Tennessee Senate advances bill targeting Illegal sweepstakes

Tennessee lawmakers are moving closer to tightening the reins on illegal online gambling and sweepstakes after a Senate committee gave its backing to Senate Bill 2136 this week.

The measure cleared the Senate Commerce and Labor Committee without a single dissenting vote, pushing it further along in the legislative process. According to the bill’s official record on LegiScan, SB 2136, sponsored by Sen. Ferrell Haile, was “recommended for passage with amendment/s” and referred to the Senate Calendar Committee on a unanimous 8–0 vote on Tuesday (February 24). Lawmakers first introduced the proposal on January 23, and it is now listed as 25% complete in its path through the General Assembly.

Tennessee moves to enforce authority against illegal sweepstakes with bill

When he presented the bill, Haile explained that his office worked closely with the Tennessee Attorney General’s Office and the Tennessee Sports Wagering Council to respond to what he described as “growing concerns about illegal online gambling in our state.” He told committee members the legislation is designed to shut down gray areas in current law and make it easier for state officials to step in when operators break the rules. “This bill closes existing enforcement gaps by granting the attorney general clear, civil enforcement authority to take action against illegal operators and strengthening consumer protections,” he said in committee testimony.

Haile also said the language spells out definitions around gambling and sweepstakes-style platforms more clearly, aiming at companies operating “without age verifications or proper oversight.”

In practical terms, the proposal would “designate illegal gambling and related activities as a violation of the Tennessee Consumer Protection Act” and expand the investigative powers of both the Sports Wagering Council and the attorney general. The legislation would update multiple sections of state law, including parts of Titles 4, 8, 40 and 47 of the Tennessee Code Annotated.

A companion proposal in the House, HB 1885, mirrors the Senate bill and goes further in detailing prohibited conduct. Its draft text states it would be illegal to “operate, conduct, or commercially promote online sweepstakes games or other forms of online or app-based gambling within this state,” while also banning the sale or distribution of gambling devices or any activity that supports unlawful online betting. The House measure frames those violations as threats to the state’s public health, safety, and welfare.

Recent enforcement actions signal tougher stance

The legislative push follows a string of enforcement moves across Tennessee. In recent months, the attorney general has issued cease-and-desist letters to several online sweepstakes casinos accused of skirting state gambling laws. One major sweepstakes operator, VGW, announced it would end sweepstakes-style play in Tennessee as scrutiny intensified.

At the same time, the Tennessee Sports Wagering Council has ramped up penalties against unlicensed sportsbooks. Regulators recently levied six-figure fines against offshore operators accused of taking bets from Tennesseans without approval, including actions that collectively reached $250,000 in penalties.

Supporters of SB 2136 argue those steps show why clearer authority is needed. As written, the bill would not interfere with legal gaming already permitted in the state, such as the lottery, regulated sports wagering, or charitable gaming events. Instead, backers say it gives regulators and law enforcement sharper tools to pursue companies that continue to operate outside Tennessee’s rules.

The post Tennessee Senate advances bill targeting Illegal sweepstakes appeared first on ReadWrite.

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