The Tennessee Sports Wagering Council (SWC) and the Attorney General’s office have intensified their crackdown on unlicensed gambling, issuing cease-and-desist letters to multiple sweepstakes casinos and “social” gaming platforms.
Closing the Loophole
Sweepstakes casinos typically operate by allowing users to purchase virtual currency, which often comes with “free” sweepstakes coins that can be redeemed for cash prizes. While operators argue this model complies with federal sweepstakes laws, Tennessee regulators view it as a violation of the Tennessee Sports Gaming Act. The SWC has made it clear that any platform accepting wagers or offering chance-based games without a license is operating illegally, regardless of the terminology used.
Recent Targets
The latest action follows similar moves against platforms like BetWhale, Lowvig, and Kickr, which were ordered to halt operations and allow customers to withdraw funds immediately. Regulators have warned that businesses found violating these orders face significant fines—ranging from $10,000 to $25,000 per offense—and potential criminal penalties.
Protecting the Regulated Market
“Eliminating illegal operators is a primary focus of the SWC,” the regulator stated. By removing unregulated competitors who do not pay taxes or adhere to strict consumer protection standards, Tennessee aims to safeguard its legal, mobile-only sports betting market, which handles billions in annual wagers.
