The Tennessee Attorney General's Office announced that it has taken enforcement action against numerous online sweepstakes casinos found to be operating illegally within the state. This follows the VP of Interactive Gaming Lee Terfloth stating that Delaware North will focus on its Arkansas operations while ending Betly's Tennessee activities.
Cease-and-desist letters have been sent to nearly forty online platforms offering casino-style games through sweepstakes models that violate Tennessee law.
These platforms, which have been growing recently, typically allow users to play games such as slot machines, table games or bingo using two types of virtual currency.
One currency appears promotional, but the other can be exchanged for cash or prizes, effectively enabling illegal gambling under the Tennessee Constitution.
All platforms that received cease-and-desist letters have either already disabled the unlawful aspects of their services or agreed to specific timelines to shut down their sweepstakes casino operations in Tennessee.
The enforcement action follows similar efforts in other states targeting online gambling platforms that rely on sweepstakes terminology to avoid regulation. For example, in Maine, sweepstakes-style casinos have been formally prohibited and in California, Bill AB 831 has moved forward after unanimous approval by the Assembly Governmental Organization Committee.
Attorney General Skrmetti, stated: "The only thing you can be sure about with an online sweepstakes casino is that it's going to take your money.
"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."
Sweepstakes casinos are not licensed gambling operators in Tennessee as well as in several other states including Washington, Idaho, Michigan and Montana
