Tennessee attorney general shuts down 38 online sweepstakes casinos

Tennessee Attorney General Jonathan Skrmetti last week shut down nearly 40 online sweepstakes casinos, capping a nationwide 2025 crackdown on platforms regulators say illegally offer gambling through “dual-currency” models.

Skrmetti’s office sent cease-and-desist letters to 38 websites, which the attorney general said had "indicated their intent to comply."

The recipients included sites such as Chumba Casino, Fortune Coins, Global Poker, Hello Millions, High 5 Casino, Legendz, LuckyLand, McLuck, Modo, Sportzino, Stake, WOW Vegas, Yay Casino, and Zula Casino, among others.

“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Skrmetti said in a release. He noted that, while these platforms often appear legitimate, they operate without oversight that would 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.”

According to the office, the “dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms.” Officials say the model constitutes an illegal lottery and violates state gambling and consumer protection laws.

Several operators had already exited or announced plans to scale back in Tennessee prior to the Attorney General’s Dec. 29 announcement. In late November, VGW—the owner of Chumba Casino, LuckyLand Slots, and Global Poker—told SBC Americas that it would end Sweeps Coin gameplay across all three sites in the state. High 5 Casino and Stake.us also notified Tennessee customers that they would discontinue similar offerings.

Throughout the year, multiple states have taken action. Lawmakers in New York and California passed bans on sweepstakes casinos, while regulators in several states issued hundreds of cease-and-desist letters.

“This issue has brought lawmakers together because it represents illegal gambling and revenue theft in many states,” said West Virginia Delegate Shawn Fluharty, president of the National Council of Legislators from Gaming States and head of government affairs at operator Play’n GO.

Other states taking action include Connecticut, Montana, and New Jersey, which passed bans, while Louisiana’s Governor Jeff Landry vetoed a prohibition bill but allowed regulators to enforce restrictions. The Louisiana Gaming Control Board subsequently sent 40 cease-and-desist letters to illegal operators.

The cease-and-desist campaign is part of a broader push against unauthorized gambling in Tennessee, with the Tennessee Sports Wagering Council having issued its own orders to unlicensed sports betting platforms since 2024, prompting operators such as Bovada, BetOnline, and Sportzino to withdraw sports betting products from the state.

“This reflects widespread concern over platforms using sweepstakes language as a loophole to run unregulated gambling operations,” Skrmetti said, noting the action should serve as a warning to other operators.

In cases where compliance was not achieved, the Sports Wagering Council issued fines that were sometimes unpaid, leading the regulator in July 2025 to seek assistance from Skrmetti’s office to convert those penalties into fully enforceable judgments.

Even where bills have fallen short, several states are preparing new legislation for 2026. Florida, Maine, and Indiana have already filed sweepstakes prohibition bills, and markets including Oklahoma could follow suit, according to industry sources.

The first legislative discussion of sweepstakes casinos in 2026 is expected on Jan. 14, when a Maine bill targeting the industry is scheduled for a committee hearing.