Dozens of popular online gaming sites are going dark across Tennessee this week after state officials declared their business models illegal.
Attorney General Jonathan Skrmetti announced Monday that his office successfully halted operations for nearly 40 online “sweepstakes” casinos. The crackdown targets platforms that officials say used legal loopholes to act as unregulated gambling dens.
According to the Attorney General’s office, these companies use a dual-currency system to bypass state gambling laws. While the sites often market themselves as free-to-play social games, they typically allow users to purchase virtual currency that can eventually be redeemed for cash prizes.
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Skrmetti described this “sweepstakes” model as a façade designed to hide what is essentially an illegal lottery prohibited by the Tennessee Constitution.
“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 a statement Monday. “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.”
The state sent cease-and-desist letters to a long list of operators, including widely known platforms like Chumba, High 5 Casino, Stake, and Luckyland. According to Skrmetti, every platform that received a notice has either already disabled its illegal components or agreed to a shutdown date in the coming weeks.
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Tennessee’s move mirrors similar enforcement actions gaining traction across the U.S., where regulators are increasingly challenging the “sweepstakes” defense used by online gaming operators. Skrmetti warned that any other platforms currently operating in the state—or thinking about launching—should consider themselves “on notice.”
The full list of targeted casinos includes:
- American Luck
- Chumba
- High 5 Casino
- Luckyland
- Stake
- WOW Vegas
- Zula Casino
- (And over 30 others including Crown Coins, McLuck, and Global Poker)
State officials urged anyone struggling with gambling addiction to contact the Tennessee REDLINE. The confidential referral service is available 24/7 by calling or texting 1-800-889-9789.
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