The two lawsuits challenge sweepstakes casino operations and target the payment companies supporting transactions on their platforms
Florida’s action extends the state’s enforcement strategy beyond gaming operators by seeking to hold payment and financial technology companies liable for facilitating alleged illegal gambling.
Attorney General James Uthmeier filed two civil complaints in Hillsborough County Circuit Court on 19 August. One targets Stake.us and related entities, while the other covers VGW and its Chumba Casino, LuckyLand and Global Poker brands.
The lawsuits allege that the defendants violate Florida gambling laws and the Florida Deceptive and Unfair Trade Practices Act.
These claims remain allegations and have not been decided by the court.
Payment companies named as defendants
The Stake complaint names Praxis Tech and Breeze Labs Payments among its payment-related defendants.
The case involving VGW names Yodlee, Trustly and Worldpay Holdco. Florida alleges that these companies provided the account connections, payment processing, transfers or payout services needed to support transactions on the platforms.
Including payment providers expands the potential effect of the litigation beyond Stake and VGW. A ruling in Florida’s favour could increase the legal and compliance risks faced by companies servicing similar sweepstakes casino operations.
The payment companies had not filed public responses to the allegations at the time of writing.
Dual-currency model faces legal challenge
Both lawsuits focus on the dual-currency system commonly used by sweepstakes casino platforms.
Players can purchase packages of Gold Coins, which are presented as having no cash-redemption value. These purchases are accompanied by a second currency known as Stake Cash or Sweeps Coins.
The secondary currency can be used on casino-style games and may be redeemable for cash, cryptocurrency, gift cards or other items of value after the platform’s play-through conditions have been met.
Florida alleges that this structure disguises real-money gambling as a sweepstakes or social gaming product.
The platforms offer games including slots, blackjack, roulette and poker. The complaints also challenge how the products are advertised as free, legal or social entertainment while promoting the possibility of substantial prizes.
State seeks injunctions and consumer recovery
Florida permits gambling only under specific legal and regulatory arrangements. Slot machines are restricted to authorised facilities and online casino gaming is not generally licensed by the state.
The Attorney General is seeking permanent injunctions that would prevent the defendants from operating or soliciting business in Florida.
The requested remedies also include the recovery of money allegedly lost by Florida consumers, forfeiture, disgorgement of gains, restitution, civil penalties and legal fees.
James Uthmeier, Florida Attorney General
“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations.
“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-hour access, while avoiding our state’s licensing, taxation and consumer-protection requirements. They must be stopped.”
The lawsuits ask the court to apply Florida’s existing gambling and consumer-protection laws to the dual-currency model. Florida did not enact a separate statutory prohibition specifically covering sweepstakes casinos during its latest legislative session.
