Tennessee AG targets illegal online sweepstakes casinos
Tennessee Attorney General Jonathan Skrmetti announced in late December that 38 online sweepstakes casinos had been shut down or brought into compliance after receiving cease‑and‑desist letters. His office stated that the state will not permit unregulated gambling disguised as sweepstakes. Regulators explained that these platforms use a dual‑currency system, one free and promotional, the other sold and redeemable for prizes or cash equivalents, which they argue closely resembles gambling and raises concerns about compliance with state law.
Why Tennessee took action
Tennessee’s Constitution prohibits lotteries and most forms of casino gambling. According to the Attorney General’s office, sweepstakes casinos were using sweepstakes language to operate in ways that resembled real‑money gambling. Following complaints, closer scrutiny, and broader enforcement trends across the country, Tennessee moved to shut them down.
As Attorney General, Jonathan Skrmetti is responsible for enforcing state law and protecting consumers, including in digital contexts. He stated that online sweepstakes casinos leave players at risk of losing money and operate without the oversight needed to ensure fairness. He said, “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. 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.”
Cease‑and‑Desist enforcement in Tennessee
The Tennessee Attorney General’s office issued cease‑and‑desist letters to 38 online sweepstakes casinos, directing them to stop operations or face enforcement. All platforms complied, either shutting down sweepstakes gameplay or setting a date to do so, marking a complete compliance outcome. The affected platforms included well‑known names such as Chumba Casino, LuckyLand, Global Poker, Stake, WOW Vegas, High 5 Casino, Zula Casino, McLuck, Fortune Coins, and Sportzino. These were established operators with large user bases, not small or obscure sites.
The Attorney General’s office described these platforms as unlawful operations and stated that Tennessee will not allow unregulated gambling. The warning applied not only to current operators but also to any companies considering entry into the state’s market.
AG’s office stated, “Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling. Other sweepstakes casinos currently operating in Tennessee or contemplating entering the Tennessee marketplace should consider themselves on notice that illegal gambling will not be tolerated.”
Compliance impact in Tennessee
Some operators acted before the official announcement. VGW, which owns Chumba Casino, LuckyLand Slots, and Global Poker, confirmed in November that it would end sweepstakes coin gameplay in Tennessee. Others, including High 5 Casino and Stake.us, informed users that sweepstakes games would no longer be available in the state. The Attorney General’s office reported that all recipients either disabled the disputed features or committed to doing so.
The Tennessee Sports Wagering Council (SWAC) has dealt with unlicensed sports betting, while the Attorney General concentrated on casino‑style businesses. Platforms such as Bovada and BetOnline have received cease‑and‑desist orders from SWAC since 2024. While some did comply, others did not. SWAC asked the Attorney General’s office for help in enforcing penalties when fines were not paid.
While the Attorney General is in charge of casino‑style gambling, SWAC is responsible for enforcing sports betting. This division reveals why Skrmetti’s office, not the sports betting regulator, initiated the sweepstakes crackdown.
Legislative momentum in 2026
Tennessee’s activities fit into a larger pattern. Laws prohibiting online sweepstakes casinos were approved in California, New York, New Jersey, Connecticut, and Montana in 2025. Just prior to Tennessee’s announcement, California implemented a prohibition. Instead of enacting new laws, other states pursued enforcement through cease‑and‑desist letters.
In late 2025, legislators from Florida, Indiana, and Maine proposed legislation aimed at sweepstakes casinos. Legislative talks in Maine are set to start on 14 January 2026. It is anticipated that more states will follow. Regulators cite consumer protection concerns. Sweepstakes casinos often lack transparency, oversight, and clear disclosures of odds. Without licencing, audits, or safeguards, players face risks that regulators consider unacceptable.
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