Florida attorney general sues Stake and VGW over sweepstakes casinos

Florida's attorney general, James Uthmeier, has launched legal action against the operators behind three of the country's best known sweepstakes casino brands: Chumba Casino, Global Poker and Stake.us.

Two lawsuits are now active. One targets VGW, the Australian company behind Chumba Casino and Global Poker, along with its payment processors. The other targets Stake, a brand widely promoted through streamers and celebrities including Adin Ross and the rapper Drake.

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.James Uthmeier, Florida attorney general

What Florida wants

Sweepstakes casinos operate on a dual currency model. Players use free Gold Coins to play for fun, and separately acquire Sweeps Coins, often through purchase, that can be redeemed for cash prizes. Supporters say this structure keeps the sites outside traditional gambling law. Regulators increasingly disagree.

Uthmeier's office is not only seeking to have Stake and VGW's platforms shut down in Florida. It also wants to recover, in his words, every dollar that Floridian players have lost to the companies, a remedy the state says is available under its gambling recovery statutes.

The lawsuits ask for civil penalties of up to $10,000 per wilful violation, rising to $15,000 per violation where the play involved a minor, a senior or a disabled customer. The cases were filed last month and, according to South Florida Reporter, no resolution is expected before next year.

A change of tactics

Florida had previously tried to ban sweepstakes casinos outright. Senate Bill 1404 and House Bill 1467 both failed to pass earlier this year. Rather than pursue another statewide ban, the attorney general's office has shifted to targeting two of the sector's largest operators directly through the courts.

The move mirrors action elsewhere. New York recently reached an $8 million settlement with VGW after alleging the company unlawfully ran online gambling platforms through its sweepstakes brands. In Washington state, a jury last year ordered High 5 Casino to pay $24.9 million in damages to social casino players.

A booming but contested market

The legal pressure has not slowed the sector's growth. The US social sweepstakes casino market is valued at $10.2 billion in 2026 and is projected to reach $14.3 billion by 2030, with more than 400 standalone sites now operating, including recent entrants KingPrize.com and SweepJungle.

None of the major operators have abandoned the sweepstakes model so far. VGW has raised its minimum player age from 18 to 21, but that change has done little to halt the wave of lawsuits. More states have begun treating sweepstakes casinos as gambling platforms subject to the same rules as sportsbooks and licensed online casinos, a shift already reflected in legislation passed in New York and California. Readers can check the current legal position in our state-by-state guide to online casino gambling in the US.

Why it matters

For players, the outcome will determine whether money already spent on Sweeps Coins can be recovered, and whether access to Stake, Chumba Casino, Global Poker and LuckyLand Casino continues in Florida at all. For operators, a loss in court would add to a growing list of state level settlements and jury verdicts that are reshaping how sweepstakes platforms can legally operate across the country. For now, the sites remain accessible to Florida players while the cases proceed.