Tennessee and Oklahoma Toughen Up on Sweepstakes With Senate Bills

States Turn Up the Heat on Sweepstakes Casinos

Lawmakers in several states are reviewing sweepstakes casinos. Tennessee and Oklahoma now lead that effort. At issue is the dual-currency system many casinos use. In this system, players buy virtual coins for games. They also receive bonus coins that may be redeemed for cash prizes.

State officials argue this setup copies real-money betting. Hence, they want clearer limits and stronger rules. Both bills aim to restrict sweepstakes activity. Still, each state uses different tools.

Tennessee Links Sweepstakes to Consumer Law

In Tennessee, Senate Bill 2136 passed the Senate. Senator Ferrell Haile introduced the measure earlier this year. The bill now heads to the House of Representatives.

The proposal would ban virtual coins used in sweepstakes casinos. It would also label online sweepstakes games as illegal gambling. Lawmakers say such games harm public safety and trust.

If approved, the bill would fall under the state’s Consumer Protection Act. That change would allow Attorney General Jonathan Skrmetti to take action. He could seek fines or other penalties.

In December 2025, Skrmetti sent letters to 40 operators. He ordered them to stop offering sweepstakes games in the state. The signal is clear — Tennessee wants tighter control.

Oklahoma Pushes for Felony Charges

Oklahoma lawmakers are taking a tougher path. Senate Bill 1589 also cleared the Senate. Senator Todd Gollihare and Representative Scott Fetgatter sponsored the bill.

The measure would make offering sweepstakes games a Class C2 felony. It defines online gambling in broad terms. Any internet game based on risk and reward could fall under the law.

Importantly, the bill includes the dual-currency model used by many casinos. It may also hold service providers responsible — not only operators. Beyond that, the language leaves few gray areas.

What Happens Next

Both bills must pass their state Houses before becoming law. Governors would then review and sign them. For now, sweepstakes casinos face growing legal risk in both states. Other lawmakers may follow this path.

The industry says its model is legal. State leaders disagree. The next votes could decide the future of sweepstakes casinos — at least in these two states.