TN lawmaker wants to ban virtual-currency sweeps & gambling devices
Tennessee is the latest state where lawmakers introduce legislation that takes action against the operation of online sweepstakes casinos within state lines.
Rep. Scott Cepicky has introduced House Bill 1885, a piece of legislation that would outlaw online sweepstakes games and gambling devices. HB 1885 also considers any free-to-play social gaming platform that utilizes a promotional sweepstakes model to be illegal.
What HB 1885 considers to be an online sweeps game
HB 1885 defines online sweepstakes games as an online or computer terminal game, contest or promotion that utilizes a virtual-currency system that allows players to wager with a virtual coin or token that that is “directly purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency or related product, service, or activity.” The virtual-currency system must also allow players to exchange the coins or tokens for a “prize, award, cash or cash equivalent.” HB 1885 covers online sweepstake games that resemble casino-style gaming, bingo and sports betting.
“Under this promotional sweepstakes model, consumers are induced to purchase virtual currency under the false impression that they are not engaged in illegal gambling when in fact their payments allow them to participate in games of chance that award real-world prizes,” reads the legislation. “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.”
Under HB 1885, a person who sells gambling devices or operates or promotes online sweepstakes games in Tennessee would be violating the Tennessee Consumer Protection Act of 1977 for participating in an “unfair or deceptive act or practice affecting trade or commerce.” A violation of the Tennessee Consumer Protection Act of 1977 allows the state’s attorney general to impose a civil penalty between $5,000 and $15,000 for each violation related to the operation of gambling devices and online sweepstakes games.
HB 1885 allows inquiries into sweep operations
Cepicky’s piece of legislation allows the state’s attorney general and reporter to request information for an investigation into any person who is believed to have engaged with unlawful act in the state, including the operation or promotion of gambling devices and online sweepstakes games. A person under investigation is required to file a statement or report to the attorney general under oath.Under HB 1885, the person under a probe must also “furnish and make available for examination all documentary material and information relevant to the subject matter of the investigation.” The bill also requires all documents provided by a person under investigation to be confidential.
Investigation requests must adhere to state rules of procedure for service of a notice.
A person who intently avoids and evades a request for information by the state’s attorney general is subject to a civil penalty of up to $1,000 per document requested.
Tennessee AG makes push to shut down sweeps casinos
Cepicky has introduced HB 1885 as Attorney General Jonathan Skrmetti and his office continue their efforts to prevent online sweepstakes casinos from accepting customers in the state. Last month, Skrmetti’s office announced a crackdown on sweepstakes casinos that use a dual-currency system of payment, halting the operation of 38 sites in the state. The platforms shuttered operations in Tennessee after receiving cease and desist orders.
The platforms no longer operating in the state include Chumba Casino and Global Poker.
https://sbcamericas.com/2026/01/23/tennessee-lawmaker-ban-sweeps-casinos/