Tennessee Orders Sweepstakes Casinos to Exit the State

Tennessee regulators wasted little time sending a clear message to sweepstakes gaming platforms. State officials say the model crosses legal lines, and operators now face firm deadlines to shut access for local players.

Good to Know

• Nearly 40 sweepstakes gaming platforms received cease and desist letters
• Major brands like Chumba and Stake already moved to block Tennessee access
• State officials view dual currency casino models as illegal gambling

Early in the week, Jonathan Skrmetti, Attorney General of Tennessee, confirmed that his office issued cease and desist notices to almost 40 sweepstakes casino operators. Every platform contacted has either already cut off Tennessee users or shared a firm exit date.

Names on the list include Chumba, Modo, McLuck, High 5 Casino, Stake, NoLimitCoins, and Crown Coins Casino. Several of those brands rank among the most recognizable sweepstakes style casinos operating across the United States.

Skrmetti made the state position plain in a public statement. He said:

“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. 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.”

According to the Attorney General office, sweepstakes casinos violate multiple state rules. Officials point to the Tennessee Constitution ban on illegal lotteries, along with broader gambling and consumer protection laws already on the books.

State lawyers also focused on how many platforms operate. The office described dual currency systems with slots and table games as a façade that hides real money gambling activity. Players may buy one type of currency, play casino style games, and later redeem winnings, a setup regulators argue mirrors traditional online casinos without licensing or oversight.

Enforcement action also serves as a warning shot. Officials said sweepstakes casinos still operating, or considering entry into Tennessee, should expect similar action. Illegal gaming, the office said, will not be tolerated in the state.

Tennessee maintains one of the narrowest legal gaming frameworks in the country. Residents can access the state lottery and licensed online sports betting, which launched in 2020. Lawmakers and regulators have consistently rejected both land based casinos and online casino gaming, keeping policy lines tight even as other states experiment with expanded formats.

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