Florida targets major online sweepstakes casinos in new crackdown on real-money wagering
Florida – Florida’s latest fight over online gambling is targeting platforms that may look more like mobile games than traditional casinos. State officials say the distinction disappears once real money goes in, wagers are placed and winnings can come back out.
Attorney General James Uthmeier has filed two lawsuits against operators of major online “sweepstakes” casinos, including Stake and VGW platforms Chumba Casino, LuckyLand and Global Poker, along with payment processors accused of helping the businesses operate.
The complaints, filed in Hillsborough County Circuit Court, allege the companies are running illegal online gambling enterprises in violation of Florida gambling laws and the Florida Deceptive and Unfair Trade Practices Act.
“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” said Attorney General James Uthmeier.
“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.”
At the center of the lawsuits is the way the platforms handle virtual currency.
According to the complaints, players buy packages of “Gold Coins” that also include currencies called “Stake Cash” or “Sweeps Coins.” The state alleges those additional credits operate as real wagering currency because users can eventually redeem them for cash, cryptocurrency or gift cards after meeting minimum play-through requirements.
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The platforms offer familiar casino-style games such as slots, roulette, blackjack and poker. At the same time, according to the lawsuits, they market themselves as free, legal and safe forms of “social” entertainment. The complaints also point to celebrity and influencer promotions highlighting large purported winnings.
Florida restricts gambling operations and allows slot machines only in limited circumstances at licensed facilities.
Uthmeier’s lawsuits seek permanent injunctions that would prevent the defendants from operating or soliciting customers in Florida. The state is also asking for recovery of money lost by Florida consumers, restitution, disgorgement of allegedly ill-gotten gains, civil penalties under FDUTPA and attorneys’ fees.
The cases now put the increasingly popular sweepstakes-casino model directly before a Florida court, with the state arguing that changing the name of the currency does not change what happens once players start wagering it.
