Florida Attorney General James Uthmeier has filed lawsuits against major sweepstakes casino operators VGW and Stake. In addition to targeting the two companies, Uthmeier has included payment processors as defendants in the claims.
Uthmeier announced the action in a press release and post on X, claiming that VGW and Stake “do not follow the safeguards or provide consumer protections that are required of licensed casinos under Florida law.”
If it looks like a casino, takes money like a casino, and pays out like a casino, it is a casino—and it’s illegal in Florida.
— Attorney General James Uthmeier (@AGJamesUthmeier) August 19, 2026
That’s why we’re suing predatory online gaming sites Stake and VGW to stop illegal gambling and recover money lost by Florida consumers. pic.twitter.com/JMboneyvxN
“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,” he added.
Payment Processors & Drake Included In Lawsuits
The lawsuit against Stake includes Breeze Labs and Praxis Tech as defendants, which facilitate Stake’s payment processing. It also names owners Ed Craven and Bijan Tehrani, along with their streaming platform Kick, where promoters often stream gambling sessions on Stake.
It mentions Drake in the lawsuit, claiming his public promotion of Stake helps legitimize the company’s activities, but does not go so far as to name the rapper as a defendant.
The VGW lawsuit includes Yodlee, Trustly, and Worldpay as defendants. The three companies provide technology that facilitates payments on VGW’s platforms, including Chumba Casino, Global Poker, and LuckyLand Casino.
It does not name founder Lawrence Escalante, who recently resigned as CEO amid his personal legal troubles. Escalante is facing a string of domestic abuse and drug charges.
Most Platforms Operate in Florida as Lawmakers Fail to Pass Bills
Lawmakers in Florida advanced bills earlier this year that would have explicitly banned sweepstakes casinos. Lawmakers eventually consolidated efforts through bill SB1580.
The Senate passed the legislation that targeted the dual-currency model of sweepstakes and clamped down on other illegal gambling activities. The House then passed the bill, but with amendments. The series of amendments meant the Senate ran out of time to reapprove the legislation, which eventually failed to pass.
With no explicit law against the sweepstakes model, almost all operators continue to allow Florida residents to access their platforms. CasinoBeats counted only two platforms that exclude Floridians, Carnival Citi and GoldSlips. It is unclear why only VGW and Stake have been targeted with lawsuits when a host of other companies are also operating in Florida.
Looks Like A Duck, Swims Like A Duck, It’s A Casino
Uthmeier claims that existing laws already prohibit the sweepstakes model. Both lawsuits were filed in Hillsborough County Circuit Court and begin with the lines, “Defendants operate and facilitate 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 argue that the operators’ virtual currencies function the same way as casino poker chips.
“Consumers who visit the Stake Defendants’ platform pay money in exchange for Stake Cash just like gamblers pay money in exchange for poker chips at a brick-and-mortar casino,” states the complaint. “That the Stake Defendants choose to deceptively label the Stake Cash as a ‘bonus’ for purchasing a bundle of Gold Coins does not change this fact.”
The lawsuit against VGW uses the same language, substituting Stake Cash for VGW’s equivalent of Sweeps Coins.
“Using Gold Goins as a gateway drug to real money gambling with Sweeps Coins, the VGW Defendants lull consumers into a false sense that gambling is normal and not risky,” says the complaint. “Thus, when consumers purchase additional Gold Coins to continue what they may have started as a ‘social’ game, they ignore the Gold Coins that will not generate ‘real’ prizes in favor of the purportedly ‘free’ Sweeps Coins.”
Sweepstakes Casinos Closing & Pivoting to Prediction Markets
While most companies continue to operate in Florida, the list of restricted states continues to grow.
VGW added Indiana and Maine to its list of blocked states in July after lawmakers passed bills making sweepstakes casinos illegal. In total, the company is no longer operational in 16 states. Stake also added Indiana and Maine to its list of prohibited zones, bringing its total to 22 states.
As more and more states target operators, several companies have shut up shop. The Money Factory and CoinFrenzy became the latest operators to close earlier this month.
Some companies are pivoting to prediction markets instead. Novig, which previously operated with a sweepstakes model, launched its prediction market platform this month. The company immediately filed lawsuits in four states challenging the legality of sports prediction markets.
Fliff, which runs the sweepstakes platform Sidepot Casino, applied for a prediction market license last week. If the lawsuits against VGW and Stake are successful in driving sweepstakes casinos out of Florida, more companies may consider adopting their models in favor of prediction markets.
