CoinFrenzy has stopped accepting new purchases and plans to shut down on September 25, while keeping games and prize redemptions available until then, according to a homepage notice reported by Lines.com. The notice told players to redeem eligible balances before the deadline.
Money Factory has already gone further. It permanently ceased operations on August 9, ended registrations, purchases and gameplay that day, and said all player accounts, balances and pending redemption requests had been recorded and preserved.
Its closure page invited enquiries about buying company assets, but it gave no public timetable for completing outstanding redemptions. Gaming America said the Money Factory shutdown “looked more abrupt than CoinFrenzy”:https://gamingamerica.com/news/1094898/money-factory-coinfrenzy-closures’s because visitors to the site on August 9 were met with a closure message and no option to log in or redeem sweeps tokens.
As covered in July, VGW had already set a staged wind-down for LuckyLand Slots, with Gold Coin purchases ending on August 3, gameplay ending on August 24 and final redemption requests due by September 14. That sits within a broader pullback by sweepstakes operators as states tighten the rules. Indiana prohibited online sweepstakes casinos from July 1, and Maine adopted a ban during July.
A May analysis by Venable said state legislatures are moving quickly against sweepstakes casinos and the wider ecosystem around them, including payment processors, banks, geolocation providers and media affiliates. It also said New York has already adopted a support-entity prohibition, with similar language pending in Virginia and Minnesota. Sweepstakes casinos typically use a dual-currency model. Gaming America noted that players are not technically depositing, so there are no balances to segregate. From a player safety standpoint, Gaming America said a most important feature of a site is whether it segregates player deposits from operating capital, and regulated sites in the U.S. are required to do so.
