Florida cracks down on sweepstakes casinos
Florida steps up its crackdown on sweepstakes casinos. The State Attorney General, James Uthmeier, has filed two civil complaints in Hillsborough County targeting operators of these platforms, as well as five companies involved in payment processing.
Stake and VGW targeted by two legal proceedings in Florida
The new legal actions brought by Florida concern two major groups in the sweepstakes casino sector. One complaint targets the Stake.us group. The other concerns the VGW group, which includes Chumba Casino, LuckyLand and Global Poker, amongst others.
However, the authorities are not only taking action against the operators of these platforms. Five companies involved in payment processing are also named in the proceedings. Yodlee, Trustly and Worldpay are named in the case concerning VGW. Praxis Tech and Breeze Labs Payments, meanwhile, are named in the case targeting Stake.
According to the complaints, each of these defendants is alleged to have played a role in a scheme that facilitated and promoted illegal gambling activities amongst Florida residents.
Why is Florida targeting sweepstakes casinos?
These platforms are at the centre of a legal debate because the Florida authorities are challenging the very nature of the model offered to players. For Attorney General James Uthmeier, the classification as ‘sweepstakes’ is not sufficient to distinguish these platforms from online casinos.
The authorities are seeking to examine the practical workings of the transactions carried out on these platforms rather than focusing solely on the way their services are presented.
Payments at the heart of the contested model
According to Florida’s allegations, users could purchase Sweeps Coins – grouped together with Gold Coins – using, amongst other methods, Apple’s digital wallet, bank cards or Skrill. This currency could then be used immediately on the platforms in question.
The complaints also cite a provision of Florida law covering schemes involving a payment or donation, as well as a prize of value. Rather than treating payments as a mere technical operation separate from the operation of sweepstakes casinos, the complaints incorporate them directly into the mechanism that the authorities are challenging.
Yodlee, Trustly, Worldpay, Praxis Tech and Breeze Labs Payments are named as defendants responsible for processing payments. Florida also alleges the existence of a joint venture or partnership between the various parties involved.
The battle over sweepstakes casinos takes a new turn
The debate is no longer confined to companies that directly operate sweepstakes casinos. It now also encompasses the providers that enable users to carry out their transactions.
By taking legal action against Stake.us and VGW whilst naming five payment-related companies, the Attorney General is seeking to tackle several components of the system simultaneously.
This strategy is consistent with the message sent in June to companies in the payments sector: according to the Uthmeier administration, providing financial support for gambling activities deemed illegal may expose parties other than just the website operator.

