Sweepstakes Casinos Hit With 80+ Class Action Lawsuits, Nine Filed in Just 48 Hours

The legal landscape surrounding sweepstakes casinos is tightening as the platforms face numerous legislative and regulatory enforcement actions. Now, they also face more than 80 class-action lawsuits nationwide, underscoring the growing pressure on the dual-currency model.

Nine Suits Filed in the Last 48 Hours

Gaming attorney Daniel Wallach has revealed on X that nine lawsuits were filed in the last 48 hours alone. The total number of complaints is now around 80.

The most high-profile suits were two against Stake.us, rapper Drake, and influencer Adin Ross in Missouri and New Mexico.

Utah, one of two states without any legal gambling, including a lottery, is home to three new class-action lawsuits. Defendants include Yellow Social Interactive (Pulsz), the Money Factory, and FSG Digital (Jefebet). Notably, FSG Digital is the online arm of Fifth Street Gaming, which operates multiple casinos in Las Vegas.

Other defendants in the latest complaints include the operators of High 5 Casino, Modo, Crown Coins, and NoLimitCoins.

While none were recently filed against one of the industry leaders, VGW, the company faces over a dozen complaints.

Suits Have Not Driven Platforms Out

Despite the growing number of lawsuits, few sweepstakes casino operators have withdrawn from states as a direct result of litigation.

Most have continued to operate while fighting the complaints in federal courts. In many cases, judges have dismissed or transferred suits out of class-action jurisdiction due to arbitration clauses in the platforms’ terms of service.

For example, in June, a California judge ruled that Stake’s arbitration clause “clearly and unmistakably” delegates the question of arbitration to the arbitrator, not the court.

Meanwhile, in July, VGW won a third such lawsuit. Similar to his previous rulings, Judge Thomas Thrash found that the plaintiff had not validly opted out of VGW’s updated arbitration clause.

Legal experts note that courts have repeatedly upheld these arbitration provisions, limiting plaintiffs’ ability to pursue collective action. That legal shield, combined with the relative novelty of the dual-currency model, has allowed the companies to continue operating even under heavy legal pressure.

Some platforms have even reentered states they previously exited, suggesting a shift toward a more aggressive stance amid the legal uncertainty.

Historically, state regulation and legislation, rather than private litigation, have posed the greater threat to the sweepstakes model. But as class actions continue to increase nationwide, the two fronts are beginning to converge.