Operators Exit Ahead of Tennessee Sweepstakes Casino Ban

There’s no Tennessee sweepstakes casino ban in place just yet. But if sweepstakes casino operators continue to follow ClubWPT Gold’s lead, Gov. Bill Lee’s approval of House Bill 1885 and Senate Bill 2136 might not even be necessary.

The Tennessee Senate officially sent HB 1885 and SB 2136 to Lee’s desk, giving the governor 10 days to act (excluding Sundays) before the bill becomes law without his signature. But ClubWPT Gold opted not to wait, announcing that it would pull out of the Tennessee market one day after Senate Speaker Randy McNally signed the bills to send them to Lee.

ClubWPT Gold has restricted Tennessee customers from purchasing either Gold Coins or Sweepstakes Coins. Effectively, this bans future play from Tennessee customers.

Tennessee customers can still redeem existing Sweepstakes Coins, and they can use previously purchased Gold Coins and Sweepstakes Coins on ClubWPT Gold’s platforms. But no new purchases will be accepted, regardless of what Lee does.

ClubWPT Gold is the latest sweepstakes casino operator to exit the Volunteer State. In March, VGW spoke out against HB 1885. When that effort failed, VGW pulled Chumba Casino and its other brands from the Volunteer State.

How Likely Is the Tennessee Sweepstakes Casino Ban to Become Law?

It seems pretty likely. In December 2025, Tennessee attorney general Jonathan Skrmetti announced that his office had shut down 40 sweepstakes casinos. Skrmetti labeled sweepstakes casinos an illegal lottery, and the Tennessee legislature moved from there to give his office greater power to go after sweepstakes casinos.

A Tennessee sweepstakes casino ban would officially classify sweepstakes casinos as illegal gambling. That designation would allow Skrmetti’s office to levy a $15,000 fine per violation for any sweepstakes casino or other form of illegal gambling operating in Tennessee.

Skrmetti’s aggression suggests that Lee would sign the bill. Even if he doesn’t, the Tennessee legislature could easily override him. SB 2136, the final version of the bill, passed the Senate with a 25-5 vote. The Tennessee House then voted to conform its version to SB 2136 by a 69-17 margin. Both are well within the ⅔ vote needed to survive a veto.

How Does This Impact Bettors in Tennessee?

Notably, no form of casino-style gambling exists in the Volunteer State. That has allowed neighboring states such as Kentucky, North Carolina, Arkansas, Mississippi and Virginia to set up brick-and-mortar casinos near the Tennessee state line to scoop up customers from the Volunteer State.

In all five cases, a neighboring state has a casino set up within 30 minutes of the Tennessee state line. Kentucky and Virginia go even further in their efforts to poach Tennessee gamblers. Both Franklin, Ky. and Bristol, Va. have casinos one exit away from the Tennessee state line on Interstates 65 and 81 respectively. In practice, that puts both casinos less than five minutes from the state line.

Tennessee does offer legal online sports betting, and has long offered legal gambling through its state lottery. SB 2136 covers these forms of betting as well, and social sportsbooks have also begun leaving the state.

What Are the Next Steps?

What’s known is the deadline for Lee to make a decision. If he either signs the bill or takes no action by May 12, the bill becomes law. If that happens, sweepstakes casinos become illegal in Tennessee as of July 1. Per Tennessee law, all bills go into effect on July 1 after passage, unless otherwise specified in the bill.

Less clear is what would happen in the event of a veto. The legislature was supposed to adjourn in April, but Lee called a special session to analyze redistricting the state. The Tennessee legislature could use that time to override a veto, should that be necessary.

With sweepstakes casinos continuing to exit Tennessee in preparation for a Tennessee sweepstakes casino ban, customers in the Volunteer State would be wise to redeem sweepstakes coins before July 1.