Tennessee Sends Cease-and-Desists to Nearly 40 Sweepstakes Casinos

Photo by Pix4Free, CC by-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0/)
Key Takeaways
- Every recipient either shut down their platform or agreed to remove illegal components
- Sweepstakes casinos use a controversial dual-currency model
- Several other states already banned or sent cease-and-desists to sweepstakes casinos this year
Tennessee officials confirmed that they shut down numerous online sweepstakes casinos that had operated illegally inside state lines.
Attorney General (AG) Jonathan Skrmetti revealed on Monday that his office issued cease-and-desist letters to close to 40 platforms that were found to have violated the state’s gaming laws. These platforms had not received state licensing and had offered unapproved forms of gambling to residents.
All of the recipients of the cease-and-desists either blocked their illegal amenities or provided a date by which their platforms would be shut down, according to a statement issued by the AG’s office.
Casinos agree to shut down, block illegal aspects
Tennessee gaming regulators concluded that the dual-currency model utilized by sweepstakes casinos violated the state Constitution, as well as gaming and consumer protection standards.
The announcement confirmed that the guilty platforms had been notified that they were required to remove their illegal offerings or be subject to further legal action.
“Attorney General Jonathan Skrmetti announced (Monday) that his office has successfully halted the operation of multiple illegal online sweepstakes casinos in Tennessee,” the announcement read. “This action is part of the Attorney General’s ongoing effort to protect Tennessee consumers from predatory and unregulated gambling operations.”
One of the main concerns with these platforms was their misleading nature. While they do not require patrons to provide money to access them, they mirror online casino gambling and accept real-money payments for coins, which can be used to play games that win prizes.
All of the following sweepstakes operators received cease-and-desists from the Tennessee Attorney General: American Luck, Cazino, Chanced, Chumba, Crown Coins Casino, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, Hello Millions, High 5 Casino, iCasino, Jackpota, Legendz, LoneStar, Luckyland, McLuck, Mega Bonanza, MegaFrenzy, Modo, Moonspin, NoLimitCoins, Dec. 29, PlayFame, Punt, RealPrize, Rolla, SpinBlitz, Sportzino, Spree Social Casino, Stake, StormRush, Tao Fortune, The Money Factory, WOW Vegas, Yay Casino, Zula Casino.
Tennessee joins national trend
Tennessee’s regulatory action mirrors that in other states that have found sweepstakes casinos to violate various laws.
The dual-currency model used by sweepstakes casinos involves gold coins and sweeps coins. Customers can earn coins by playing games and do not need to make purchases to use the platform’s features, although coins can also be purchased. Consumers can also win prizes by playing different games, including more coins, gift cards, and real-world prizes.
Although Tennessee’s regulators did not mention the financial aspect of their enforcement, they said that the cash-redeemable aspect of their platform must be removed.
Tennessee law only allows for certain approved forms of gambling, including the state lottery and online sports betting. Notably, Tennessee lawmakers have not approved retail or online casino gambling.
Elsewhere around the country, California and New York this year passed legislation banning sweepstakes casinos. Connecticut, New Jersey, and Montana also have bans in place, and states such as Michigan and Massachusetts have actively sent batches of cease-and-desists to maintain purity in their gaming markets.
With states continuing to hit back at sweepstakes casinos, their viability is becoming increasingly questionable.
Grant is an industry news expert who covers legislative news, financial updates, and general industry trends. As a veteran of the gambling industry, Grant has experience in the world of casinos, sports betting, and iGaming. As a former long-distance runner, he knows a thing or two about persistence and consistently holding himself to a high standard.
Related News
.jpg)
Italian authorities seize €25m in assets in scratchcard fraud case
Italian financial police have seized assets worth more than €25 million in a case involving five former employees accused of using confidential data to identify winning scratchcards.

Premier League gambling shirt ban leaves widespread advertising exposure
A University of Bristol study suggests the Premier League’s front-of-shirt gambling sponsorship ban has left substantial advertising exposure through pitchside boards, sleeves and training kits.

L & L Europe agrees £900,000 settlement over withdrawal delays
L & L Europe has agreed to pay £900,000 after a Gambling Commission review uncovered unfair withdrawal restrictions, anti-money laundering weaknesses and safer-gambling failures.

Betting shop customers combine visits with wider high street spending
New YouGov research highlights the links between betting shop visits and wider high-street activity, as the gambling industry makes its case against further tax rises.

Genting ready to invest in UK but warns over machine games duty rise
Genting says it is ready to invest further in the UK, but casino operators warn that uncertainty over machine games duty could undermine expansion plans.

Encore Boston Harbor Strike Stifles Sept. Casino Revenue
With dissenting employees still away from work, gambling regulators have underlined the financial importance of keeping the casino operating in full.

Live! Pennsylvania Casino Sells $4 Million Lottery Ticket
While scratch-offs are often quickly forgotten, the randomly-valued ticket ended up being a life-changing $4 million prize.
Supreme Court of Canada Weighs Ontario Online Poker Case
Canada's top court reserved judgment on whether Ontario can pool online poker players internationally. The ruling could reshape poker and DFS nationwide.

Brazil's Betting Ban Faces Its Biggest Test This Weekend
Brazil's betting licenses expire October 25, the day of the Lula vs. Bolsonaro runoff. Courts and Congress could still reverse the ban.

