Tennessee has cracked down on sweepstakes gaming operators that the state’s Attorney General says are illegitimate online casinos.
Key Takeaways
- Tennessee’s Attorney General’s Office went after nearly 40 sweepstakes casino operators.
- Numerous platforms are complying with the state’s cease-and-desist orders.
- The Volunteer State joins a growing list of jurisdictions that are going after unregulated gaming companies.
Jonathan Skrmetti announced Monday that he sent cease-and-desist letters to nearly 40 sweepstakes companies. All operators that have received the letter have either already restricted their platforms from being accessed by Tennessee residents or provided a date for ceasing operations.
The list of sweepstakes operators that plan to vacate the market includes popular online platforms Chumba, Modo, McLuck, High 5 Casino, Stake, NoLimitCoins, and Crown Coins Casino.
Enjoying Covers content? Add us as a preferred source on your Google account“The only thing you can be sure about with an online sweepstakes casino is that it's going to take your money,” Skrmetti said in a statement. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day, they are not. They avoid any oversight that could ensure honesty or fairness. Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
Breaking the law
The Attorney General’s office said sweepstakes casinos are in violation of the Tennessee Constitution’s prohibition on illegal lotteries as well as the state's gambling and consumer-protection laws.
The Attorney General described the dual-currency casino operators with table games and slots as a “façade to hide the fact that participants may engage in real-money gambling on these platforms.”
The office stated this crackdown is a warning for other sweepstakes casinos currently operating or contemplating entering the market that illegal gaming “won’t be tolerated in Tennessee.”
The Volunteer State's only forms of legal gaming are the state lottery and licensed, regulated online sports betting, which launched in 2020. Tennessee lawmakers and officials have long been against in-person or online casinos.
Joining the fight
Tennessee joins a growing list of jurisdictions that have outlawed or cracked down on sweepstakes gaming, which allows users to convert free-to-play tokens into coins that can be redeemed for cash prizes.
New York and California both passed legislation this year to ban sweepstakes operators and enforce fines and penalties on companies that don’t comply. The Golden State’s prohibition goes into effect Thursday. The Empire State’s legislation was signed into law earlier this month.
Connecticut, New Jersey, and Montana have also passed bans on sweepstakes companies.
Like Tennessee, Michigan has forced several sweepstakes platforms to cease operating or be charged with illegal gambling.
