Utah Attracts Wave of Class Actions Against Sweepstakes Casinos

Utah has become the new legal battleground for sweepstakes casinos, where lawsuits are piling up faster than anywhere else in the United States. Over the past week alone, more than 15 class actions have been filed in the state, adding to a growing list that now exceeds 100 cases nationwide.

Good to Know

• Utah bans all forms of gambling, including sweepstakes and raffles.
• Players who lose money can claim double their losses plus legal fees.
• Major operators like Stake.us, VGW, and McLuck are among those named in lawsuits.

Many of the latest filings were first flagged by gaming attorney Daniel Wallach, who pointed out that Utah’s federal courts received a flood of new cases last week. The list of defendants reads like a roll call of the sweepstakes casino industry: ARB Gaming (Modo.us), Stake.us, VGW, Blazesoft, KHK Games, Sunflower Ltd., B2Services (McLuck), A1 Development, FSG Digital, Yellow Social Interactive, and Money Factory.

Utah’s legal landscape makes it especially risky for sweepstakes operators. The state defines gambling as any game where something of value is wagered on an outcome determined by chance. Since that definition covers nearly every kind of sweepstakes casino model, operators face serious exposure when users spend money on virtual coins or tokens. Even charitable lotteries and raffles are outlawed, which explains why plaintiff lawyers have been flocking to Utah.

Unlike other states that regulate or license social casinos, Utah leaves no room for interpretation. If a player loses money through an illegal gambling activity, state law allows them to demand twice the amount lost—plus attorney fees. That double-damages clause is a big reason why lawsuits keep rolling in.

The growing legal wave could change the sweepstakes industry’s future. Operators now face not only heavy defense costs but also major questions about compliance models that may no longer hold up under state law. Some platforms have already started reviewing their terms of service and play mechanisms to avoid additional risk.

FAQ

Why are lawsuits targeting sweepstakes casinos in Utah?

Utah’s gambling laws prohibit all games of chance involving money or anything of value. Since sweepstakes casinos rely on chance-based outcomes, they fall within that ban.

Can players actually win money back through these lawsuits?

Yes. Utah’s law allows individuals who lose money through illegal gambling to recover double their losses plus legal costs, which makes it appealing for class action filings.

Which sweepstakes operators have been sued so far?

Major names include ARB Gaming (Modo.us), Stake.us, VGW, Blazesoft, McLuck, and several others across multiple platforms.

Are sweepstakes casinos legal in other states?

Some states allow them under promotional gaming exceptions, but the legality varies widely. Utah, however, enforces one of the toughest anti-gambling laws in the country.

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