Florida Bills Fail; Alabama Lawsuit Targets Stake.us Legality

Social and Promotional Games Association (SPGA), which sees the failure as a crucial development for consumers and businesses invested in digital gaming and promotional activities.

The SPGA stressed that the bills’ rejection is a positive turn for industries that rely on digital sweepstakes and promotional campaigns. Companies in sectors such as retail and hospitality, including well-known names like McDonald’s and Starbucks, often use loyalty programs and giveaways that could have been severely restricted under the proposed laws. Furthermore, the SPGA warned that such bans would have a detrimental effect on the state’s economy, potentially costing Florida tens of millions of dollars in lost revenue, at a time when the state faces a projected budget deficit of $7 billion over the next three years.

A spokesperson for the SPGA expressed their satisfaction, noting, “This is a huge win, not just for the industry, but for every Floridian who values economic freedom and digital innovation.” The group also urged lawmakers across the United States to consider balanced regulations for digital sweepstakes rather than political measures that could stifle innovation and limit consumer choices.

Alabama Faces Legal Action Over Stake.us Sweepstakes Operations

In a different part of the country, Alabama is now the focus of a class action lawsuit filed against the online sweepstakes platform Stake.us. The lawsuit, lodged on May 5, 2025, in federal court, accuses Stake.us of operating an illegal gambling service in violation of Alabama’s strict gambling laws. The plaintiffs, including Laura Hall and her minor child, claim they were misled into believing that the platform was legal in Alabama, as it was not listed among the restricted jurisdictions.

The case centers on Stake.us’ dual-coin system, which offers s virtual coins—one of which holds no value, while the other can be exchanged for cash or cryptocurrency. Critics argue that this system effectively byes state laws that prohibit traditional casino gambling, making it appear as a legal “sweepstakes” operation.

Stake.us is accused of using celebrity endorsements, including from rapper Drake, to further promote its platform, undermining its claim that it does not operate as a gambling entity. The lawsuit also compares Stake.us to internet gambling cafés that were shut down in the early 2000s for similar practices, where customers would buy products alongside sweepstakes entries that could be used to play games of chance.

Alabama’s legal landscape is particularly significant in this case, as the state has some of the strictest gambling regulations in the U.S. With the only legal forms of gambling being tribal casinos, pari-mutuel betting, and bingo, Alabama does not permit sports betting. The legal challenges in the state are therefore critical, as they may set a precedent for how sweepstakes operators are regulated in other strict gambling states.

The Future of Online Sweepstakes and Gambling Regulation

While Florida has decided against ing restrictive sweepstakes laws, the ongoing legal battles in Alabama demonstrate the complex and evolving nature of digital gaming regulation. The outcome of the lawsuit against Stake.us could have broader implications for the sweepstakes model and its future in the U.S. Similar lawsuits have already been filed in other states, including California and Illinois, signaling that the legal scrutiny of sweepstakes casinos is far from over.

As lawmakers across the country continue to grapple with how to regulate the growing digital gaming sector, it is clear that both consumer protection and business innovation must be carefully balanced. The outcome of the Alabama case, along with future legislative decisions in states like Florida, will likely shape the regulatory landscape for online sweepstakes and digital gambling in the years to come.

Source:

Effort to ban sweepstakes in Florida over for 2025, sbcamericas.com, May 5, 2025.

Class action lawsuit filed in Alabama against online casino giant, yellowhammernews.com, May 5, 2025.