Florida AG Sues Stake, VGW Over Sweepstakes Casino Operations

Brad Senkiw - Contributor at Covers.com
Brad Senkiw • News Editor 16+ years betting experience
Updated: Aug 20, 2026 , 10:23 AM ET • 4 min read

Florida has joined the growing list of states taking legal action against sweepstakes casinos, as Attorney General James Uthmeier seeks to shut down Stake and VGW operations.

Photo By - Reuters Connect. Florida Attorney General James Uthmeier speaks during a press conference in Pensacola on May 23, 2025, to discuss the state’s teen vaping crisis.

Florida's attorney general is joining other states in targeting sweepstakes casinos, filing lawsuits against Stake and VGW.

Key Takeaways

  • James Uthmeier says sweepstakes casinos “cannot hide” illegal gambling behind their dual-currency model.

  • The lawsuits seek permanent injunctions against the operators and also name several payment processing companies.

  • Uthmeier wants to recoup “every dollar” lost by Florida residents.

James Uthmeier announced Wednesday that the Sunshine State filed two lawsuits to stop two of the major sweepstakes companies in the U.S. amid claims they are operating illegally in Florida. 

“These companies cannot hide illegal gambling behind a sweepstakes label,” Uthmeier said in a video on X.

Florida’s gambling laws allow only authorized slot machines “under narrow circumstances at licensed facilities.” Sports betting is only legal in Florida through the Seminole Tribe, which operates Hard Rock Bet under its gaming compact with the state.

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Recouping losses

The lawsuits were filed Wednesday in the Hillsborough County Circuit Court. Australian-based VGW brands Chumba Casino, LuckyLand, and Global Poker are named in the lawsuit, which seeks a permanent injunction to keep them and Stake from operating in the Sunshine State. 

Uthmeier is seeking to “recover every dollar” consumers allegedly lost to those sweepstakes companies under the state’s gambling recovery laws, and he aims to “hold them accountable” for “deceptive claims.”    

The lawsuit also seeks disgorgement of ill-gotten gains, civil penalties under Florida’s Deceptive and Unfair Trade Practice Act, and attorneys’ fees. Florida’s AG even took legal action against financial facilitators and promoters, including Worldpay, Trustly, Praxis, and Breeze Labs. 

“I enforce our laws to protect consumers from illegal schemes that take their money,” Uthmeier said. “Sites like Stake and those run by VGW market themselves as sweepstakes or social casinos, but they offer real gambling - slots, blackjack, and poker. They’ve raked in hundreds of millions of dollars from people in our state.”

Under fire

More than a dozen U.S. states, including New York, California, and Nevada, have taken legal action against or passed state laws banning sweepstakes and social casinos

Like in other jurisdictions, certain Florida online casinos are being targeting for offering a dual-currency model, which gives users free tokens and paid coins. The latter can be exchanged for cash prizes.   

The AG’s office said in a statement that sweepstakes casinos offer slots and table games while marketing as “free, safe, legal, and social entertainment,” using celebrities and influencers to promote their businesses.  

“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,” Uthmeier said in a statement. “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.”

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Brad Senkiw - Covers
News Editor

Brad has been covering sports betting and iGaming industry news for Covers since 2023. He writes about a wide range of topics, including sportsbook insights, proposed legislation, regulator decision-making, state revenue reports, and online sports betting launches. Brad reported heavily on North Carolina’s legal push for and creation of online sportsbooks, appearing on numerous Tar Heel State radio and TV news shows for his insights.

Before joining Covers, Brad spent over 15 years as a reporter and editor, covering college sports for newspapers and websites while also hosting a radio show for seven years.

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