Last week, Tennessee’s Attorney General Jonathan Skrmetti took action against approximately 40 online sweepstakes casinos, marking the conclusion of a nationwide crackdown on platforms deemed to be unlawfully providing gambling via “dual-currency” systems.
The Attorney General’s office issued cease-and-desist orders to 38 online platforms, with Skrmetti mentioning that these sites had shown a willingness to comply.
The targeted websites included 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 certainty with an online sweepstakes casino is that it will take your money,” Skrmetti stated in a press release. He emphasized that these platforms, despite their façade of legitimacy, lack the necessary oversight to guarantee fairness or integrity. “We are committed to rooting out these dubious operators to safeguard Tennesseans from illegal gambling.”
As indicated by Skrmetti’s office, the “dual-currency system disguises the fact that users may engage in actual money gambling on these platforms.” Authorities assert that this system constitutes an illegal lottery and breaches state gambling and consumer protection regulations.
Before the Attorney General’s announcement on December 29, several operators had already exited or planned to reduce their operations in Tennessee. In November, VGW—the parent company of Chumba Casino, LuckyLand Slots, and Global Poker—told SBC Americas it would cease Sweeps Coin gameplay in Tennessee. High 5 Casino and Stake.us also informed Tennessee users that they would discontinue similar services.
This year, multiple states have enacted measures. Legislators in New York and California passed bans on sweepstakes casinos, while regulators across various states dispatched numerous cease-and-desist orders.
“This issue has united lawmakers, as it embodies illegal gambling and revenue theft across many states,” said West Virginia Delegate Shawn Fluharty, who serves as president of the National Council of Legislators from Gaming States and leads government affairs for the gaming operator Play’n GO.
States like Connecticut, Montana, and New Jersey have also enacted bans. Meanwhile, Louisiana’s Governor Jeff Landry vetoed a prohibition bill; however, he authorized regulators to implement restrictions. Subsequently, the Louisiana Gaming Control Board sent 40 cease-and-desist letters to illegitimate operators.
The cease-and-desist initiative is part of a comprehensive effort against unauthorized gambling within Tennessee, with the Tennessee Sports Wagering Council issuing its own orders to unlicensed sports betting platforms since 2024, prompting operators such as Bovada, BetOnline, and Sportzino to retract their offerings in the state.
“This indicates a significant concern regarding platforms exploiting sweepstakes terminology as a loophole to operate unregulated gambling activities,” Skrmetti commented, noting the actions serve as a caution to other operators.
Where compliance was not met, the Sports Wagering Council imposed fines that often went unpaid, prompting the regulator to request assistance from Skrmetti’s office in July 2025 to convert those penalties into actionable judgments.
Even if bills fall short, numerous states are preparing fresh legislation for 2026. Florida, Maine, and Indiana have already introduced bills aimed at prohibiting sweepstakes, with markets such as Oklahoma potentially following suit.
The initial legislative discussion on sweepstakes casinos for 2026 is anticipated on January 14, when a Maine bill targeting the industry is set for a committee hearing.