Online sweepstakes casinos are banned in both Louisiana and Tennessee. Both states passed bans in May 2026, but the laws differ in several ways.
Louisiana and Tennessee impose criminal penalties on operators, but Louisiana’s penalties are more severe. Nevertheless, most sweepstakes casinos entirely existed in Tennessee. A few famous operators switched to social casino play well before the Tennessee law went into effect, though.
Below, we’ll discuss current sweepstakes laws in Tennessee and Louisiana. We’ll also cover state-by-state eligibility across the United States.
Governor Jeff Landry of Louisiana signed two separate bills into law to ban sweepstakes casinos. On May 11, 2026, he signed House Bill 53, which added operating an online sweepstakes casino site to the list of activities considered gambling racketeering.
On May 15, 2026, Landry signed House Bill 883 into law, the online gambling enforcement law. Both laws took effect on August 1, 2026.
The penalties for operating a sweepstakes casino in the state are among the harshest in the country. Most or all operators exited the market to avoid charges or prosecution.
HB 883 imposed fines of up to $40,000 for each violation and up to 5 years in prison. Those who failed to comply with the new law were sent cease-and-desist orders within 10 days.
The law also allowed for temporary or permanent court injunctions to block platforms and seize any digital assets the site might have in Louisiana.
HB 53 is the law that got operators’ attention the most. It added the operation of dual-currency sweepstakes casino games to the racketeering statutes.
Those found guilty could receive fines of up to $1 million and up to 50 years in prison. It also includes seizing all financial profits, plus the servers, tech equipment, and other property tied to the operation.
Moreover, House Bill 53 targets not only the operator but also third-party individuals who helped run the site. This includes payment processors, platform providers, geolocation services, and corporate entities. Executives at those firms can be prosecuted.
Exit dates from the Louisiana sweepstakes casino market varied widely. VGW sites like Chumba Casino and the soon-to-be-defunct LuckyLand Slots disabled Sweeps Coin play on July 17, 2025.
Stake.us left Louisiana even before the law was signed on March 21, 2026. Stake.us withdrew as soon as House Bill 53 and House Bill 883 cleared their respective legislative committees.
B-Two Operators sites like McLuck and Hello Millions exited in Louisiana on July 30, 2026.
Crown Coins and Modo both left the market on the final possible day: July 31, 2026. Both sides permanently geoblocked players in the Pelican State about 24 hours before the law took effect.
A week or two after Gov. Landry signed his bills, Governor Bill Lee of Tennessee signed his own online sweepstakes casino ban into law. On May 22, 2026, Bill Lee signed Senate Bill 2136, which is companion legislation to House Bill 1885. The new law went into effect immediately.
Like Louisiana, Tennessee also adds criminal penalties to severe civil penalties.
Under SB 2136, officially referred to as the Tennessee Consumer Protection Act (TCPA), State Attorney General Jonathan Skrmetti has the authority to take several actions against operators. He can issue restraining orders and permanent injunctions against sweepstakes sites. AG Skrmetti can also issue civil fines of up to $15,000 per violation.
The TCPA also makes it a Class E Felony to operate a sweepstakes casino site in the state. If convicted, the operator can be sentenced for up to six years in prison. The corporation involved faces steep fines.
Unlike Louisiana, Tennessee does not target most third-party technology services such as geolocation tech or game providers, as well as payment processors.
The law states anyone who operates, conducts, or commercially promotes such sites might be charged. While the law targets the primary operator, officials could also target third-party affiliate sites, paid advertisers, and influencers if they help drive traffic to banned sweepstakes casino sites.
Most operators exited the Tennessee market completely. In other states without criminal penalties, operators sometimes switch to a single-currency social casino business model.
In the Volunteer State, top operators like Crown Coins, Hello Millions, Stake.us, and McLuck stopped operations within days. Chumba Casino did the same. As a result, residents can’t play at a sweepstakes casino in Tennessee.
Social casino gaming sites like DoubleDown Casino, Zynga Poker, Slotomania, and Big Fish Gaming all operate in Tennessee. Because they do not use a dual-currency system, they are considered legal in Tennessee.
Players cannot redeem virtual coins for real-world prizes, though. They can buy these coins, but gaming is for entertainment purposes only.
The same sites remain active in Louisiana, too. Because the zero prize model means coins or tokens can never be redeemed for cash, gift cards, or physical prizes, Louisiana authorities deem them legal.
Therefore, residents or visitors to Tennessee or Louisiana cannot play at online sweepstakes casinos. Operators are experimenting with single-currency social casino options in other states.
Others have launched new sites with less legal liability. Players in Tennessee or Louisiana should not expect they will be able to play at sites that allow prize or gift card redemptions anytime soon.
