State Targets Social Casinos, Alleging Illegal Gambling Operations and Deceptive Trade Practices Under Florida Law
Florida Attorney General James Uthmeier has announced the filing of two major lawsuits targeting the operators of prominent online “sweepstakes” casinos, including Stake, as well as VGW platforms Chumba Casino, LuckyLand, and Global Poker, alongside the third-party payment processors that facilitate their transactions.
The legal complaints, filed in the Hillsborough County Circuit Court, accuse the defendants of running unlawful online gambling enterprises that breach Florida’s state gambling statutes as well as the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).
State Officials Crack Down on Dual-Currency Models
According to the state’s complaints, the targeted platforms utilize a deliberate dual-currency structure designed to obscure real-money gambling mechanics. Under this model, players purchase packages of “Gold Coins” for recreational play that are bundled with promotional credits known as “Stake Cash” or “Sweeps Coins.” These promotional tokens function as redeemable wagering credits that can be cashed out for cash, cryptocurrency, or gift cards after meeting minimal play-through requirements.
Despite offering traditional casino games such as slots, blackjack, roulette, and poker, the platforms frequently market themselves as free, safe, and legal social entertainment, leveraging high-profile celebrity and influencer advertising campaigns to promote large payouts.
Expressing the state’s firm stance, Attorney General James Uthmeier stated:
“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations. 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.”
Relief Sought and Legal Implications
Under Florida law, commercial gambling is strictly regulated, and slot machines are authorized exclusively under narrow, tightly controlled conditions at licensed physical facilities.
Through the newly filed lawsuits, the Attorney General’s office is seeking substantial legal remedies, including:
- Permanent Injunctions: Prohibiting the defendants from operating, advertising, or soliciting consumers within the state of Florida.
- Consumer Recovery: Forfeiture and recovery of all funds lost by Florida consumers.
- Financial Disgorgement: Stripping the companies of all ill-gotten financial gains.
- Civil Penalties: Imposing statutory penalties under FDUTPA, alongside restitution and legal fees.
