Stake.US Faces Illinois Lawsuit Over Alleged Illegal Gambling
Stake.US, a sweepstakes-style online casino, is in hot water in Illinois. A class-action lawsuit filed in the Northern District Court of Illinois by resident Brayden Urdan accuses the platform of running an illegal gambling operation under the guise of harmless fun.
A Big Legal Challenge in the Prairie State
Urdan’s complaint claims Stake.US is a masked real-money casino, dodging state laws and raking in cash without a license. This marks the second U.S. lawsuit against Stake.US this year, following a similar case in California, and it’s got the industry buzzing.
The lawsuit alleges Stake.US is a “virtual clone” of Stake.com, a crypto-based real-money casino, rebranded as a “social casino” to skirt regulations.
Urdan says he’s out $15,000 since 2022, including $10,000 in the last six months, and he’s fighting to get it back for himself and others in Illinois.
With the backing of Edelson PC, the law firm that just won a $25 million class-action victory against High 5 Games in Washington, the case is set to test Stake.US’s sweepstakes model in a big way.
Dual Currency Under Fire
At the heart of the suit is Stake.US’s dual-currency system: Gold Coins and Stake Cash. The platform pitches Gold Coins as free-play tokens with no cash value, while Stake Cash comes as a “bonus” with Gold Coin purchases.
But Stake Cash can be wagered on games and cashed out at a 1:1 ratio to the U.S. dollar. The lawsuit argues this setup mirrors Stake.com’s real-money betting, turning Stake.US into an unlicensed casino that flouts Illinois law.
Illinois rules are clear: gambling needs a license and a physical location overseen by the Illinois Gaming Board. The complaint says Stake.US ignores this, offering no consumer protections like responsible gaming tools or addiction support, stuff required of legit operators.
Instead, it leans on “obscure” free Stake Cash giveaways, like daily logins or mail-in requests, that the suit calls impractical. To keep playing, users end up buying more, and that’s where the real cash flows, per the filing.
Celebrity Flash and Regulatory Heat
Stake.US and Stake.com share star power. Both flaunt endorsements from rapper Drake and MMA fighter Israel Adesanya, a move the lawsuit slams as “aggressive sponsorship strategy.”
It claims this normalizes online gambling, builds trust, and hides the risks behind a shiny entertainment mask. The filing points out that identical celebrity tie-ins prove Stake.US is just a rebranded Stake.com, dodging the rules while luring in players.
The suit says Stake.US’s pricing backs this up. Buy $20 in Gold Coins, get 20.05 Stake Cash; $50 nets 50.12 Stake Cash. The argument? It’s really selling Stake Cash, the gambling fuel, not just Gold Coins.
That, plus the ability to cash out winnings, makes it a full-on betting site, not a casual game, per Urdan’s team. They’re accusing Stake.US of breaking Illinois gambling and consumer protection laws, unjustly pocketing profits under a “free-play” front.
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