Two online sweepstakes casino operators, The Money Factory and CoinFrenzy, are winding down operations this month, adding to a growing list of shutdowns across the sweeps industry.
Key Takeaways
- Two sweepstakes casinos are shutting down amid broader industry contraction.
- The Money Factory closed Aug. 9, preserving account records, balances, and pending redemption requests for players.
- CoinFrenzy stopped coin sales but remains open for gameplay and redemptions until its Sept. 25 shutdown.
The Money Factory posted a notice on its site confirming it permanently closed Aug. 9. The operator says it stopped accepting new registrations, purchases, and gameplay that day and states player account records, balances, and pending redemption requests have all been preserved.
Players are told they do not need to take any action to protect their records. The company also posted a separate email address for parties interested in acquiring its assets, including its platform software.
CoinFrenzy is following a different timeline. The site has stopped selling coin packages but still allows players to use the platform and redeem existing balances. A full shutdown is scheduled for Sept. 25, giving users roughly six weeks to cash out before the site goes dark.
Neither company has disclosed how many players are affected or the total value of unredeemed balances tied to either platform.
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Wider reckoning for sweepstakes casinos
The closures land in the middle of a rough stretch for the sweepstakes casino industry as a whole. Operator VGW recently announced it will shut down LuckyLand Slots on Sept. 14, cutting off gold coin purchases on Aug. 3 and gameplay on Aug. 24.
Legal pressure has been building alongside the closures. Baltimore filed suit earlier this year against six sweepstakes operators, including B2 Services, Blazesoft Ltd., High 5 Entertainment, Stake.us, VGW Holdings, and Yellow Social Interactive Limited.
The city alleges the platforms function as illegal gambling operations disguised as free games and sweepstakes and that they target young users through video game-style marketing on social media sites.
State lawmakers have also moved in the same direction. Iowa, Louisiana, Oklahoma, and Tennessee each approved measures this year to restrict or ban the sweepstakes casino model, joining a growing list of states tightening rules on dual-currency platforms.
