Sweepstakes casinos are banned in Tennessee as of May 2026. SB 2136 / HB 1885 was enrolled and sent to Governor Bill Lee on May 7, 2026. The governor had 10 days (excluding Sundays) to act; the bill became law no later than May 12, 2026, whether by signature or auto-enactment. Tennessee is the third state in 2026 to formally prohibit dual-currency sweepstakes platforms, after Indiana and Maine. The ban followed a 17-month enforcement campaign by Attorney General Jonathan Skrmetti. Nearly every major platform had already exited Tennessee before the bill passed. This guide covers the statutory framework, the enforcement history that led to the ban, tax obligations on prior prize redemptions, and responsible gambling resources for Tennessee players.
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Sweepstakes casinos are not legal in Tennessee. SB 2136 / HB 1885 was enrolled and transmitted to Governor Bill Lee on May 7, 2026. The bill became law no later than May 12, 2026. The bill specifies it takes effect immediately upon enactment. No wind-down period applies for operators.
The statute defines a prohibited “online sweepstakes game” as any internet-accessible game that meets three conditions. First, the platform uses a virtual-currency, dual-currency, or multi-currency system. Second, that currency can be exchanged for cash, prizes, or anything of value. Third, the game simulates casino-style gambling. Slot machines, video poker, table games, lottery games, bingo, and unlicensed sports wagering all qualify as simulated casino-style gambling under the statute.
SB 2136 explicitly carves out licensed online sports betting, daily fantasy sports, the Tennessee Education Lottery, and lawful nonprofit gaming. The ban targets operators, promoters, and service providers. Players who redeemed Sweeps Coins before the ban took effect are not retroactively penalized.
Tennessee gambling status table
All platforms using dual-currency or virtual-currency sweepstakes models are prohibited. Major platforms exited before the ban took effect. Chumba Casino, LuckyLand Slots, and Global Poker (all VGW Holdings) restricted Sweeps Coin access in November and December 2025. WOW Vegas, Stake.us, McLuck, Crown Coins, and High 5 Casino all exited following AG Skrmetti’s December 2025 enforcement campaign. The statute covers all operators by definition. Civil penalties of $5,000 to $15,000 per violation apply to any operator, promoter, or service provider that remains active.
Check sweepstakes casino law updates and licensed gaming options by state on Lines.com.
SB 2136, sponsored by Sen. Ferrell Haile, and HB 1885, sponsored by Rep. Scott Cepicky, were introduced at the request of the Tennessee AG’s office and the Tennessee Sports Wagering Council. The bills address enforcement gaps that the AG’s cease-and-desist campaign could not permanently close.
SB 2136 amends T.C.A. Title 47, Chapter 18 to add a new prohibition on online sweepstakes games. Under the enacted language, operating or promoting a prohibited platform is classified as an unfair or deceptive trade practice under the Tennessee Consumer Protection Act of 1977. The AG may impose civil penalties of $5,000 to $15,000 per violation. The AG may also seek civil injunctions and require operators under investigation to file sworn statements. The statute creates a private right of action, meaning Tennessee consumers can bring civil claims directly against operators.
The Senate passed SB 2136 by a vote of 32 to 0 in March 2026. The House passed the conference committee version 69 to 17 (with one abstention) on April 23, 2026. The Senate ratified the conference committee report 25 to 5.
Tennessee Code T.C.A. Title 47, Chapter 18, Section 124 previously governed prize promotions and sweepstakes. That provision required that players not be required to pay money as a condition of winning a prize. Sweepstakes operators historically argued that the no-purchase-necessary model satisfied this requirement. SB 2136 supersedes that argument. The new statute prohibits the virtual-currency exchange model regardless of whether a free entry path exists. The dual-currency structure itself is now the prohibited element, not just the absence of free entry.
The path to the Tennessee sweepstakes ban began before SB 2136 was introduced. Enforcement by Attorney General Jonathan Skrmetti drove most major platforms out of the state before the bill passed.
SB 2136 enforcement and legislative timeline
The AG described the enforcement campaign as successful. Skrmetti stated publicly that his office was “glad to chase these shady operations out of Tennessee” and would continue to protect Tennessee residents from illegal gambling. SB 2136 grants the AG new statutory investigative powers on top of the enforcement authority already exercised through the Consumer Protection Act.
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The Tennessee Sports Wagering Council (SWC) regulates licensed online sports wagering and daily fantasy sports. The Council’s name was simplified from “Sports Wagering Advisory Council” in late 2023. The Council oversees 10 licensed sports betting operators as of May 2026 and administers a voluntary self-exclusion program for licensed sports wagering. The Council does not license or oversee sweepstakes casino platforms.
Sweepstakes casino enforcement falls under the Tennessee Attorney General under the Consumer Protection Act. SB 2136 expands the AG’s enforcement authority to include new investigative powers, civil penalty authority of $5,000 to $15,000 per violation, and the ability to compel sworn statements from operators under investigation.
The Tennessee Education Lottery Corporation operates state lottery draw games and scratch tickets. The Tennessee Racing Commission regulates pari-mutuel wagering on horse races. No state agency licenses or authorizes real-money online casino gambling.
Online sports betting is legal in Tennessee and has been since November 2020. Tennessee launched the first online-only sports betting market in the United States with no retail sportsbooks. As of May 2026, 10 licensed operators serve Tennessee bettors. The minimum age is 21.
Tennessee taxes online sports betting at 1.85% of handle. Tennessee adopted this handle-based tax structure in July 2023, becoming the first state in the country to apply the handle-based model. Handle is the total amount wagered, not net revenue.
