Tennessee Enforcement Push Ends Sweepstake Casino Access

Tennessee has moved to eliminate online sweepstakes casinos from operating within the state after determining that the platforms rely on structures prohibited under state law. The action follows a formal investigation that concluded these sites run unregulated gambling while presenting themselves as promotional entertainment.

The Attorney General’s Office confirmed that cease-and-desist letters were delivered to almost forty online sweepstakes casinos found to be offering casino-style games to Tennessee residents. Officials said every platform contacted either disabled the offending portions of its services or agreed to shut down its sweepstakes operations on a defined timetable, bringing their activity in the state to an end.

Dual-currency systems central to state findings

State officials focused their legal analysis on how sweepstakes platforms structure gameplay and rewards. Investigators determined that the platforms use a system designed to simulate real-money gambling while avoiding regulatory obligations. Attorney General Jonathan Skrmetti explained the setup, stating, “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 design allows operators to argue that gameplay falls under promotional sweepstakes rather than gambling. Skrmetti rejected that position, saying, “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 concluded that the model meets the legal definition of an illegal lottery under the Tennessee Constitution. Officials also cited violations of consumer-protection laws, noting that sweepstakes casinos operate without the regulatory safeguards required of licensed gambling operators. As a result, players do not receive protections related to fairness, transparency, or dispute resolution.

Nearly forty operators agree to comply

The cease-and-desist notices targeted platforms offering slots, table games, and bingo-style products through sweepstakes mechanics. Companies that confirmed compliance included American Luck, Chumba, Global Poker, High 5 Casino, Stake, Crown Coins Casino, McLuck, Modo, WOW Vegas, and numerous others.

In total, nearly forty operators acknowledged the state’s action. According to officials, each company either restricted access for Tennessee users or committed to shutting down its sweepstakes offerings entirely within weeks. The Attorney General’s Office described the response as uniform across all recipients of the letters.

Skrmetti warned consumers about the risks of using these platforms and criticized how they present themselves to players. “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.”

Enforcement aligns with actions in other states

Tennessee officials described the crackdown as part of a wider pattern of enforcement unfolding across the United States. State law continues to limit legal gambling to the lottery and regulated online sports betting, which launched in 2020. Tennessee lawmakers and state leadership have repeatedly rejected proposals to expand casino gambling, either online or in physical venues.

Other states have taken similar steps in recent months. New York and California both passed legislation banning sweepstakes casinos, with California’s law taking effect this week and New York’s measure signed earlier this month. Connecticut, New Jersey, and Montana have also enacted prohibitions, while Michigan authorities have forced several sweepstakes operators to shut down or face illegal gambling charges.

The Attorney General’s Office said the Tennessee action sends a clear signal to any sweepstakes casino still operating in the state or considering entry into the market. Officials emphasized that platforms attempting to rely on sweepstakes language to bypass gambling laws should expect enforcement rather than accommodation.

Source:

Tennessee Moves to Shut Down Online Sweepstakes Casinos, news.worldcasinodirectory.com, December 30, 2025