Attorney General Takes Aggressive Stance
Tennessee Attorney General Jonathan Skrmetti issued approximately 40 cease-and-desist letters in December 2025, targeting sweepstakes casino operators serving Tennessee residents. The enforcement action represents one of the largest coordinated efforts by a state attorney general against the sweepstakes casino industry to date.
Among the operators receiving letters were Stake, McLuck, and Chumba Casino, three of the most widely known platforms in the market. AG Skrmetti accompanied the enforcement action with a pointed public statement: "The only thing you can be sure about with a sweepstakes casino is that it's going to take your money."
Scope of the Enforcement Action
The cease-and-desist campaign targeted a broad cross-section of the industry rather than focusing on a single operator. By issuing roughly 40 letters simultaneously, the AG's office sent a clear message that Tennessee views the entire sweepstakes casino model as problematic, not just specific bad actors within it.
Tennessee's approach differs from states like California and New York, which have pursued legislative bans. Instead, Skrmetti is using existing enforcement authority to pressure operators into voluntary withdrawal. This strategy allows for faster action, since it bypasses the legislative process, but it also lacks the permanence of statutory prohibition.
Legislative Efforts Running in Parallel
While the AG pursues enforcement, Tennessee legislators have introduced separate bills to codify a formal ban. House Bill 1885, sponsored by Representative Scott Cepicky, would classify sweepstakes casinos as illegal gaming under Tennessee law. A Senate companion measure, SB 2136, has been referred to the Commerce and Labour Committee.
Both bills define sweepstakes gaming broadly, covering platforms that use virtual currency for casino-style games where winnings can be redeemed for cash. This definition aligns with the approach taken by Indiana's HB 1052 and other state-level ban bills, suggesting a degree of coordination or at least shared legal strategy among states targeting the industry.
Enforcement Landscape
Tennessee joins a growing list of states using enforcement actions rather than, or in addition to, legislation to address sweepstakes casinos. Maryland's Lottery and Gaming Control Agency has issued 75 cease-and-desist letters since May 2024. Louisiana, West Virginia, Delaware, Arizona, Mississippi, Minnesota, and Kentucky have all taken various enforcement steps as well.
The effectiveness of cease-and-desist letters as a long-term enforcement tool remains debatable. Without statutory penalties backing them, operators may choose to ignore the letters or challenge them in court. However, the reputational and legal risks of defying an attorney general's order have prompted many platforms to comply voluntarily, particularly as the broader regulatory environment becomes increasingly hostile.
Implications for Players
Tennessee residents may find their access to sweepstakes platforms progressively restricted as operators respond to the cease-and-desist orders. Platforms that comply will block Tennessee IP addresses and refuse new registrations from the state. Players with existing balances should prioritize redeeming any available funds before access is cut off.
If HB 1885 and SB 2136 pass, the ban would become permanent statutory law, eliminating any possibility of operators returning to the Tennessee market without a future legislative change.