Tennessee law reaches any online casino-style game whose coins can be traded for prizes, whether the site runs one currency or two. Governor Bill Lee made that ban, SB 2136, law with his signature on May 22, 2026, and it took effect at once. Adults in Tennessee can still use the state lottery app, licensed online sportsbooks and prize-free social games.
Legal Alternatives for Tennessee Players
Three paid options remain open in Tennessee, alongside free social games and two collectible-prize categories. Each option sets its own age rule, shown in the table below.
| Alternative | What it offers | Minimum age | Checked |
|---|---|---|---|
| 1. TN iLottery app | Online Powerball and Mega Millions tickets while you are in Tennessee | 18 | October 26, 2026 |
| 2. Licensed online sportsbooks | Sports contests through state-licensed apps, online only | 21 | October 26, 2026 |
| 3. Daily fantasy sports | Fantasy contests under Tennessee’s Fantasy Sports Act | Set by each operator | October 26, 2026 |
| 4. Gold Coin-only social games | Free play with no prize redemption | Set by each app | October 26, 2026 |
| 5. Mystery-box sites | Paid boxes containing physical items | 18, per the review site | October 26, 2026 |
| 6. Card-rip apps | Digital packs that pull real graded trading cards | 18, per the review site | October 26, 2026 |
1. TN iLottery App
The Tennessee Education Lottery sells draw-game tickets online through the TN iLottery Official App. Local news coverage in 2026 described Powerball and Mega Millions purchases through the app, which the lottery calls Anytime Lottery.
Tennessee law bars lottery sales to anyone under 18. The app is the state’s own product, and Public Chapter 1117 names the Education Lottery as exempt from the ban.
2. Licensed Online Sportsbooks
Tennessee licenses online sportsbooks, and the state sports regulator keeps the official list of licensed apps. You must be at least 21 and physically in Tennessee, according to the regulator’s FAQ page.
The regulator warned in an August 11, 2026 notice that crypto payments and casino games are signs of an unlicensed sportsbook. Use only an app that appears on its official list.
3. Daily Fantasy Sports
Public Chapter 1117 states that it does not restrict games permitted under the Fantasy Sports Act. The same state sports regulator registers fantasy sports operators.
Age and eligibility rules come from each operator’s own Terms. Read those rules before you pay any entry fee.
4. Gold Coin-Only Social Games
Social casino apps that use only free coins, with no prize redemption, miss one part of the statute’s definition. The law covers a currency the player can exchange “for a prize, award, cash, or cash equivalent.”
These apps offer entertainment only, so nothing you collect can be redeemed. Verify current laws in your jurisdiction before playing.
5. Mystery-Box Sites
Mystery Boxes is an independent review site that rates platforms selling paid boxes of physical items. On October 26, 2026, it listed nine sites that it had tested. It states that every site it reviews requires users to be 18 or older.
The review site tells readers to confirm that a platform serves their state before buying. Check each platform’s own Terms for Tennessee before you pay.
6. Card-Rip Apps
MyCardRips reviews card-rip apps, where you open digital packs and usually receive real graded Pokémon or sports cards. On October 26, 2026, it rated seven apps and tracked 33.
The site reports that app buy-back offers ranged from 84.6% to slightly over 100% in its own measurements. Compare a buy-back offer with independent card prices before you accept it.
Clovr does not list redeemable-coin game sites for Tennessee. The state’s definition covers single virtual-currency systems, not only sites that use Gold Coins and Sweeps Coins.
How to Pick an Alternative
Start with the kind of reward you want, then confirm age and eligibility. These steps apply to every option above.
- Decide whether you want cash prizes, physical items, or free play with no prizes.
- Confirm the minimum age, which is 18 for the lottery app and 21 for licensed sportsbooks.
- Read the service’s own Terms and confirm that Tennessee is not on its excluded list.
- Choose a state-licensed service when you want a Tennessee regulator to oversee your account.
What to Check Before You Buy
A short check of the Terms can prevent account problems. Look for these points before you pay anything.
- Find the operator’s legal company name and the state, if any, that licenses it.
- Confirm the Terms do not exclude Tennessee or require a location you cannot meet.
- Note the identity documents the service asks for before it pays a prize.
- Check how prizes are paid and whether any fee or minimum applies.
