Tennessee Governor Signs Sweepstakes Casino Ban Into Law

Written by :

C Costigan

Published on :

26 May, 2026

Tennessee's governor has finally decided to sign legislation banning sweepstakes casinos
The state becomes the 7th to do so

Tennessee Governor Bill Lee on Tuesday has signed legislation banning online sweepstakes casinos.

Legislation in Tennessee — specifically SB 2136 in the Senate and its House companion HB 1885 — targeted so-called “dual-currency” sweepstakes casinos that utilize Gold Coins and Sweeps Coins redeemable for prizes or cash while offering casino-style slots and table games outside of a traditional gaming license framework.

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.

The majority of sweepstakes casinos had already left the state after Tennessee Attorney General Jonathan Skrmetti sent cease-and-desist letters to nearly 40 sweepstakes casino operators late last year. ClubWPT Gold was among the last remaining to exit the market earlier this month.

While regular readers of the Gambling911.com website may be led to believe that sweepstakes casinos are now banned in most U.S. states based on regular reporting of lawmaker and regulatory agency efforts, Tennessee is actually only the 7th state to impose such prohibitions. They join California, Connecticut, New Jersey, New York, Montana, and, more recently, Louisiana in doing so. Recent attempts to ban sweepstakes casinos in Oklahoma and Mississippi have failed.

Tennessee is an interesting case in that the state does not have any land-based casinos and only regulates sports betting online. Customers who wish to open a sportsbook account can only do so remotely unlike most states where registrations can be done at retail sportsbooks, mostly located in casinos.