Tennessee has told almost 40 online sweepstakes casinos to stop offering features that officials believe break state laws.
Attorney General Jonathan Skrmetti said his office sent cease and desist letters to sweepstakes gaming sites that let players turn virtual credits into cash using a dual-currency system.
Officials say this setup is considered an illegal lottery under the Tennessee Constitution. All the platforms contacted have either taken down these features or agreed to phase them out.
Enforcement Reflects Growing National Pressure
This crackdown is similar to what’s happening in other states, where regulators say sweepstakes casinos use marketing language to get around gambling laws.
Tennessee officials warn that this national trend underscores the need for stricter oversight, especially in states with limited legal gambling options.
The list of platforms that received cease and desist letters includes:
- American Luck
- Cazino
- Chanced
- Chumba
- Crown Coins Casino
- Fortune Coins
- Fortune Wheelz
- Funrize
- FunzCity
- Global Poker
- Golden Hearts Games
- Hello Millions
- High 5 Casino
- iCasino
- Jackpota
- Legendz
- LoneStar
- Luckyland
- McLuck
- Mega Bonanza
- MegaFrenzy
- Modo
- Moonspin
- NoLimitCoins
- PlayFame
- Punt
- RealPrize
- Rolla
- SpinBlitz
- Sportzino
- Spree Social Casino
- Stake
- StormRush
- Tao Fortune
- The Money Factory
- WOW Vegas
- Yay Casino
- Zula Casino
Offshore Casinos and Tennessee’s Gambling Restrictions
Since Tennessee does not allow legal online or physical casinos, many residents use legitimate online casinos based outside the U.S. These sites offer real-money slots, table games, and live-dealer options, but the state does not regulate them. Instead, many of these gambling platforms are licensed by well-known gaming commissions located outside of the United States.
Tennessee’s gambling laws currently allow only sports betting and the state lottery, and ban casino gaming, both online and in-person. Officials say they will continue to crack down on sweepstakes gambling sites and go after unregulated operators.
While legitimate online casinos are not technically illegal in Tennessee, the state has sent numerous cease-and-desist letters to popular online casino sites. However, there are still countless online casino sites accepting TN players. It is important to note that the act of gambling online is not illegal in the state; however, operating a site from within state lines is unlawful under current gambling laws.
Difference Between Sweepstake Casinos and Online Casinos
Sweepstakes casinos and regular online casinos work in very different ways, even if they seem similar at first glance. Regular online casinos let players deposit money, bet on slots or table games, and withdraw winnings, all under a regulated system. These sites are licensed by state or international gaming authorities, which set rules for fairness, payouts, responsible gaming, and consumer protection.
In contrast, sweepstakes casinos use a dual-currency system to avoid being labeled as gambling. Players get “sweepstakes” or “promo” coins, sometimes for free and sometimes when they buy non-redeemable play money. Only the sweepstakes coins can be traded for cash prizes. This setup lets these casinos operate in states where online casinos are not allowed.