Florida Attorney General James Uthmeier has filed two lawsuits against operators of sweepstakes-style online casinos, along with the payment processors that service them, alleging the platforms constitute illegal gambling operations under state law.
The complaints, filed in Hillsborough County Circuit Court, target Stake and its affiliated entities in one case, and VGW Games and its affiliated brands – Chumba Casino, LuckyLand, and Global Poker – in the other. Each complaint also names the payment service providers linked to the respective operator: Praxis and Breeze Labs for Stake, and Yodlee, Trustly, and Worldpay for VGW Games.
Dual-currency model at centre of complaints
According to the lawsuits, both operators use a dual-currency structure through which players purchase packages of virtual coins, referred to as 'Gold Coins', bundled with a secondary currency such as 'Stake Cash' or 'Sweeps Coins'. This secondary currency functions as a wagering credit that can be redeemed for cryptocurrency, gift cards, or cash after meeting minimum play-through requirements. The complaints state that the platforms offer casino games, including slots, blackjack, roulette, and poker, while marketing themselves as free, legal social entertainment.
The Attorney General's office argues that under Florida law, a platform accepting real money and paying out winnings in a manner comparable to a casino should be classified and regulated as one. Florida law limits legal gambling to narrowly defined categories of licensed, slot-machine gaming.
Payment processors named as participants
Beyond the platform operators, both complaints extend allegations to the associated payment service providers, describing them as 'sophisticated participants' in the alleged gambling enterprises. The filings argue that the payment processors knew or should have known the difference between licensed gaming operators and platforms operating without authorisation in Florida, given prior enforcement actions, cease-and-desist orders, and other regulatory measures taken against sweepstakes casinos by state gaming regulators and attorneys general elsewhere. In addition, the complaints describe the payment providers as having been 'willfully blind' to these signals while continuing to process transactions for the platforms.
Remedies sought
The lawsuits, brought under Florida's gambling statutes and the Florida Deceptive and Unfair Trade Practices Act, seek permanent injunctions barring the defendants from operating or soliciting customers in Florida. The state is also seeking forfeiture and recovery of funds used or won in connection with the alleged illegal gambling, disgorgement of gains, civil penalties, restitution to consumers, and attorneys' fees.
Regulatory context
The action adds Florida to a growing list of US states pursuing sweepstakes casino operators and their payment infrastructure providers, as regulators increasingly scrutinise dual-currency gambling models operating outside state licensing frameworks. The inclusion of established payment processors and banking-linked service providers in the complaints indicates that enforcement in this sector may extend beyond gambling operators themselves to the wider financial infrastructure supporting them.
