Tennessee Attorney General Jonathan Skrmetti just delivered the final blow of 2025’s sweepstakes casino crackdown. On December 29, his office announced cease-and-desist orders to 38 online sweepstakes platforms—and achieved 100% compliance. Every single operator either disabled their unlawful features or agreed to shut down entirely. For players using Chumba, Stake.us, High 5 Casino, or any of the dozens of affected platforms, this isn’t just Tennessee news—it’s the clearest signal yet that the sweepstakes model is collapsing state by state.
KEY FACTS AT A GLANCE
- Announcement Date: December 29, 2025
- Attorney General: Jonathan Skrmetti
- Casinos Targeted: 38 platforms (nearly 40)
- Compliance Rate: 100%
- Legal Basis: Tennessee Constitution prohibits lotteries; dual-currency = illegal lottery
- Investigation: Months-long before cease-and-desist orders issued
- California Ban: Went live January 2, 2026—same week
The Full List: 38 Casinos Ordered to Shut Down
Here’s every platform that received a cease-and-desist from Tennessee’s AG office. All have either disabled sweepstakes features or agreed to exit the state entirely:
| Casino Name | Casino Name | Casino Name |
|---|---|---|
| American Luck | Cazino | Chanced |
| Chumba | Crown Coins Casino | Fortune Coins |
| Fortune Wheelz | Funrize | FunzCity |
| Global Poker | Golden Hearts Games | Hello Millions |
| High 5 Casino | iCasino | Jackpota |
| Legendz | LoneStar | LuckyLand |
| McLuck | Mega Bonanza | MegaFrenzy |
| Modo | Moonspin | NoLimitCoins |
| PlayFame | Punt | RealPrize |
| Rolla | SpinBlitz | Sportzino |
| Spree Social Casino | Stake.us | StormRush |
| Tao Fortune | The Money Factory | WOW Vegas |
| Yay Casino | Zula Casino | — |
Major platforms highlighted in gold had proactively announced exits before the AG’s announcement. Stake.us (highlighted in red) informed Tennessee customers on December 19 that it would add the state to its restricted list.
The AG’s Statement: “They’re Going to Take Your Money”
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money. 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.”
— Tennessee Attorney General Jonathan Skrmetti
Skrmetti’s office determined that the dual-currency model used by sweepstakes casinos constitutes an illegal lottery under the Tennessee Constitution. The platforms allow players to use two types of virtual currency—one promotional (Gold Coins) and one redeemable for cash (Sweeps Coins). State lawyers concluded this “serves as a façade to hide the fact that participants may engage in real-money gambling.”
The Sweepstakes Model Explained: Why This Keeps Happening
If you’ve been following the sweepstakes casino space, you’ve seen this pattern repeat across multiple states. Understanding why requires knowing how the model works—and why regulators keep rejecting it.
HOW THE DUAL-CURRENCY MODEL WORKS
Gold Coins (GC)
- Purchased with real money
- Used for gameplay only
- Cannot be redeemed for cash
- “Entertainment value” only
Sweeps Coins (SC)
- “Free” bonus with GC purchase
- Can be redeemed for cash/prizes
- Also available via mail-in (rarely used)
- This is where regulators see gambling
The industry argues this structure satisfies sweepstakes laws requiring “no purchase necessary”—since you can technically get Sweeps Coins by mail. Regulators increasingly reject this argument, viewing it as a loophole that enables real-money gambling without oversight. Understanding how house edge works is critical when evaluating any casino, regulated or not.
2025: The Year Sweepstakes Casinos Fell
Tennessee isn’t an isolated case—it’s the culmination of a nationwide crackdown. Six states passed legislation or took enforcement action to ban sweepstakes casinos in 2025:
| State | Action | Effective Date | Penalty |
|---|---|---|---|
| Montana | SB 555 signed May 12 | October 1, 2025 | Felony, up to 10 years |
| Connecticut | SB 1235 signed June | Immediate | Civil penalties |
| New Jersey | A5447 signed Aug 15 | August 15, 2025 | Civil penalties |
| California | AB 831 signed Oct 11 | January 1, 2026 | Up to 1 year jail, $25K fine |
| New York | S5935A signed Dec 8 | Immediate | $10K-$100K per offense |
| Tennessee | 38 cease-and-desist orders | December 29, 2025 | Enforcement action |
California’s ban is particularly significant—analysts estimate it wipes out roughly 20% of the sweepstakes industry’s US revenue. Eilers & Krejcik Gaming revised their 2025 US sweepstakes revenue estimate from $4.7 billion to $4 billion after the law passed.
