Florida sues Stake, Chumba over alleged illegal online gambling
Florida has filed lawsuits against the operators of Stake, Chumba Casino, LuckyLand and Global Poker, alleging that the “sweepstakes” platforms are illegal online gambling operations.
The lawsuits were filed Wednesday in Hillsborough County Circuit Court against the casino operators and payment companies that allegedly facilitate their business in Florida, Attorney General James Uthmeier announced.
“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Uthmeier said. “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.”
The complaints allege that the companies use a dual-currency system to disguise real-money gambling. Customers buy packages of virtual “Gold Coins” that include “Stake Cash” or “Sweeps Coins,” which the lawsuits describe as wagering credits that can be redeemed for cryptocurrency, gift cards or cash after minimal play requirements.
The platforms offer games including slots, blackjack, roulette and poker while marketing themselves as free, safe and legal social entertainment, according to the lawsuits.
The complaints also accuse the companies of using influencers and celebrity campaigns to target consumers, including minors and seniors.
The Stake lawsuit names Stake.us, the online streaming platform Kick, Stake co-founders Ed Craven and Bijan Tehrani, and payment companies Praxis Tech and Breeze Labs. The VGW lawsuit names companies operating Chumba Casino, LuckyLand and Global Poker, along with Yodlee, Trustly and Worldpay.
The state is seeking court orders blocking the companies from operating or soliciting customers in Florida, as well as consumer restitution, recovery of alleged illegal gains, civil penalties and attorneys’ fees.
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Ella Rae Greene, Editor In Chief
