Utah has quickly become the focal point of a nationwide surge in class action lawsuits against sweepstakes casinos, with more than 100 cases now filed across the U.S. Fifteen of those originated in Utah within a week according to gaming attorney Daniel Wallach.
Wallach said the new complaints target a wide array of major operators, including ARB Gaming (Modo), Blazesoft (Zula, Sportzino), B2Services (McLuck, Hello Millions), VGW (Chumba Casino, LuckyLand Slots), KHK Games (Clubs Poker), Sunflower Limited (Crown Coins), A1 Development (NoLimitCoins), Gold Coin Group (Punt, Chanced), Play Spree (Spree Casino), Baba Entertainment (Baba Casino), and KICKR Games (Kickr). These filings follow recent suits against Yellow Social Interactive (Pulsz), FSG Digital (Jefebet), and the Money Factory.
Utah’s sweeping gambling ban and double-damages provision make it particularly appealing for class actions. Under Utah Code §76-10-1113, anyone who loses money through illegal gambling can recover “twice the amount of the economic loss, and reasonable attorney fees and costs of suit.” The state’s gambling definition, Utah Code §76-10-1101(4)(a), covers any contest involving “anything of value” and an “element of chance.”
Because Utah prohibits all gambling — including lotteries and raffles — its laws leave little ambiguity.
Legal Pressure Intensifies
In just a few months, lawsuits targeting sweepstakes casinos have grown exponentially: roughly 50 in July, 80 by late October, and over 100 by early November. The industry’s dual-currency system — where one virtual currency is purchased and another can be exchanged for prizes — is now under nationwide scrutiny.
Plaintiffs claim these setups mirror real-money online casinos but operate without proper licenses or regulation. Utah’s ability to award double damages heightens the financial risks for operators and could accelerate the market’s decline if courts agree that their models constitute illegal gambling.
Most sweepstakes casinos include arbitration clauses and class-action waivers in their terms of service to limit lawsuits. While courts in some states have upheld these protections, others have rejected them as overly restrictive.
In one recent case, a California judge denied High 5 Casino’s request to compel arbitration, ruling that its terms unfairly limited players’ rights. In Utah, similar provisions are expected to face tough challenges, as the state explicitly authorizes civil recovery under its gambling statutes.
Google’s Policy Change Adds More Pressure
Adding to the industry’s woes, Google updated its Gambling and Games Advertising Policy on October 28 , removing sweepstakes casinos from its “social casino” category and classifying them as gambling products.
This means sweepstakes casinos can no longer advertise under Google’s social gaming rules and must now comply with the same restrictions as licensed gambling platforms. The company cited “online gambling games played with virtual currencies or items that have real-world value” as examples — echoing the very arguments made by plaintiffs in ongoing lawsuits.
With mounting lawsuits, Utah’s aggressive double-damages law, and Google’s advertising ban, sweepstakes casino operators are facing increasing legal, financial, and reputational challenges. Once thriving under regulatory gray areas, the industry is now being squeezed from multiple directions.
As more states reevaluate the legality of these platforms and plaintiffs’ attorneys continue to test Utah’s powerful statutes, the state’s emergence as a litigation hub may signal the tightening of national scrutiny on sweepstakes casinos.
Source:
“Utah Becomes Hotspot for Sweepstakes Casino Class Actions as Lawsuits Top 100 Nationwide”, casinobeats.com. November 4, 2025
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