Lawmakers in Tennessee and Oklahoma have taken major new steps against sweepstakes casinos. In both states, the Senate has now passed bills that target online casino-style platforms using dual-currency systems. That means the proposals are moving forward, even though neither ban is final yet.
The two bills take slightly different paths. Tennessee’s bill leans on consumer protection law, while Oklahoma’s bill updates its criminal gambling statute. But the goal is similar in both states: make it harder for sweepstakes casinos to operate by treating their business model more clearly as illegal gambling under state law.
Tennessee Advances a Consumer Protection Crackdown
In Tennessee, SB 2136 passed the Senate on March 2 by a 32-0 vote. The bill now heads to the House, where lawmakers are also considering the companion bill, HB 1885. Tennessee has already been aggressive in this area. At the end of December 2025, Attorney General Jonathan Skrmetti announced that his office had sent cease-and-desist letters to nearly 40 sweepstakes casinos, helping push many operators out of the state.
The new bill would go further. It says online sweepstakes games are unlawful and would treat violations as unfair or deceptive acts under the Tennessee Consumer Protection Act. That matters because it gives the state stronger civil tools to investigate and act against operators.
The bill defines an online sweepstakes game as online gambling that uses a virtual-currency system and lets players exchange that currency for a prize, cash, a cash equivalent, or a chance to win one. In plain terms, Tennessee is targeting the sweepstakes model many sites use to argue they are not traditional gambling platforms.
Supporters say this gives the attorney general clearer authority to investigate sites that market themselves as free social games while still offering casino-style play tied to redeemable prizes. If enacted, the Tennessee bill would take effect immediately when signed into law.
Oklahoma Takes a Tougher Criminal Approach
Oklahoma’s Senate also moved forcefully. SB 1589 passed the Senate on March 2 by a 48-0 vote. The bill now goes to the House for consideration. Unlike Tennessee, Oklahoma’s approach is more directly tied to criminal gambling law.
The bill amends Oklahoma’s existing gambling statute to explicitly include online casino games. It says these are gambling games played through the internet or mobile devices that, after risking something of value, simulate prohibited gambling such as slots, lotteries, bingo, or other similar games.
A key part of the bill is how it defines “representative of value.” The bill says that includes currency used in a dual-currency system if it can be exchanged for prizes, cash, or cash equivalents. That language appears designed to directly capture the business model used by many sweepstakes casinos.
Oklahoma’s bill also reaches beyond operators. It applies not just to the people running the games, but also to a geolocation provider, gaming supplier, platform provider, promoter, or media affiliate that supports the games. Violations would be treated as Class C2 felonies. If the bill becomes law, it would take effect on November 1, 2026.
What These Bills Mean for the Sweepstakes Industry
Taken together, the Tennessee and Oklahoma votes show how much pressure is building on sweepstakes casinos across the United States. States are no longer relying only on older gambling laws or warning letters. More lawmakers are now writing bills that specifically target dual-currency online gaming.
For operators, that raises the risk of staying active in states that are moving toward direct bans. Some may decide to leave early rather than face investigations, lawsuits, or criminal exposure. For players, the most likely short-term effect is more geo-blocking, more account notices, and fewer sweepstakes casino options in certain states.
Neither bill is law yet. Each one still needs House approval and, if passed, a governor’s signature. But after these Senate votes, both Tennessee and Oklahoma are clearly moving in the same direction: toward stronger and more explicit bans on sweepstakes casinos.