Tennessee has become the latest state to file a proposal aimed at outlawing sweepstakes casinos.
HB 1885 was introduced by Representative Scott Cepicky (pictured), and for those following developments in the Volunteer State, it shouldn’t come as a complete surprise.
Tennessee has a History of Enforcement Against Sweepstakes Platforms
Last year we saw multiple sweepstakes sportsbooks withdraw from TN, including Legendz, ReBet, Kickr, and Sportzino. The reason was clear: the Tennessee Sports Wagering Council (TSWC) had contacted these brands, advising them to leave as they were operating outside of state law.
Next, we began to see sweepstakes casinos exit, including the VGW brands, High 5, and Mega Bonanza.
The reason for these withdrawals wasn’t so obvious at the time, but it soon became clear that the Tennessee Attorney General Jonathan Skrmetti had been issuing cease and desist letters to operators he deemed illegal. He announced as much via a press release at the end of 2025, but while the list of sweeps casinos targeted was long, it didn’t include every operator in the state.
So the AG and TSWC consider the sweepstakes dual-currency format to fall outside Tennessee gambling law, and now HB 1885 aims to remove any ambiguity. If passed, it would likely trigger a mass exodus from the state, seeing all remaining operators exit.
What Does HB 1885 Say?
The bill begins with some relatively detailed ‘whereas clauses’, reading more like a policy argument than other bills we’ve seen recently. For example:
“WHEREAS, there exists a growing presence in Tennessee of illegal online sweepstakes casinos and other forms of online gambling that are often marketed as legal, free-to-play, social gaming platforms and that utilize a promotional sweepstakes model; and
WHEREAS, such online sweepstakes casinos generally utilize a system allowing players to play casino-style games with virtual currency and exchange the virtual currency for cash or other real-world prizes; and
WHEREAS, in reality, such online sweepstakes casinos and other online-gambling platforms serve as a façade to hide the fact that players may engage in real-money gambling through the purchase and use of virtual currency”
The bill’s definitions contain mostly standard concepts. They define an “online sweepstakes game” as one where the currency used is a “virtual coin, token, or other representation of value”. In such sweepstakes games, that token can then be exchanged for “a prize, award, cash, or cash equivalent, or the chance to win a prize, award, cash, or cash equivalent”.
Next, the bill designates these games as unlawful and targets operators alongside anyone who “supports, facilitates, or assists in the operation of online sweepstakes games or other gambling within this state.”
Violations would allow the Attorney General to seek civil fines of up to $10,000 per violation. Injunctions to stop sweeps operations are suggested, along with restitution being awarded to any affected consumers.
Another non-standard addition is ‘8-6-409. Requests for information and documents’. This section would allow the Attorney General to request information from any person relevant to an investigation into illegal gaming – this includes being able to examine such a person under oath. In this sense, HB 1885 diverges a little from the bills we’ve seen before now.
In terms of next steps, the bill is still in the early stages of the process, and it should be referred to a committee next. So there’s still a long way to go, but we’ll add Tennessee to the ever-growing list of states considering a sweepstakes ban in 2026.
Author: Bogdan Lunkan
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