Tennessee has become the latest battleground for sweepstakes casinos after Attorney General Jonathan Skrmetti sent cease-and-desist letters to 40 operators this week.
As a result, online poker players could be shut out if the sweepstakes casinos exit Tennessee.
Skrmetti said these operations function as illegal lotteries and demanded that they stop operating in the Volunteer State.
“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.”
Tennessee Online Poker Players Could See Options Dwindle
The list of sweepstakes operators receiving cease-and-desist letters included some of the most popular platforms, including Chumba Casino, Global Poker, Stake.us, and WOWVegas, according to local media outlets.
Tennessee doesn’t have legalized online poker. Platforms like Global Poker and Stake.us were some of the only options for players in the state to play poker against other players online.
That may come to an end if the operators flee the state.
Tennessee Follows The Trend
Sweeps operators typically use a dual-currency model to make money. Players can use free-to-play Gold Coins, but they can also purchase additional Gold Coins, receiving Sweeps Coins as a bonus. Sweeps Coins can then be used to play separate games, allowing users to redeem winnings for cash and prizes.
Operators have argued that games are free to play and don’t require users to pay anything. Even so, sweepstakes casinos have become a multi-billion-dollar industry that operates free of regulations in most states. Most operators, of course, seek regulation over outright banning.
However, several states have banned the platforms. California passed a ban in October. New Jersey Gov. Phil Murphy signed legislation to ban sweeps into law in August. New York soon followed suit.
Earlier in December, Maine and Indiana became the latest states to introduce legislation prohibiting their operation. A Florida lawmaker has also introduced a bill to ban them in Florida after a similar effort failed earlier in the year.
