On Wednesday, Florida's Attorney General James Uthmeier initiated legal action against what he describes as illegal online gambling operations within the state. This move targets Stake and VGW, the latter known for operating popular platforms like Chumba Casino, LuckyLand, and Global Poker, in Hillsborough County Circuit Court. A notable focus of the lawsuits extends to affiliated payment processors linked to these companies.
Uthmeier declared, "These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations. 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."
The legal complaints against Stake and VGW utilize identical introductory phrasing, asserting, "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."
The lawsuits pursue multiple goals, including:
– Prohibiting Stake and VGW from continuing operations in Florida
– Seizing winnings attributed to their previous activities in the state
– Imposing civil fines of up to $15,000 each for willful violations of Florida gambling laws.
In the VGW complaint, it is highlighted that the stakes are significant: “Before going private, the VGW Defendants generated annual revenue, for just the year 2025, of more than $5 billion. $3.7 billion of VGW’s 2025 revenue was attributable to Chumba Casino alone.”
The rise of dual-currency and free-to-play sweepstakes gaming models has gained traction in the U.S. amid stalled legislation for online sports betting and iGaming. Following the Supreme Court's 2018 PASPA decision, the emergence of daily fantasy sports platforms like Underdog and PrizePicks propelled a shift towards regulated operators.
However, as criticism mounted against this new model, states began scrutinizing sweepstakes gaming to circumvent existing gaming laws. In 2025 and 2026, several states, including California, Connecticut, Louisiana, Montana, New Jersey, New York, Oklahoma, Tennessee, and Florida, enacted bans on sweepstakes operations.
Florida's gaming landscape is notably complex; though most forms of gambling are prohibited, exceptions are made for tribal interests. The passage of Amendment 3 in 2018 solidified the requirement for voter approval for any new gambling expansions. Funded in part by tribal interests and Disney, this measure greatly enhanced the Seminole Tribe's exclusive gaming rights in Florida.
DraftKings and FanDuel invested over $20 million in attempts to challenge this exclusivity in 2022, but their efforts to place a petition before voters fell short. This paved the way for Hard Rock Bet to establish itself as Florida's exclusive online sports betting operator.
Earlier this year, Florida's regulators also addressed concerns about daily fantasy sports operations, issuing cease-and-desist notices to companies like PrizePicks, Underdog, and Betr.