Daily fantasy sports are licensed in Tennessee and regulated alongside sports betting by the Sports Wagering Council. The Tennessee Education Lottery operates legal draw games and scratch tickets with a minimum age of 18. Pari-mutuel betting on horse races is also legal under the Tennessee Racing Commission.
Real-money online casino gambling is not authorized in Tennessee. No enabling statute exists. Any expansion would require legislative action. No land-based casinos operate in Tennessee.
Learn more about online sports betting operators and DFS on Lines.com.
Tennessee has no state income tax. The Hall Income Tax was eliminated effective January 1, 2021, for tax year 2021 and beyond. Tennessee players who redeemed Sweeps Coins before the ban took effect owe no Tennessee state income tax on those prize redemptions.
Federal tax obligations still apply to prior winnings. Sweepstakes platforms issue Form 1099-MISC (not Form W-2G, which applies to regulated gambling) for prize income. The reporting threshold was $600 for tax year 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, raised the threshold to $2,000 for tax year 2026 and beyond. Players report prize income as Other Income on IRS Form 1040 Schedule 1. Federal withholding of 24% applies to qualifying amounts over $5,000. Players may deduct gambling losses at the federal level when itemizing, up to the amount of winnings reported.
Tax obligations summary
Players should consult a tax professional for guidance on prior sweepstakes redemptions.
The Tennessee REDLINE (1-800-889-9789) is available 24 hours a day, seven days a week by call or text. The REDLINE is operated by the Tennessee Association of Alcohol, Drug and Other Addiction Services (TAADAS) and funded by the Tennessee Department of Mental Health and Substance Abuse Services. Callers receive referrals to local treatment providers, support groups, and counselors.
The Gambling Clinic at the University of Memphis (Dr. James Whelan, Executive Director, 901-678-3736) provides outpatient treatment and telehealth for gambling disorder. The Gambling Clinic is funded in part by the Tennessee Department of Mental Health and Substance Abuse Services.
The Tennessee Sports Wagering Council administers a voluntary self-exclusion program for licensed sports wagering. This program covers licensed sports betting platforms only. The program does not apply to sweepstakes platforms.
The National Problem Gambling Helpline operates 24 hours a day, seven days a week. Reach the helpline at 1-800-MY-RESET (1-800-697-3738) or at 1-800-522-4700. Both numbers remain active as of May 2026.
Responsible gambling resources
Sweepstakes casinos are banned in Tennessee as of May 2026. SB 2136 / HB 1885 became law no later than May 12, 2026, classifying dual-currency sweepstakes platforms as unlawful under the Tennessee Consumer Protection Act of 1977. The ban followed a sustained enforcement campaign by AG Skrmetti that drove nearly every major platform out of the state before the legislation passed. Tennessee players have no licensed sweepstakes casino options. Licensed online sports betting and daily fantasy sports remain available to players aged 21 and older. Players who redeemed Sweeps Coins before the ban still owe federal income tax on those winnings, but no Tennessee state tax applies.
No. Sweepstakes casinos are banned in Tennessee as of May 2026. SB 2136 / HB 1885 became law no later than May 12, 2026, prohibiting all online sweepstakes games that use virtual-currency, dual-currency, or multi-currency systems where that currency can be exchanged for cash or prizes.
The Tennessee General Assembly passed SB 2136 on April 23, 2026, the final day of the 2026 legislative session. The bill was enrolled and transmitted to Governor Bill Lee on May 7, 2026. The bill became law no later than May 12, 2026, by signature or auto-enactment. The ban took effect immediately upon enactment. Major platforms had already exited Tennessee following AG enforcement actions in December 2025.
SB 2136 (Tennessee Senate Bill 2136 / House Bill 1885) amends the Tennessee Consumer Protection Act of 1977 to prohibit online sweepstakes games. A prohibited game is any internet-accessible game using a virtual-currency, dual-currency, or multi-currency system where that currency can be exchanged for cash or prizes and the game simulates casino-style gaming. The law does not affect licensed sports betting, daily fantasy sports, the Tennessee Education Lottery, or nonprofit gaming.
No. No licensed sweepstakes casino platforms serve Tennessee residents as of May 2026. The ban covers all operators, promoters, and service providers. Licensed alternatives include online sports betting (10 licensed operators as of May 2026; minimum age 21) and the Tennessee Education Lottery (minimum age 18).
Tennessee has no state income tax. The Hall Income Tax was eliminated in 2021. Prior prize redemptions are not subject to Tennessee state tax. Federal obligations still apply. Platforms issue Form 1099-MISC (not W-2G) for prize income. The reporting threshold was $600 for tax year 2025, rising to $2,000 for tax year 2026 under the OBBBA. Federal withholding of 24% applies to qualifying amounts over $5,000. Players may deduct losses at the federal level when itemizing.
Partially. Licensed online sports betting is legal in Tennessee under T.C.A. Title 4, Chapter 49. Ten licensed operators serve the market as of May 2026. Daily fantasy sports are also licensed. Sweepstakes casinos are now banned under SB 2136. Real-money online casinos are not authorized. The minimum age for licensed sports wagering is 21.
Most platforms required players to be 18. Some platforms required players to be 21. As of May 2026, the question is moot. Sweepstakes casinos are banned in Tennessee regardless of player age. Licensed online sports betting requires players to be 21.
The Tennessee REDLINE (1-800-889-9789) operates 24/7 by call or text. The REDLINE provides referrals to local treatment providers. The Gambling Clinic at the University of Memphis (901-678-3736) offers outpatient treatment and telehealth. The National Problem Gambling Helpline (1-800-MY-RESET or 1-800-522-4700) is available 24/7.
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