Florida AG Sues Stake, VGW, Payment Processors Over Sweepstakes Casinos
The lawsuits mark an escalation from subpoenas issued earlier this year, when Uthmeier said his office remained open to dialogue with operators.
Florida Attorney General James Uthmeier has sued sweepstakes casino operators Stake and VGW, as well as the payment processors that facilitate transactions on their platforms. The move marks the latest blow to the sweeps industry, which is facing a shrinking U.S. market.
The two complaints, filed in Hillsborough County Circuit Court, allege that Stake.us and VGW’s Chumba Casino, LuckyLand Slots, LuckyLand Casino and Global Poker constitute illegal online gambling operations under Florida law.
The lawsuits also name several payment companies, including Worldpay, Trustly, Praxis and Breeze Labs. The complaints allege the companies facilitated transactions linked to the platforms.
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.”
The Attorney General is seeking permanent injunctions prohibiting the companies from operating or soliciting customers in Florida. Uthmeier is also seeking forfeiture and recovery of money lost by Florida consumers, disgorgement, restitution, civil penalties under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and attorneys’ fees.
Florida Targets Sweepstakes Casino Payment Infrastructure
The inclusion of payment processors broadens the enforcement action beyond companies that directly operate sweepstakes casinos.
In the VGW case, Florida names several VGW entities alongside Worldpay, Trustly and Worldpay Holdco. The Stake complaint names Sweepstakes Ltd., doing business as Stake.us, as well as payment-related defendants including Trustly, Praxis and Breeze Labs.
Florida alleges those companies facilitated transactions for gambling operations that were illegal under state law.
That makes the payment companies more than peripheral defendants in the Uthmeier’s case. Florida’s theory effectively treats the movement of money into the platforms as part of the alleged illegal gambling operation, potentially exposing companies that process or facilitate those transactions to liability even though they do not operate the games themselves.
Targeting payment processors could be significant, as most have substantial operations and offices in the U.S. That could be an easier path to block sweepstakes casino platforms that operate through offshore entities.
The approach could also have implications beyond Stake and VGW. Payment providers generally serve multiple platforms, meaning successful enforcement against processors could make companies more reluctant to service operators broadly if doing so creates potential state-level liability.
Florida Challenges Dual-Currency Sweepstakes Model
At the center of both cases is the dual-currency payment model.
According to the complaints, customers purchase packages of non-redeemable virtual currency, typically known as Gold Coins, and receive a secondary currency such as Sweeps Coins or Stake Cash. That secondary currency can be used to play casino-style games and, after meeting redemption requirements, converted into cash, cryptocurrency, gift cards or other value.
Florida alleges that the model is designed to disguise what amounts to real-money gambling.
The platforms offer games including slots, blackjack, roulette and poker while describing themselves as sweepstakes or social gaming products rather than conventional online casinos, according to the Attorney General.
The model has faced increased regulatory scrutiny across the country. Last year, five states passed laws banning sweepstakes casinos, with Indiana, Maine, Tennessee, and Louisiana enacting laws this year. Oklahoma’s ban is set to take effect on Nov. 1, while Iowa has passed a law that gives regulators greater authority to pursue illegal operators.
Lawsuits Follow Earlier Sweepstakes Subpoenas, Failed Bills
In January, Uthmeier revealed that his office had issued subpoenas to sweeps operators without disclosing which companies had received them or how many operators were under scrutiny.
He also said that his office wanted to meet with operators to discuss and better understand how the platforms worked. The approach suggested that enforcement had not yet closed the door on dialogue with the sector. Months later, Uthmeier is taking a considerably firmer position, explicitly describing sweepstakes casinos as illegal gambling operations.
The lawsuits also come after Florida lawmakers failed to pass several measures aimed at strengthening the state’s illegal gambling laws during the 2026 legislative session.
Lawmakers considered bills addressing internet gambling, tougher penalties and expanded enforcement authority, with some provisions broad enough to potentially apply to sweepstakes casino models. None ultimately became law before the session ended in March.
None of the bills expressly targeted sweepstakes casinos. Still, some addressed internet gambling, prize-based systems and mechanisms resembling dual-currency models.
The failure of those measures left Florida’s existing gambling laws unchanged, and Uthmeier’s new cases will test whether the state can successfully use its current law to chase the industry out of one of the nation’s most populous states.
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