Tennessee Senate Bill SB2136

Tennessee 2025-2026 Regular Session

• Introduced: 1/23/26
• Engrossed: 3/2/26
• Enrolled: 4/30/26
• Passed: 5/22/26
• Chaptered: 5/27/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 4, Chapter 49; Title 8, Chapter 6, Part 4; Title 40, Chapter 2 and Title 47, relative to illegal activity.

Summary

SB2136 targets illegal online gambling, especially “online sweepstakes casinos” and other internet- or app-based gaming platforms that use virtual currency, dual-currency, or promotional sweepstakes models to simulate casino-style play. The bill defines “online sweepstakes game” broadly to include games, contests, or promotions accessible online that allow players to buy or receive virtual currency and exchange it for cash, prizes, or the chance to win prizes, while simulating gambling such as slots, poker, table games, bingo, lottery-style games, or unlicensed sports wagering. The bill makes the operation, promotion, support, or facilitation of these online sweepstakes games and other forms of online or app-based gambling unlawful in Tennessee, along with the sale, distribution, or operation of gambling devices. It also clarifies that the measure does not restrict lawful activities under the Tennessee Sports Gaming Act, Fantasy Sports Act, nonprofit gaming laws, or the Tennessee Education Lottery. Violations are treated as unfair or deceptive acts under the Tennessee Consumer Protection Act, exposing violators to its penalties and remedies, and the bill also adds a related violation to the consumer protection statute. Beyond the gambling prohibitions, SB2136 expands the attorney general and reporter’s investigative authority. It creates a new process allowing the attorney general to demand documents, testimony, and merchandise relevant to suspected unlawful conduct, seek court orders compelling compliance, and obtain civil penalties for destruction or alteration of requested materials. The bill also makes investigative materials confidential and exempts them from public records disclosure. In addition, it removes a prior six-month limitation for gaming-related prosecutions and updates sports wagering enforcement provisions, including giving the attorney general authority to investigate certain sports wagering violations. The overall sentiment reflected in the bill’s legislative history is strongly supportive of cracking down on illegal gambling. The bill passed the Senate Commerce and Labor Committee unanimously and later cleared floor votes by wide margins, indicating broad agreement with the stated goal of protecting consumers and clarifying that sweepstakes-style gambling is illegal. The final conference report also passed, though a minority conference report was rejected, showing that the main dispute was not over whether to act, but over the bill’s final form. The main points of contention appear to have centered on how broadly the bill defines prohibited online gaming and how much enforcement power it gives the attorney general. Critics likely focused on the reach of the definition of “online sweepstakes game,” the confidentiality of investigative records, and the expanded subpoena-like authority and penalties. Supporters emphasized consumer protection, public safety, and closing loopholes used by operators that market gambling as legal social gaming.

Impact

SB2136 amends Tennessee’s consumer protection, criminal procedure, attorney general authority, and sports wagering statutes to create a new legal framework against online sweepstakes casinos and similar internet-based gambling operations. It adds a new part to the Tennessee Consumer Protection Act, makes violations unfair or deceptive trade practices, authorizes civil enforcement by the attorney general, and updates related provisions in Title 4 and Title 40 to support investigation and enforcement. The bill affects gambling operators, platform promoters, device sellers, property owners who allow gambling devices, and entities that facilitate online gambling, while expressly preserving lawful sports wagering, fantasy sports, nonprofit gaming, and lottery activities.

Sentiment

The legislative record suggests a generally favorable and enforcement-oriented sentiment toward the bill. Committee and floor votes show strong bipartisan support for the measure’s anti-gambling and consumer-protection goals, with the bill advancing by comfortable margins and the conference report ultimately adopted. The rejection of a minority conference report and failed amendment attempts indicate that opponents or skeptics were unable to build enough support to alter the bill’s core approach.

Contention

The most notable contention involved the breadth of the bill’s definition of illegal online sweepstakes gaming and the scope of the attorney general’s new investigative powers. Opponents of the bill’s stricter provisions likely objected to treating certain promotional or social gaming models as illegal gambling, as well as to confidentiality rules and document-demand authority that could be seen as expansive. Supporters, by contrast, framed the bill as necessary to stop deceptive marketing, protect consumers from illegal gambling, and give state officials effective tools to investigate and enforce the law.