Tennessee AG Kicks 38 Sweepstakes Casinos Out Of State
Summary
The Tennessee Attorney General, Jonathan Skrmetti, has issued cease-and-desist letters to 38 online sweepstakes platforms it says are operating illegally in the state. The targeted sites used dual-currency sweepstakes models — virtual currency redeemable for real-world prizes — which the AG contends effectively mask illegal gambling and breach the Tennessee Constitution and consumer protection laws. Many operators have disabled unlawful features or agreed to exit Tennessee in the coming weeks.
Key Points
- The Office of the Tennessee Attorney General sent cease-and-desist letters to 38 sweepstakes casino platforms for allegedly unlawful operations.
- Authorities say dual-currency sweepstakes (virtual tokens redeemable for prizes) mask illegal gambling activity and violate state law.
- Several well-known operators named include Chumba, Global Poker, Luckyland, High 5 Casino, WOW Vegas, Zula Casino, McLuck, FunzCity, Fortune Coins and Stake.
- The action aligns with a wider national crackdown: New York and California recently moved to ban similar sweepstakes models, and other states have issued cease-and-desist orders.
- An American Gaming Association survey found 90% of respondents think sweepstakes games are likely gambling; stricter enforcement correlates with fewer players.
- Tennessee continues to be one of the more aggressive states in policing unlicensed gambling, with its Sports Wagering Council also active on offshore sportsbooks and prediction markets.
Why should I read this?
Because if you follow gambling regulation, operator risk or the sweepstakes business model, this is a clear warning shot. Operators are being pushed out, lawmakers are passing bans, and players in stricter states are already switching off. Short version: it matters for market access and compliance — and it’s happening now.
Author style
Punchy: this is high-impact regulatory news. If you work in gaming, payments, compliance or run a sweeps-style product, dig into the detail — this isn’t a routine takedown. It signals fast-moving enforcement that could reshape where and how these platforms operate.