Key points:
- A lawsuit has been filed against Stake.us in the US District Court for the Northern District of Illinois
- The complaint alleges that Stake.us is operating as an illegal online casino
- This marks a second lawsuit, with the first being filed within the last few weeks in California
An Illinois resident, Brayden Urdan, has filed a lawsuit against Stake.us in the US District Court for the Northern District of Illinois.
The lawsuit alleges that after Stake.com was unable to join the regulated US market, Founder Ed Craven created Stake.us to circumvent laws and operate as a sweepstakes casino.
However, Urdan claims that “Stake.us is a virtual clone of Stake.com, rebranded to mislead regulators and consumers into believing it offers harmless gameplay instead of an unlawful gambling”.
This is due to the Stake Cash mechanic, which allows players to ‘convert’ a particular currency on the site into US dollars as part of the withdrawal process.
For this reason, the lawsuit also alleges that Stake “operates an unlicensed and illegal online casino within Illinois.”
Good to know: The lawsuit also mentioned Stake’s recent advertising campaigns, which have included paid influencers playing Stake games on stream, as well as various social media posts that “aim to normalise gambling”
The lawsuit also says: “Defendant’s misconduct inflicts severe harm on vulnerable populations, especially individuals prone to gambling addiction and younger consumers targeted through its “free play” marketing. Stake floods social media platforms with slick ads, influencer videos and flashy visuals, making its games seem safe, fun, and harmless.
“By masking its real-money gambling platform as just another “social casino,” Stake creates exactly the kind of dangerous environment that Illinois gambling laws were designed to stop.
“This deliberate obfuscation exposes Illinois consumers to significant risks of financial ruin, psychological distress, and gambling addiction.”
This lawsuit is similar to one that was filed in California by Dennis Boyle, but Stake isn’t the only operator in hot water at the moment.
Several US states have also filed cease-and-desist letters against Kalshi, Robinhood and Crypto.com as they maintain regulations.
Gambling Insider took a deep dive into these cases, with context provided by KPMG.
