Sweepstakes Casino Ban Advances in Tennessee and Maryland as States Close the Loophole

Sweepstakes casinos are facing coordinated crackdowns across the US, with Tennessee and Maryland moving quickly to shut down the model. Tennessee's House committee approved HB 1885 unanimously, 21-0, on 1 April, while Maryland's enforcement bill cleared the House 135-1. Both states are targeting the dual-currency model that sweepstakes platforms use to operate without traditional gambling licenses.

Tennessee Votes 21-0 to Shut Down Sweepstakes Platforms

HB 1885 defines sweepstakes casinos as any online platform that uses virtual currency for "gambling of any kind," including slot-style games, video poker, table games, bingo, and unlicensed sports wagering, where that currency is exchangeable for prizes or cash. Penalties reach USD 15,000 per violation.

The bill passed the House State and Local Government Committee and now heads to the Finance, Ways and Means Committee. The Tennessee Senate already passed its companion bill, SB 2136, by a 32-0 vote. The legislative session ends on 24 April, putting both chambers on a tight timeline to reconcile.

Tennessee's Attorney General sent cease-and-desist letters to 40 sweepstakes operators in late 2025. Chumba, McLuck, Stake.us, Crown Coins, High 5 Casino, and RealPrize all indicated they would shut down Tennessee operations.

Maryland Advances Ban as Baltimore Sues Five Operators

Maryland advanced two bills. HB 1226 is an enforcement measure that passed 135-1. HB 295 defines "interactive games" using multi-currency systems as illegal gambling, carrying fines of USD 10,000 to USD 100,000 and up to 3 years imprisonment. That bill passed the House 105-24 and has been referred to the Senate Budget and Taxation Committee.

The Maryland Lottery and Gaming Control Agency previously issued cease-and-desist orders. VGW, which runs Chumba Casino, Luckyland Slots, and Global Poker, did not comply and received second notices in November 2025. Baltimore filed a lawsuit in March 2026 against five operators: High 5, Stake, Pulsz, McLuck, and VGW.

At least 33 operators have already voluntarily left the Maryland market.

Eight More States Are Moving to Follow

These moves fit a broader pattern of sweepstakes casino bans across the US. Indiana passed a sweepstakes ban, awaiting the governor's signature. Oklahoma, Virginia, and Iowa have advanced bills through one chamber. Legislation is also being considered in Maine, Hawaii, Louisiana, and Florida.

Maryland will not legalize online casinos in 2026. Lawmakers have instead chosen to ban unauthorized platforms rather than regulate them.

What Players in Affected States Should Do Now

Sweepstakes casinos with real prizes including platforms like Chumba, Stake.us, and McLuck that are built their appeal around no-deposit-required access, using virtual currency systems to offer casino-style games and real-money redemptions without the wagering requirements that traditional no deposit bonuses carry.

If you currently play on a sweepstakes platform in Tennessee or Maryland, check whether your operator still accepts players from your state. Several platforms have already proactively geo-blocked those states.

The question is no longer whether sweepstakes casinos are under threat — it's how many states act before the end of the year. For players in Tennessee and Maryland, the window is already closing.