Tennessee has launched a significant effort to remove dozens of online sweepstakes casinos operating in the state, asserting that these platforms bypass legal gambling regulations while presenting themselves as legitimate entertainment options. Led by Attorney General Jonathan Skrmetti, the crackdown has prompted multiple operators to restrict access for Tennessee residents or plan complete market exits.
The Attorney General’s Office issued a statement (pdf) that nearly 40 online platforms received formal cease-and-desist letters after investigations determined the sites violated state gambling and consumer protection laws. Each company contacted has either disabled the unlawful portions of its website or committed to leaving the Tennessee market in the coming weeks.
Sweepstakes Casinos Under Legal Scrutiny
Officials argue that sweepstakes casinos advertise as free-to-play games but are structured to allow cash-like rewards, creating an illegal gambling environment. Skrmetti explained, “Online sweepstakes casinos typically allow participants to play traditional casino-style games like slot machines, table games, or bingo with two types of virtual currencies, one of which can be redeemed for cash or other real-world prizes.”
The dual-currency system, he added, “serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms.” State attorneys determined that this approach constitutes an illegal lottery under the Tennessee Constitution. The lack of regulatory oversight exposes consumers to unfair practices, as these sites operate outside licensed gaming rules.
Operators Respond to Enforcement
Platforms impacted by the action include American Luck, Chumba, Global Poker, High 5 Casino, Stake, Crown Coins Casino, McLuck, Modo, WOW Vegas, and others. All have either restricted access for Tennessee residents or committed to shutting down operations entirely.
Skrmetti warned the public about the risks of participating in sweepstakes gaming. “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” he said. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day they are not. They avoid any oversight that could ensure honesty or fairness. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
Part of a National Crackdown
The Tennessee enforcement aligns with a growing national effort to restrict unregulated sweepstakes casinos. Other states, including New York, California, Connecticut, New Jersey, Montana, and Michigan, have taken similar measures to ban or limit such platforms. New York and California enacted legislation this year, with California’s law taking effect this week. Michigan has also forced operators to shut down or face potential illegal gambling charges.
Tennessee allows only limited forms of gambling, such as the state lottery and regulated online sports betting, which launched in 2020. Lawmakers have consistently resisted broader online or brick-and-mortar casino legalization, framing this enforcement as part of a commitment to maintain legal gambling standards and protect consumers.
Source:
“Tennessee Moves to Shut Down Online Sweepstakes Casinos“, news.worldcasinodirectory.com, December 30, 2025
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