Queens Casino Renderings Released, But Vote Stalls
A consistent fear that the project would not help flooding issues that have become prevalent in Queens’ northwestern area forced them to reconsider.

Cash or Crash? Monmouth University Researchers Ask Whether There’s a Smart Way to Beat Crash Games in Online Casinos
The aim of the Monmouth University was to answer a simple question: Is there a smart way to play crash games and turn the odds in the player’s favor?

PAGCOR Targets December 2026 Launch for Verification App
PAGCOR aims to launch a mobile app in December 2026 to help players spot illegal operators, pending a proof-of-concept review by tech partner DCI.

Flutter Plans Up to 1,400 Job Cuts After UK Tax Rises
Flutter has announced plans to cut up to 1,400 jobs across its UK and Ireland operations, blaming higher gambling taxes for the restructuring.
.jpg)
Ninety Labour MPs push Machine Games Duty rise as BGC fights back
Ninety Labour MPs have urged the Chancellor to increase Machine Games Duty on Category B machines, prompting a sharp response from the Betting and Gaming Council before next week’s Budget.

Comoros seeks UK help over disputed Anjouan gambling licences
Comoros has challenged the authority behind Anjouan’s offshore licensing regime, raising questions about its credentials. For British players, however, the requirement for a Gambling Commission licence remains unchanged.

Brazil Betting Ban May Send R$25B to Unlicensed Operators
A new IBIA briefing estimates Brazil's betting ban could drive about R$25 billion in yearly wagering to unlicensed operators, hurting player protection.

AFL Orders Sportsbet to Remove AI-Generated Player Videos
Sportsbet has removed AI-generated videos featuring AFL players after concerns were raised about consent and commercial image rights. The dispute comes as Australia prepares for tighter gambling advertising restrictions.

iGaming Ontario Withheld Its Own Problem Gambling Study
Records obtained by the Toronto Star show iGaming Ontario kept a pre-launch problem gambling study private after it found higher-than-expected rates.

BetMGM, Connor McDavid Renew Responsible Gaming Partnership
McDavid’s promotion of these tools in a Dec. 2025 “Mullet Over” campaign contributed to a 27% year-over-year increase in accounts with deposit limits.

Casino Tycoon Donated $25 Million to Trump’s Ballroom
While it might be life-changing money to some, Adelson donated a ho-hum $25 million to Trump’s ballroom project through the Adelson Family Foundation.

Springfield Wants to Go Public with MGM Casino Dispute
The dispute relates to Springfield’s claims that MGM did not fulfill the obligations it promised when it opened the property in 2018.

Alberta's Legal iGaming Market Hits 50 Sites After Deadline
Gray-market giants Super Group, Apollo and Stake have gone legal in Alberta, pushing the regulated iGaming market from 22 sites at launch to 50.

MGD hike threat exposes divisions across gambling’s high street
A threatened doubling of machine games duty has prompted warnings of widespread closures. But disagreements over bookmakers and arcades could weaken the industry’s response.

Bet365 operators lose appeal against SEK44m Swedish penalties
Two companies operating Bet365 in Sweden have lost their appeals against warnings and combined penalties of SEK44 million for player protection failures.

France’s €11.5bn sports betting market draws ANJ scrutiny
France’s online sports betting market generated €11.5bn in stakes in 2025, but new ANJ analysis raises questions about the players driving certain betting markets.

YouTuber Fooled by Crypto Casino Who Paid Him to Be Quiet
Doherty evidently agreed to a deal without the company without realizing they intended to enforce their stipulations, which prevent him from posting online.

U.S. Feds Sanction Mexican Cartel Casino-Linked Racetrack
The Treasury Department claimed that Club La Molienda operated a betting ring in collaboration with Casino Centenario, a casino in Nuevo Laredo.

PAGCOR Expects Casino Filipino Exit Ruling This Month
PAGCOR CEO Alejandro Tengco says a GCG recommendation on decoupling Casino Filipino will arrive in October, with losses expected at ₱7 billion ($112 million).

New Zealand Names 11 Successful Online Casino Auction Bidders
New Zealand's Department of Internal Affairs has named 11 successful online casino auction participants who secured the right to apply for 15 licences. The auction concluded on 12 October 2026, with the final price reaching NZ$15 million per licence.

Brazil Betting Ban Faces Pushback With 99 Amendments
Lawmakers filed 99 amendments to Brazil's betting ban, and Centrão members plan to push a sports betting carve-out after the Oct. 25 presidential runoff.

Peru Weighs 5% Betting Tax as Chile Tests Offshore VAT
A Peruvian bill would quintuple the betting consumption tax to 5%, while Chile's first quarterly VAT payments from offshore platforms fall due this month.

Alberta iGaming Deadline: Stake In, PokerStars and 888 Out
Alberta's Oct. 13 deadline for gray-market operators has arrived. Stake secured a license, while PokerStars and 888 are cutting off Alberta poker players.

Brazil Betting Ban Wipes Out 74% of Licensed Site Traffic
Brazil's betting ban drove licensed site traffic 74% below normal in a week, while offshore searches held steady and over 3,500 workers lost their jobs.

