Major Sweepstakes Casinos Shut Shop Amid Intense Scrutiny in U.S.

Two well-known sweepstakes casinos have abruptly gone dark for players as U.S. lawmakers ramp up scrutiny of the sector. The Money Factory has fully stopped operating, while CoinFrenzy has halted new purchases and set a deadline for players to cash out.

The Money Factory says it “permanently ceased operations” on Sunday. On its website, the company states that player accounts, balances, and pending redemption requests will be “recorded and preserved,” but it does not say refunds will be processed automatically.

CoinFrenzy has taken a slower approach. It says it is no longer accepting new purchases, but players have until September 25 to redeem remaining balances.

Neither site pointed to a specific reason for shutting down, but both closures land amid a broader U.S.-wide crackdown. Over the past 12 months, dozens of sweepstakes casinos have shuttered after multiple states passed laws that prohibit the unregulated platforms. States named in the latest wave include New Jersey, New York, Indiana, Maine, Oklahoma, Louisiana, and Tennessee.

Some operators have closed one sweepstakes brand and later reappeared with a different gambling product under less scrutiny. Kickr Games Play Ltd., for example, shut its Kickr sweepstakes casino in March after receiving a cease-and-desist order from the Louisiana Gaming Control Board, and later launched GetGud, which doesn’t describe itself as a sweepstakes casino.

For CoinFrenzy’s owner, Lucky Labz LLC, there’s no clear sign of an immediate return to the market. The Money Factory’s founder, Trevor Pope, and executives Clay Johnson and Jared Pope have previously launched GammaSweet, described as a tech stack designed to launch sweepstakes casinos.