Florida AG Sues Sweepstakes Casinos Over Gambling Claims

Florida Attorney General James Uthmeier has launched legal action against several major sweepstakes casino operators, including Stake, Chumba Casino, LuckyLand and Global Poker, seeking to stop their operations in the state and recover money that consumers allegedly lost.

The lawsuits were filed in Hillsborough County and focus on the operators’ dual-currency model. Under this system, customers purchase packages of virtual “Gold Coins” that are accompanied by “Sweep Coins.” The currencies can then be used to access casino-style games including poker, blackjack and slots.

Florida Challenges Sweepstakes Casino Model

Florida argues that describing these services as sweepstakes does not remove them from the state’s gambling laws.

Attorney General James Uthmeier said the operators should be treated as casinos because they accept real money and offer payouts, arguing that such activity is illegal under Florida law.

The state is seeking permanent injunctions against the companies and wants consumers who may have lost money through the platforms to receive compensation.

Florida has also accused the operators of breaching the state’s Unfair and Deceptive Trade Practices Act. If the allegations are established, the companies could face government fines as well as requirements to reimburse affected consumers.

Legal Pressure Spreads Across US States

The Florida action follows similar legal and legislative efforts targeting sweepstakes casino operators in several other US states.

California, New York, Connecticut, Indiana, Maine, Louisiana and Tennessee have all taken legislative or enforcement measures involving the sector.

Indiana has already seen several major operators change their presence in the state following the introduction of House Bill 1052. Chumba Casino, Stake.us, McLuck, WOW Vegas, LuckyLand Slots and Global Poker suspended or ended their operations after the legislation came into effect.

Florida’s lawsuits add another major legal challenge for sweepstakes casino providers as state authorities continue to scrutinise their operating models and treatment under gambling laws.