New Stake Lawsuit Alleges Underage Gambling, Names Coinbase in Crypto Payment Role

A new New York lawsuit against Stake alleges that its global crypto casino and U.S.-facing sweepstakes platform function together to bypass regulatory safeguards and enable underage gambling, with Coinbase accused of providing the financial rails that made the activity possible.

Lawsuit Targets Stake’s Offshore Model and US Access

The complaint, filed by “John Doe,” frames Stake’s business as an offshore gambling operation that remains accessible to U.S. users via its Stake.us sweepstakes platform. That has allowed it to avoid regulatory restrictions.

According to the filing:

This case is about the promotion and operation of an illegal offshore gambling platform, Stake.com, to target and acquire minor users.”

Central to the case is the allegation that the plaintiff began gambling as a minor and was able to continue doing so over time.

The complaint states the plaintiff was “recruited to participate in underage gambling… and then routed to a U.S.-facing crypto onramp.”

It further alleges that this led to a “devastating” impact on the plaintiff, including “years of financial losses and a severe addiction-related injury, all incurred before Plaintiff was legally allowed to gamble.”

Stake Entities and Founders Described as Unified Operation

The complaint names multiple entities under the Stake umbrella as defendants. They include Stake.com, Stake.us, and Easygo Entertainment, as well as founders Bijan Tehrani and Edward Craven, and allege centralized ownership and control throughout the structure.

The filing states:

The Defendants… collectively operated as an integrated machine that facilitated repeated offshore gambling activity.”

It further claims there is “a complete unity of ownership and interest across the Stake Defendants.”

Coinbase Named For Facilitating Payments

The lawsuit centers on the role of cryptocurrency to facilitate gambling activity and bypass traditional banking restrictions. It names Coinbase as the financial intermediary.

The filing claims Coinbase played a direct role in facilitating transactions tied to gambling activity:

Defendant Coinbase knowingly supplied routing and payment infrastructure that made such wagering possible.”

The complaint also alleges that Coinbase enabled regulatory circumvention:

Coinbase provided the compliance evasion mechanism necessary… to bypass New York State anti-gambling restrictions.”

The filing also highlights the mechanics of the alleged activity, stating Coinbase “facilitated the conversion and transfer of funds used for illegal gambling by a minor.”

Court Issues Order to Show Cause

The case has already seen early procedural movement. On April 14, Judge Dakota Ramseur issued an Order to Show Cause setting a hearing for the plaintiff to justify the requested relief.

The order sets a May 19 hearing date as the case moves forward in the New York Supreme Court.

Part of Broader Wave of Lawsuits Against Stake

The New York lawsuit adds to a growing list of challenges against Stake and its sweepstakes casino, Stake.us.

It names cases in Illinois, Alabama, and Missouri that allege the sweepstakes platform is an illegal online casino. The platform also faces complaints in California, Minnesota, Mississippi, New Mexico, Utah, Virginia, and Ohio.

The lawsuit also references a 2025 enforcement action by the Los Angeles City Attorney against Stake.us and its partners. That complaint alleged that the platform operates as an illegal gambling enterprise and seeks to recover losses from residents.

Recently, Baltimore also filed a civil lawsuit against Stake and five other major sweepstakes casino operators.

Across these cases, a consistent legal argument has emerged: sweepstakes casinos function as disguised real-money gambling platforms. However, courts have previously dismissed several lawsuits or compelled them to arbitration.