WOW Vegas Sued in IL as Sweepstakes Casino Lawsuits Near 50 Nationwide

Online sweepstakes casinos are facing growing legal heat across the US, with the latest target being WOW Vegas in Illinois. Last week, Illinois resident Marlena Wiesman filed a putative class action in federal court, alleging that the platform operates an illegal online casino.

According to gaming attorney Daniel Wallach, the lawsuit, filed in the District Court for the Central District of Illinois on July 23, is the 49th known pending case against sweepstakes casinos nationwide and the fourth in Illinois.

Plaintiff Alleges Deceptive “Free-Play” Model

Wieseman argues that WOW Vegas, operated by Gibraltar-based MW Services Ltd., misleads consumers by advertising itself as a social casino offering only entertainment, while avoiding gambling regulation.

However, while it claims to be a “free-play” casino, WOW Vegas enables real-money gambling through its Sweeps Coins system. Sweeps Coins are virtual tokens that users can use to play casino-style games and redeem certain winnings for cash prizes.

Users purchase WOW Coins (which have no monetary value) for entertainment and receive Sweeps Coins as a “bonus.”

The suit calls this model a “discredited framework” because it allows them to use the premium coins for gambling. Weisman claims she spent over $10,000 on the site.

Some key allegations of the suit include:

• Sweeps Coins serve as a form of money or a thing of value, with their value directly tied to the US Dollar at a 1:1 ratio, similar to casino chips.
• Players regularly buy WOW Coins to specifically receive more Sweeps Coins when they have available WOW Coins. This indicates a real-money gambling intent.
• The platform’s operational model is intentionally misleading to skirt gambling laws.

The lawsuit seeks class certification, restitution, and a ruling that WOW Vegas’ arbitration clause and class-action waiver are unenforceable as contracts based on illegal gambling are void under Illinois law.

WOW Vegas Also Facing Suits in California, Alabama

WOW Vegas is also being sued in California. In that case, filed in Stanislaus County Superior Court, similarly alleges that the platform is offering unlicensed illegal gambling disguised as a sweepstakes promotion.

Class action plaintiff Jennifer Boucher argues that WOW Vegas’s arbitration clause is invalid. That’s because the platform has failed to register as a foreign corporation in California.

The suit emphasizes that, under state laws, any company conducting intrastate business without registering with the Secretary of State may face legal consequences. They include the automatic voiding of contracts.

In Alabama, WOW Vegas is one of several sweepstakes casino operators facing legal action. Plaintiffs in at least 14 active lawsuits argue that sweepstakes casinos violate Alabama laws.

They cite the requirement of a payment in exchange for a chance to win and, despite the availability of free play, involve real-money gaming.

Spotlight on Other Major Operators

VGW: Facing a Dozen Legal Battles

Virtual Gaming Worlds, or VGW, the parent company of Chumba Casino, LuckyLand Slots, and Global Poker, is among the most heavily targeted operators. The company is facing at least 10 lawsuits across the US.

In Connecticut, a state court complaint in October 2024 led to a regulatory crackdown that forced VGW to exit the state. The plaintiff in the case alleged unfair practices and difficulties with withdrawing winnings. In June 2025, Connecticut banned sweepstakes casinos.

In Delaware, VGW faces allegations that it violated Florida gambling laws. The lawsuit, initially filed in Florida, was transferred to Delaware federal court. It also names the payment processor, WorldPay, as a defendant for facilitating the transactions.

In Montana, which was the first to ban sweepstakes casinos in May, VGW is facing a Multistate Spousal Suit.
Five plaintiffs from different states are seeking to recover gambling losses on behalf of their spouses under loss recovery statutes in Illinois, Kentucky, Ohio, Tennessee, and Montana.

In Alabama, VGW faces two lawsuits: a class-action lawsuit from June 2025 and a loss-recovery suit from September 2023.

VGW is also defending a lawsuit in Massachusetts. The complaint references internal investor documents allegedly showing the company’s intent to target real-money gamblers despite claiming to operate within a sweepstakes framework.

While VGW continues to contest many of these cases, it has resolved others. Recently, it won a third case in Georgia. Meanwhile, in 2023, VGW settled a class-action suit in Kentucky for $11.75 million.

Stake.us: Lawsuits in Alabama, Illinois, and California

Sweepsteaks Ltd., the operator of Stake.us, is also facing several lawsuits.

In May, an Alabama woman accused Stake.us of running an illegal gambling operation. The initial suit was likely a catalyst for the dozen others in the state, as most were filed in June.

Meanwhile, a class-action in Illinois is alleging that Stake Cash, the platform’s equivalent of Sweeps Coins, constitutes a “thing of value” under state law.

Stake.us was also the subject of a suit in California. However, a federal judge sent the case into arbitration in June.

High 5 Casino: Landmark Verdict in Washington

Another prominent operator facing an Alabama lawsuit is High 5 Games, the parent company of High 5 Casino.

High 5 Games is also a legal challenge in New Jersey. The class action plaintiff, a law firm, seeks to recover losses incurred by state residents through illegal gambling on High 5 Casino.

In a major setback, in February this year, a federal jury in Washington state ordered High 5 Games to pay $24.9 million in damages to players in the state.

The jury found that even non-redeemable virtual chips constituted a “thing of value” under Washington’s Recovery of Gambling Losses Act.

Other Lawsuits Round Out a Nationwide Wave

Beyond the major operators mentioned, numerous other sweepstakes casinos have also been sued:

• Blazesoft (Fortune Coins, Sportzino, Zula Casino) is defending class actions in Alabama and New York. In the latter, plaintiffs allege illegal gambling and deceptive marketing practices.
• Yellow Social Interactive (Pulsz Casino, Pulse Bingo) faces lawsuits in Alabama and California. The company previously settled two class actions in Kentucky for a combined $4.9 million.
• ARB Gaming (Modo.us) faces lawsuits in Alabama and Kentucky.
• Sunflower Ltd. (Crown Coins) is a defendant in two suits in Alabama and New Jersey.
• A1 Development (Funrize, NoLimitCoins, FunzCity, Fortune Wheels, Tao Fortune) is also a defendant in Alabama.
• B-Two Operations Ltd. (McLuck, Hello Millions, Jackpota, Mega Bonanza, SpinBlitz) is a co-defendant in a New Jersey class action, alongside Sunflower Ltd., Apple, and Google. The lawsuit alleges that all parties facilitated illegal gambling by hosting, promoting, and processing payments for these apps.

Looking Ahead

With nearly 50 active lawsuits against sweepstakes casinos, the legal pressure on the sector continues to grow. Plaintiffs are increasingly turning to gambling laws, consumer protection statutes, and loss-recovery provisions to challenge the platforms in court.

Still, recent developments suggest the industry is not conceding. VGW’s wins in Georgia and the court siding with Stake.us in California signal that operators are finding ways to push back against the claims.

Despite the volume of litigations, most sweepstakes casinos continue to operate in the states where they’re facing lawsuits. No major platform has exited Illinois. Meanwhile, many, including VGW, Stake.us, and WOW Vegas, continue to serve Alabama customers, despite the 14 lawsuits filed against them.

Interestingly, recent market exits from New Jersey and California seem likely not to be due to court rulings, but due to legislative changes. This highlights that statutory bans or even regulatory actions can be more effective than litigation in the states’ fight against sweepstakes casinos.