Tennessee Advances Sweeps Ban and Prediction Market Penalties While Oklahoma Stalls on Sports Betting

Tennessee passes SB 2136 to ban sweepstakes casinos, while Colorado drops a prop bet ban and Oklahoma's sports betting push faces a Senate rejection.

By: AXL Media

Published: Apr 24, 2026, 11:06 AM EDT

Source: Information for this report was sourced from Gambling Insider

Tennessee Implements Strict Prohibitions on Sweepstakes and Market Manipulation

Tennessee has emerged as a primary battleground for the regulation of gambling-adjacent sectors. The state legislature successfully passed SB 2136, a bill that establishes a direct ban on dual-currency sweepstakes casinos. Once enrolled and signed by Governor Bill Lee, the measure will take effect immediately. Additionally, the House passed SB 1992, which classifies the manipulation of events tied to prediction market interests as a felony. These moves signal a aggressive stance against emerging digital betting models and insider trading concerns within the state.

Oklahoma Sports Betting Rejection and Potential Reconsideration

In Oklahoma, a renewed effort to legalize sports betting faced a setback in the Senate. House Bill 1047, which was recently amended to include support from tribal leaders, public universities, and professional sports teams like the Oklahoma City Thunder, was ultimately rejected. Senators cited ongoing concerns regarding gambling addiction and the extent of tribal control over the market. However, supporters filed a notice to reconsider, indicating that negotiations between the legislature and tribal stakeholders remain active and a revival of the bill is possible.

Colorado Legislators Retain Proposition Bets for Fiscal Stability

Colorado lawmakers significantly amended SB 131 by removing a proposed ban on proposition (prop) bets. The decision followed a fiscal analysis revealing that prop bets account for 25% of all wagers in the state; legislators feared the ban would lead to a substantial loss in tax revenue. Despite dropping the prop bet restriction, SB 131 continues to advance with provisions that limit sportsbooks' ability to restrict "sharp" bettors and implement stricter advertising guidelines. Parallel legislation, SB 163, seeks to consolidate regulatory power by transferring racing commission authority to the Limited Gaming Control Commission.