2026 States to Watch: The Pipeline Is Full
The crackdown isn’t slowing down. Nine states are actively working on prohibition legislation for 2026:
MAINE
SP 825 (LD 2007) filed Dec 5. Committee on Veterans and Legal Affairs. Session starts Jan 7, 2026. Fines $10K-$100K.
INDIANA
HB 1052 heard by House Public Policy Committee Jan 8, 2026. Up to $100K per violation. No vote yet—further hearings expected.
FLORIDA
Two bills pre-filed for 2026 session. Details pending. State has strong tribal gaming interests pushing for bans.
ADDITIONAL STATES WITH PENDING LEGISLATION
- Arkansas — Legislation in progress
- Maryland — Second cease-and-desist already issued to Chumba/LuckyLand
- Mississippi — Bills filed
- Illinois — Class action pending + legislation
- Ohio — Active discussions
- Massachusetts — Bills under consideration
The Pattern: How States Are Shutting Down Sweepstakes Casinos
If you’re a player on one of these platforms, understanding the enforcement pattern helps you prepare:
STEP 1: INVESTIGATION
AG office or gaming commission conducts months-long review. Players typically unaware.
STEP 2: LETTERS SENT
Cease-and-desist orders issued to operators. Some proactively exit before announcement.
STEP 3: COMPLIANCE
Operators comply (100% rate in Tennessee). Sweeps features disabled. State goes dark.
VGW (Chumba, LuckyLand, Global Poker) had already announced their Tennessee exit in November—proactive compliance. Tennessee became VGW’s 13th restricted US jurisdiction and ninth exit of 2025 alone.
What Players Should Do Now
If you’re using sweepstakes casinos, the regulatory environment demands attention. Here’s how to protect yourself:
PLAYER ACTION CHECKLIST
If You’re in a Safe State
- Monitor your state’s legislative calendar
- Don’t accumulate large balances unnecessarily
- Use a bankroll calculator to manage funds
- Diversify across regulated alternatives where legal
If Legislation Is Pending
- Consider cashing out Sweeps Coins now
- Review platform terms for exit procedures
- Watch for email notifications from operators
- Don’t deposit new funds until situation clarifies
IMPORTANT: REDEMPTION DEADLINES
When operators exit a state, they typically provide a redemption window. VGW gave Tennessee players until January 20, 2026 to redeem Sweeps Coins. California players had until December 31, 2025. Miss the deadline and you forfeit your balance.
The Bigger Picture: What This Means for Crypto Casinos
The sweepstakes crackdown has implications beyond just social casinos. Stake.us—the sweepstakes arm of crypto casino giant Stake.com—is now restricted in Tennessee, California, and numerous other states. The same dual-currency scrutiny could extend to other crypto gambling platforms operating in regulatory grey zones.
For players who prefer crypto casinos like Stake, BC.Game, or Shuffle, the lesson is clear: regulatory risk is real. Platforms can exit markets quickly, and the compliance pattern (AG letters → operator compliance → state goes dark) happens faster than most players expect.
KEY TAKEAWAYS
- Tennessee action — 38 sweepstakes casinos ordered out, 100% compliance rate
- 2025 was the year of reckoning — Montana, Connecticut, New Jersey, California, New York, Tennessee all took action
- 2026 pipeline is full — Maine, Florida, Indiana, plus 6 more states actively working on bans
- The pattern is predictable — AG investigation → cease-and-desist → operator compliance → state goes dark
- Redemption deadlines matter — Miss them and forfeit your balance
- Crypto casino players affected — Stake.us among those exiting Tennessee; broader regulatory pressure building
Related coverage: Stake.us Controversy & Lawsuits · Drake vs Stake · Stake.us Exits California
Sources
- Tennessee Attorney General’s Office Cracks Down on Illegal Online Sweepstake Casinos — Official Press Release
- NY State Senate Bill 2025-S5935A — New York State Senate
