Tennessee is on the verge of banning sweepstakes casinos after lawmakers in the state House voted 8-0 to advance prohibition legislation out of subcommittee this week. The bill now heads to the House State & Local Government Committee. With the Senate already backing identical legislation, a statewide ban looks all but certain.

The House Departments & Agencies Subcommittee’s unanimous approval of HB1885 on Tuesday mirrors the Senate’s earlier endorsement of SB2136. Both bills target what they define as online sweepstakes games, platforms using virtual currency systems that let players engage in casino-style gaming, slots, video poker, table games, lottery games, bingo, or unlicensed sports wagering, with winnings convertible to cash or prizes.

If signed into law, operators flouting the ban could face civil penalties of up to $15,000 per violation. That’s a proper deterrent. The market’s already reacting, frankly. At least 36 sweepstakes casino platforms have now listed Tennessee as restricted territory, including major players like VGW, Stake, Modo, and High 5 Games.

Attorney General Leads the Charge

Tennessee’s Attorney General Jonathan Skrmetti hasn’t waited for new legislation to take action.

He sent over 40 cease-and-desist letters last year, triggering what can only be described as a mass exodus from the state. Most operators complied straightaway, but not everyone got the message. Rebets still doesn’t list Tennessee as restricted despite receiving one of those letters. Baba Casino actually relaunched in the state last September after previously blocking access.

Skrmetti’s thrown his weight behind the new legislation, which will give his office sharper teeth for enforcement. The current legal landscape leaves some grey areas. These bills are designed to eliminate any ambiguity about where sweepstakes casinos stand.

Part of a Nationwide Trend

Tennessee’s joining a growing list of states clamping down on sweepstakes casinos. Indiana’s already passed its ban, Minnesota introduced fresh legislation this week, and Maine’s advancing similar measures even as it moves forward with regulated online casino legislation. Florida, Oklahoma, Illinois, and Hawaii are all considering their own crackdowns on unregulated gambling operators.

Last year saw successful bans enacted in New Jersey, Connecticut, New York, California, and Montana. Idaho and Washington also have laws restricting these platforms. The regulatory net is tightening across the country, and it’s forcing operators to make hard choices about their business models.

Some platforms haven’t survived the pressure. Betty Sweeps, Luckybird, and ToraTora Casino have all shut down operations. As more states follow Tennessee’s lead, we’re likely to see additional casualties in the sweepstakes casino sector.

The message from US regulators is becoming crystal clear: if you want to operate casino-style gaming, get properly licensed or get out. Tennessee’s legislation looks set to become law in the coming weeks, adding another state to the list of markets closed to sweepstakes operators.