Tennessee Acts to Remove Online Sweepstakes Casinos

Tennessee authorities have moved to block a large number of online sweepstakes casinos, arguing that the platforms function as illegal gambling operations while presenting themselves as promotional gaming sites. The action, led by the state’s Attorney General, has already pushed dozens of companies to restrict access for residents or prepare to withdraw from the Tennessee market.

After an investigation, the Attorney General’s Office sent cease-and-desist letters to nearly 40 online platforms, concluding that they violated state gambling and consumer protection laws. Officials said every company contacted has either disabled access for Tennessee users or agreed to shut down its sweepstakes offerings in the near future.

How Sweepstakes Casinos Are Structured

Online sweepstakes casinos often market themselves as free-to-play, but state attorneys said their design closely resembles traditional gambling. Attorney General Jonathan Skrmetti explained that these sites rely on two types of virtual currency while offering casino-style games. He said, “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.”

According to the Attorney General’s Office, this setup allows companies to portray their operations as promotional contests rather than gambling. Skrmetti added, “This dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms.” State lawyers determined that this model constitutes an illegal lottery under the Tennessee Constitution.

Officials also said that because these platforms are unregulated, consumers lack protections that apply to licensed gaming operators.

Platforms Agree to Leave the State

The cease-and-desist orders targeted companies offering casino-style games through sweepstakes mechanics. Platforms that confirmed compliance include American Luck, Chumba, Global Poker, High 5 Casino, Stake, Crown Coins Casino, McLuck, Modo, WOW Vegas, along with numerous others. In total, almost 40 operators acknowledged the state’s directive.

Officials said each company either restricted its websites so they are no longer available to Tennessee residents or agreed to shut down sweepstakes operations soon. The Attorney General criticized the business practices behind these platforms and warned consumers to be cautious. “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Skrmetti said.

Part of a National Push

Tennessee officials described the enforcement effort as part of a broader national response to unregulated sweepstakes gaming. State law allows only limited forms of gambling, including the state lottery and regulated online sports betting, which began operating in 2020. Leaders in the state have consistently rejected proposals for online or physical casinos.

Other states have taken similar steps. New York and California enacted laws this year banning sweepstakes operators, with penalties built into enforcement. California’s ban takes effect this week, while New York’s law was signed earlier this month. Connecticut, New Jersey, Montana, and Michigan have also moved against such platforms through legislation or enforcement actions.

Source:

“Tennessee Moves to Shut Down Online Sweepstakes Casinos”, news.worldcasinodirectory.com, December 26 2025