Florida Files Lawsuits Against Stake, Chumba, and Other Sweepstakes Casinos

Florida has stepped up its fight against sweepstakes casinos after filing two new lawsuits targeting some of the biggest names in the industry, including Stake.us, Chumba Casino, Global Poker, LuckyLand Slots, and WOW Vegas.

The lawsuits, filed by Florida Attorney General James Uthmeier, accuse the operators of offering what the state describes as illegal online gambling disguised as promotional sweepstakes. According to the complaints, these platforms allow players to purchase virtual currency while also receiving sweepstakes coins that can later be redeemed for cash prizes, a model Florida argues that violates state gambling laws.

State Says Sweepstakes Model Crosses The Line

Sweepstakes casinos typically operate using a dual currency system. Players use Gold Coins for standard gameplay, while Sweeps Coins can be redeemed for real prizes if won during eligible games.

Operators have long maintained that this model complies with US sweepstakes laws because players can obtain Sweeps Coins without making a purchase. However, Florida claims the overall system functions much like a traditional online casino, with players wagering for cash equivalent rewards.

The lawsuits seek to prevent the companies from continuing to offer their services to Florida residents and could result in financial penalties if the state succeeds in court.

Another Challenge For The Sweepstakes Industry

The legal action continues to add to the growing pressure facing sweepstakes operators across the United States.

Over the past year, several states have introduced bills aimed at restricting or banning sweepstakes casinos, while regulators have issued cease and desist orders to multiple operators. Others have chosen to leave certain states voluntarily rather than face legal action.

Florida's latest lawsuits represent one of the most significant enforcement actions so far because they target multiple major brands in a single move, including some of the largest platforms operating in the US social casino market.

What Happens Next?

The companies named in the lawsuits are expected to respond in court, where the legality of the sweepstakes casino model will once again be tested.

The outcome could have implications beyond Florida. A ruling in favour of the state may encourage regulators elsewhere to pursue similar cases, while a victory for the operators could strengthen their position as legal scrutiny continues nationwide.

For now, players in Florida can still access many of these platforms while the legal process unfolds, but the lawsuits mark another major chapter in the ongoing debate over whether sweepstakes casinos are a legal promotional product or simply online casinos operating under a different name.