Tennessee Shuts Down Nearly 40 Sweepstakes Casinos

Tennessee regulators moved against online sweepstakes casinos last week, ordering nearly 40 sites to stop operating in the state. The action adds to a broader 2025 enforcement trend targeting platforms that use dual-currency systems to offer gambling-style play without licenses.

State officials say the model violates gambling and consumer protection laws and avoids oversight required of regulated operators.

Good to Know

• Tennessee sent cease-and-desist letters to nearly 40 sweepstakes casinos
• Regulators focused on dual-currency gambling structures
• Similar enforcement actions spread across multiple states in 2025

Tennessee orders sweepstakes casinos to shut down

Tennessee Attorney General Jonathan Skrmetti said his office shut down multiple online sweepstakes casinos operating illegally within the state.

An official release confirmed that nearly 40 websites received cease-and-desist letters and later indicated intent to comply. The sites offered casino-style games while presenting themselves as sweepstakes platforms.

Skrmetti framed the action as a consumer protection measure.

“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 the release. “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.”

Dual-currency systems drive regulatory action

The attorney general office said sweepstakes casinos rely on dual-currency systems that allow players to purchase one virtual currency while receiving another through promotions. Regulators argue that structure disguises real-money gambling.

According to the release, the model functions as an illegal lottery and violates Tennessee gambling statutes along with consumer protection law.

Enforcement pressure spreads nationwide

Tennessee action follows similar steps taken by regulators and lawmakers across the country during 2025. Attorneys general and gaming regulators increasingly view sweepstakes branding as a workaround that enables unregulated gambling.

Skrmetti said the growing response reflects widespread concern about platforms using sweepstakes language to bypass oversight and warned that enforcement will continue.

States advance bans and regulatory orders

Several states moved through legislation. Lawmakers in New York and California advanced measures to outlaw sweepstakes casino activity.

Bans also passed in Connecticut, Montana, and New Jersey. Other states relied on enforcement authority rather than new laws.

In Louisiana, Governor Jeff Landry vetoed a prohibition bill but said regulators already held enforcement power. Soon after, the Louisiana Gaming Control Board issued 40 cease-and-desist letters to unlicensed operators.

Lawmakers align around sweepstakes enforcement

The issue has drawn bipartisan agreement among state lawmakers focused on gambling regulation.

“This issue has brought lawmakers together that it represents illegal gambling and revenue theft in many states,” said Shawn Fluharty, who also serves as president of the National Council of Legislators from Gaming States and head of government affairs at Playn GO.

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