Florida AG sues Stake, VGW and their payment processors

Florida’s attorney general has launched court actions that could disrupt how sweepstakes-style casino sites operate in Florida, by suing not only the platforms but also the companies that help move money in and out. The state is asking the court to halt the businesses’ Florida operations and to recover gambling losses, alongside restitution, disgorgement, costs and civil penalties.

Florida Attorney General James Uthmeier filed two complaints on Wednesday, 19 August, in Hillsborough County Circuit Court. The targets are Stake and VGW, plus five financial technology and payment companies. Florida alleges illegal gambling and deceptive conduct under Florida gambling laws and the Florida Deceptive and Unfair Trade Practices Act. The lawsuits also seek penalties of up to $10,000 for each wilful violation, rising to $15,000 where a violation involves a disabled customer or someone over 60.

In the VGW case, Florida’s complaint covers Chumba Casino, LuckyLand and Global Poker, and also names Yodlee, Trustly and Worldpay. The state assigns distinct roles to those firms, alleging that Yodlee linked bank accounts, Trustly transferred money and Worldpay processed card payments—services Florida says were needed for the sites to function.

In the Stake case, the defendants include Sweepsteaks Ltd, Easygo, Medium Rare, Kick Streaming, and Stake co-founders Bijan Tehrani and Ed Craven. The complaint also names Praxis and Breeze Labs Payments, described as managing payments for the platforms. Florida alleges the two payment firms knew about, or were wilfully blind to, regulatory scrutiny faced by Stake.

Both complaints focus on the sweepstakes “dual-currency” setup. Florida says players buy Gold Coins bundled with Stake Cash or Sweeps Coins: Gold Coins have no redemption value, while Stake Cash and Sweeps Coins can be wagered on casino-style games and then redeemed under platform rules. The Stake filing says customers must wager Stake Cash three times before cashing out, while the VGW filing says its four platforms have different redemption thresholds.

Florida lawmakers did not pass a dedicated sweepstakes-casino prohibition this year, so these cases rely on existing gambling and consumer-protection laws, including an attempt to recover 100% of user losses. The approach echoes New York’s December 2025 sweepstakes law, which prohibits financial institutions and payment processors from supporting prohibited games. With more than 20 states issuing cease-and-desist orders and at least 17 banning or materially restricting the dual-currency model, the Florida cases stand out for putting payment infrastructure directly into a state enforcement action—an outcome that could influence how other states respond if Florida succeeds.