Tennessee lawmakers propose bill to ban sweepstakes casinos under consumer protection laws

Legislators in Tennessee have introduced a bill aimed at banning sweepstakes casinos statewide, targeting platforms that offer casino-style games through virtual currency systems. House Bill 1885, brought forward by Representative Scott Cepicky, seeks to classify such operations as illegal online gambling and to bring them under the scope of the Tennessee Consumer Protection Act of 1977.

If passed, HB 1885 would make each violation of the law subject to a civil fine of up to $15,000. The bill describes sweepstakes casinos as operators using a virtual currency model, enabling players to redeem winnings for cash or other tangible rewards. It further states that these platforms act as a front for unlicensed real-money gambling activity.

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.”

The proposal follows a wave of enforcement activity by state officials. In December, Attorney General Jonathan Skrmetti issued cease-and-desist letters to nearly 40 sweepstakes casino operators, leading to a number of shutdowns and exits from the Tennessee market. HB 1885 would formalize these efforts in law, giving state authorities expanded investigative powers and reinforcing existing gambling regulations.

Senator Ferrell Haile has introduced a companion measure, Senate Bill 2136, with the aim of achieving passage in both chambers of the Tennessee General Assembly. As of now, neither bill has come to a vote.

Tennessee joins several other U.S. jurisdictions in pursuing legislative action against sweepstakes casinos. States including California, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia have either enacted bans or introduced similar bills targeting these platforms.