The main Funzpoints lawsuit is Wyland v. Woopla Inc., a Kentucky class action that accused the sweepstakes casino of operating as an unauthorized gambling site by selling virtual currency for real money. Woopla Inc., which runs funzpoints.com, denied wrongdoing but agreed to an $835,000 settlement that received final court approval on December 11, 2023. Since then, the company has drawn individual arbitration claims, consumer complaints, and at least one state cease-and-desist order.1Top Class Actions. Woopla Funzpoints.com Virtual Currency $835K Class Action Settlement
The Kentucky Class Action and $835,000 Settlement
The case was filed in the Kentucky Circuit Court for Henderson County as Wyland v. Woopla Inc., Case No. 2023-CI-00356. Plaintiffs were represented by Philip L. Fraietta and Alec M. Leslie of Bursor & Fisher PA, who alleged that Woopla violated Kentucky gambling laws by selling in-game virtual currency for real money on funzpoints.com.1Top Class Actions. Woopla Funzpoints.com Virtual Currency $835K Class Action Settlement
The class covered Kentucky residents who spent $5 or more within any 24-hour period on funzpoints.com between June 27, 2018, and October 29, 2022. The claim deadline was January 29, 2024, and the settlement is closed.1Top Class Actions. Woopla Funzpoints.com Virtual Currency $835K Class Action Settlement
How Payouts Were Calculated
Payments were tiered by how much each class member had spent on the platform during the covered period:
- 10% of the first $1,000 spent
- 17.5% of spending between $1,001 and $10,000
- 30% of spending between $10,001 and $100,000
- 60% of any spending above $100,000
Heavier spenders recovered a larger percentage. As of April 2024, some recipients reported receiving up to $3,600.1Top Class Actions. Woopla Funzpoints.com Virtual Currency $835K Class Action Settlement2Bonus.com. Funzpoints Kentucky Woopla Social Casino Class Action Lawsuit Settlement
Non-Monetary Terms
Beyond the cash fund, the settlement required Woopla to add responsible-gaming measures: self-service player resources, a self-exclusion option, and adjustments to in-game mechanics intended to address compulsive gaming behavior.1Top Class Actions. Woopla Funzpoints.com Virtual Currency $835K Class Action Settlement
The Legal Theory: Was Funzpoints Illegal Gambling?
The case turned on a distinction the sweepstakes casino industry relies on. Platforms like Funzpoints use two virtual currencies: Standard Funzpoints, sold for real money and used for entertainment play, and Premium Funzpoints, which can be redeemed for cash at $1 per 100 qualifying points. Because Premium Funzpoints are also available through a free mail-in request, operators argue no purchase is necessary and the games are not gambling under state law.3Funzpoints. Funzpoints Sweepstakes Rules
Plaintiffs in Wyland argued the opposite: that requiring real money to obtain Standard Funzpoints, combined with a path to redeem winnings for cash, made Funzpoints a gambling operation in all but name.2Bonus.com. Funzpoints Kentucky Woopla Social Casino Class Action Lawsuit Settlement Woopla denied violating any law and settled without conceding liability.
Individual Arbitration Claims
The Kentucky settlement did not close the book on Funzpoints litigation. The law firm Bryson Harris Suciu & DeMay PLLC has been recruiting clients to bring individual arbitration claims against Woopla, alleging “unlawful and deceptive marketing and operation” of casino-style games. The firm works on a 40% contingency fee and is authorized to negotiate group settlements across similar claims.4Bryson Harris Suciu & DeMay PLLC. Funzpoints Arbitration Claims
Better Business Bureau records show 26 complaints against Woopla over the prior three years as of mid-2026, with 10 closed in the most recent 12 months. Common issues include disputes over game fairness and return-to-player percentages, account bans and terminations, delayed cashouts, and difficulty reaching company management. One September 2025 complaint asserted that 58 arbitration claims were pending against the company; that figure comes from a single consumer and has not been independently confirmed. In its BBB responses, Woopla has said its games use a single, unalterable math model, that outcomes are fully random, and that account terminations follow compliance and fraud-prevention policies.5BBB. Woopla Inc. BBB Complaints
Illinois Cease-and-Desist Order
On February 4, 2026, Funzpoints became one of more than 60 sweepstakes casino platforms to receive a cease-and-desist letter from the Illinois Gaming Board, issued in coordination with Illinois Attorney General Kwame Raoul. The letter, signed by Administrator Marcus D. Fruchter, stated that the board had observed Funzpoints offering Illinois users slot-style games that allowed players to win cash, gift cards, and other prizes without an Illinois gaming license.6Illinois Gaming Board. Cease and Desist Letter to Funzpoints
The IGB classified the operation as a violation of the Illinois Criminal Code and demanded that Woopla either block Illinois residents from accessing the site or stop offering prizes, warning of possible civil or criminal penalties for noncompliance.7Gaming Intelligence. Illinois Issues Cease and Desist Orders Against Illegal iGaming Operators Woopla has not publicly responded to the order in available reporting, and it is unclear whether Funzpoints has blocked Illinois users.
Why More Actions May Follow
Funzpoints operates in a space that states are moving quickly to close off. California’s Assembly Bill 831, signed in October 2025 and effective January 1, 2026, prohibits dual-currency sweepstakes platforms. New York’s Senate Bill S5935, effective December 5, 2025, targets not only operators but also suppliers, payment processors, and media affiliates. Connecticut, Montana, New Jersey, and Michigan all enacted bans during 2024 and 2025, and Mississippi, Indiana, Tennessee, Florida, and Maine introduced restrictive legislation in 2026.8Gambling Insider. US Gambling Bill Tracker9MLive. Bans on Sweepstakes Casinos Updates for Illinois Mississippi Tennessee
Enforcement has kept pace with legislation. Beyond the Illinois letters, New York Attorney General Letitia James sent letters to 26 operators, Louisiana’s Gaming Control Board issued 40, and Arizona, Maryland, and Michigan collectively issued more than 100. Tennessee’s attorney general targeted 38 operators in late December 2025.10iGaming Business. 2025 Sweepstakes Casinos Year in Review
Funzpoints itself was already unavailable in a number of states before the current enforcement wave, including California, Connecticut, Idaho, Indiana, Louisiana, Michigan, Maryland, Montana, New Jersey, New York, Nevada, and Tennessee.3Funzpoints. Funzpoints Sweepstakes Rules If you played on funzpoints.com from a state where it now operates and believe your losses may be recoverable, the Kentucky class period is closed, but individual arbitration remains the mechanism plaintiffs’ firms are currently using.