Florida AG Sues Global Poker, Stake, and VGW Over Sweepstakes Gambling

Florida's Attorney General James Uthmeier has filed lawsuits against multiple sweepstakes gambling operators, including Stake and VGW, the parent company of Global Poker, Chumba Casino, and Luckyland. The suits also name payment processors that work with these sites.

In a press release, Uthmeier stated: "These so-called 'sweepstakes' and 'social casinos' are illegal online gambling operations. 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. 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."

Uthmeier is seeking permanent injunctions to ban these companies from operating or advertising in Florida, as well as restitution of gambling losses to players, among other penalties.

What are customers buying?

Global Poker is one of the most popular sweepstakes online poker rooms in the U.S. It uses the standard dual-currency setup common to most gaming sites in this category.

Players can play poker on Global Poker for free using Gold Coins, a play-money currency awarded upon sign-up. Gold Coins can also be acquired through daily rewards, real-money purchases, and by winning at the tables.

However, there is a second currency called Sweeps Coins. These are used at separate tables and can eventually be converted into cash and prizes after meeting playthrough requirements. Sweeps Coins are technically free, but the primary way to obtain them is as a "bonus" gift when purchasing Gold Coins—which is why the Florida AG is suing.

Sweepstakes operators like Global Poker argue that players are really purchasing Gold Coins, which have no real-world value, and receive Sweeps Coins as a bonus. The AG and others across the country contend this is merely a way to skirt the law by offering real-money poker under the guise of a "bonus." They argue that what customers are really buying are the Sweeps Coins to play real-money poker.

Industry context

This legal action is part of a broader crackdown on sweepstakes gaming in the U.S. For example, ClubWPT Gold, another leader in the sweepstakes casino space, recently exited the Arizona online poker market after pressure from the state. The Arizona Department of Gaming issued a cease-and-desist letter to five operators in July, prompting ClubWPT Gold to raise its age requirement to 21. The state did not relent, and ClubWPT Gold eventually decided to discontinue operations in Arizona.

The outcome of the Florida lawsuits could have significant implications for the sweepstakes poker industry nationwide, as states continue to scrutinize the legality of these operations.