- Look for expiry rules on coins, credits or unopened items.
Sweepstakes Casinos Are Banned in Tennessee
SB 2136 became Public Chapter 1117 and added a new part, sections 47-18-5901 to 47-18-5904, to the Tennessee Code. It makes the operation and commercial promotion of online sweepstakes games unlawful in the state.
What Public Chapter 1117 Covers
The statute defines an “online sweepstakes game” by three tests, set out below in four steps. A game that meets all of them is unlawful in Tennessee.
- The game is available on the internet through a phone, computer or similar device.
- It uses a virtual-currency, dual-currency or multi-currency system. The currency can be bought, received in a promotion, or received free with another purchase.
- A player can exchange that currency for a prize, cash or a chance to win one.
- Play on the site simulates casino-style games such as slots, video poker, table games, lottery games or bingo.
In the statute, the second and third points form one test. Its currency clause matters most for Tennessee readers. Coins received through a bonus or promotion still count, so free coins alone do not take a site outside the definition.
Who the Law Reaches
Section 47-18-5902 lists five acts that trigger the law’s remedies. They cover anyone who offers or accepts paid entries, or who operates or commercially promotes these games. They also cover selling illegal game machines, hosting those machines, and supporting the games.
The statute does not define “commercially promotes.” This page carries no sign-up links, offers or rankings for that reason.
What the Law Exempts
Public Chapter 1117 leaves three lawful categories untouched. It does not restrict games permitted under these laws.
- Games permitted under the Tennessee Sports Gaming Act and the Fantasy Sports Act are not restricted.
- Nonprofit gaming under Title 3, Chapter 17 of the Tennessee Code is not restricted.
- Tennessee Education Lottery Corporation games under Title 4, Chapter 51 are not restricted.
Penalties and Enforcement Powers
A violation counts as an unfair or deceptive act under the Tennessee Consumer Protection Act of 1977. The penalties and remedies of that act apply.
The law also gave the Attorney General power to demand records and sworn statements during an investigation. A person who hides or destroys requested documents faces a civil penalty of up to $1,000 per document.
A separate section deleted a six-month filing deadline for gaming cases from section 40-2-102(a). Verify current laws in your jurisdiction before playing.
How the Ban Became Law
Both chambers passed the final bill on April 23, 2026, four months after the Attorney General’s letters. The House first passed an amended version, and the Senate refused that amendment.
| Date | Event |
|---|---|
| December 29, 2025 | The Attorney General announces cease-and-desist letters to almost 40 online sweepstakes casinos. |
| January 21 and 23, 2026 | HB 1885 and SB 2136 are filed for introduction. |
| February 24, 2026 | The Senate Commerce and Labor Committee recommends SB 2136 by 8 votes to 0. |
| March 2, 2026 | The Senate passes the amended bill by 32 votes to 0. |
| April 21, 2026 | The House passes an amended version by 67 votes to 20. |
| April 23, 2026 | The Senate refuses the House amendment, and both chambers adopt the conference report (House 69 to 17, Senate 25 to 5). |
| May 11, 2026 | The bill is sent to the governor. |
| May 22, 2026 | Governor Bill Lee signs the bill, and it takes effect on signing. |
| May 27, 2026 | The act is assigned Public Chapter 1117. |
The Attorney General Acted Before the Law Passed
Attorney General Jonathan Skrmetti moved against sweepstakes sites five months before the statute became law. His December 29, 2025 release said the model “constitutes an illegal lottery prohibited by the Tennessee Constitution.”
The release named 38 platforms that indicated they would comply. It said each one had disabled its prize features or agreed a date in the following weeks to wind down.
Skrmetti warned that an online sweepstakes casino is “going to take your money.” His office warned other sites that it would not tolerate the model in Tennessee.
Clovr’s Sweepstakes Sites and Tennessee
Clovr lists none of the 20 sweepstakes sites it reviews for Tennessee. All 20 pair a free coin with a coin redeemable for prizes, which is the system Public Chapter 1117 covers.
Eleven of those 20 sites appear on the Attorney General’s December 2025 compliance list. For other states, see Clovr’s sweepstakes casinos by state index.
What the Ban Means for Tennessee Players
Accounts and Coin Balances
The Attorney General said each listed site either disabled its prize features or set a wind-down date. Players with a remaining balance should contact the site’s support team in writing.
