Surge in Class-Action Lawsuits Targets Sweepstakes Casinos in Utah
Rapid Increase in Lawsuits Against Sweepstakes Casinos in Utah
Over the past week, Utah courts have seen a surge with at least 15 class-action lawsuits filed against sweepstakes casinos. Gaming analyst and attorney Daniel Wallach reviewed a dozen of these cases, highlighting a notable rise in legal challenges targeting this sector.
Heightened Legal Scrutiny Nationwide with Utah at the Forefront
Across the United States, more than 100 lawsuits have been initiated against sweepstakes casinos. These cases commonly argue that such operations effectively amount to unregulated gambling, circumventing existing gambling laws through clever structuring.
Recently, Google reclassified sweepstakes casinos as “not social” games, implying these platforms are more than just casual entertainment. In Utah specifically, multiple companies have been named in complaints for failing to comply with the state’s stringent gambling regulations.
The list of implicated operators includes several well-known names such as Stake.us, ARB Gaming, VGW, Blazesoft, Money Factor, Yellow Social Interactive, A1 Development, FSG Digital, Sunflower, KHK Games, and B2Services. Given Utah’s strict stance—where even non-harmful activities like bingo are prohibited—the environment is especially challenging for these businesses.
Additionally, charitable lotteries and raffles are also treated as a form of gambling and are illegal in Utah, complicating matters further for social casinos operating under the sweepstakes model within the state.
Regulatory Shifts and Industry Impact in Utah and Beyond
The wave of complaints suggests that Utah may soon experience an exit of sweepstakes casino operators unwilling or unable to meet regulatory demands. Concurrently, Google’s updated classification reflects growing skepticism over these casinos’ claims to being purely social entertainment.
Several U.S. states are moving to restrict or ban sweepstakes casinos due to concerns that they constitute unregulated gambling. Noteworthy among these is California, which has announced plans to limit social and sweepstakes casinos starting in 2026, joining a growing list of states taking a hard line against the sector.
