New bills propose sweepstakes casino ban in Tennessee
House Bill 1885 and Senate Bill 2136 aim to expand the authority of the sports wagering council to investigate illegal gambling and gaming activity.
US.- Tennessee lawmakers have introduced a pair of bills aimed at banning online sweepstakes casinos in the state. House Bill 1885, introduced by representative Scott Cepicky, and Senate Bill 2136, sponsored by senator Joey Hensley, seek to classify the operation of promotional sweepstakes models as an “unfair or deceptive act or practice affecting trade or commerce, and is subject to the penalties and remedies as provided in the Tennessee Consumer Protection Act of 1977.”
The proposal covers online sweepstake games that resemble casino-style gaming, bingo and sports betting, claiming that these models often mislead consumers into participating in games of chance under the guise of legal entertainment.
If passed, the Tennessee Attorney General would have the power to investigate people or companies suspected of promoting these games and would be able to impose civil penalties of up to $15,000.
HB Bill 1885 reads: “Online sweepstakes casinos generally utilize a system allowing players to play casino-style games with virtual currency and exchange the virtual currency for cash or other real-world prizes; and whereas, in reality, such online sweepstakes casinos and other online-gambling platforms serve as a façade to hide the fact that players may engage in real-money gambling through the purchase and use of virtual currency; and whereas, 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.”
Last December, Tennessee Attorney General Jonathan Skrmetti sent formal cease-and-desist letters to almost forty online sweepstakes casinos operating in the state. His office said the action was part of an “ongoing effort to protect Tennessee consumers from predatory and unregulated gambling operations.”
In May, Montana became the first to pass legislation explicitly banning online sweepstakes casinos. In December, New York Governor Kathy Hochul signed Senate Bill 5935 introducing a similar ban.
