Stake.us Faces Class Action Lawsuit for Unlawful Online Gambling Practices

Stake.us, a sweepstakes casino platform, is facing a class action lawsuit filed in the U.S. District Court for the Northern District of Illinois. The lawsuit, initiated by Illinois resident Brayden Urdan, accuses the platform of facilitating unlawful online gambling by operating under the guise of a “social casino.”

Key Allegations and Complaints
The lawsuit centers on Stake.us’s dual-currency mechanism, where players buy Gold Coins that cannot be redeemed for cash and Stake Cash (a “bonus” currency) that can be wagered and later exchanged for real money. Urdan claims this structure mirrors traditional online gambling and violates state laws. He alleges that he lost over $15,000 on the platform, with approximately $10,000 of the loss occurring within the past six months. Urdan also criticizes the platform’s claim of offering free-play opportunities, noting they are difficult to access and involve a complex process for requesting Stake Cash.

The lawsuit argues that once users exhaust their promotional Stake Cash, the only way to continue gambling is by purchasing more, thereby creating a pay-to-play cycle.