Tennessee officials have taken decisive steps to remove dozens of online sweepstakes casinos from the state, arguing that the platforms operate outside the law while presenting themselves as legitimate gaming options. The effort, led by Attorney General Jonathan Skrmetti, has already resulted in multiple operators restricting access for Tennessee residents or preparing to shut down their sweepstakes offerings entirely.

The Attorney General’s Office issued a statement (pdf) in which it confirmed that nearly 40 online platforms received formal cease-and-desist letters after investigators determined the sites violated state gambling and consumer protection laws. According to the office, each company contacted has either disabled the unlawful portions of its website or agreed to exit the Tennessee market in the near future.

State Challenges Sweepstakes Casino Structure

Online sweepstakes casinos commonly advertise themselves as free-to-play entertainment sites, yet state officials argue the structure masks prohibited gambling activity. Skrmetti described how these platforms operate, saying, “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 attorney general said the design allows companies to claim they are running promotional sweepstakes rather than gambling operations. He 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 concluded that this model amounts to an illegal lottery under the Tennessee Constitution. The Attorney General’s Office also stated that the lack of regulatory oversight exposes consumers to unfair practices, since the platforms avoid the controls required of licensed gaming operators.

Operators Ordered to Exit Tennessee Market

Cease-and-desist letters were sent to platforms offering casino-style games such as slots, table games, and bingo through the sweepstakes format. The list of companies that indicated they would comply includes American Luck, Chumba, Global Poker, High 5 Casino, Stake, Crown Coins Casino, McLuck, Modo, WOW Vegas, and several others.

In total, nearly 40 operators acknowledged the state’s orders. Officials said all of them either restricted their sites so they could no longer be accessed by Tennessee residents or committed to shutting down their sweepstakes operations within weeks.

Skrmetti criticized the platforms’ business practices and warned consumers about the risks involved. “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.”

Tennessee Joins Broader Enforcement Trend

State officials framed the enforcement action as part of a wider national response to unregulated sweepstakes gaming. Tennessee now joins a growing number of jurisdictions that have moved to ban or restrict such platforms. According to the Attorney General’s Office, the crackdown sends a message to companies currently operating or considering entering the state that illegal gaming activity will not be allowed.

The office noted that Tennessee law permits only limited forms of gambling. The state lottery and regulated online sports betting, which launched in 2020, remain the sole legal options. Lawmakers and state leaders have consistently opposed the introduction of online or brick-and-mortar casinos.

Other states have taken similar positions. New York and California passed legislation this year banning sweepstakes operators, with enforcement measures that include fines and penalties. California’s prohibition takes effect this week, while New York’s law was signed earlier this month. Connecticut, New Jersey, and Montana have also enacted bans, and Michigan has forced several sweepstakes platforms to shut down or face illegal gambling charges.