Bills seeking to ban sweepstakes casinos in Tennessee and Oklahoma both passed their Senates this week; they now head to the House in each state, marking the halfway point in the process.
Senate Bill 2136 in Tennessee was introduced by Senator Ferrell Haile in January and looks to amend current state law to outlaw dual-currency sweepstakes platforms. However, unlike most other anti-sweepstakes bills, which focus on gambling law and apply fixed fines, SB 2136 takes a broader approach by linking violations into the state’s Consumer Protection Act.
This means dual-currency sweepstakes platforms would be treated as deceptive business practices, putting operators at risk not just of fines, but also court orders to stop their activity and repay affected players, with the possibility of much larger financial penalties if the misconduct is serious.
SB 2136 has a companion bill in HB 1885, which has been making progress in the House too, but the former is the first to move across to the opposite chamber.
Tennessee Has Previously Been Hostile to Sweepstakes Casinos and Social Sportsbooks
Even last year, there was already action against sweeps casinos in the Volunteer State.
Back in November we reported on brands like High 5, Mega Bonanza, and Chanced leaving TN. Then it came to light that the Tennessee Attorney General had been issuing cease and desist letters to sweepstakes operators. We’d even seen the Tennessee Sports Wagering Council (TSWC) issuing their own C&Ds to social sportsbooks prior to this.
So the current landscape in TN sees most of the major sweeps brands already out of the state anyway, at least in terms of offering Sweepstakes Coins (SC). That being said, some remained while adapting their strategy. For example, Crown Coins modified the way that players can get SC in attempt to stay ahead of any changes, while Chumba remained but only with free play via Gold Coins.
In fact, Attorney Bill Gantz appeared at the Departments and Agencies Subcommittee in TN yesterday representing VGW, the operator behind Chumba, LuckyLand Slots and more. He argued against the intent of HB 1885, recommending that the bill be paused and a path to regulation for sweeps operators be tabled in its place.
Gantz maintained that VGW’s gameplay is distinct from gambling because of the sweepstakes format, comparing it to freemium games like Candy Crush. He also noted that the operator chose to withdraw its Sweepstakes Coins promotional play rather than defend it in court, emphasizing that VGW is “interested in partnership and discussion, not litigation. Compliance with the law is of utmost concern.”
Despite these arguments, Tennessee lawmakers appear determined to establish legislation that definitively bans this type of gaming.
SB 1589 Advances in Oklahoma
Meanwhile, lawmakers are taking similar steps in Oklahoma; there, SB 1589, introduced by Senator Todd Gollihare, just passed the Senate with a unanimous vote. It now moves over to the House for consideration.
SB 1589 has received a couple of amendments so far, but the core of the bill remains, looking to outlaw “online casino games” where “any representative of value” is risked. It would capture not just operators, but other members of the supply chain, including gaming suppliers, platform providers, and media affiliates.
It has a companion bill in the form of HB 4130, also making good progress in the House, but SB 1589 is the first to cross chambers.
Oklahoma presents a very different landscape from Tennessee, with nearly all sweepstakes brands still operating there – passage of this anti-sweeps bill could trigger a much larger exodus.
With Indiana’s anti-sweeps bill already heading to the governor and expected to pass soon, lawmakers in Tennessee and Oklahoma appear determined to keep pace in 2026.
Author: Joseph Allen
Updated:
