Major Sweepstakes Casinos Shut Down as U.S. Legal Scrutiny Intensifies
The Money Factory and CoinFrenzy have both shut down as U.S. states escalate their crackdown on sweepstakes casinos, joining a growing list of shuttered operators.
Two more sweepstakes casinos have gone dark. The Money Factory and CoinFrenzy both announced abrupt shutdowns this week, adding to a growing list of platforms that have exited the U.S. market amid an intensifying legislative crackdown on the sweeps industry.
The Money Factory said it “permanently ceased operations” as of Sunday, according to a notice on its official site. The operator said player accounts, balances, and pending redemption requests would be “recorded and preserved,” though it stopped short of promising automatic refunds. CoinFrenzy is taking a slower off-ramp, no longer accepting new purchases but giving players until September 25 to redeem existing balances.
A Wave of State Bans Is Reshaping the Industry
Neither operator gave an exact reason for closing, but the timing lines up with a year of aggressive state-level action against dual-currency sweepstakes platforms. Since early 2025, a wave of states has passed explicit bans or ramped up enforcement, including New Jersey, New York, Connecticut, Montana, California, Indiana, Maine, Louisiana, and Tennessee. Oklahoma is next in line, with a ban set to take effect November 1 after lawmakers overrode a gubernatorial veto.
California’s ban alone, which took effect January 1, reportedly wiped out roughly 20% of the sweepstakes industry’s U.S. revenue in a single stroke. Tennessee’s attorney general issued cease-and-desist orders to roughly 40 operators late last year, and several brands under the B-Two umbrella — including McLuck, Hello Millions, and SpinBlitz — have since blocked Tennessee players entirely rather than fight the state in court.
Some Operators Are Pivoting, Not Disappearing
Not every closure marks the end of the road for the people behind these platforms. Kickr Games Play Ltd. shut down its Kickr sweepstakes casino earlier this year after a cease-and-desist order from the Louisiana Gaming Control Board, only to launch GetGud, a real-cash skill-games app that avoids the sweepstakes label altogether. The Money Factory’s founders — Trevor Pope, Clay Johnson, and Jared Pope — have also previously built GammaSweet, a backend tech stack used to launch other sweepstakes casinos, suggesting the underlying business model is adapting rather than vanishing.
CoinFrenzy’s parent, Lucky Labz LLC, hasn’t signaled any similar pivot yet. Both companies declined to comment when reached by industry press.
What It Means for Players
For players in states that still permit sweepstakes casinos, the shutdowns are a reminder to keep an eye on operator announcements and cash out sweeps coin balances promptly rather than let them sit. Roughly three dozen states still allow the platforms to operate, and demand hasn’t slowed in those markets — but the list of states saying no is getting longer by the month, and operators without a backup plan are increasingly the ones left explaining themselves to their user base after the fact. Anyone still active on a legal platform can compare current offers on the sweepstakes promotions hub before deciding where to keep playing.
The broader trend also raises questions about how sustainable the dual-currency model is long-term. As more states move from “yellow zone” scrutiny to outright bans, operators are increasingly choosing between costly legal fights, geofencing entire states, or quietly rebranding into adjacent products that avoid the sweepstakes label. Whether that keeps regulators satisfied remains to be seen.