Tennessee has recently taken tough measures to clean up dozens of online lottery casinos suspected of being illegal. The state's Attorney General, Jonathan Skrmetti, announced that nearly 40 platforms have received formal cease and desist letters, and these operators have agreed to restrict access to Tennessee residents or are preparing to completely exit the state market.
The state government cracks down on the "dual currency" gray area
These online platforms often use "free entertainment" as a guise for promotion, but state officials have revealed that their core operating model is misleading. Attorney General Skrmetti explained: "These lottery casinos usually allow participants to use two types of virtual currencies to play slot machines, table games, or bingo games, one of which can be exchanged for cash or real prizes." He believes that this "dual currency system" is essentially a disguise, covering up the fact that participants may be gambling with real money on these platforms. The state prosecutor determined that this model violates the provisions of the Tennessee Constitution regarding illegal lotteries, and due to the lack of regulatory requirements for licensed gaming operators, consumers face unfair risks.
Nearly forty operators commit to exit, market faces cleanup
In this enforcement action, nearly 40 operators, including well-known brands such as American Luck, Chumba, and Global Poker, received the ban. Officials confirmed that all involved companies have taken action, either by blocking IP access from Tennessee or by promising to completely shut down their lottery business within a few weeks. Skrmetti issued a stern warning: "The only thing you can be sure of is that online lottery casinos will take your money. They try to make themselves look legal, but ultimately they are not. They evade any oversight that could ensure integrity or fairness. We are pleased to drive these shady operations out of Tennessee."
National regulation tightens, unlicensed operating space narrows
This action in Tennessee is not an isolated case, but part of a nationwide trend to strengthen enforcement against unregulated lottery games. The Attorney General's office in Tennessee pointed out that Tennessee law only allows limited forms of gambling, namely state lotteries and regulated online sports betting that started in 2020. State legislators and leaders have consistently opposed the introduction of online or physical casinos. Currently, states like New York and California have also passed legislation prohibiting lottery operators, with penalties such as fines; Connecticut, New Jersey, and Montana have also issued bans. For industry practitioners and researchers wanting to understand similar regulatory dynamics and compliance cases around the world, the PASA official website is a valuable information platform.
————
This article is from "PASA-Global iGaming Leaders" gambling news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
