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OAKLAND PARK, Fla (Gambling911.com) - Florida Attorney General James Uthmeier has filed two lawsuits Wednesday against companies behind major online sweepstakes casinos, including Chumba Casino parent company VGW, which also operates the hugely popular LuckyLand and Global Poker sites.
Also targeted, Stake.us. This is the free-to-play version of the Stake casino website. Stake is among the world's largest online gambling companies. Recording artist Drake is the face of the company as their brand ambassador. Ironically, Stake does not permit real money online gambling from those in the U.S., including Florida.
Uthmeier’s office alleges the platforms violate Florida gambling laws and the Florida Deceptive and Unfair Trade Practices Act.
“These so-called ‘sweepstakes’ and ‘social casinos’ are illegal online gambling operations,” Uthmeier said in announcing the lawsuits.
In particular, the suit cites the dual-currency systems used by sweepstakes casinos.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
Florida argues that the platforms are designed to make real-money gambling appear to be a legal sweepstakes. The sites offer games similar to those found in traditional casinos, including slots, blackjack, roulette and poker.
More importantly perhaps, the Florida AG argues that operators have explicitly marketed their websites to Florida residents while avoiding licensing, taxation and other regulations that apply to legal gambling businesses.
He'd be right. Sweepstakes casino advertisements appear all over the Florida airwaves, as we here at Gambling911.com can attest to.
Florida is far from the only state pushing to prohibit sweepstakes casinos.
As of August, states that have enacted legislation specifically targeting or expressly encompassing online sweepstakes casinos/dual-currency casino gaming include: California, Connecticut, Indiana, Louisiana, Maine, Montana, Nevada, New Jersey, New York and Tennessee.
There are also states such as Washington, Idaho and Michigan where sweepstakes casinos have generally been treated as prohibited or operators have exited because of existing gambling law/regulatory enforcement.
The Sunshine State is not among this group.
Instead, Florida has longstanding gambling and sweepstakes statutes that could potentially apply depending on how a particular operation is structured.
Florida Statute §849.094 expressly recognizes legitimate “game promotions” and sweepstakes conducted in connection with the sale of consumer products or services. Florida even has a regulatory filing regime for promotions offering more than $5,000 in prizes. However, Florida separately prohibits lotteries and playing games of chance for money or things of value.
The state is asking judges to stop the companies from operating or soliciting customers in Florida while seeking restitution for consumers.
- Gilbert Horowitz, Gambling911.com
