Florida AG Files Lawsuits Against Sweepstakes Casinos, Payment Processors

_{Florida AG James Uthmeier has been a busy man, filing multiple lawsuits against online sweepstakes casinos and payment processors. (Photo: Sipa USA / Alamy)}

Florida Attorney General James Uthmeier announced Wednesday that he had filed two lawsuits aimed at the operators of major online sweepstakes casinos and their payment processors, alleging that the defendants are operating illegal online gambling businesses under state law.

The lawsuits specifically call out the dual-currency model that has been at the center of the sweepstakes gaming industry and which has come under fire in many states over the past two years.

'If It Looks Like a Casino, It Is a Casino'

Operators named in the lawsuits include Stake and VGW, the latter of which operates sites such as Chumba Casino, LuckyLand, and Global Poker. The lawsuits allege that the sweepstakes casinos violate both state gambling law and the Florida Deceptive and Unfair Trade Practices Act.

The lawsuits, filed in Hillsborough County Circuit Court, seek permanent injunctions to prevent the defendants from operating their sites in the  Florida iGaming market. The complaint also seeks recovery of money lost by consumers in the state, as well as additional civil penalties and attorneys’ fees.

“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Uthmeier said in a statement. “If it looks like a casino, takes money like a casino, and pays out like a casino, it is a casino – and it is illegal under Florida law. These companies have been preying on Floridians, including minors and seniors, with deceptive marketing, and 24/7 access, while dodging our state’s licensing, taxation, and consumer-protection requirements. They must be stopped.”

In a press release, Uthmeier noted that the sites in question offer traditional casino games and allow players to purchase Gold Coins for casual play that come with a “bonus” of redeemable credits, known as Sweeps Coins or Stake Cash at the operators. Those credits can then be redeemed for cash, gift cards, or other rewards.

Dual Currency Model Under Attack

Because the redeemable coins are typically awarded as a bonus with value approximately equal to the purchase price of the Gold Coins, critics say consumers know they are really buying the second form of currency, and surveys have shown that most players see these businesses as gambling sites.

While operators say that the ability to play for free means these sites are subject to sweepstakes laws rather than gambling regulations, several states have taken steps to ban them, with California joining that list in 2025.

Stake has also been the subject of other legal action. In 2025, a Missouri man filed a class-action lawsuit against Stake.us as well as both Drake and Adin Ross for their roles in promoting the site, alleging that Stake fronted the celebrities money to use on the site so that they could stream high-stake play to fans.