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Florida AG Takes Legal Action Against Sweepstakes Casinos

Florida has joined the growing list of states combating sweepstakes casinos. James Uthmeier, the Sunshine State’s Attorney General, filed a lawsuit against multiple operators running sweepstakes casinos in Florida. According to Uthmeier, sweepstakes casinos violate Florida’s Deceptive and Unfair Trade Practices Act.

Florida AG James Uthmeier Sues Multiple Casino Operators

Sweepstakes operators can add Florida to the list of states attacking their core business model. Florida AG James Uthmeier filed a lawsuit in Hillsborough County that targets four sweepstakes operators.

Uthmeier claims that sweepstakes casinos use their dual-currency model to trick players and subvert Florida’s gambling laws. Only state-licensed operators can offer slot games in the Sunshine State.

Florida’s close relationships with tribal gaming operations, specifically those of the Seminole Tribe, have led to restrictive laws for non-tribal operators.

According to the Florida AG, the sweepstakes casino method also subverts consumer protection methods. Uthmeier also claims these casinos prey on vulnerable populations, including underage players and older people. 

Blocking sweepstakes operations in Florida is not Uthmeier’s only goal. He also wants restitution for players who were victimized by the casinos, including reimbursing their losses.

What Operators Did Uthmeier Sue?

Florida AG Uthmeier’s lawsuit targets four sweepstakes casino operators, including:

• Chumba Casino
• LuckyLand
• Global Poker
• Stake

Florida is hardly the first state to take action against sweepstakes casinos. Chumba Casino, LuckyLand, and Global Poker, all owned by VGW, have been popular targets for states trying to combat the sweepstakes model.

New Jersey, for instance, sued VGW in October. The Garden State did not stop there, either, going so far as to ban sweepstakes casinos earlier this month.

VGW also faces a battle in the Blue Grass State. Kentucky AG Russell Coleman sued VGW and multiple prediction markets for allegedly violating the state’s gambling laws. Coleman’s lawsuits also target prediction markets, drawing the attention of the CFTC.

Goals of Florida’s Casino Lawsuits

Like many other AGs, Uthmeier is seeking to stop sweepstakes casinos from operating in his state. However, stopping sites like VGW’s is not the only goal of Uthmeier’s lawsuit.

Uthmeier is also going after the payment-processing companies that enable deposits to sweepstakes casinos. In addition to shutting down the sweepstakes casinos in Florida, Uthmeier also wants to seize the profits sweepstakes casinos made from Floridians and issue refunds to players who lost money on sweepstakes sites.