Florida Attorney General James Uthmeier has filed two lawsuits against the operators of several major online sweepstakes casinos — including Stake and VGW’s Chumba Casino, LuckyLand and Global Poker — as well as the payment processors that enable them.
The complaints, filed in Hillsborough County Circuit Court, allege the defendants are operating illegal online gambling enterprises in violation of Florida’s gambling laws and the Florida Deceptive and Unfair Trade Practices Act.
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“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Uthmeier said.
“If it looks like a casino, takes real 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.”
How sweepstakes casinos work
According to the complaints, the defendants use a dual-currency model intentionally designed to disguise real-money gambling. Players purchase packages of “Gold Coins” bundled with either “Stake Cash” or “Sweeps Coins.” Those secondary currencies function as redeemable wagering credits that can be cashed out for cryptocurrency, gift cards or cash after minimal play-through requirements.
The platforms offer traditional casino games — including slots, blackjack, roulette and poker — while marketing themselves as free, safe and legal “social” entertainment. The companies also promote large, purported wins through celebrity and influencer campaigns.
What Florida law says
Florida law strictly limits gambling and authorizes slot machines only under narrow circumstances at licensed facilities, according to the complaints.
What the lawsuits seek
The lawsuits seek permanent injunctions prohibiting the defendants from operating or soliciting business in Florida. They also seek forfeiture and recovery of money lost by Florida consumers, disgorgement of ill-gotten gains, civil penalties under FDUTPA, restitution and attorneys’ fees.