Tennessee Governor Signs Sweepstakes Ban Bill

Add Tennessee to the growing list of states that have banned casino-style sweepstakes games.

On Friday, at the last possible moment, Gov. Bill Lee signed HB 1885/SB 2136 into law. This came on the heels of the state legislature passing the bills on the last day of the session, April 23.

At its core, the legislation bans all online and app-based gambling in Tennessee, including the dual-coin sweepstakes games that define the sweeps casino model. Legal sports betting, fantasy sports, nonprofit gaming, and the state lottery are all carved out.

But outside of that, it’s now illegal to offer or take wagers from anyone in the state, to run or promote these games, or to help others run them. The same goes for gambling devices, which can’t be operated or even kept on hand.

Tennessee will treat these violations under its Consumer Protection Act as unfair or deceptive practices, which carry that law’s penalties. 

The new law also gives the attorney general more enforcement powers. The AG can demand documents and sworn statements, inspect merchandise, and go to court to force compliance, with a fine of up to $1,000 per document for anyone who destroys, hides, or alters records to duck an investigation. 

Tennessee joins California, Connecticut, Louisiana, Montana, New Jersey, New York, and Oklahoma in banning sweepstakes casinos.

Not so golden

Meanwhile, one sweeps operator isn’t waiting for more states to shut it down. It has gone ahead and done it itself.

According to a report from sweepstakes-focused news outlet Sweepsy, Gold Treasure Casino sent an email to customers over the holiday weekend announcing the company is “temporarily shutting down operations while we take time to evaluate and plan the next chapter of the platform.”

The message doesn’t specify the next chapter while noting the company “may return in the future.”

Players have 10 days to redeem any funds in their accounts.