Two major sweepstakes casinos, The Money Factory and CoinFrenzy, have suddenly shut shop as United States lawmakers intensify scrutiny of the industry.
It comes as dozens of sweepstakes casinos have similarly shuttered over the past 12 months, thanks to multiple states passing laws that prohibit the unregulated platforms.
The Money Factory and CoinFrenzy Shut Down
The Money Factory “permanently ceased operations” on Sunday, according to its official website. It says that player accounts, balances, and pending redemption requests will be “recorded and preserved,” but did not say that refunds would be automatically processed.
CoinFrenzy, on the other hand, has given players a longer timeline to react. The casino is no longer accepting new purchases, according to its site, but is giving players until September 25 to redeem their balances.
U.S. Crackdown on Sweepstakes Casinos Intensifies
Neither company cited the exact reason for its shuttering, although it falls against the backdrop of a U.S.-wide crackdown on sweepstakes casinos. Over the past 12 months, a wave of U.S. states has enacted explicit or effective bans on the casinos, including New Jersey, New York, Indiana, Maine, Oklahoma, Louisiana, and Tennessee. As a result, dozens have shut shop.
Some Operators Pivot to New Gambling Products
That said, some sweepstakes casinos have shuttered just for their parent companies to launch new gambling products—one with marginally less scrutiny.
For example, Kickr Games Play Ltd. closed its Kickr sweepstakes casino in March, after being issued a cease-and-desist order from the Louisiana Gaming Control Board. Not long after, Kickr Games Play Ltd. launched GetGud, a gambling product that doesn’t describe itself as a sweepstakes casino.
The Money Factory Founders Have Previously Launched GammaSweet
For now, the owner of CoinFrenzy, Lucky Labz LLC, doesn’t appear to be making a move back into the gambling market. However, The Money Factory’s founder, Trevor Pope, and executives Clay Johnson and Jared Pope have previously launched GammaSweet, a tech stack designed to launch sweepstakes casinos.
The Money Factory and CoinFrenzy did not immediately respond to CasinoBeats’ request for comment.
The post Major Sweepstakes Casinos Shut Shop Amid Intense Scrutiny in U.S. appeared first on CasinoBeats.
Two major sweepstakes casinos, The Money Factory and CoinFrenzy, have suddenly shut shop as United States lawmakers intensify scrutiny of the industry. It comes as dozens of sweepstakes casinos have similarly shuttered over the past 12 months, thanks to multiple states passing laws that prohibit the unregulated platforms. The Money Factory and CoinFrenzy Shut Down
The post Major Sweepstakes Casinos Shut Shop Amid Intense Scrutiny in U.S. appeared first on CasinoBeats.