Tennessee’s attorney general shut down nearly 40 online sweepstakes casinos last week, capping a nationwide 2025 enforcement wave against sites like Chumba, High 5 and Stake that regulators say skirt gambling laws with “dual‑currency” models.
Tennessee Attorney General Jonathan Skrmetti announced last week his office had shut down “multiple illegal online sweepstakes casinos”. A release from Skrmetti’s office listed nearly 40 websites that received cease-and-desist letters and “indicated their intent to comply”.
“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.”
According to the release, the sites’ “dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms”. Skrmetti’s office said that the model constitutes an illegal lottery and violates state gambling and consumer protection laws.
Sweeping action against sweepstakes casinos
Skrmetti noted the widespread action against sweepstakes casinos across the country in 2025. He said it “reflects widespread concern over platforms using sweepstakes language as a loophole to run unregulated gambling operations”. He said last week’s action should serve as a notice for other sweepstakes casinos.
Throughout 2025, multiple state legislatures and regulators took action against sweepstakes casinos. Lawmakers in New York and California were among those to outlaw the activity, while regulators sent hundreds of cease-and-desist letters to operators.
“This issue has brought lawmakers together that it represents illegal gambling and revenue theft in many states,” West Virginia Delegate Shawn Fluharty, who is also president of the National Council of Legislators from Gaming States and head of government affairs at operator Play’n GO, said last month.
Lawmakers in Connecticut, Montana and New Jersey passed bans. In Louisiana, Governor Jeff Landry vetoed a prohibition bill but said the state’s regulators had the power to enforce a ban. The Louisiana Gaming Control Board then sent 40 cease-and-desist letters to illegal operators.
Several other states saw prohibition bills fall short, but lawmakers are already preparing more bills for 2026.
Legislators in Florida, Maine and Indiana have filed sweepstakes prohibition bills. Other markets, including Oklahoma, could pursue similar action, according to industry sources.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
The action reflects a nationwide 2025 enforcement surge against sweepstakes casinos by state lawmakers and regulators.