Florida Sues Casinos That Use Dual-Currency Model

Florida Attorney General James Uthmeier hasfiled two lawsuits against major online sweepstakes casinos, alleging their dual-currency systems amount to illegal gambling and violate the Florida Deceptive and Unfair Trade Practices Act.

The complaints, filed in Hillsborough County Circuit Court, target Stake and VGW’s Chumba Casino, Luckyland and Global Poker. Payment companies including Yodlee, Trustly and Worldpay Holdco are also named. The state alleges the businesses operate without Florida’s required licensing and consumer protections.

Dual-Currency Model Faces Legal Challenge

According to the complaints, players purchase packages of “Gold Coins” bundled with Stake Cash or “Sweepstakes Coins.” Those credits can be wagered on casino-style games, with winnings redeemable for cryptocurrency, gift cards or cash after certain playthrough requirements.

The state alleges the structure disguises real-money gambling. The platforms offer games such as slots, blackjack, roulette and poker while marketing them as free, safe and legal social entertainment. The complaints also cite continuous access, credit-card and Apple Pay payments, and celebrity and influencer promotion.

“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,” Uthmeier said in a statement on X. “That’s why we’re suing predatory online gaming sites Stake and VGW to stop illegal gambling and recover money lost by Florida consumers.”

Uthmeier also said: “These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Uthmeier said. “[...] 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.”

Florida Seeks Injunctions And Refunds

The lawsuits argue that Florida law restricts gambling and permits slot machines only under limited circumstances at licensed facilities. The Attorney General is asking the court to permanently prevent the defendants from operating or soliciting in Florida.

The state also seeks recovery of money allegedly lost by Florida consumers, disgorgement of ill-gotten gains, civil penalties under FDUTPA, restitution and attorneys’ fees. Officials separately seek refunds for affected residents.

The complaints allege that the companies describe their games as “free,” “100% safe,” and “100% legal,” while providing easy access to gambling-style products.

The complaints further accuse the operators of targeting vulnerable Floridians, including minors and seniors, while avoiding state licensing, taxation and consumer-protection requirements.

Companies Face Court Scrutiny

The AG’s office said: “Florida law strictly limits gambling and authorizes slot machines only under narrow circumstances at licensed facilities. The lawsuits seek permanent injunctions prohibiting the defendants from operating or soliciting in Florida, forfeiture and recovery of money lost by Florida consumers, disgorgement of ill-gotten gains, civil penalties under FDUTPA, restitution, and attorneys’ fees.”

Attorneys for the companies could not be reached for comment. The lawsuits now place the legality of the dual-currency model and related marketing practices before the court.

Source:

“Florida sues online casinos with ‘dual-currency model’”, local10.com, August 19, 2026