Tennessee Bans Sweepstakes Casinos: What You Need to Know

Tennessee has joined several other states in banning sweepstakes casinos. Governor Bill Lee signed a bill into law on Friday, May 22, outlawing these operations. The bill specifically amended the meaning of 'online sweepstakes games' to be equated to gambling, allowing state regulators and the attorney general to pursue legal action against offenders who continue to operate these platforms within Tennessee.

This move follows a trend seen in other states, including Indiana, Iowa, Maine, Montana, New Jersey, and New York, which have also taken action against sweepstakes casinos. These states recognize social and sweepstakes casinos as a way to circumvent gambling regulations.

The crusade against sweepstakes casinos has faced less regulatory pushback compared to the prediction market sector, where the Commodity Futures Trading Commission (CFTC) has argued that states are trying to preempt federal regulation. However, the bill in Tennessee faced strong opposition from sector bodies that have repeatedly stated that the sector is established in legal and historic precedent.