Many had already speculated that something was happening in Tennessee due to the recent departures, and on Monday (Dec. 29), Attorney General Jonathan Skrmetti confirmed it. The office announced it had issued formal cease-and-desist letters to almost forty online sweepstakes casinos that it said were operating illegally.
The Tennessee Attorney General’s statement said that “the promotional sweepstakes model used by these casinos constitutes an illegal lottery prohibited by the Tennessee Constitution and violates Tennessee gambling and consumer-protection laws.”
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” said Attorney General Jonathan Skrmetti in the announcement. “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.”
The office released a list of the operators, saying that they’ve “indicated their intent to comply” and shut down:
- 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
The move confirms what many had already suspected
The move doesn’t come as a total surprise. A week before the announcement, VGW, the largest brand in online sweepstakes gaming, announced it would cease Sweeps Coin gameplay in Tennessee. VGW owns Chumba Casino, LuckyLand Slots, and Global Poker. A spokesperson for VGW said that players were still “able to enjoy all their favorite free-to-play games using Gold Coins,” but that they would phase out Promotional Play (sweepstakes promotions) in the state.
A day later, A1 Development LLC, the company that owns NoLimitCoins, Fortune Wheelz, Tao Fortune, FunzCity, Funrize, and Storm Rush, also blocked access to its Sweeps casinos in Tennessee.
Earlier in the month, High 5 Casino, Stake.us, RealPrize, LoneStar Casino and Lucky Bits Vegas all closed up shop in “The Volunteer State.”
Initially, some speculated that the Tennessee Sports Wagering Council (SWAC) was causing these platforms to leave Tennessee. The SWAC has policed sportsbook sweepstakes, prompting Legendz, Thrillzz, Sportzino, KicKr, and ReBet to exit the sportsbook space. But it should be noted that these companies offering casino-style games are not sportsbooks, leading some to realize that this crackdown was coming from the Attorney General’s office.
Tennessee isn’t the only one
The official statement said that its cease-and-desist letters were part of a “growing national crackdown” on sweepstakes platforms.
Minnesota’s Attorney General, Keith Ellison, announced in November that his office had sent cease-and-desist letters to 14 operators in the state. Earlier in the year, Attorneys General for Louisiana and Mississippi issued dozens of cease-and-desist letters to offshore sportsbooks and sweepstakes casinos. West Virginia’s Attorney General, J.B. McCuskey, has also been issuing subpoenas and warnings to sweepstakes-casino operators, citing consumer-protection and underage gambling concerns.
Many operators are adjusting in anticipation of these moves.
Legendz, which offers both sweeps casino and sweeps sportsbook gaming options, announced that it would cease Sweeps Coin gameplay in California on Dec. 25. The changes were due to Jan. 1, the day that California Assembly Bill 831—making sweepstakes casinos illegal—goes into effect.
