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Florida AG James Uthmeier has filed two major lawsuits against Stake and VGW, two of the biggest sweepstakes casino operators in The Sunshine State. The civil complaints, filed in the 13th Judicial Circuit, accuse the platforms of operating as illegal, unlicensed online casinos under the pretense of offering free-to-play games, thus violating the state’s gambling statutes and the Florida Deceptive and Unfair Trade Practices Act.
“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,” he added.
The lawsuit targets all of the operators’ platforms – Stake operates Stake.us, while VGW operates Chumba Casino, LuckyLand Slots, and Global Poker. Besides the operators, the lawsuits also target the platforms’ payment providers, including Trustly, Worldpay, Breeze Labs, and Praxis for facilitating payments.
Separate lawsuits, one charge
The Florida Attorney General filed two separate lawsuits because Stake and VGW are two separate entities. However, the charges are the same, with both operators accused of using the dual-currency, free-to-play (social gaming) system to evade licensing, regulatory oversight, and taxation.
The VGW complaint states: “Sweeps Coins are a proxy for real money. Depending on the package bought, there is either a 1:1, or nearly 1:1, correlation between the number of dollars spent and the value of Sweeps Coins provided in each purchase.”
The Stake complaint makes the same accusation, only in different words. It states: “Stake Cash, in contrast, resembles poker chips in a brick-and-mortar casino. Once a customer has wagered Stake Cash three times in any of the casino games, it can be cashed out for real money or cash equivalents on a 1:1 or near 1:1 basis.”
Notably, the lawsuits also list other parties. The lawsuit against VGW lists nine parties, including payment service providers Yodlee, Worldpay, and Trustly. The suit against Stake lists eight other parties, including payment methods Breeze Labs Payment Inc. and Praxis Tech Ltd., as well as individuals Bijan Tehrani and Ed Craven.
The complaint against VGW notes that its platforms generated a combined total of more than $5 billion in 2025, with Chumba Casino alone bringing in $3.7 billion. It also notes that the company used celebrity endorsements as part of its marketing strategy, highlighting Michael Phelps’ promotion of Global Poker and Ryan Seacrest’s promotion of Chumba Casino.
The complaint also cites a Forbes profile that shows that Stake generated $4.7 billion in 2024. It also notes that Tehrani bought a Manhattan mansion valued at $47 million in 2023, which it describes as evidence of “extraordinary personal wealth” that the platform has generated for its founders. Moreover, it highlights the operator’s marketing partnerships with Drake and other notable soccer figures during the World Cup.
Potential penalties
Both lawsuits seek permanent injunctions restricting all operations in Florida. Moreover, the lawsuits also call for the disgorgement of profits and restitution to users. The state is also going for the forfeiture of wagered amounts based on Florida’s gambling loss recovery statute. The platforms will also be liable for civil penalties of up to $10,000 per willful violation — $15,000 if the violation involves minors, seniors, or disabled persons.
Implications for the industry and players in Florida
The AG’s decision to sue Stake and VGW will have major implications for the industry and players. Notably, smaller operators like McLuck will take it as a signal of an impending, wider-ranging crackdown, which may prompt them to end their operations before it happens. Indeed, history shows that operators tend to exit the state immediately after a high-level suit by the authorities.
Payment processors are also officially on notice, considering that they are listed in both lawsuits. The immediate result is that they will start classifying transactions involving sweepstakes casinos as high-risk or even illegal. To this end, many processors will be reluctant to work with these platforms. Indeed, users are already facing increasingly frequent transaction declines.
Ultimately, players could lose access to sweepstakes casinos when they decide to fold their operations. This would leave all their Gold Coins, Sweeps Coins, and other assets frozen. Notably, this would push most users to platforms like Hard Rock Bet. Real-money casinos aren’t legal in Florida; however, Hard Rock Bet is the only legal sportsbook in the state, and has real-money games powered by Past Motor Racing.
However, there’s an upside to all of this, as players may get their money back. In addition to the AG’s push for forfeiture of wagered amounts and the disgorgement of profits, independent organizations and platforms like ClassAction.org are also pushing for mass arbitrations. In fact, the platform is actively recruiting all Florida players who lost their money on Stake.us, Chumba Casino, LuckyLand Slots, and Global Poker within the last two years.
