Big money on the line
Stake.US is facing another lawsuit just one week after the filing of a complaint in California. This time, it’s in Illinois, with the law firm that secured a $25m class-action win in February against High 5 Games now saying that the operator breached state gambling rules with its sweepstakes model.
misleading users into thinking they’re playing risk-free, casual games
Stake.US is facing allegations that it is running “an unlicensed and illegal online casino” while simultaneously misleading users into thinking they’re playing risk-free, casual games. As per Illinois law, all gambling must take place with a license from the state’s regulator, which Stake.US does not have.
The sweepstakes model
The lawsuit contends that Stake.US looks exactly like the popular Stake real-money gambling site, which was “rebranded to mislead regulators and consumers” into thinking they were engaging in harmless gameplay.
need to buy coin packages with real money if they want to be in with a chance of earning prizes
The dual-currency system of Stake.US came in for special attention, with the Stake Cash option redeemable for real money prizes, unlike the Gold Coins alternative. Once players can’t get any more Stake Cash through promotions, they need to buy coin packages with real money if they want to be in with a chance of earning prizes.
This is despite the platform’s use of the tagline “no purchase is necessary” to get Stake Cash, which the law firm Edelson claims is misleading.
Seeking damages
Another aspect of the lawsuit is that the plaintiff claims Stake aggressively marketed to vulnerable people by frequently showing content of influencers winning big, which gives a false impression that large payouts are frequent. Prominent people who are partners of Stake include rapper Drake and UFC star Israel Adesanya.
seeking compensation for his losses, statutory damages and to stop Stake from operating in Illinois
The plaintiff in the case is Brayden Urdan, who lost over $15,000 on the site. He’s seeking compensation for his losses, statutory damages, and to stop Stake from operating in Illinois.
The lawsuit in California follows a similar format, with it being filed in federal jurisdiction rather than on a state level.
