Florida Attorney General Sues Stake and VGW for Alleged Illegal Gambling

The Attorney General of Florida, James Uthmeier, has filed lawsuits against several sweepstakes casino platforms, including Stake and VGW, both based in Australia, for alleged illegal online gambling operations in the state. The actions were filed on August 19 in the Hillsborough County Circuit Court, directly targeting the parent companies and operating firms behind both platforms.

Key Details of the Lawsuits Filed in Florida

The formal filing states that Stake and VGW allegedly promoted their services as "free, safe, and legal social entertainment," while in practice, they offer casino games directed at Florida users. The lawsuits differentiate the defendants into two groups: the first lawsuit includes VGW, Yodlee, Trustly, and Worldpay; the second targets Stake, Praxis Tech, and Breeze Labs Payment. Easygo Group, the parent company of Stake, along with its co-founders Bijan Tehrani and Ed Craven, as well as the operator Medium Rare, are also specifically mentioned.

Operational Framework of Stake and VGW

According to the prosecution, platforms like Stake.us and VGW's operations use a system where players acquire "gold coins" that convert into gaming credits, accompanied by "Stake Cash" or "Sweeps Coins." These credits can be exchanged for cryptocurrencies, gift cards, or cash after simple gaming requirements. The model has been presented as a legal alternative, but Uthmeier emphasizes in the lawsuit that the acceptance of credit cards and Apple Pay contradicts this positioning, stating: "If it looks like a casino, accepts money like a casino, and pays like a casino, it is a casino — and it is illegal in Florida."

“If it looks like a casino, accepts real money like a casino, and pays like a casino, it is a casino — and it is illegal under Florida law.” — James Uthmeier, Attorney General of Florida

The prosecution holds that both operators' marketing campaigns have been intentionally directed at Florida residents, including minors and the elderly, allowing the use of state identifications as a verification method for participating in online gambling.

Technology Companies and Payment Providers Named in the Lawsuit

Along with the gambling platforms, Uthmeier targets technology and payment providers. Companies such as Praxis Tech, Breeze Labs Payment, Worldpay, Yodlee, and Trustly are named for facilitating financial transactions between players and VGW, enabling account authentication and verification, as well as the processing and authorization of payments.

The lawsuit claims that these providers "allow VGW's defendants to connect to players' financial accounts, authenticate and verify those accounts, authorize and process electronic payment transactions, transfer funds, and facilitate gaming-related transactions."

Regulatory Context and Background in Florida's Online Gambling Sector

Florida maintains a restrictive policy regarding online gambling, with the sports betting monopoly operated by Hard Rock Digital under the main ownership of the Seminole Tribe of Florida. Uthmeier accuses Stake and VGW of evading state requirements related to licensing, tax payment, and consumer protection.

Moreover, Stake had already exited the UK market following the announcement by the UK Gambling Commission in February 2025 that the operator would cease to be licensed the following month. Stake.uk.com was managed based on a white-label agreement with TGP Europe.

In the case of VGW, holder of brands such as Chumba Casino, LuckyLand Slots, and Global Poker, the operator has been forced to cease operations in several U.S. states in recent years: Maryland in March 2025, West Virginia in November 2025, and Connecticut in October 2024.

Impact and Next Regulatory Steps in Online Gambling

The case represents a new front for regulatory control in the U.S. market, particularly for platforms employing "social casino" or sweepstakes models. Uthmeier emphasizes the priority of stopping player recruitment through misleading marketing and continuous availability, with special attention to vulnerable sectors.

“These companies have been targeting Florida residents, including minors and the elderly, with misleading marketing and 24/7 access, evading state requirements for licensing, taxation, and consumer protection. They must be stopped.” — James Uthmeier, Attorney General of Florida

The development and resolution of these cases will be relevant for operators, providers, and payment platforms considering operating in jurisdictions under restrictive frameworks. For those interested in regulatory matters and the evolution of the U.S. online casino and payments market, close monitoring of regulatory news is recommended.