As the year draws to a close, we finally have an answer to the mystery surrounding the multiple sweepstakes casinos withdrawing from Tennessee.
It’s a trend we noticed back in November, when VGW and other brands including High 5, Chanced, and Punt pulled out of the Volunteer State with no concrete explanation. Of the three guesses we made as to the reason, the third rang true: the Tennessee Attorney General has been issuing cease and desist letters.
Tennessee AG Jonathan Skrmetti (pictured) announced the crackdown via a press release on December 29. In it, he claims his office has sent cease and desists to “almost forty online sweepstakes casinos operating illegally”, and that each one has already disabled the illegal elements of their operations, or has agreed to do so on a date in the near future.
It is worth noting that some of the bigger brands, like Chumba, RealPrize, and LoneStar decided to remove the option for sweepstakes-style promotional play in Tennessee (via Sweepstakes Coins), while leaving their free play mode in place (via Gold Coins).
Why Tennessee Is Cracking Down on Sweepstakes Casinos
Cease and desist letters are the same tactic that New York’s Attorney General used against sweepstakes casinos earlier this year, with NY eventually banning the format completely.
We’ve also seen Louisiana AG Liz Murrill declare sweepstakes casinos illegal in a comprehensive legal opinion, and West Virginia AG John McCuskey send out subpoenas to sweeps operators.
We saw the Tennessee Sports Wagering Council (TSWC) force withdrawals from sweepstakes brands with a sportsbook component earlier this year too. That list included Legendz, ReBet, Kickr, and Sportzino.
However, as its name implies, the TSWC only has jurisdiction over sports wagering, meaning its actions were limited to sweeps platforms that offered sportsbook-style products, leaving traditional sweepstakes casinos outside of its regulatory reach. Now the state’s Attorney General has added his authority to remove those operators his office deems illegal.
Tennessee Code Title 39. Criminal Offenses § 39-17-501 states the following:
“(2) “Gambling” is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like.”
Sweepstakes casinos exploit loopholes in such laws by claiming their virtual sweeps currencies carry no inherent value, although these tokens can eventually be redeemed for real cash prizes in most cases.
While the vertical has flourished over the past decade, states like Tennessee are finally starting to crack down by tightening legal definitions or taking action via the Attorney General or gaming regulator.
Which Sweepstakes Casinos Have Been Affected in Tennessee
Here is the list of sweeps casinos that have received letters and “indicated their intent to comply with the order” according to Skrmetti. It includes many of the US’s biggest sweeps brands, but it’s far from comprehensive:
- 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 (this site has shut down anyway)
- Jackpota
- Legendz
- LoneStar
- Luckyland
- McLuck
- Mega Bonanza
- MegaFrenzy
- Modo
- Moonspin
- NoLimitCoins
- PlayFame
- Punt
- RealPrize
- Rolla
- SpinBlitz
- Sportzino
- Spree Social Casino
- Stake.us
- StormRush
- Tao Fortune
- The Money Factory
- WOW Vegas
- Yay Casino
- Zula Casino
According to our research, some brands from the above list are yet to withdraw from Tennessee (Crown Coins, WOW Vegas, McLuck, Cazino, Fortune Coins, etc.). However, they could have already confirmed an intent to withdraw in the coming weeks with Skrmetti’s office.
It’s been a tough year for sweepstakes casinos in general, with six states passing anti-sweeps legislation, plus other action from gaming regulators and Attorneys General, as in Tennessee.
Some brands are already inventing novel ways to skirt even these new laws, so 2026 is shaping up to be another interesting year for sweeps as the battle between operators and state enforcement authorities continues.
Author: Joseph Allen
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