Tennessee attorney general shuts down 38 online sweepstakes casinos
Summary
Tennessee Attorney General Jonathan Skrmetti issued cease-and-desist letters to 38 online sweepstakes casino sites in late December 2025, saying the platforms use a “dual-currency” model that masks real-money gambling and violates state gambling and consumer-protection laws. Several named sites include Chumba Casino, Fortune Coins, Global Poker, High 5 Casino, LuckyLand, Stake and others. Many operators had already pulled back or stopped sweepstakes gameplay in Tennessee before the announcement. The move is part of a wider, multi-state enforcement push in 2025 against unregulated sweepstakes-style platforms, with new prohibition bills and regulatory actions expected to continue into 2026.
Key Points
- Attorney General Jonathan Skrmetti sent cease-and-desist letters to 38 sweepstakes casino websites on 29 December 2025.
- Named platforms affected include Chumba Casino, LuckyLand, Global Poker, High 5 Casino, Stake and others.
- Authorities say the “dual-currency” system is a façade enabling real-money gambling and constitutes an illegal lottery under Tennessee law.
- Several operators (including VGW brands) had already ended or scaled back sweeps play in Tennessee in late 2025.
- Other states have acted too — New York and California passed bans; Connecticut, Montana and New Jersey passed prohibitions; Louisiana issued enforcement despite a gubernatorial veto.
- Regulators have issued hundreds of cease-and-desist letters nationwide in 2025 and are preparing further legislation in 2026 (e.g. Maine hearing on 14 January).
- The action builds on earlier Tennessee efforts to curb unlicensed sports betting platforms and convert unpaid fines into enforceable judgments.
Context and Relevance
This enforcement is a significant milestone in a year-long crackdown on sweepstakes casinos that operate in regulatory grey areas. For operators, payment providers and affiliates, it signals growing legal risk and a tougher regulatory environment across multiple US jurisdictions. For regulators and lawmakers, it demonstrates cross-state momentum to close loopholes that allow unregulated gambling to capture revenue and evade consumer protections.
Why should I read this?
Short version: regulators are finally moving from warnings to real teeth. If you work in iGaming, payments, compliance or regulation — or you just track industry risk — this tells you where lawmakers and enforcers are focused and what kinds of products and business models are now likely to attract action. Saves you reading dozens of releases: enforcement is accelerating, and more laws are coming in 2026.