Tennessee lawmakers took another step toward banning sweepstakes-style online casinos Tuesday as House Bill 1885 moved forward in the state legislature.
Members of the House Departments & Agencies Subcommittee voted 8–0 on March 17 to recommend the measure for passage with amendment. The panel then sent the proposal to the House State & Local Government Committee for further consideration, according to legislative tracking records.
HB1885 serves as the House companion to Senate Bill 2136, which has already cleared key stages in the Tennessee Senate. If the legislation ultimately becomes law, it would expand the state’s ability to investigate and pursue companies running sweepstakes-style online casino platforms and other illegal internet gambling operations.
Tennessee bill targets sweepstakes-style online casinos
Lawmakers say the bill is designed to address a growing number of internet platforms using what they describe as a “promotional sweepstakes” structure to offer casino-style games while sidestepping traditional gambling rules.
The proposal lays out a formal definition for an “online sweepstakes game.” In the bill, the term refers to a web-based promotion that uses virtual currency and lets participants exchange that currency for “a prize, award, cash, or cash equivalent, or the chance to win” such rewards.
Under the legislation, several activities connected to those platforms would be illegal in Tennessee. This includes offering or accepting wagers from people in the state, operating or promoting online sweepstakes games, distributing gambling devices, or allowing such devices to run on property under someone’s control. The measure also targets businesses or individuals who support or facilitate sweepstakes gambling operations.
The bill states that these activities amount to “offenses against the public health, safety, and welfare of this state.” It also ties violations to the Tennessee Consumer Protection Act, giving the state additional grounds to pursue civil penalties and enforcement actions against operators.
At the same time, lawmakers made clear that existing legal gaming options would remain untouched. Sports wagering regulated under the Tennessee Sports Gaming Act, fantasy sports contests, nonprofit gaming activities, and the state lottery would still be permitted under the proposal.
The measure also increases investigative authority for the Tennessee attorney general and reporter. If HB1885 becomes law, the attorney general could require documents, demand sworn statements, and compel testimony from individuals or companies suspected of violating state gambling laws.
Anyone who tries to avoid or obstruct an investigation, including by destroying or altering records, could face civil penalties of up to $1,000 per document. The proposal also gives the Tennessee Sports Wagering Council expanded authority to investigate complaints and pursue violations involving both licensed operators and other parties tied to online gambling activity.
The push for new legislation follows growing scrutiny of sweepstakes casino platforms in Tennessee. In late 2025, the Tennessee Attorney General’s Office sent cease-and-desist letters to dozens of operators, warning that their platforms appeared to violate state gambling and consumer protection laws.
Some companies began leaving the market after the enforcement effort. Sweepstakes gaming operator VGW, which runs brands including Chumba Casino and LuckyLand Slots, said it would stop offering sweepstakes play in Tennessee as pressure from regulators increased.
Regulators are increasingly examining sweepstakes-style casino models that use dual virtual currencies and allow certain credits to be redeemed for cash or prizes.
Featured image: Canva
