Tennessee AG Cracks Down: Nearly 40 Sweepstakes Casino Operators Hit With Cease-and-Desist Orders

In Tennessee, sweepstakes casino operators can't catch a break. Weeks after several platforms had shut down, the office of the Attorney-General has released another batch of cease-and-desist orders, this time targeting nearly 40 operators. 

In a press release dated December 29th, 2025, the office announced that all sites have received their letters and have already disabled the unlawful components of their platforms” or have agreed on a date on which they will officially pull the plug. 

The list includes some of the big names in the sweeps business, including VGW’s LuckyLand and Global Poker, together with LoneStar, McLuck, and Mega Bonanza.

Tennessee's Move Confirms What Many Had Long Suspected

Tennessee’s recent move isn’t surprising. VGW, for example, has been preparing for its exit in the state through its popular sites like Global Poker, LuckyLand Slots, and Chumba Casino. Although the company has committed to retaining its free-to-play service through Gold Coins (GCs), its promotional play and redemptions through Sweeps Coins (SC) are no longer available.

Other sweeps operators followed VGW’s lead in Tennessee—NoLimitCoins, Tao Fortune, and Fortune Wheelz of A1 Development have blocked access to their websites, and Stake.us, High 5 Casino, and RealPrize have also shut down ahead of time.

So, What’s Behind the Latest Regulatory Action?

According to state officials, sweepstakes casinos are “illegal” because they run a gambling activity. At the heart of these debates is the dual-currency model: two on-site virtual currencies, which can be used for free play, and the other can be redeemed for real-world prizes.

According to the state’s AG, “this dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms”. 

The office added that “the promotional sweepstakes model used by these casinos constitutes an illegal lottery prohibited by the Tennessee Constitution and violates Tennessee gambling and consumer-protection laws.”

What Operators Are Doing

In response to the latest AG letters, many operators have blocked access to local players or removed the sweepstakes component of their operations. Some sweepstakes casinos have already exited ahead of time, and a few more have compiled in writing and have agreed on an exit timeline.

The operators’ compliance with the letters suggests that they’re trying to avoid legal complications, while revamping their business models, or looking at other friendlier states.

REFERENCES:

• Office of the Attorney-General, Tennessee

• Press Release