Florida AG Targets Sweepstakes Casinos: Stake & VGW Sued

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Aug 21, 2026, 11:00 am ET

Read Time: 3 minutes

Florida AG Targets Sweepstakes Casinos: Stake & VGW Sued

industry

Florida Attorney General James Uthmeier has filed lawsuits against Stake and VGW over their sweepstakes casino operations.

The lawsuits accuse both companies of operating illegal online casinos in Florida. Uthmeier also named several payment processors in the legal actions.

The cases target a growing segment of the US online casinos market. They could also influence the future of Florida gambling and sweepstakes gaming nationwide.

Florida AG Targets Stake and VGW

Uthmeier filed separate lawsuits against Stake and VGW in Florida state court. VGW operates several brands, including Chumba Casino, LuckyLand Slots, and Global Poker.

The lawsuits allege that these platforms violate Florida gambling laws. The state also alleges violations of the Florida Deceptive and Unfair Trade Practices Act.

In a statement, AG Uthmeier argues that the companies' sweepstakes models amount to real-money gambling. He claims the operators use virtual currencies to disguise traditional casino wagering.

"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," Attorney General Uthmeier said.

The lawsuits seek permanent injunctions against the operators. Florida also wants restitution, civil penalties, disgorgement, and other financial remedies.

Florida Challenges the Sweepstakes Model

Sweepstakes casinos typically use two currencies to structure their games. Customers can purchase non-redeemable virtual coins for casino-style play.

Those purchases can also provide redeemable sweepstakes currency. Players can then use that currency on games and potentially redeem their winnings.

Florida argues that this structure does not change the underlying nature of the activity. The state maintains that players are effectively wagering real money on casino games.

The lawsuits directly challenge the industry's reliance on the sweepstakes label.

"These companies cannot hide illegal gambling behind a sweepstakes label," Uthmeier said. 

"We're seeking to recover every dollar consumers lost under Florida's gambling recovery laws, and we will hold them accountable."

The complaints also accuse the companies of using deceptive marketing practices. Uthmeier claims their platforms provide continuous access without Florida's licensing requirements.

"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," Uthmeier said.

Payment Processors Also Face Lawsuits

Florida's legal strategy extends beyond the sweepstakes operators themselves. The lawsuits also name payment processors that allegedly facilitated transactions.

Those companies include Worldpay, Trustly, Praxis, and Breeze Labs. Their inclusion could create additional challenges for the broader sweepstakes casino industry.

Payment providers play an important role in allowing customers to fund accounts and withdraw winnings. Therefore, increased legal pressure could make processors more cautious about serving sweepstakes operators.

One complaint summarizes Florida's position with a colorful analogy.

"Defendants operate illegal online casinos in the State of Florida. They call them 'sweepstakes' casinos as if that's some sort of talismanic cure-all. But if it looks, swims, and quacks like a duck, it's a duck."

Florida Joins a Wider Sweepstakes Crackdown

The lawsuits arrive as regulators and lawmakers across the US increase scrutiny of sweepstakes casinos.

Several states have already restricted or prohibited sweepstakes gaming. Meanwhile, other jurisdictions continue debating whether existing gambling laws cover the business model.

Florida's approach is notable because Uthmeier is relying on existing laws rather than waiting for new legislation.

If Florida succeeds, the cases could affect other operators using similar dual-currency models. They could also influence how payment processors assess relationships with sweepstakes companies.

For now, the allegations remain unresolved. The lawsuits will determine whether Florida's existing gambling laws can be applied to these platforms.

The outcome could therefore become an important test for the future of sweepstakes gaming and Florida gambling.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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