Tennessee Bill to Ban Sweepstakes Casinos Advances to Committee
Tennessee House lawmakers are advancing House Bill 1885. This is an indication that momentum is building to end unregulated online gambling schemes operating outside the state's laws, as is happening in other states.
The bill, introduced in late January by Rep. Scott Cepicky, was approved by the State and Local Government Committee on March 31 with a unanimous 21-0 vote. It now resides with the Finance, Ways, and Means Committee, where fiscal and enforcement implications will be examined.
At issue are online platforms built around dual-currency systems. Users typically purchase one form of virtual currency for gameplay while receiving a second promotional currency that can be exchanged for cash or prizes. Lawmakers argue that this structure has allowed operators to mimic casino activity without holding a gambling license.
House Bill 1885 would reclassify those operations under the Tennessee Consumer Protection Act, treating them as deceptive business practices rather than a gray-area product. The bill also broadens enforcement reach.
Both the Attorney General and the Sports Wagering Council would gain clearer authority to investigate and pursue unlicensed operators. Another provision targets the redemption model itself, defining any exchange of virtual credits for real-world value as an illegal lottery.
Supporters have kept their argument narrow. Licensed Tennessee sports betting operators face strict rules and tax requirements. Sweepstakes casino platforms do not. Attorney General Jonathan Skrmetti has pointed to that imbalance, arguing the label does not match the function.
“The only thing you can be sure about with an online sweepstakes casino is that it's going to take your money,” he said in a December press release after issuing nearly 40 cease-and-desists to sweepstakes operators, including Stake and High 5 Casino. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day, they are not.”
Maine advances parallel crackdown on sweepstakes casinos
Tennessee's push aligns with similar actions in other states, most recently in Maine, where lawmakers have passed legislation targeting the same category of online platforms. LD 2007 passed both chambers and now sits with Governor Janet Mills for final approval.
The Maine bill defines the same core model: casino-style games offered through two types of currency, one purchased and one promotional. Lawmakers said the language removes the ambiguity operators have used to justify their presence.
The legislation makes both operation and promotion illegal. Civil penalties range from $10,000 to $100,000 per violation. Funds collected would support the state's Gambling Addiction Prevention and Treatment Fund. The bill also adds criminal exposure, allowing enforcement against companies and individuals tied to these platforms.
LD 2007 moved from committee in December, passed the Senate on March 12, and cleared the House with an 87-55 vote. Maine now joins a growing list of states addressing the same issue. Similar proposals remain active in Oklahoma and Maryland, while Indiana enacted a comparable ban earlier this month through HB 1052.
