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Attorney General targets sweepstakes casino operators in Florida lawsuits

Our write-up of a story first reported by Yogonet International

Attorney General targets sweepstakes casino operators in Florida lawsuits

Florida Attorney General James Uthmeier has filed two lawsuits against sweepstakes casino operators Stake and VGW (Chumba Casino, LuckyLand, Global Poker), accusing them of running illegal gambling operations. The complaints, lodged in Hillsborough County Circuit Court, also name payment processors handling transactions for the platforms.

The suits cite violations of Florida gambling statutes and the state's Deceptive and Unfair Trade Practices Act (FDUTPA). Uthmeier argues the companies present themselves as social and sweepstakes platforms but operate as casinos, accepting real money and paying out winnings while skirting licensing, taxation and consumer protection requirements.

The operators use a dual-currency model: players purchase bundles of Gold Coins bundled with Stake Cash or Sweeps Coins. The second currency functions as wagering credits that can be converted into cryptocurrency, gift cards or cash after meeting a minimum playthrough. The platforms offer casino staples — slots, blackjack, roulette, poker. Marketing emphasises free-to-play legality, often using celebrities and influencers.

Florida law restricts slot machines to licensed facilities under specific conditions. The Attorney General is seeking a permanent injunction barring the defendants from operating in the state, recovery and return of funds lost by Florida residents, forfeiture of proceeds, FDUTPA penalties, restitution and legal costs. Uthmeier stated the platforms exploit vulnerable groups, including minors and the elderly, by providing round-the-clock access to gambling.

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