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- Tennessee’s attorney general is taking decisive action against illegal online sweepstakes casinos exploiting players with deceptive gambling practices.
- These measures mark a significant effort to protect local bettors from unscrupulous operators masquerading their platforms as legitimate gaming sites.
- The crackdown impacts nearly 40 platforms currently operating unlawfully within the state.
Tennessee Attorney General Jonathan Skrmetti has announced a crackdown on online sweepstakes casinos that operate illegally within the state.
These platforms use a dual-currency system where one type of virtual currency can be redeemed for cash or real-world prizes, effectively hiding real-money gambling behind a façade.
Nearly 40 such casinos received cease-and-desist letters requiring them to disable unlawful gambling components and cease operations soon. Skrmetti emphasized that these casinos are designed to take players’ money without oversight or guarantees of fairness, highlighting the state’s commitment to protecting its residents from predatory gambling.
Tennessee has not legalized real-money online casinos.
Tennessee’s action could spur other states to act
This enforcement action signals an important development for US online gamblers, particularly those in Tennessee, by removing shady operators who avoid regulation and exploit legal loopholes.
For bettors, it means increased protection from unreliable gaming sites that could lead to financial losses. Operators are reminded that regulatory compliance and transparency are critical, as state authorities remain vigilant.
This crackdown may also encourage other states to follow suit in addressing online sweepstakes casinos that operate in legal “gray” areas, affecting market dynamics and player trust nationwide.
A handful of states have outright banned sweeps, while a few others are considering it. Interestingly, Tennessee has not specifically banned sweepstakes casinos.
Based on reporting by Caleb Wethington for WSMV.
