Introduced by Sen. Ferrell Halle, SB2136 designates illegal gambling and related activities as a violation of the Tennessee Consumer Protection Act; expands the authority of the sports wagering council to investigate illegal gambling and gaming activity; and expands the investigative authority of the attorney general and reporter to investigate unlawful activity within the purview of the attorney general and reporter.
The Senate bill and its companion House Bill 1885 propose prohibiting “online sweepstakes games” that use virtual currency. Both bills received their first committee assignments earlier this month.
The language explicitly targets the model used by sweepstakes casinos, banning the use of a currency that is “purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency,” and used to “exchange the currency for a prize, award, cash, or cash equivalent.”
“Senate bill 2136 was brought to me by the Attorney General’s office and the Tennessee Sports Wagering Counsel to address growing concerns about illegal online gambling in our state,” Halle said. “This bill closes existing enforcement gaps by granting the Attorney General clear civil enforcement authority to take action against illegal operators and strengthening consumer protections.”
In particular, Halle said this bill “clarifies definitions related to casino style games and sweepstakes shut down perceived loopholes being exploited by illegal gambling operators and it authorizes the Attorney General to seek civil injunctions against operators who are already criminally prohibited but not clearly subject to civil enforcement.”
Halle said this bill also targets platforms operating without age verification and oversight, “including those allowing underage and self-excluded individuals to gamble while enabling district attorneys to focus on violent crime and other serious offenses.”
Finally, the Bill standardizes the Attorney General’s authority to issue requests for information beyond the Tennessee’s Consumer Protection Act and Tennessee Human Rights Act, creating uniform tools across all laws within the Attorney General’s Enforcement Authority.
“This bill does not affect legal sports betting, fantasy sports and the Tennessee Education Lottery or lawful nonprofit gaming,” Halle concluded. “This bill does not make free games illegal. It primarily targets operation for real money that is being used.”
In late December Tennessee Attorney General Jonathan Skrmetti announced enforcement action against dozens of online sweepstakes casino operators, issuing cease-and-desist letters to almost 40 platforms and alleging they were offering illegal gambling to state residents. The move targeted platforms accused of using virtual currency systems to circumvent Tennessee’s gambling and lottery laws.
The Attorney General sent formal cease-and-desist letters to almost 40 online sweepstakes casinos operating illegally. All platforms that received a letter already disabled the components of their platforms or agreed on a date in the coming weeks for winding down their illegal services, effectively shutting down their illegal sweepstakes casinos. The announcement came after a sweepstakes casino exodus from Tennessee in November, including VGW ending Sweeps Coins at Chumba Casino, LuckyLand Slots, and Global Poker, and A1 Development leaving Tennessee with NoLimitCoins and its other brands.
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Attorney General Skrmetti said. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not. They avoid any oversight that could ensure honesty or fairness. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
This action mirrors enforcement activity in other states. Skrmetti said the growing national crackdown reflects widespread concern over platforms using sweepstakes language as a loophole to run unregulated gambling operations. As many as nine states may consider sweepstakes casino bans in the 2026 legislative session.
The AG’s cease-and-desist campaign followed months of activity from the Tennessee Sports Wagering Council, which had already issued sweepstakes sportsbook cease-and-desists to Legendz, Sportzino, Thrillzz, KicKr, and ReBet.
Other sweepstakes casinos currently operating in Tennessee or contemplating entering the Tennessee marketplace should consider themselves on notice that illegal gambling will not be tolerated, Skrmetti said.
