Stake.us is an important sweepstakes-style online casino. It is facing a class action lawsuit in the US District Court for the Northern District of Illinois.
Brayden Urdan, an Illinois resident, filed the lawsuit. He accuses the platform of operating as an unlicensed online casino under the guise of a social casino.
This legal action follows a similar lawsuit filed in California. It is led by the same law firm that recently won a $25 million (£19.3 million) judgment against High 5 Games in Washington state.
The central claim of the lawsuit is that Stake.us is a virtual clone of its real-money casual gameplay and Stake Cash, which can be redeemed for real money. This setup allegedly pretends real-money gambling as harmless entertainment.
Daniel Wallach, a gaming attorney who has been closely following the case noted that they’ve wisely identified several vulnerabilities in Stake’s business model, most notably the nearly 1:1 correlation between real money spent and Stake Cash received.
The lawsuit also highlights the aggressive marketing tactics of Stake.us. This includes collaborations with high-profile celebrities such as Drake and UFC fighter Israel Adesanya. These endorsements allegedly normalize gambling and mislead consumers into believing the platform is safe and risk-free.
Because of its unique Loss Recovery Act, Illinois has become a hotspot for gambling-related lawsuits. This statute allows individuals to recover gambling losses and seek treble damages if the original loser does not file suit within six months.
Wallach explained that there’s a good reason why Illinois is the gambling class action lawsuit capital of the United States. It has a very favorable loss-recovery statute that allows for the recovery of treble damages.
This lawsuit adds to growing inspection of sweepstakes casinos across the United States. Platforms such as Stake.us have faced criticism for exploiting legal loopholes to operate without proper licensing.
