Tennessee Removes Online Sweepstakes Casinos

In a decisive move, Tennessee authorities have initiated measures to eliminate a significant number of online sweepstakes casinos, accusing these platforms of operating illegal gambling activities under the guise of promotional gaming. Spearheaded by the state's Attorney General, this crackdown has compelled numerous companies to either restrict access for Tennessee residents or consider exiting the state entirely. This decision stems from a thorough investigation conducted by the Attorney General's Office, culminating in cease-and-desist letters being issued to nearly 40 online entities. Officials assert that each company targeted has either restricted Tennessee users' access or agreed to dismantle their sweepstakes operations in the foreseeable future.

Understanding the Structure of Sweepstakes Casinos

The structure of these online sweepstakes casinos presents itself as free-to-play, yet state attorneys highlight their resemblance to conventional gambling setups. As Tennessee Attorney General Jonathan Skrmetti explains, these platforms rely on two virtual currencies while offering casino-style games. "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," Skrmetti articulates. This arrangement enables these businesses to masquerade as promotional contests rather than gambling outlets. Skrmetti further reveals that this dual-currency mechanism acts as a façade, disguising the fact that real-money gambling occurs on these sites. According to state legal experts, such operations equate to an illegal lottery under Tennessee laws. Moreover, the lack of regulation surrounding these platforms leaves consumers without protections afforded to state-sanctioned gaming operators.

Nationwide Efforts Against Sweepstakes Casinos

The cease-and-desist orders targeted companies engaging in casino-style gaming through sweepstakes formats. Notable platforms that have confirmed compliance include American Luck, Chumba, Global Poker, High 5 Casino, and several others, totaling nearly 40 operators acknowledging the state's command. Each has either halted services to Tennessee residents or is preparing to cease their sweepstakes activities altogether. The Attorney General shared criticisms regarding the business practices of these platforms, cautioning consumers, "The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money." This local enforcement effort is part of a wider national initiative addressing unregulated sweepstakes gaming. As of now, Tennessee's gambling laws are limited to the state lottery and online sports betting, which launched in 2020. Proposals for online or physical casinos continue to face rejection from state leaders. Parallel actions are visible across the nation; states such as New York and California have recently enacted laws to prohibit sweepstakes operations, complete with embedded penalties. California's prohibition is set to commence this week, while New York's legislation was ratified earlier this month. Meanwhile, states like Connecticut, New Jersey, Montana, and Michigan have likewise taken regulatory or legislative actions against such platforms. Source: “Tennessee Moves to Shut Down Online Sweepstakes Casinos”, news.worldcasinodirectory.com, December 26 2025 By GamesAndCasino