Florida Attorney General James Uthmeier has launched legal action against several major online sweepstakes casino operators, alleging that the companies are running unlawful gambling businesses while presenting their products as legal social gaming platforms.
The lawsuits, filed in Hillsborough County Circuit Court, target Stake and several platforms operated by VGW, including Chumba Casino, LuckyLand and Global Poker. The complaints also name payment processors and other entities that allegedly help facilitate the operations.
State officials contend that the companies are violating Florida gambling laws as well as the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). According to the filings, the operators have built business models that allow users to wager through virtual currencies that can ultimately be redeemed for items of value, including cash and cryptocurrency.
Attorney General Uthmeier said the businesses are functioning as casinos despite their branding as sweepstakes or social gaming platforms.
“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,” Uthmeier said according to WTSP.
The attorney general also accused the companies of using misleading promotional tactics and operating outside the state’s regulatory framework.
“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,” he said.
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