Tennessee Attorney General Jonathan Skrmetti has halted the operations of 38 illegal online casinos in the state, his office announced on Monday.
Online casinos disguised as “sweepstakes” have been operating illegally in Tennessee until now. Our office took action to protect consumers and stop illegal gambling. 🎰💻🚫
➡️ Read more: https://t.co/iw1qcf6VbD pic.twitter.com/QBblZbilkg
— TN Attorney General (@AGTennessee) December 29, 2025
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The casinos operated as “online sweepstakes” that allowed users to deposit real money in exchange for virtual currency. Users could then play numerous virtual casino games and exchange the virtual currency for cash or prizes.
“This dual-currency system serves as a façade to hide the fact that participants may engage in real-money gambling on these platforms,” the announcement said.
Skrmetti argues that the sites’ “promotional sweepstakes model” essentially operates as an illegal lottery. In doing so, the online casinos have violated the Tennessee constitution and state gambling and consumer protection laws. Skrmetti issues cease-and-desist letters to the 38 sites, all of whom will comply with the order.
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Skrmetti said. “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.”
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“Other sweepstakes casinos currently operating in Tennessee or contemplating entering the Tennessee marketplace should consider themselves on notice that illegal gambling will not be tolerated,” the statement concluded.
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