Last month, a lawsuit was filed in federal court alleging that Stake.us, an online sweepstakes casino, is operating an illegal gambling website in California. The complaint, filed by Dennis Boyle, asserts that the platform violates state law by offering casino-style games to California residents.
This follows widespread opposition against sweepstake casinos across the United States, with numerous leading providers facing lawsuits in state and federal courts amidst claims that sweepstakes constitute unlawful gambling. Supporters argue that sweepstakes operate legally under an established framework, and despite legal challenges in some states, these companies continue to operate without obstruction in most of the country.
A Stake spokesperson stated: “Courts in the state have generally supported the legality of social casino and promotional sweepstakes models like ours, and we’re confident the legal process will reflect that.”
The primary concern in the case pertains to Stake.us’s business model, which utilizes a “Gold Coins” and “Stake Cash” system that Boyle alleges resembles real-money gambling. According to the complaint, users can purchase Gold Coins and receive Stake Cash, which can be redeemable for prizes, including gift cards and cryptocurrency.
Boyle, who sympathizes with gambling addiction, also claims that the website explicitly targets CA residents. The complaint notes that Stake.us asks users to disclose their state during registration and has privacy policies for California residents.
The lawsuit also alleges that the platform employs deceptive practices to maximize addiction and revenue, including algorithms that are not truly random and “play-through requirements” that encourage continued gambling.
Illinois Also Files Lawsuit Against Stake.Us
Brayden Urdan from Illinois is suing Stake.US in the Northern District of Illinois, alleging it is copying Stake.com and pretending to be a free-play site. Urden claims the site is violating state gambling laws and operating under the guise of a legal online casino.
The lawsuit also claims that Stake.us and Stake.com sponsor the same celebrities and sports teams, further demonstrating that Stake.us is simply a strategic copy of Stake.com and that the site deceptively rebranded as a “social casino” to evade gambling regulations.”
Are Online Casinos Legitimate?
While we don’t support Stake.US or any other sweepstake casinos due to their policies about getting real money payouts, legitimate casino sites operate online in the US. Since federal and state gambling laws do not address online casinos outside the US, most states allow players to gamble online.
Online casinos offer both live dealer games and random number generator-powered games to US players. Legitimate operators undergo strenuous compliance checks that assure players the games provide fair odds and other security checks.