Stake.us Faces Alabama Lawsuit Over Illegal Online Gambling

A Legal Storm in Alabama

Stake.us, a popular online gaming platform, got slapped with a class-action lawsuit in Alabama’s federal court, filed by residents including Laura Hall and her minor child.

The suit claims the company’s been dodging Alabama’s tough gambling laws by offering unlicensed games dressed up as a promotional sweepstakes.

Alabama’s one of the strictest states on gambling, allowing only bingo, tribal casino games, and pari-mutuel horse race betting, making this a big deal for Stake.us, which operates as Sweepsteaks Limited Company.

The lawsuit calls out Stake.us’s model, likening it to “internet gambling cafes” that got shut down across the US over a decade ago. Those cafes sold internet time or phone minutes alongside sweepstakes entries for slot-like games, and the plaintiffs argue Stake.us is pulling a similar trick with its dual-currency setup: Gold Coins for fun and Stake Cash for prizes like crypto or gift cards.

They say it’s just casino chips in disguise, turning the platform into an illegal gambling hub.

Digging Into the Claims

The plaintiffs aren’t holding back. They accuse Stake.us of misleading them by not listing Alabama as a restricted state, making users think it’s all aboveboard.

The platform’s 200-plus games, including slots, table games, and poker from top developers, are allegedly breaking Alabama law. The lawsuit also points fingers at Stake.us’s marketing, spotlighting celeb endorsements like rapper Drake and slogans like “chance to win big with Drake,” which they say scream gambling, not sweepstakes.

Stake.us’s dual-currency system is at the heart of the beef. Gold Coins are for casual play, but Stake Cash, which players get as a bonus and can swap for real-world rewards, is pegged as a stand-in for actual cash.

The plaintiffs argue this setup mimics casino betting, not a harmless giveaway, and hooks users into a gambling-like experience. They’re seeking cash for their losses and a permanent ban on Stake.us operating in Alabama.

This isn’t Stake.us’s first rodeo. Similar class-action suits popped up in California and Illinois recently. Alabama’s case stands out because of the state’s ironclad gambling rules, which leave little wiggle room for creative loopholes.