Tennessee SB2136 has been approved by both chambers of the state’s legislature and is now a signature from Gov. Bill Lee away from becoming law. The bill aims to, among other things, ban the operation of online casino-style games that award prizes using a dual-currency sweepstakes model.
Those provisions survived multiple attempts to amend the bill in the Tennessee House of Representatives and a conference committee. Should Lee sign the bill or let it pass into law without any action, it may make little difference in terms of Tennesseans’ access to sweepstakes casinos because many of them have already stopped doing business in the state.
Legislature gives final approval to SB2136
Thursday marked the Tennessee legislature’s final day to take action on legislation apart from acting on gubernatorial vetoes, but both chambers worked votes on SB2136 into their calendars. The bill emerged from conference committee earlier in the day.
The Tennessee Senate approved the conference report 25-5 and the House followed suit 69-17 with one present not voting. The conference report strongly resembles the version of SB2136 that the Senate approved unanimously earlier in the session.
The report classifies an “online sweepstakes game” as a form of gambling in the state. To qualify as an “online sweepstakes game,” a contest, game, or promotion must:
- Be available online
- Simulate casino gaming
- Use at least one form of digital currency that can be used to play games and redeemed for prizes
As engrossed for delivery to Lee, SB2136 bans the assistance, operation, or promotion of online sweepstakes games as illegal gambling. The legislation also qualifies these acts as violations of Tennessee’s consumer protection statute.
Earlier versions of the legislation featured none of these provisions, though.
House amendments handled sweepstakes casinos differently
While the current version of SB2136 received strong support in the House, members of that body proposed extremely different treatments for sweepstakes casinos in Tennessee. One amendment would have commissioned a legislative study on the impact of legalizing and taxing the games.
An earlier House-approved version of SB2136 removed all mentions of terms related to sweepstakes casinos as well. However, the Senate refused to accept that amendment and forced the conference committee, where the sweepstakes ban tenets resurfaced.
Lee has 10 days from when he officially receives SB2136 to act upon it. Should he decide to do nothing, the bill would become law after that period expires.
Should Lee veto SB2136, an override is possible, as the legislation enjoyed a veto-proof majority upon final passage in both chambers. Lee has not publicly indicated any sentiments on the specific proposal at this time.
Tennessee’s attorney general, Jonathan Skrmetti, would assume new authority if SB2136 does become law. He has exercised his powers in regard to sweepstakes casinos based on existing statutes already, though.
Multiple sweepstakes casinos have already exited Tennessee
Whether Tennessee becomes the third state in 2026 to explicitly ban sweepstakes casinos or not, the year has already seen diminished access to the games for Tennesseeans. Skrmetti announced enforcement actions against almost 40 sweepstakes casinos in December 2025.
Multiple operators announced their geofencing Tennessee out of their customer bases or other alterations to their businesses affecting people in the state shortly thereafter. SB2136 could provide plenty of motivation for the remaining platforms to do the same.
Because the bill explicitly defines sweepstakes casinos as gambling, Skrmetti would have new investigative powers along with the option to pursue criminal charges against companies or individuals who operate the sites, promote them, or work with the sites as vendors. The threat of prosecution along with significant civil penalties will escalate with SB2136’s enactment.
The bill takes effect immediately upon Lee signing it or allowing it to become law with his inaction. For that reason, Tennessee could be just days away from joining the number of US states banning sweepstakes casinos.
