HB 1885

This bill prohibits gambling; the operation of gambling devices; and the operation, conducting, or commercial promoting of online sweepstakes games and other forms of online or app-based gambling as offenses against the public health, safety, and welfare of this state. However, "gambling"" does not include a lawful business transaction; annual events operated for the benefit of nonprofit organizations authorized by the general assembly; a state lottery authorized by amendment to the Constitution of Tenne ss ee, if approved by the general assembly; a fantasy sports contest in accordance with the Fantasy Sports Act; lawfully accepting or placing a wager on a sporting event in accordance with the Tennessee Sports Gaming Act; or a low-level sports entertainment pool. This bill provides that the following acts violate the Tennessee Consumer Protection Act of 1977 and are subject to the penalties and remedies of that Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and damages:  Offering or accepting wagers or entry fees for gambling to a person located within this state.  Operating, conducting, or commercially promoting online sweepstakes games or other forms of online or app-based gambling within this state.  Selling or distributing gambling devices within this state.  Permitting gambling devices to be operated upon premises owned, leased, managed, or otherwise controlled by a person within this state.  Supporting, facilitating, or assisting in the operation of online sweepstakes games or other gambling within this state. This bill prohibits costs for bringing an action for the above violations from being taxed to the attorney general or this state. Further, information and documents received, created, or maintained by the attorney general for enforcement must be kept co nfidential and are not subject to disclosure under the Tennessee Public Records Act. AUTHORITY OF THE ATTORNEY GENERAL Present law describes the investigative authority for the attorney general. This bill expands such authority if the attorney general has reason to believe that a person is engaging in, has engaged in, or is about to engage in a violation of state law, o r has reason to believe that it is in the public interest to conduct an investigation to ascertain whether a person is engaging in, has engaged in, or is about in engage in such a violation. The attorney general may (i) require a person with information re levant to the subject matter of the investigation to file a statement or report in writing about the facts and circumstances concerning the alleged violation and to make available any relevant material and information; (ii) examine under oath a person wit h information relevant to the investigation; and (iii) examine or sample merchandise relevant to the investigation. A request for information may be made in compliance with the Tennessee Rules of Civil Procedure, by delivering an executed copy to the per so n or their authorized agent; by mailing an executed copy via registered or certified mail to be served at the person's principal place of business, home, or last known address; or via personal service. A person may request a protective order to extend th e return date for a reasonable time within 10 days or prior to the return date specified in the request for information, whichever is shorter. This bill authorizes the attorney general to apply to the circuit or chancery court for an order compelling compliance with a request for information if a protective order is not entered and the person has not complied with the request for information. If the attorney general makes a showing that a person suspected of a violation or those who possess information about a violation are about to leave this state, then the court may order such persons to provide the attorney general with relevant informatio n, even if the attorney general has not previously issued a request for such information. Further, the court may forbid the removal of relevant documentary material in the possession of a person suspected of violating state law that is a proper subject of inquiry by the attorney general. This bill authorizes a civil penalty of not more than $1, 000 per document if a person who has received notice of a request for information from the attorney general removes, conceals, withholds, destroys, mutilates, falsifies, or alters documentary materi al with the intent to avoid, evade, or prevent compliance with the request. Any documents or records obtained by the attorney general pursuant to this provision are confidential and must not be publicly divulged except in legal proceedings. However, the above provisions of this bill do not apply to requests by the attorney general under the Tennessee Consumer Protection Act of 1977 or the Tennessee Human Rights Act. FANTASY SPORTS ACT This bill authorizes the sports wagering council to investigate violations of the Fantasy Sports Act. The attorney general also has the authority to investigate violations in accordance with the Tennessee Consumer Protection Act of 1977. Proceedings in itiated by the attorney general may be brought in Williamson County or another venue as authorized by law. Additionally, any contested case to which the sports wagering council is a party arising under the Fantasy Sports Act must be governed by the Unifo rm Administrative Procedures Act. This bill authorizes the sports wagering council to investigate and conduct a hearing with respect to a licensee or any other person upon information or a credible complaint that such person has violated the Fantasy Sports Act. ON MARCH 2, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2136, AS AMENDED. AMENDMENT #1 amends the definition of ""online sweepstakes game"" to include gambling in the form of a game, contest, or promotion that utilizes a virtual-currency, dual-currency, or multi-currency system."