Stake.us Hit with Class Action Lawsuit in Illinois

Stake.us, a gaming platform that uses a sweepstakes-style model, now faces legal challenges. An Illinois resident, Brayden Urdan, has filed a class action lawsuit in federal court. The lawsuit claims that Stake.us runs an illegal online casino while pretending to be a casual gaming site.

Stake.us Accused of Masking Real-Money Bets with “Gold Coins” 

Edelson PC, a law firm, is handling this case. They won $25 million in a similar lawsuit against High 5 Games in Washington State. In the Illinois case, the firm argues that Stake.us copies the real-money gambling approach of its parent site, Stake.com. Stake.com uses cryptocurrency and lacks licenses to operate in most US states.

At the heart of the complaint lies the site’s two-currency system. Players buy virtual “Gold Coins” for entertainment-only games. However, each purchase also includes “Stake Cash,” a bonus token that the lawsuit claims works as real gambling money — you can use it to bet and swap it for cash at a one-to-one rate with US dollars.

The complaint argues that while Stake.us shows Stake Cash as a free extra, its pricing tells a different story. For example, a $20 purchase gives users about 20 Stake Cash plus a big pile of Gold Coins, hinting that buyers are paying for Stake Cash directly.

Platform Cut Me Off After Complaints, Says Player in Illinois Suit

Urdan, who lost over $15,000 on the platform since August 2022, says that the company blocked his access soon after he voiced worries about his gambling losses. The complaint states that Stake.us does not provide key consumer safeguards like responsible gaming tools or addiction support, which are required of licensed gambling operations in Illinois.

The lawsuit also slams the platform’s marketing strategy saying it uses popular influencers and displays of big wins to draw in younger users and push real-money betting. The complaint labels these methods as misleading aiming to blur the line between casual gameplay and high-risk gambling.

This legal action comes after a similar case in California, marking the second ongoing class action against Stake.us in the US. The lawsuit aims to get money back for financial losses, obtain statutory damages, and stop Stake.us from operating further in Illinois. This case adds to a rising wave of lawsuits targeting sweepstakes casinos that use digital currencies, which courts now often treat as equal to cash. As of now, Stake.us has not made any public statement about the Illinois lawsuit.