Florida Sues Stake, VGW and Payment Partners Over Sweepstakes Casino Operations

Florida Attorney General James Uthmeier has sued Stake and VGW, along with payment partners, as the state expands its campaign against sweepstakes casinos.

The two complaints were filed on 19 August in Hillsborough County Circuit Court and allege illegal gambling and deceptive conduct under Florida gambling laws and the Florida Deceptive and Unfair Trade Practices Act.

Uthmeier is seeking to stop the companies from operating in Florida, recover gambling losses and secure restitution, disgorgement, costs and civil penalties. The suits seek penalties of up to $10,000 for each wilful violation, rising to $15,000 where a violation involves a disabled customer or someone over 60.

This VGW complaint covers Chumba Casino, LuckyLand and Global Poker and names Yodlee, Trustly and Worldpay. The Stake case names Sweepsteaks Ltd, Easygo, Medium Rare, Kick Streaming, co-founders Bijan Tehrani and Ed Craven, alongside Praxis and Breeze Labs Payments.

Dual-currency model sits at centre of Florida’s case

Both complaints focus on the sweepstakes casino dual-currency model.

Players purchase Gold Coins bundled with Stake Cash or Sweeps Coins. Gold Coins have no redemption value, while the other currencies can be used on casino-style games and redeemed under platform rules.

The Stake complaint says customers must wager Stake Cash three times before cashing out. The VGW filing says its platforms use different redemption thresholds. Florida argues that describing redeemable currency as a free bonus does not change the underlying transaction.

Payment processors become direct targets in enforcement action

The lawsuits also target companies providing account connections, payment processing, transfers and payouts. Florida says Yodlee linked bank accounts for VGW users, Trustly transferred funds and Worldpay processed card payments.

The Stake complaint makes similar allegations against Praxis and Breeze, claiming both knew about, or were wilfully blind to, regulatory scrutiny surrounding Stake. Payment providers have rarely been targeted in US sweepstakes enforcement.

New York’s 2025 sweepstakes law prohibits payment processors and financial institutions from supporting prohibited games. Florida has not enacted a dedicated sweepstakes casino ban and is relying on existing gambling and consumer-protection laws.

State action could influence wider sweepstakes enforcement

More than 20 states have issued cease-and-desist orders against sweepstakes casino operators, while at least 17 have banned or materially restricted the dual-currency model.

Connecticut, Montana, New Jersey, New York and California adopted targeted laws during 2025. Indiana, Iowa, Oklahoma and Tennessee added restrictions or enforcement powers in 2026.

Other efforts have failed, including legislation in Virginia and Louisiana. Florida’s gambling legislation failed after lawmakers could not agree on a final version before the 2026 session ended.

The lawsuits test whether existing laws can achieve similar results without a dedicated prohibition.

Florida’s decision to target payment processors and sweepstakes operators could be more significant than another cease-and-desist action. If the state succeeds, it may give regulators a stronger enforcement route by disrupting the financial infrastructure keeping these platforms accessible.