Florida Sues Stake.us and VGW Brands Over Sweepstakes Casino Claims
The state says dual-currency play masked real-money gambling and pushed cash-out credits through Florida markets.
Florida Attorney General James Uthmeier filed two lawsuits in Hillsborough County Circuit Court against online sweepstakes casino operators and payment processors, accusing them of running illegal gambling businesses under Florida law and violating the Florida Deceptive and Unfair Trade Practices Act.
The targets include Stake.us and VGW-owned Chumba Casino, LuckyLand, and Global Poker. According to News4JAX’s reporting on the complaints, the state says the companies built their business around a dual-currency model meant to hide real-money gambling behind a sweepstakes label.
Under that system, customers buy packages of “Gold Coins” that come with “Stake Cash” or “Sweeps Coins.” The complaints say those credits work as redeemable wagering chips and can be cashed out for cryptocurrency, gift cards, or cash after some play-through requirements.
The lawsuits say the platforms offer slots, blackjack, roulette, and poker while marketing themselves as free, safe, legal “social” entertainment. They also say the companies pushed large wins through celebrity and influencer campaigns, and Uthmeier said the operators were “preying on Floridians, including minors and seniors,” while dodging licensing, taxation, and consumer-protection rules.
Florida’s complaints say the state sharply limits gambling and allows slot machines only in narrow circumstances at licensed facilities. CBS12 reported that Florida’s argument is that the dual-currency setup is designed to make real-money gambling look like lawful promotional play, setting up the central question for the court: whether these platforms are prohibited gambling operations or legal sweepstakes.
The state is seeking permanent injunctions to stop the defendants from operating or soliciting business in Florida. It is also asking for forfeiture and recovery of consumer losses, disgorgement of ill-gotten gains, restitution, civil penalties under FDUTPA, and attorneys’ fees.
