Florida Atty. Gen. James Uthmeier sued the operators behind Chumba Casino, LuckyLand, Global Poker, and Stake.us Wednesday, alleging their sweepstakes-style platforms operate as illegal, unlicensed online casinos disguised as free-to-play games.
“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,” Uthmeier said in a statement concerning the two suits filed Wednesday.
Uthmeier filed two separate complaints in the 13th Judicial Circuit, one against VGW and its payment processors and the other against Stake and its payment processors. Both suits allege violations of Florida’s gambling statutes and the Florida Deceptive and Unfair Trade Practices Act.
“These companies have been preying on Floridians, including minors and seniors, with deceptive marketing, and 24/7 access, while dodging our state’s licensing, taxation, and consumer-protection requirements,” Uthmeier added.
Two complaints, one theory
Since VGW and Stake are unrelated companies, the Florida AG filed against them separately. VGW has nine parties listed in the suit, while Stake has eight, including individuals Bijan Tehrani and Ed Craven.
Both lawsuits cite the key issue of a dual-currency system alleged to be a pretext for real-money gambling, and that the “free-to-play” and “social” framing is designed to evade licensing, taxation, and regulatory oversight. The VGW complaint states:
“Sweeps Coins are a proxy for real money. Depending on the package bought, there is either a 1:1, or nearly 1:1, correlation between the number of dollars spent and the value of Sweeps Coins provided in each purchase.”
The Stake complaint makes a similar argument, comparing the system to a regulated land-based casino:
“Stake Cash, in contrast, resembles poker chips in a brick-and-mortar casino. Once a customer has wagered Stake Cash three times in any of the casino games, it can be cashed out for real money or cash equivalents on a 1:1 or near 1:1 basis.”
The payment processors were also named in each complaint. VGW worked with Yodlee, Trustly and Worldpay Holdco. Stake used Praxis Tech Ltd. and Breeze Labs Payments Inc.
Marketing, revenue and potential penalties
VGW’s platforms generated more than $5 billion in revenue in 2025, according to the complaint, with $3.7 billion of that coming from Chumba Casino alone. The lawsuit points to celebrity endorsements as part of the company’s marketing strategy, citing Ryan Seacrest‘s promotion of Chumba and Michael Phelps‘ promotion of Global Poker.
Stake generated $4.7 billion in gross gaming revenue in 2024, according to a Forbes profile cited in the complaint, and referenced marketing pushes with rapper Drake and famous soccer figures during the World Cup. Tehrani also purchased a $47 million Manhattan mansion in 2023, which the complaint cites as evidence of the “extraordinary personal wealth” the enterprise has generated for its founders.
Both lawsuits seek permanent injunctions barring the companies from operating in Florida, along with disgorgement of profits, restitution to consumers and forfeiture of wagered amounts under Florida’s gambling loss recovery statute.
The state is also seeking civil penalties of up to $10,000 per willful violation, rising to $15,000 per violation involving a minor, a senior or a consumer with a disability.
