Two major sweepstakes casinos, The Money Factory and CoinFrenzy, have shut down as US regulators tighten enforcement against unregulated platforms. Dozens of similar operators have closed over the past twelve months after several states moved to ban or restrict sweepstakes casino models.
The Money Factory announced a full shutdown on Sunday. The site states that player accounts, balances and withdrawal requests have been 'locked and preserved', but makes no mention of automatic refunds. CoinFrenzy gave users more time: new purchases are halted, but withdrawals remain open until September 25.
Neither operator cited specific reasons for closing. The shutdowns follow a wave of state-level bans: over the past year, sweepstakes casinos have been restricted or effectively prohibited in New Jersey, New York, Indiana, Maine, Oklahoma, Louisiana and Tennessee. Some operators have pivoted to other products. Kickr Games Play Ltd. closed Kickr in March after a Louisiana enforcement order, then launched GetGud, a platform not marketed as a sweepstakes casino.
The Money Factory founder Trevor Pope previously launched GammaSweet, a technology stack for sweepstakes operators, alongside partners Clay Johnson and Jared Pope. CoinFrenzy owner Lucky Labz LLC has not announced any new projects.
