Alabama courts recorded another round of legal action this week as residents filed 21 additional civil lawsuits against several sweepstakes casino operators. These new cases raise the total number of lawsuits targeting sweepstakes platforms in the state to well over 40 since the start of last year, more than in any other U.S. jurisdiction.
The recent filings drew attention from sports betting and gaming attorney Daniel Wallach, who noted that one of the lawsuits names Heuston Gaming as a defendant. The complaint relies on a specific provision of Alabama law that allows individuals to seek repayment of money lost through unlawful gambling activities.
Statute Allows Third-Party Claims
Ala. Code § 8-1-150 gives gamblers six months to sue for recovery of losses tied to illegal gambling. If no action is taken within that period, the statute permits any other person to file a lawsuit against the gambling operator. When such cases succeed, the law directs any recovered funds to the plaintiff who brought the claim rather than the gambler who incurred the losses.
This structure has contributed to a steady stream of lawsuits as sweepstakes casinos remain accessible to Alabama residents. Wallach has indicated that the mounting volume of litigation could eventually draw the attention of state authorities, stating, “It may only be a matter of time before the Alabama Attorney General gets involved.”
Enforcement Challenges Under Strict Laws
Alabama enforces some of the most restrictive gambling rules in the country. The state has no lottery, no commercial casinos, and no legalized sports betting. Even so, sweepstakes casinos continue to offer online games resembling traditional casino products, which plaintiffs argue violates existing gambling prohibitions.
Earlier lawsuits have yet to force a broad exit from the market. Thirteen cases filed last year against operators including Stake, VGW, and High 5 did not result in companies abandoning the state. B-Two, which operates McLuck, Hello Millions, SpinBlitz, and PlayFame, briefly withdrew before relaunching its sites. Similar legal efforts in neighboring Georgia have also failed to deliver clear rulings against operators.
Core Dispute Over Legality
Those bringing lawsuits argue that sweepstakes casinos are designed primarily to facilitate gambling rather than limited promotional play. Complaints emphasize that users can access games continuously and cite payout rates consistent with slot machines, often referenced at about 92%, as evidence of gambling intent.
Operators dispute these claims, asserting that the availability of free gameplay and promotional Sweeps Coins keeps their platforms compliant. Stake has said that it “does not operate an online casino in Alabama. It operates a social casino with free-to-play games in compliance with all relevant local laws and regulations.”
Uncertain Path For Reform
At the legislative level, Alabama continues to debate potential changes to its gambling laws. Expansion proposals have failed in recent sessions. Rep. Phillip Ensler has said he would pursue gambling legislation if elected lieutenant governor, arguing the absence of a lottery deprives the state of significant revenue. He would not assume office until 2027.
Source:
“Alabama Sweepstakes Casinos Facing 21 New Lawsuits”, x.com “Daniel Wallach”. January 6, 2026
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