Florida Attorney General Takes Aim At Alleged Illegal Online Casinos

• Florida Attorney General James Uthmeier this week filed two lawsuits against several major online sweepstakes casino operators
• Uthmeier’s lawsuits were aimed at Stake and VGW’s Chumba Casino, LuckyLand, and Global Poker
• This also included the payment processors that enable them in Florida

Florida’s attorney general is taking aim at alleged illegal online casino operators in the Sunshine State.

Attorney General James Uthmeier announced two lawsuits against the operators of several online sweepstakes casinos, including Stake and VGW’s Chumba Casino, LuckyLand, and Global Poker, plus the payment processors that enable them.

“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Attorney General Uthmeier said in a press release. “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.”

Dual-Currency At Issue

According to Uthmeier, the operators disguise real-money gambling under the umbrella of operating a sweepstakes competition in the state. Several states have taken aim at this dual-currency model, which typically allows customers to purchase “sweeps coins” or something similar that can be wagered and won in various games closely that resemble casino offerings.

These coins can be cashed out for cryptocurrency, gift cards, or cash after minimal play-through requirements.

Florida law limits gambling and authorized slot machines and sports betting only under narrow circumstances at licensed facilities.

Seeking Permanent Injunction, Monetary Relief

In both lawsuits, Uthmeier seeks a permanent injunction against Stake and VGW Holdings to prohibit the operators from doing business in Florida. Additionally, the attorney general requests “equitable monetary relief” equal to the value of the “ill-gotten revenue” that the operators obtained from customers in Florida.

The platforms at play in these lawsuits offer traditional casino games such as slots, blackjack, roulette and poker, while marketing themselves are free, safe, legal “social” entertainment, Uthmeier reported.

“Defendants operate illegal online casinos in the State of Florida. They call them ‘sweepstakes’ casinos as if that’s some sort of talismanic cure-all. But if it looks, swims, and quacks like a duck, it’s a duck. Defendants’ ‘sweepstakes’ casinos violate Florida laws, harm Florida citizens, and deprive the State of licensing, taxation, and other revenues from gambling entities that the State properly regulates,” he wrote in the lawsuits.