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. ON APRIL 21, 2026, THE HOUSE SUBSTITUTED SENATE BILL 2136 FOR HOUSE BILL 1885, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 2136, AS AMENDED. AMENDMENT #2 rewrites the bill to, instead, prohibit the operation or possession of gambling devices and the operation, conducting, or commercial promotion of online or app-based gambling, expands the investigative authority of the attorney general throu gh requests for information and documents, and revises the sports wagering advisory council. PROHIBITION OF GAMBLING DEVICES AND ONLINE OR APP-BASED GAMBLING This amendment prohibits the operation or possession of gambling devices and the operation, conducting, or commercial promotion of online or app-based gambling. In addition to other penalties imposed by present law, a person who commits one or more of t he following acts is subject to the remedies described below: • Offers wagers or entry fees for gambling to a person located within this state or accepts wagers or entry fees for gambling from a person located within this state. • Operates, conducts, or commercially promotes online or app-based gambling within this state. • Sells or distributes gambling devices within this state. • Permits gambling devices to be operated upon premises owned, leased, managed, or otherwise controlled by a person within this state. • Supports, facilitates, or assists in the operation of gambling within this state. This amendment does not make unlawful or otherwise restrict lawful games permitted under or by the Tennessee Sports Gaming Act or Fantasy Sports Act, Tennessee nonprofit gaming laws, or the Tennessee education lottery corporation. This amendment provides that a violation constitutes a violation of the Tennessee Consumer Protection Act, is deemed an unfair or deceptive act or practice affecting trade or commerce, and is subject to the penalties and remedies as provided in the Tenne ssee Consumer Protection Act. Costs must not be taxed against the attorney general or this state for actions brought under this amendment. This amendment provides that information and documents received, created, or maintained by the attorney general as part of the administration and enforcement of this amendment are confidential and are not subject to disclosure. Such confidentiality is n ot waived if the information and data is shared or has been shared with a state or federal agency or a law enforcement agency. This amendment removes the exception for gaming within all prosecutions for misdemeanors and requires them to be commenced within the 12 months after the offense has been committed INVESTIGATIVE AUTHORITY OF THE ATTORNEY GENERAL This amendment authorizes, if the attorney general has reason to believe that a person is engaging in, has engaged in, or is about to engage in an unlawful act or practice under state law that is a proper subject of inquiry by the attorney general, or ha s reason to believe it to be in the public interest to conduct an investigation to ascertain whether a person is engaging in, has engaged in, or is about to engage in such act or practice, the attorney general to do all of the following: • Require a person with information relevant to the subject matter of the investigation to file a statement or report in writing, under oath or otherwise, as to all the facts and circumstances concerning the alleged violation and to furnish and make avail able for examination all documentary material and information relevant to the subject matter of the investigation. • Examine under oath a person with information relevant to the subject matter of the investigation. • Examine or sample all merchandise deemed relevant to the subject matter of the investigation. Protective Orders This amendment provides that prior to the return date specified in the attorney general's request for information, or within ten days following notice of such a request, whichever is shorter, a person from whom information has been requested may petition the circuit or chancery court of the county containing the office from which the attorney general made the request, stating good cause, for a protective order to extend the return date for a reasonable time, or to modify or set aside the request. The att or ney general must receive at least one days' notice of such a petition and must be given an opportunity to respond. This amendment provides that if no protective order from the court is secured and the written request by the attorney general is not complied with by its return date, the attorney general, upon notice to the person requested to provide information, may a pply to the circuit or chancery court of the county containing the office from which the attorney general made the request, for an order compelling compliance with the request made. Court Authority This amendment authorizes the court, upon a showing by the attorney general to the circuit or chancery court of the county containing the office from which the attorney general made or could have made the request that the attorney general has reason to b elieve that: (i) a person is engaging in, has engaged in, or is about to engage in an unlawful act or practice under state law that is a proper subject of inquiry by the attorney general, or has reason to believe it to be in the public interest to conduct a n investigation to ascertain whether a person is engaging in, has engaged in, or is about to engage in such act or practice, (ii) the persons who are committing, have committed, or are about to commit such acts or practices or who possess the relevant doc umentary material have left this state or are about to leave this state, and (iii) such an order is necessary for the enforcement of any state law that is a proper subject of inquiry by the attorney general, the court may order such persons to comply rega rd less of whether the attorney general has made a prior request for information. This amendment authorizes the court to also, immediately and without notice, forbid the removal from any place, concealment, withholding, destruction, mutilation, falsification, or alteration by any other means of