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Oklahoma, Tennessee advance sweepstakes casino restriction bills

A bill proposing a ban on online sweepstakes casinos, Oklahoma SB 1589, has advanced unanimously through a House committee. If enacted, the bill would make operating such platforms a felony and includes a specific carveout for tribal nations to run their own online social casinos.

ByCasinoRankr Editorial Team|Updated May 19, 2026

Oklahoma's Senate Bill 1589, which would expand the state's gambling definitions to cover virtual currencies and sweepstakes casinos, cleared the House Criminal Judiciary Committee with a 6-0 vote on April 7, 2025, according to a Covers.com report citing the Oklahoma Legislature. Tennessee's House Bill 1885, which targets any virtual currency system used in sweepstakes or social casinos, is on the calendar for the House Finance, Ways, and Means Subcommittee after passing the House State and Local Government Committee on March 31, 2025, according to a Covers.com report citing the Tennessee Legislature.

If enacted, both bills would restrict or eliminate sweepstakes casino access for players in their respective states. Sweepstakes casinos operate under sweepstakes law rather than gaming licenses and allow players to redeem virtual currencies for cash prizes. The bills reflect an accelerating regulatory push against the sweepstakes model, which operators in multiple states are already navigating through legal and product changes.

Oklahoma SB 1589

SB 1589, introduced by Sen. Todd Gollihare and Rep. Scott Fetgatter, passed the Oklahoma Senate 48-0 in March 2025, according to a Covers.com report citing the Oklahoma Legislature. The bill now heads to the House Judiciary and Public Safety Oversight Committee.

The bill would expand Oklahoma's definition of gambling to include online sweepstakes casinos and virtual currencies tied to cash-equivalent rewards, according to the Covers.com report. Violations would be a class C2 felony, punishable by a fine of $500 to $2,000.

The bill includes a tribal exemption. Tribal operators could run online social casinos on tribal lands under the proposal, per the Covers.com report. That exemption would not extend to off-reservation commercial sweepstakes operators.

If passed and signed by the governor, SB 1589 would take effect November 1, 2025.

Tennessee HB 1885

Tennessee's HB 1885 takes a broader approach than some similar legislation. The bill avoids specific references to dual-currency systems and targets any virtual currency system used in sweepstakes or social casinos, according to the Covers.com report.

Some operators, including Card Crush and ClubWPT Gold, have shifted to single-currency systems to navigate laws targeting dual-currency structures, per the Covers.com report. HB 1885's broader language may close that workaround.

Tennessee's legislative session ends April 24, 2025, leaving limited time for HB 1885 to complete the legislative process.

What happens next

SB 1589 must clear the House Judiciary and Public Safety Oversight Committee before advancing to the full Oklahoma House. HB 1885 must pass the Finance, Ways, and Means Subcommittee and then the full committee before reaching the Tennessee House floor. Both bills face tight deadlines before their respective legislative sessions conclude.

The exact text of both bills, the full list of states that have passed similar measures, and official statements from legislators were not available in the source material reviewed for this report.

Sources

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    Bill Information for SB 1589 - Oklahoma Legislature

    Regulatory source · Tier 1 · oklegislature.gov · Accessed 2026-04-11T07:00:11.422Z

    Supports: Reported topic: Bill Information for SB 1589 - Oklahoma Legislature

    Source notes: Claim mapping inferred from the stored source title; verify the source before relying on material claims.

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    [PDF] Senate Journal Jan 01, 2002 - Oklahoma Senate

    Regulatory source · Tier 1 · oksenate.gov · Accessed 2026-04-11

    Supports: Reported topic: Senate Journal Jan 01, 2002 - Oklahoma Senate

    Source notes: Claim mapping inferred from the stored source title; verify the source before relying on material claims.

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    Oklahoma Sweepstakes Ban Advances to House Committee - Yahoo

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    Supports: Reported topic: Oklahoma Sweepstakes Casino Ban Bill Advances in Legislature

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    Source · Unclassified · covers.com · Accessed 2026-04-11T07:00:11.422Z

    Supports: Reported topic: Oklahoma Sweepstakes Ban Advances to House Committee

    Source notes: Claim mapping inferred from the stored source title; verify the source before relying on material claims.

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If enacted, SB 1589 would expand Oklahoma's gambling definition to include virtual currencies tied to cash-equivalent rewards, effectively restricting or banning sweepstakes casino operations in the state. Violations would be a class C2 felony. A tribal exemption would allow tribal operators to run social casinos on tribal lands.
Some sweepstakes casino operators have shifted from dual-currency to single-currency models to avoid laws that specifically target dual-currency structures. HB 1885's language covers any virtual currency system, which would close that workaround if the bill becomes law, according to a Covers.com report.
Oklahoma's SB 1589 would take effect November 1, 2025, if passed and signed. Tennessee's legislative session ends April 24, 2025, and HB 1885 must clear additional committee and floor votes before that deadline.