Pressure, Not Patience
Tennessee didn’t wait around for new legislation to deal with sweepstakes casinos. It turned up the heat, and according to the state’s attorney general, it worked.
In a December 29 announcement, Attorney General Jonathan Skrmetti’s office said it had “successfully halted” the operations of 38 online sweepstakes casinos, all targeted through cease-and-desist letters. The message from the state was blunt: if you’re running what looks like real-money gambling under a sweepstakes label, Tennessee isn’t interested in the explanation.
Why Sweepstakes Casinos Were in the Crosshairs
At the center of the legal showdown is Tennessee’s view of how many sweepstakes casinos actually operate.
According to the AG’s office, platforms using dual-currency systems cross the line into illegal lottery-style gambling, which is prohibited under the Tennessee Constitution. The state also cited violations of gambling statutes and consumer protection laws.
Skrmetti didn’t mince words.
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” he said, adding that these platforms “work hard to look legitimate” while avoiding oversight meant to ensure fairness.
Who Got Hit
The AG’s office listed 38 platforms that received cease-and-desist letters over an undisclosed period. The list wasn’t made up of fringe operators. It included some of the biggest names in sweepstakes gaming, such as:
- Chumba Casino
- LuckyLand
- Global Poker
- High 5 Casino
- Stake.us
- WOW Vegas
- Modo
- McLuck
- Sportzino
- Legendz
- Zula Casino
- Fortune Coins
According to the state, every recipient agreed to comply, either by disabling the unlawful parts of their platforms or by setting a firm date to do so.
Some Had Already Left, but Enforcement Locked It In
Not all of the exits were a surprise.
Several operators had already begun scaling back or announcing changes in Tennessee before the December 29 statement. VGW, the parent company behind Chumba Casino, LuckyLand Slots, and Global Poker, confirmed in late November that it would end Sweeps Coin gameplay in the state. High 5 Casino and Stake.us had also notified Tennessee players of similar plans.
The AG’s office said the announcement reflected months of back-and-forth with operators, not a sudden blitz. Once cease-and-desist letters went out, platforms either shut down their sweepstakes features or set dates to leave the state.
How Tennessee Made the Pressure Stick
Behind the scenes, this wasn’t just the AG acting alone.
The Tennessee Sports Wagering Council (SWAC) had already been issuing its own cease-and-desist letters to unlicensed sports betting platforms as far back as 2024. Some of those actions led to exits, while others led to unpaid fines.
By mid-2025, SWAC asked the attorney general’s office to step in and escalate enforcement. The result was a clearer division of labor: SWAC handled sports betting issues, while the AG’s office focused on casino-style and sweepstakes platforms, where stronger enforcement tools were available.
That coordination appears to have made the difference.
“We Didn’t Ban Them”, And That’s the Point
One of the most notable aspects of Tennessee’s strategy is what it didn’t do.
The state didn’t pass a new law banning sweepstakes casinos outright. Instead, it applied existing gambling and consumer protection laws and made it clear it was willing to enforce them.
According to the attorney general, the lesson is straightforward: Tennessee didn’t need to pass a new law to force changes. Enforcing the rules already in place was enough.
“Our Office was glad to chase these shady operations out of Tennessee,” the statement said, warning that any sweepstakes casinos still operating or considering entry should expect the same treatment.
What This Means for Tennessee Players
For players in Tennessee, the impact is pretty clear. There are fewer sweepstakes casinos available, and far fewer platforms operating in legal gray areas.
State regulators have been consistent on one point: just because a site is accessible online doesn’t mean it’s legal to use. Tennessee’s enforcement push makes that warning much harder to ignore.
Part of a National Movement
Tennessee’s enforcement push fits into a wider movement taking shape across the country. In 2025 alone, California, Connecticut, Montana, New Jersey, and New York all passed legislation aimed at sweepstakes casinos.
Other states have taken a different approach, relying less on new laws and more on cease-and-desist letters and stepped-up enforcement. Tennessee falls squarely into that camp.
Looking ahead to 2026, lawmakers in Florida, Maine, and Indiana have already introduced bills targeting sweepstakes gaming, with Maine’s proposal set for its first committee hearing in mid-January.
Tennessee’s experience shows that passing new laws isn’t always necessary. Sometimes, enforcing existing rules is enough to clear the field.
What Comes Next
The sweepstakes industry is running out of places to hide. Tennessee’s attorney general has made it clear that illegal gambling, no matter how it’s labeled, won’t be tolerated.
It’s still unclear whether other states will follow Tennessee’s approach or pursue bans of their own. What’s clear is that enforcement alone drove operators out.
Blaise Luis
