Tennessee AG Pushes Illegal Online Sweepstakes Casinos to Fold

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  • Tennessee AG Jonathan Skrmetti announced that his office sent formal cease-and-desist letters to nearly 40 online sweepstakes casinos operating in Tennessee, and that recipients have either disabled the unlawful components of their platforms or agreed to wind down operations in the coming weeks.
  • According to the AG’s Office, online sweepstakes casinos use a dual-currency system—including currency redeemable for cash or real-world prizes—to disguise real-money gambling, and this model constitutes an illegal lottery prohibited by the Tennessee Constitution and state gambling and consumer protection laws.
  • The AG stated that this enforcement effort reflects a broader national crackdown on platforms allegedly using sweepstakes language as a loophole to operate unregulated gambling businesses and warned that any additional operators offering illegal gambling in Tennessee are on notice to cease such activity.
  • We have previously covered AG efforts to combat allegedly illegal online gambling, including a bipartisan letter from 50 AGs urging the U.S. DOJ to prioritize enforcement against offshore gambling platforms, multiple letters from Minnesota AG Keith Ellison targeting illegal gambling websites, and warnings issued by Indiana AG Todd Rokita regarding unlicensed online casinos and misleading advertising.
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