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The state of Tennessee is getting closer to an outright ban of sweepstakes casinos.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
Attorney General Jonathan Skrmetti announced in recent days his office has successfully halted the operation of multiple illegal online sweepstakes casinos in Tennessee.
The Attorney General sent formal cease-and-desist letters to almost forty online sweepstakes casinos operating illegally.
According to a statement from the AG's office, "all platforms that received a letter have already disabled the unlawful components of their platforms or have agreed on a date in the coming weeks for winding down their illegal services, effectively shutting down their illegal sweepstakes casinos."
Skrmetti specifically elaborated.
“The only thing you can be sure about with an online sweepstakes casino is that it's going to take your money, said the Attorney General. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not.
"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.”
Still, there is no law on the books strictly prohibiting these types of casinos.
That's where HB 1885 comes in.
According to the bill’s text, “Gambling – As introduced, designates illegal gambling and related activities as a violation of the Tennessee Consumer Protection Act; expands the authority of the sports wagering council to investigate illegal gambling and gaming activity; expands the investigative authority of the attorney general and reporter to investigate unlawful activity within the purview of the attorney general and reporter. – Amends TCA Title 4; Title 4, Chapter 49; Title 8, Chapter 6, Part 4; Title 40, Chapter 2, and Title 47.”
If passed, HB 1885 would make each violation of the law subject to a civil fine of up to $15,000.
These Are the States That Currently Ban Sweepstakes Casinos
California – Officially banned sweepstakes casinos effective January 1, 2026 under AB 831.
Washington – Outright outlawed; sweepstakes models are illegal.
Idaho – Sweepstakes casinos are effectively prohibited (no cash-prize redemptions and many operators block access).
Montana – Passed legislation banning sweepstakes casinos (law effective by late 2025).
Connecticut – State ban in effect (SB 1235) preventing sweepstakes casino access.
New York – Legislature and governor have enacted a ban on sweepstakes casino operations.
Nevada – Strong prohibitions and lack of operator participation due to strict enforcement.
Michigan – Regulators have taken enforcement actions; many operators have exited the market and ongoing anti-sweepstakes positions make it effectively unavailable.
- Gilbert Horowitz, Gambling911.com
