Tennessee officers have taken decisive steps to take away dozens of online sweepstakes casinos from the state, arguing that the platforms function outdoors the regulation whereas presenting themselves as reliable gaming choices. The effort, led by Attorney General Jonathan Skrmetti, has already resulted in a number of operators proscribing entry for Tennessee residents or getting ready to close down their sweepstakes choices completely.
The Attorney General’s Office issued an announcement (pdf) by which it confirmed that almost 40 on-line platforms obtained formal cease-and-desist letters after investigators decided the websites violated state playing and client safety legal guidelines. According to the workplace, every firm contacted has both disabled the illegal parts of its web site or agreed to exit the Tennessee market within the close to future.
State Challenges Sweepstakes Casino Structure
Online sweepstakes casinos generally promote themselves as free-to-play leisure websites, but state officers argue the construction masks prohibited playing exercise. Skrmetti described how these platforms function, saying, “Online sweepstakes casinos typically allow participants to play traditional casino-style games like slot machines, table games, or bingo with two types of virtual currencies, one of which can be redeemed for cash or other real-world prizes.”
The legal professional common mentioned the design permits corporations to assert they’re operating promotional sweepstakes relatively than playing operations. He added, “This dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms.”
State attorneys concluded that this mannequin quantities to an unlawful lottery underneath the Tennessee Constitution. The Attorney General’s Office additionally acknowledged that the shortage of regulatory oversight exposes shoppers to unfair practices, for the reason that platforms keep away from the controls required of licensed gaming operators.
Operators Ordered to Exit Tennessee Market
Cease-and-desist letters have been despatched to platforms providing casino-style video games resembling slots, desk video games, and bingo by the sweepstakes format. The checklist of corporations that indicated they’d comply consists of American Luck, Chumba, Global Poker, High 5 Casino, Stake, Crown Coins Casino, McLuck, Modo, WOW Vegas, and several other others.
In complete, almost 40 operators acknowledged the state’s orders. Officials mentioned all of them both restricted their websites so they may now not be accessed by Tennessee residents or dedicated to shutting down their sweepstakes operations inside weeks.
Skrmetti criticized the platforms’ enterprise practices and warned shoppers in regards to the dangers concerned. “The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” he mentioned. “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 and will keep working to protect Tennesseans from illegal gambling.”
Tennessee Joins Broader Enforcement Trend
State officers framed the enforcement motion as half of a wider nationwide response to unregulated sweepstakes gaming. Tennessee now joins a rising quantity of jurisdictions which have moved to ban or prohibit such platforms. According to the Attorney General’s Office, the crackdown sends a message to corporations at present working or contemplating getting into the state that unlawful gaming exercise is not going to be allowed.
The workplace famous that Tennessee regulation permits solely restricted types of playing. The state lottery and controlled on-line sports activities betting, which launched in 2020, stay the only real authorized choices. Lawmakers and state leaders have persistently opposed the introduction of on-line or brick-and-mortar casinos.
Other states have taken related positions. New York and California handed laws this yr banning sweepstakes operators, with enforcement measures that embrace fines and penalties. California’s prohibition takes impact this week, whereas New York’s regulation was signed earlier this month. Connecticut, New Jersey, and Montana have additionally enacted bans, and Michigan has compelled a number of sweepstakes platforms to close down or face unlawful playing fees.
