Tennessee Bill Targeting Sweepstakes Casinos Advances in House
Tennessee lawmakers have advanced a bill to ban sweepstakes-style online casinos after a unanimous committee vote. The bill had previously faced resistance but is now moving forward.
House Bill 1885 (HB 1885), which also carries the Senate designation SB 2136, cleared the Finance, Ways, and Means Committee and is now set for review by the Calendar and Rules Committee on April 16.
The proposal directly targets online sweepstakes casino platforms that operate under so-called free-to-play models. Lawmakers argue that these systems rely on virtual currencies to mask real-money gambling, allowing users to exchange credits for cash prizes or equivalents.
Under the bill, those platforms would be formally classified as illegal lotteries, closing what Tennessee legislators describe as a regulatory gap.
HB 1885 also strengthens enforcement powers across multiple sections of Tennessee law. A new provision would prohibit the promotion or operation of online sweepstakes games, while violations would be treated as unfair or deceptive practices under the Tennessee Consumer Protection Act.
The measure hands the Attorney General broader reach, including the authority to impose civil penalties, demand records, put individuals under oath, and review business materials linked to suspected violations. It also sharpens the consequences for interference. Anyone caught destroying or hiding evidence could face fines of up to $1,000 per document, a detail that stands out on its own.
At the same time, the bill draws a firm line around what activity still falls within legal bounds. Activities already regulated under the Tennessee Sports Gaming Act, the Fantasy Sports Act, and the state lottery are explicitly excluded.
The legislation also updates regulatory language, including renaming the sports wagering advisory council. If enacted, the bill would take effect immediately.
Oklahoma measure mirrors crackdown on sweepstakes platforms
A similar legislative push is unfolding in Oklahoma, where Senate Bill 1589 has advanced in the House after passing the Criminal Judiciary Committee by unanimous vote. The measure, already approved in the Senate earlier this session, now heads to the House Judiciary and Public Safety Oversight Committee.
Lawmakers indicated that the proposal closely resembles an earlier House measure that failed to move forward before procedural deadlines, suggesting a renewed attempt to address the same issue.
SB 1589 pushes Oklahoma’s gambling statutes further into the digital space, tightening how the law defines and targets online casino-style play. The measure spells out what qualifies as online casino gaming, focusing on digital products that mirror slot machines, bingo, or lottery-style formats when users wager anything of value.
That definition extends to virtual currencies commonly used in sweepstakes systems, particularly those that can be exchanged for cash or prizes.
The bill also broadens liability beyond operators. Platform providers, payment processors, geolocation services, suppliers, and affiliates could all face enforcement if tied to illegal activity. Violations are categorized as Class C2 felonies, with fines of $500 to $2,000 and possible prison time.
If approved by the remaining committees and passed by the legislature, the measure would begin on Nov. 1.
