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Tennessee AG Issues Cease-and-Desist Letters to Nearly 40 Sweepstakes Casinos

He says the dual-currency model amounts to an illegal lottery under state law.

Overview

  • Attorney General Jonathan Skrmetti says 38 illegal online casinos have been halted, with nearly 40 operators agreeing to leave the Tennessee market or wind down unlawful features.
  • The targeted sites used real-money deposits converted to virtual coins for casino-style games that could be redeemed for cash or prizes.
  • The Attorney General’s office frames the sweepstakes setup as deceptive and unregulated, warning it lacks oversight that would ensure honesty or fairness.
  • Officials cautioned remaining or would-be sweepstakes operators that they are on notice and that illegal gambling will not be tolerated in Tennessee.
  • State law permits only licensed online sports wagering overseen by the Tennessee Sports Wagering Council, with 11 approved operators.