Categories: News & Updates

Stake.us Faces a Second Lawsuit Alleging Illegal Gambling Practices – What We Know

Stake.us is facing a second lawsuit in Illinois, this time for allegedly using a sweepstakes model to conceal real-money gambling, upending the social casino industry.

Stake.US, a sweepstakes casino operator, is once again in legal danger, with a new complaint filed in Illinois accusing the platform of operating as a disguised online gambling site. The lawsuit, filed by Illinois resident Brayden Urdan, alleges that Stake.US functions more like a clone of its sister platform, Stake.com, which operates as a real-money crypto casino.

The complaint, filed in the Northern District of Illinois, follows the same legal course as other recent proceedings against social casinos. Urdan’s complaint charges breaches of Illinois state gambling laws and consumer protection regulations, claiming that Stake.US benefits from what they describe as illegal gambling under the guise of a “free play” model.

The problem is the platform’s dual-currency structure, which allows players to play with free tokens while still having the chance to purchase more—an approach opponents claim is a loophole meant to avoid gambling restrictions, according to SBCAmericas. The lawsuit claims that, despite being marketed as a legal option, this system is similar to real-money betting.

Also Read: AGA: Gambling contributes $329bn to US economy

Potential consequences of the case for the industry

It might set the tone for future interactions between US authorities and sweepstakes sites. Aside from the legal issue with Stake, Boyle has launched similar actions against other sweepstakes platforms, including Pulsz, as part of his ongoing campaign against what he calls “illegal gambling” in the state.

The case has bitten hard, leaving Stake with significant wounds to heal. The heat is on in this continuing conflict. On the one hand, California wants sweepstakes casinos out. On the other hand, Stake insists that everything is legal. The bigger question? What happens when the line between genuine pleasure and something negative is affected?

Courtesy: https://www.timesnownews.com/world/us/, https://igamingexpert.com/, https://www.igbnorthamerica.com/

iGaming Content Lead/Editor - TheOceansGame

We are online casino experts with extensive experience in the iGaming industry. After years of working with leading gambling brands, they focus on freelance writing, covering the latest casino games, slot releases, and industry trends. When not crafting in-depth gaming content, they enjoy exploring new strategies and staying up to date with the ever-evolving world of online casinos.

Recent Posts

Powerball extends over to $65 million.

Since no one matched all six numbers on Saturday night, the Powerball prize has increased…

1 day ago

Improved Markets: As Expected, “Prediction Markets” Are Nothing More Than Casinos

Kalshi and Polymarket, two large financial firms looking to maximize their profits, have unleashed unregulated…

1 week ago

Maine’s Online Casinos: Implications for State Policy and Tribal Revenue

Gov. Janet Mills approved a bill that permits online gaming, making Maine the eighth state…

2 weeks ago

The Nevada Gaming Control Board is suing to outlaw polymarketing in the state.

The first state to file a lawsuit against Polymarket is the Nevada Gaming Control Board…

2 weeks ago

Nevada authorities caution license holders about playing video games online.

Late on Friday, the Nevada Gaming Control Board provided Nevada licensees with further policy guidelines…

2 weeks ago

Lawmakers in Washington are considering easing restrictions on sports betting.

In an effort to potentially expand one of the most limited legal sports betting markets…

2 weeks ago