Tennessee Attorney General Jonathan Skrmetti has announced a major enforcement action against the online sweepstakes casino industry, resulting in the closure of nearly 40 websites within the state.
The crackdown targets operators utilizing the controversial “dual-currency” model, which regulators argue is a thinly veiled loophole designed to offer unregulated real-money gambling.
Closing the Loophole
The Attorney General’s office sent cease-and-desist letters to dozens of operators, listing sites like Chumba, High 5, and Stake. Skrmetti confirmed that these operators have “indicated their intent to comply” by blocking Tennessee users from accessing their platforms.
Skrmetti did not mince words in his assessment of the industry. “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Skrmetti stated in a press 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.”
A National Trend
Tennessee’s move to battle sweepstake casinos is part of a growing national wave of enforcement in 2025. States including New York, California, Michigan, Connecticut, and New Jersey have all taken legislative or regulatory steps to ban or restrict sweepstakes models. “This issue has brought lawmakers together that it represents illegal gambling and revenue theft in many states,” said West Virginia Delegate Shawn Fluharty, president of the National Council of Legislators from Gaming States.
With new prohibition bills already filed in Florida, Maine, and Indiana for the 2026 legislative session, the regulatory pressure on the sweepstakes sector is intensifying significantly across the US.
