Sweepstakes Casino Operators Hit With More Alabama Lawsuits
Sweepstakes casino operators active in Alabama are dealing with a rapid escalation in civil litigation. Twenty-one new lawsuits were filed yesterday, lifting the total number of cases against these companies to more than 40 since early last year. This volume places Alabama at the top of U.S. states pursuing legal action against sweepstakes platforms, marking a period of sustained scrutiny and uncertainty for the industry.
The latest filings drew attention to a lawsuit involving Heuston Gaming that references provisions in Alabama state law permitting individuals to recover gambling losses through court action. Under Ala. Code § 8-1-150, a gambler has six months to sue for money lost. If that person does not initiate proceedings, another party may do so instead, with any recovered funds belonging to the filing plaintiff rather than the original player.
Legal Tensions and Operator Responses
Sweepstakes platforms operate in a state that maintains restrictive gambling policies. Alabama does not offer a lottery, does not authorize commercial casinos, and does not permit legal sports wagering. Despite these limits, sweepstakes platforms continue to provide online casino-style games that plaintiffs argue violate prohibitions on gambling under state law.
A group of 13 lawsuits filed last year named operators such as Stake, VGW, and High 5. Most companies retained their presence in the state following those actions. B-Two, the operator behind McLuck, Hello Millions, SpinBlitz, and PlayFame, temporarily suspended activity but later resumed service, even as legal disputes continued to develop. Georgia has faced similar challenges in its own efforts to curb sweepstakes gambling, encountering limited success in court proceedings.
Individuals bringing suits contend that these platforms function as casino gambling businesses because their games run continuously, rather than solely during promotional windows. They also highlight that game payout structures, frequently around 92%, resemble commercial slot machine payout percentages and reinforce the view that the products constitute gambling.
Operators counter by emphasizing promotional gaming models in which users may participate without payment. Stake stated 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.” Legal observers have noted that the rising number of filings could eventually prompt intervention from the Attorney General, which would represent a more forceful regulatory posture.
Legislative Outlook and Future Implications
While civil litigation escalates, elected officials in Alabama are weighing whether to revisit gambling policy. Rep. Phillip Ensler has indicated that he would advance expanded gambling measures, including a state lottery, in the event he becomes lieutenant governor. His prospective term would not begin until 2027, leaving little expectation of near-term policy changes.
With no immediate legislative action expected, sweepstakes casinos and online prediction markets continue to operate in the state as judges consider pending cases. Outcomes in these suits could play a decisive role in determining the future of sweepstakes gambling in Alabama. Iowa recently passed legislation aimed directly at sweepstakes casinos, whereas Alabama continues to rely on pre-existing statutes to challenge the companies.
A ruling against a major operator could shift the landscape considerably. Operators could face pressure to change business practices or withdraw from the state, creating ripple effects in an industry still operating within uncertain legal boundaries.
Source:
Alabama Sees Surge In Sweepstakes Casino Lawsuits, LCB.org, January 12th, 2026