California judge declines to rule against Stake, refers case to arbitration
Stake may live to see another day in the sunny state of California as the case has been handed to the American Arbitration Association.
Key points:
– A judge in California has refused to rule against Stake.us in the Boyle vs Sweepsteaks Limited case
– The case has been referred to an arbitrator administered by the American Arbitration Association (AAA)
– The Social and Promotional Games Association (SPGA) commented on the ruling
The United States District Court in California has declined to rule against Stakes.us owner and operator Sweepsteaks Limited, and has instead referred the case to arbitration.
Boyle vs Sweepsteaks Limited, under case number 8:25-cv-00302-JVS-ADS, argued that Stake.us operated as an illegal online casino through its duel-currency sweepstakes business model.
He also brought violations of the Unfair Competition Law and Consumer Legal Remedies acts against the operator.
The initial complaint was filed back on 14 February 2025, and as we covered in April, if the court ruled against Stake.us then it could’ve resulted in the platform having to concede yet another US state.
However, the judge has declined to rule on the case and has instead decided that the case “shall be referred to and finally resolved by arbitration administered by the American Arbitration Association (AAA).”
Good to know: Arbitration is an alternative dispute resolution that involves taking the case to an independent third party, or arbitrator, who will look at all of the evidence and decide on the outcome themselves
A spokesperson for the Social and Promotional Games Association (SPGA) said: “This ruling affirms what we’ve long said: Social sweepstakes sites are not gambling.
“They are free-to-play games enjoyed responsibly by millions of American adults, and no purchase is ever necessary to play or have a chance to win prizes.
“Anyone can file a lawsuit making any claims they like. This ruling is a reminder that facts – and the law – still matter.”
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