Florida Attorney General James Uthmeier has filed lawsuits against several well-known sweepstakes casino operators, including Stake, Chumba Casino, LuckyLand, and Global Poker, aiming to halt their operations and recover funds allegedly lost by consumers.
The legal actions, submitted in Hillsborough County, focus on the companies’ use of a dual currency business model. According to the lawsuits, customers buy bundles of virtual "Gold Coins" which accompany “Sweep Coins,” enabling them to access a variety of casino games, such as poker, blackjack, and slot machines.
Uthmeier stated, "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.” The lawsuits contend that marketing these services as sweepstakes does not exempt the operators from Florida's gambling regulations.
The state seeks permanent injunctions against these companies from New York courts and demands restitution for consumers who may have experienced financial losses while engaging with these services. Additionally, Florida claims the operators have breached the Unfair and Deceptive Trade Practices Act, which could lead to fines for the companies and reimbursements for affected consumers.
This latest legal initiative in Florida follows similar actions taken by other states like California, New York, Connecticut, Indiana, Maine, Louisiana, and Tennessee, all pursuing legislative or enforcement measures against the sweepstakes casino model. In Indiana, several significant operators, including Chumba Casino, Stake.us, McLuck, WOW Vegas, LuckyLand Slots, and Global Poker, halted or ceased operations after the enactment of House Bill 1052.
