Florida Attorney General Initiates Legal Action Against Stake and VGW Over Sweepstakes Casino Operations

Florida's Attorney General, James Uthmeier, has initiated two lawsuits in Hillsborough County Circuit Court against sweepstakes casino operators Stake and VGW, both headquartered in Australia, alleging they illegally provided online gambling services to consumers in Florida. The lawsuits, filed on 19 August 2026, detail accusations of breaches of state gambling laws and target both operational entities and associated payment processors.

Scope of Lawsuits Filed by Florida Attorney General

The legal action comprises two lawsuits, each naming different defendants. The first names VGW, along with payment processors Yodlee, Trustly, and Worldpay. The second action is directed at the Stake operation, citing parent company Easygo Group, co-founders Bijan Tehrani and Ed Craven, operating arm Medium Rare, and Praxis Tech and Breeze Labs Payment. Streaming platform Kick, also owned by Easygo, is referenced as part of the Stake ecosystem.

These lawsuits claim that the platforms Stake.us and VGW—which operate brands including Chumba Casino, LuckyLand Slots, and Global Poker—market themselves as free, legal online 'social casinos' while in fact accepting real money deposits and enabling cash or cryptocurrency withdrawals after minimal wagering requirements. The Attorney General singled out Stake's use of Florida-issued identification and proof of residence to allow local players to register and participate, as well as its targeted marketing through celebrity and influencer channels.

Accusations Against Payment Providers and Marketing Practices

Florida's lawsuits argue that payment firms have played a key role in facilitating alleged illegal gambling. Specifically, the complaint states:

• Yodlee, Trustly, and Worldpay enabled the VGW defendants to link to customers' financial accounts.
• These firms authenticated accounts, authorized and processed electronic transactions, and transferred funds between players and VGW platforms.
• For Stake, Praxis Tech and Breeze Labs Payment are similarly accused.

Advertising tactics are another central issue, with the Attorney General citing claims by VGW and Stake that their platforms are “free, 100% safe and 100% legal.” The lawsuit highlights that both operators allow users to purchase gold coins that convert into bonus credits (Stake Cash or Sweeps Coins), which are used for wagering and can be cashed out—with proceeds available as cryptocurrency, gift cards, or cash after low play-through thresholds. AG Uthmeier stated:

“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.”

Regulatory and Market Context: Licensed Operators and Past Exits

Licensed betting in Florida is dominated by Hard Rock Digital, majority owned by the Seminole Tribe of Florida, which holds exclusive rights to offer legal online sports wagering in the state. Neither Stake nor VGW holds a gambling license from the appropriate Florida authorities, and the lawsuits allege both have avoided state tax and licensing requirements while targeting Florida residents.

Both companies have faced regulatory action in other markets:

• Stake ceased operations in the UK in March 2025, after a UK Gambling Commission announcement that the operator would no longer be licensed there.
• VGW has been compelled to exit multiple US states in the past two years, including Maryland (March 2025), West Virginia (November 2025), and Connecticut (October 2024).

Implications for Payment Processors and Platform Owners

The inclusion of payment processors and marketing affiliates among the defendants highlights an enforcement trend extending beyond traditional operators, affecting those who facilitate financial transactions or help promote unlicensed gaming. Kick, a streaming platform owned by Easygo Group, is cited in the stakeholder structure.

The lawsuits aim to halt what the Attorney General describes as “predatory online gaming,” recover funds lost by Florida players, and enforce compliance with state licensing and tax laws. Uthmeier asserts these companies have targeted minors and seniors, accusing them of deceptive marketing alongside 24/7 site access.

Next Steps and Broader Regulatory Focus

While the outcome of these lawsuits will be decided in the Florida courts, the action signals an increased willingness from regulators to pursue foreign-based operators and their partners. The cases also illustrate the potential liability for financial technology and marketing firms working with unlicensed gaming operators. Further updates will depend on subsequent legal filings and the response of the named parties. For more coverage of U.S. enforcement actions and licensing, see our regulation section.