Tennessee lawmakers have voted to pass an anti-sweepstakes casino bill (SB 2136) in both chambers. The result came just before the close of the 2026 session, with a flurry of activity in the final few days.
Image sourced from ferrellhaile.com
This TN proposal has had the most complicated journey to passage out of all the state-level bills this year, but the headline is that it now goes to Governor Bill Lee for a signature or veto.
According to SweepsKings’ estimates, around half of all sweepstakes casinos are already out of Tennessee, but a signature on this bill would likely force out the remaining operators.
SB 2136’s Winding Road to Completion
Sponsored by Senator Ferrell Haile (pictured), SB 2136 was introduced in January, along with a counterpart: HB 1885. The original text’s preamble framed sweepstakes casinos as a form of disguised real-money gambling, arguing that virtual currency systems mislead consumers:
“WHEREAS, such online sweepstakes casinos generally constitute illegal lotteries and violate Tennessee gambling and consumer protection laws, and there exists the need to clarify for the public that such online sweepstakes casinos are expressly illegal given their prevalence in this State”
In fact, this clause did something which other anti-sweeps bills tend to shy away from – stating explicitly that while sweepstakes gaming is already thought to be illegal under existing state law, a new piece of legislation was necessary to clarify this point.
The bill’s wording then went on to define an ‘online sweepstakes game’ as one where users play with a virtual currency system that means coins can be exchanged for “a prize, award, cash, or cash equivalent, or the chance to win a prize, award, cash, or cash equivalent”.
It’s a relatively broad definition which should capture the standard dual-currency model used by most sweepstakes casino operators, and punishments could include injunctions, repayment of losses, and additional damages depending on details of the violation.
From here, however, the bill’s path became far less straightforward.
A Flurry of Activity
In the Senate, SB 2136 received a small amendment to the definition of ‘online sweepstakes game’ in March, adding wording for “a virtual-currency, dual-currency, or multi-currency system”.
Then the bill soon passed the Upper Chamber, after which the focus turned to companion bill HB 1885 in the House, then back to SB 2136 again this past week.
Four different amendments – including one to turn the proposal into a study – were tabled, but the accepted version actually turned the bill into a broader anti-gambling piece with any mention of ‘sweepstakes’ removed. This version passed in the House, but the Senate ultimately refused to concur.
This resulted in a conference committee being appointed to settle the disagreement on Thursday, and eventually, the original bill text was once again selected. The initial House vote rejected this choice, but it’s thought negotiations behind closed doors allowed the second vote to finally pass the bill successfully.
What stands out is how messy the bill’s identity became in the final stretch. By the end we saw two different policy approaches bouncing between chambers, which is why it ended up in conference. The final version only really came together at the last minute, feeling like something that kept changing shape right up until that final decision.
But all that really matters is the bill made it through before the legislature adjourned on April 23, and it now heads to Governor Bill Lee for a signature or veto, where – if signed – it will significantly strengthen enforcement against sweeps casinos in TN.
Author: Alex Windsor
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