The latest departures from the US sweepstakes casino market are drawing attention to what happens to player balances when an operator shuts down. Money Factory and CoinFrenzy have both announced closures, adding to a broader series of exits as states increase restrictions on sweepstakes platforms.
The two companies have taken different approaches to winding down their businesses. Money Factory stopped operations suddenly, while CoinFrenzy has given players until September 25 to use the remaining features of its platform.
Money Factory Leaves Players Waiting
Money Factory’s website displayed a closure notice on August 9, preventing users from logging in or redeeming sweeps tokens. The company said it had retained records connected with player accounts and outstanding requests.
“All player accounts, balances, and pending redemption requests have been recorded and preserved. Players with pending requests do not need to take any action — your request and your account records are on file.”
The notice did not state that refunds would be issued automatically. Money Factory also placed a separate message below the closure announcement seeking interest from parties that could acquire its assets.
That combination has raised questions about how outstanding redemption requests will ultimately be handled. The company’s closure also illustrates a particular issue within the sweepstakes model: players technically do not hold conventional gambling deposits.
Operators distinguish between coins purchased for play and sweeps tokens that can be redeemed for prizes. The redeemable tokens are described as having “no cash value,” a structure that supports the model’s legal position.
CoinFrenzy Sets a Longer Wind-Down
CoinFrenzy has stopped allowing new coin purchases, while players can continue using the platform and redeeming tokens before its planned September 25 shutdown.
Neither operator provided a specific reason for closing. Their departures come as several states have moved against sweepstakes casinos. New Jersey, New York, Indiana, Maine, Oklahoma, Louisiana and Tennessee have adopted laws that prohibit or restrict these platforms, while dozens of operators have closed during the past year.
Operators Look Beyond Sweepstakes Gaming
Some companies leaving the sweepstakes sector have continued with other gambling-related products. Kickr Games Play Ltd. shut its Kickr sweepstakes casino after receiving a cease-and-desist order from the Louisiana Gaming Control Board. It later launched GetGud, a real-money skill-games product that does not identify itself as a sweepstakes casino.
Prediction markets have also attracted operators from adjacent gambling businesses. Novig began as a peer-to-peer betting exchange, moved into sweepstakes and subsequently adopted a predictions model.
The sweepstakes market is unlikely to disappear completely because the business model remains permitted in some states. However, continuing closures are reducing the number of operators active in the sector.
Money Factory founder Trevor Pope and executives Clay Johnson and Jared Pope previously launched GammaSweet, a technology stack built for sweepstakes casino operators. CoinFrenzy owner Lucky Labz LLC has not indicated plans for another gambling venture.
For departing operators, the treatment of player redemptions remains a key issue. As more platforms close, the distinction between account records, pending requests and accessible funds becomes increasingly important to users.
Source:
“Sweepstakes Exodus Continues as Money Factory and CoinFrenzy Close Shop”, gamingamerica.com, August 11, 2026
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