documentary material in the possession, custody, or control of a person believed by the attorney general to be connected with acts or practices which violate state law that is a proper subject of inquiry by the attorney general. Penalties This amendment provides that a person who has received notice of a request for information, or of an order described above, and with the intent to avoid, evade, or prevent compliance, in whole or in part, with a civil investigation or order, removes from any place, conceals, withholds, destroys, mutilates, falsifies, or by any other means alters documentary material in the possession, custody, or control of a person subject to such notice, is subject to a civil penalty of not more than $1, 000 per document, recoverable by this state in addition to any other appropriate sanction. Production of Information and Confidentiality This amendment requires documentary material or merchandise requested to be produced for inspection and copying during normal business hours at the principal office or place of business of the person possessing such documentary material or merchandise, o r at such other time and place as may be agreed upon by the possessor and the attorney general. This amendment provides that all testimony, books, documents, or other writings, records, or tangible objects obtained by the attorney general are confidential and must not be publicly divulged by the office of the attorney general except in the discharg e of the duties of the office or in legal proceedings in which the state is a party. All other documentary material, answers to written interrogatories, and transcripts of oral testimony that are voluntarily provided to the attorney general as part of an i nvestigation must be treated as if obtained pursuant to a request issued if said materials were obtained pursuant to an investigative demand or similar process issued by another state or federal attorney general or law enforcement agency, obtained from a state or federal attorney general or law enforcement agency pursuant to a statutory obligation to produce, or provided by a person with information relevant to the subject matter of the investigation. In conducting an inquiry, the attorney general, whene ve r such aid is determined to be necessary and desirable, may request the aid of an agency of this state, and such agency, as requested, is required to give full aid, support, and cooperation to the attorney general in such investigation. Service This amendment authorizes service of a notice, order, or request for information by the attorney general to be made in compliance with the Tennessee Rules of Civil Procedure or by any of the following: • Delivering a duly executed copy of the notice, order, or request for information to the person to be served or to a partner or to an officer or agent authorized by appointment or by law to receive service of process on behalf of the person to be served. • Mailing by registered or certified mail a duly executed copy of the notice, order, or request for information addressed to the person, to be served at the person's principal place of business in this state, or if the person has no place of business with in this state, to the person's principal office, place of business, home, or last known address. • Personal service, pursuant to present law. Applicability Limitations This amendment does not apply to requests by the attorney general under the Tennessee Consumer Protection Act, or the Tennessee Human Rights Act. No provision of this amendment can be construed to limit, modify, or supersede the Tennessee Consumer Prote ction Act or the Tennessee Human Rights Act. SPORTS WAGERING COUNCIL This amendment changes the name of the of the sports wagering advisory council to the sports wagering council and applies those changes throughout present law. This amendment adds to the duties of the sports wagering council that the council is required to conduct investigations regarding alleged violations of the requirements for fantasy sports operators and make evaluations as necessary to determine if licens ees and other persons are complying with present law. This amendment authorizes the sports wagering council to investigate and conduct a hearing with respect to a licensee or any other person upon information that a licensee or other person has violated present law pertaining to fantasy sports, or upon rece ipt of a credible complaint from a person that a licensee or other person has violated present law pertaining to fantasy sports. If the sports wagering council determines that the licensee or other person has violated present law, the sports wagering cou nc il may do any of the actions described within present law. This amendment revises the investigative and enforcement authority by providing that in addition to the authority of the sports wagering council to investigate violations of and enforce compliance, the attorney general may investigate violations pertainin g to the requirements for fantasy sports operators in accordance with the Tennessee Consumer Protection Act. The attorney general may institute proceedings involving alleged violations pertaining to the requirements for fantasy sports operators in Willia ms on County circuit or chancery court or another venue otherwise permitted by law. This amendment also revises judicial review for the sports wagering council by providing that the Uniform Administrative Procedures Act, governs all matters and procedures regarding the hearing and judicial review of any contested case arising under pres ent law pertaining to fantasy sports to which the sports wagering council is a party. ON APRIL 23, 2026, THE SENATE NON-CONCURRED IN HOUSE AMENDMENT #2. ON APRIL 23, 2026, THE HOUSE REFUSED TO RECEDE IN ITS ACTIONS IN ADOPTING AMENDMENT #2. ON APRIL 23, 2026, THE SENATE REFUSED TO RECEDE IN ITS ACTION IN NON-CONCURRING IN HOUSE AMENDMENT #2 AND APPOINTED A CONFERENCE COMMITTEE. ON APRIL 23, 2026, THE HOUSE APPOINTED A CONFERENCE COMMITTEE. ON APRIL 23, 2026, THE SENATE ADOPTED THE CONFERENCE COMMITTEE REPORT. ON APRIL 23, 2026, THE HOUSE ADOPTED THE CONFERENCE REPORT AND MADE IT THE ACTION OF THE HOUSE."