmetti, who had sent dozens of cease-and-desist letters to online sweepstakes casinos, welcomed SB2136’s passage.
The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not,” said Skrmetti.
“They avoid any oversight that could ensure honesty or fairness. Our office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling,” Skrmetti added.
Most sweepstakes casinos had already exited Tennessee on the attorney general’s warnings. Platforms such as Chumba Casino, Stake, and Modo had all blocked access for people inside Tennessee.
Like most states, Tennessee has never allowed online casino gambling. Only eight have passed iGaming regulations. They are Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Gaming consultancy Eilers & Krejcik estimates that online sweepstakes casinos generated gross gaming revenue of approximately $4 billion in the US last year.
Trio of States Banned Sweeps in 2026
With most legislatures winding down or already adjourned, just three states passed laws to ban sweepstakes casinos in 2026. Tennessee joins Indiana and Maine in banning dual-currency sweepstakes games.
Lawmakers in Minnesota continue to look at Senate File 4474, a bill that would similarly outlaw online sweepstakes casinos. Minnesota’s 2026 legislative session runs through May 18.
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