Keep copies of every message, purchase receipt and redemption confirmation. Those records matter for any dispute and for your tax return.
Player Liability
The five acts in section 47-18-5902 describe offering, operating, promoting, selling or supporting these games. None of the five describes a player taking part.
This is general information, not legal advice. Verify current laws in your jurisdiction before playing.
Taxes and Age Rules
Federal law counts prizes as income under 26 U.S.C. 74(a). The IRS tells anyone who wins a prize in a drawing or contest to include it in income.
Keep records of any prize you received from a sweepstakes site before the ban. A tax professional can confirm how to report it.
Age rules differ by product in Tennessee. The lottery sells to adults 18 and older, while licensed sportsbooks accept only adults 21 and older.
Support in Tennessee
The Tennessee REDLINE is a free, confidential referral service open every day of the year, around the clock. Call or text 1-800-889-9789 for help in Tennessee.
The Tennessee Department of Mental Health and Substance Abuse Services offers further support programs. Clovr’s responsible gaming page has more on player protection.
How Clovr Checked This Page
Every legal fact on this page comes from the enacted statute, state records or government releases. For background, see Clovr’s sweepstakes legal guide and Sweeps Coins explainer.
- Clovr read the Conference Committee Report on HB 1885 and SB 2136 (CC0017) on October 26, 2026.
- The Tennessee General Assembly bill record for HB 1885 and SB 2136 was checked on the same day.
- Attorney General Skrmetti’s release of December 29, 2025 supplied the enforcement facts.
- Age and licensing rules come from the state sports regulator’s FAQ and its August 11, 2026 notice.
Frequently Asked Questions
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Are sweepstakes casinos legal in Tennessee?
No. Dual-currency sweepstakes casinos have been prohibited since May 22, 2026, when Governor Bill Lee signed SB 2136. The law took effect immediately with no delayed implementation.
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What can Tennessee players play instead?
Card Crush operates in Tennessee on a single-currency model that sits outside the ban. Gold-Coin-only social casinos with no redemption also remain legal.
Licensed sports betting through the Sports Wagering Council and the Tennessee Education Lottery are both exempt from SB 2136.
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Why can Card Crush operate when sweepstakes casinos cannot?
SB 2136 targets platforms using dual or multi-currency systems that simulate casino gambling. Card Crush runs a single redeemable currency, Mystery Coins, paired with collectible Cards that carry no cash value.
Card battles rather than casino simulation are the primary engine for earning Mystery Coins. Verify Tennessee eligibility at sign-up, as state availability can change.
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Which operators left Tennessee?
VGW brands, A1 Development brands, and B-Two brands all exited, alongside High 5 Casino, RealPrize, and ClubWPT Gold. Mega Bonanza lists Tennessee as excluded.
B-Two brands went fully offline for Tennessee players on July 13, 2026.
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What happens to my existing Sweeps Coins balance?
Tennessee access has been closed by all major operators. Contact each operator’s support channel and follow their wind-down instructions. Redemption windows vary and change without notice.
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Do I owe taxes on Sweeps Coins I redeemed before the ban?
Federal income tax applies to redemptions completed before May 22, 2026. Amounts of $600 or more may trigger a Form 1099-MISC.
Tennessee has no state income tax, so no state-level obligation applies. Consult a tax professional for advice specific to your situation.
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Can I use a VPN to access a sweepstakes casino from Tennessee?
No. Using a VPN to bypass geo-blocking violates operator terms of service and voids any accumulated balance with no recourse.
These Clovr guides explain the sweepstakes model and how other states have handled it.
- How sweepstakes casinos work is Clovr’s explainer on sites that use Gold Coins and Sweeps Coins.
- Are sweepstakes casinos legal is Clovr’s 2026 guide to the model’s legal status across the US.
- Sweepstakes casinos in Indiana covers Indiana’s HB 1052 ban, which took effect July 1, 2026.
- Sweepstakes casinos in Montana covers the Montana ban and the legal alternatives left there.
Clovr may earn a commission when you sign up through affiliate links on this page. This never affects our reviews, which stay independent and unbiased.
Sweepstakes play should stay fun. If you or someone you know needs support, visit the National Council on Problem Gambling at ncpgambling.org or call 1-800-GAMBLER.
