In the United States, Florida Attorney General James Utmeyer has filed two lawsuits against the operators of sweepstakes casinos, Stake and VGW, which includes brands such as Chumba Casino, LuckyLand, and Global Poker.
The prosecution accuses these companies of organizing illegal online gambling activities. According to the Attorney General's office, the dual-currency model used by these operators disguises real-money gaming.
When players purchase virtual Gold Coins, they receive a second currency (Stake Cash or Sweeps Coins) to play with. After meeting a minimum playthrough requirement, players can withdraw their winnings in cryptocurrency, fiat currency, or through the purchase of gift cards.
The plaintiff is seeking a permanent injunction to prohibit the defendants from operating in Florida, the return of funds lost by state residents, the seizure of profits earned, and the imposition of fines. The exact amounts being claimed have not been specified.