Tennessee, Louisiana, Oklahoma Ban Sweepstakes Casinos; Iowa Acts

Tennessee, Louisiana and Oklahoma have adopted laws that ban online sweepstakes casinos that use dual‑currency systems, while Iowa passed a law expanding regulators’ power to go after unlicensed operators offering unlawful sweepstakes.

In Tennessee, Gov. Bill Lee signed SB 2136. The law defines online sweepstakes games as internet platforms that use virtual or dual currencies obtained through purchases, bonuses or promotions and exchangeable for prizes or cash equivalents. The measure took effect immediately upon the governor’s signature.

Louisiana approved two bills. Gov. Jeff Landry signed HB 883, which amends the state’s gambling‑by‑computer statute to cover online and mobile games that simulate gambling and use dual currencies. He also signed HB 53, which adds “gambling by electronic sweepstakes device” as a predicate offense under the state’s racketeering statute. Both Louisiana laws take effect August 1.

Oklahoma’s legislature passed SB 1589 and overrode Gov. Kevin Stitt’s veto to ban online casino games that involve a “representative of value,” language that covers dual‑currency sweepstakes platforms. That law is scheduled to take effect November 1.

Iowa took a different approach. Gov. Kim Reynolds signed SF 2289, which expands the Iowa Racing and Gaming Commission’s authority to pursue unlicensed gambling operators, including those running unlawful sweepstakes. The law clarifies the agency’s power to issue cease‑and‑desist orders and seek injunctive relief; parts went into effect May 15, and the remaining provisions take effect July 1.

Regulatory action and state bans have led many operators to restrict service or exit states. Illinois regulators issued cease‑and‑desist letters to 65 operators, prompting companies to add Illinois or Tennessee to restricted territories, switch to Gold Coin play only in some states, or withdraw entirely. Recent operator moves include Stake.us adding Illinois as restricted, Pulsz and Pulzs Bingo shifting Indiana to Gold Coin play only, Punt and Chanced exiting Illinois, Sweeps USA exiting Tennessee and Washington, D.C. then reentering Kentucky, and multiple other platforms limiting or ending service in specific states.

Other states with recent bans include Indiana and Maine, whose direct bans became effective in July. Five states adopted dual‑currency bans in 2025: California, Connecticut, Montana, New Jersey and New York. Nevada has strengthened enforcement tools against unlicensed operators. Idaho, Michigan and Washington have long been off‑limits due to existing laws or enforcement actions. Minnesota considered a ban in the state Senate but the proposal did not clear the House before adjournment.

Lawmakers and regulators in several states remain active on related issues, with Ohio and Pennsylvania among jurisdictions where new bills could still be filed. Delaware and Rhode Island have limited time remaining in their sessions.