Tennessee Cracks Down on Sweeps Casinos

Tennessee is the latest state to declare war on the sweepstakes casino model, and Attorney General Jonathan Skimetti has been busy with the cease-and-desist letters.

Almost 40 casinos have received the cease-and-desists, and numerous casinos have already complied. VGW, owner of Chumba Casino, High 5, Chanced and more have already made major changes. VGW has opted not to pull out the state completely, but has disabled the sweeps coins element that is so divisive with the state regulators, opting for a pure social casino free play model instead. RealPrize and LoneStar have followed suit.

While it hasn’t pursued anti-sweepstakes casino legislation just yet, Tennessee’s AG clearly feels the existing laws are strong enough to make a case. The cease-and-desist letters have worked in Louisiana, New York and West Virginia, and Tennessee is just the latest in a long line of states to make it clear that the sweeps casino model simply doesn’t work for them.

The Tennessee Sports Wagering Council went after sweeps casinos with a sportsbook attached earlier this year, which resulted in Legendz, Rebet, Sportzino and Kickr closing its doors to state residents.

Existing Legislation is Strong Enough

Now the state’s Attorney General has gone after sweeps casinos, quoting existing legislation that does seem fairly watertight.

Tennessee Code Title 39. Criminal Offenses § 39-17-501 states the following:

“(2) “Gambling” is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like.”

Sweeps casinos work with virtual currencies that can be redeemed for cash later on, and so they can claim to sidestep real money gambling laws. Whenever the state has stood firm, though, and enforced its rules or presented new ones, the sweeps casinos have tended to pull out without a fight.

While 40 casinos have received cease-and-desist letters, not all of them have complied as yet. Crown Coins, Wow Vegas, McLuck, Cazino and Fortune Coins have not modified their systems or restricted access as yet. But they may have supplied the Tennessee Attorney General with a firm date by which time they will withdraw or remove the contentious sweeps coins element from their casinos.

The year has barely got underway and 2026 is set to be a big year for sweeps casinos.