Florida Attorney General James Uthmeier has filed lawsuits against sweepstakes casino operators Stake and VGW, along with the payment processors servicing their platforms. The suits were filed in Hillsborough County Circuit Court, alleging that Stake.us and VGW's products — Chumba Casino, LuckyLand Slots, LuckyLand Casino and Global Poker — constitute illegal gambling operations under state law.
The defendants include payment companies Worldpay, Trustly, Praxis and Breeze Labs, which the attorney general says facilitated transactions for platforms operating in violation of Florida law. Uthmeier is seeking to bar the operators from doing business in the state and soliciting customers, as well as restitution for money lost by Florida residents, penalties under unfair trade practice statutes and legal costs.
Two-currency model under scrutiny
The core of the allegations is the two-currency sweepstakes model. Users purchase packages of virtual currency (Gold Coins) that cannot be redeemed for money, and receive a second currency — Sweeps Coins or Stake Cash. This second currency can be used in slots, blackjack, roulette and poker, then converted into real money, cryptocurrency or gift cards after meeting playthrough requirements.
Florida argues the model disguises real-money gambling. 'If it looks like a casino, takes money like a casino and pays out like a casino — it's a casino, and it's illegal', Uthmeier said.
In January the attorney general's office issued subpoenas and offered to meet for discussions. The stance has now hardened. The suits follow a legislative session in which Florida lawmakers passed none of several bills aimed at tightening online gambling controls. This year Indiana, Maine, Tennessee and Louisiana imposed sweepstakes casino bans. Oklahoma's ban takes effect November 1.
Naming payment processors in the suits may complicate operations for sweepstakes operators: many processors service multiple platforms and maintain US offices, making court orders easier to enforce.
