Alabama Woman Accuses Stake.us of Running Illegal Gambling Operation

An Alabama woman has filed a class action lawsuit against Stake.us, accusing the platform of operating an illegal gambling operation in the state.

The lawsuit, reported by gambling legal expert Daniel Wallach, was filed last Friday in the US District Court for the Northern District of Alabama. It names Laura Hall and her minor child as plaintiffs, along with other Alabama residents who claim they’ve been similarly affected.

“Stake attempts to separate the element of consideration from chance by offering a two-tiered system of virtual coins, both of which function like casino chips, while calling the whole affair a “sweepstakes,” the lawsuit reads.

Hall contends that Stake continues deceptively marketing itself as a legal sweepstakes platform when it’s an unlicensed provider of casino games. She also claims that her child, who is a minor, “suffered an injury in fact resulting in the loss of money and/or property that is recoverable in Alabama” in the last six months.

This is already the third lawsuit against Stake, which is also involved in cases in California and Illinois.

What is Online Sweepstakes Gaming?

These unregulated platforms allow players to play casino-style games like slots, roulette, and poker, which are banned under Alabama law. However, instead of real money, players can use virtual currencies like coins or tokens, which can then be exchanged for prizes or additional credits.

Because these platforms are not classified as traditional gambling sites, they operate in a legal gray area and have been widely scrutinized by lawmakers and regulators.

Several states — including Connecticut, Louisiana, Montana, and New York — are advancing in legislative efforts to ban them, citing concerns about consumer protection and market integrity.

The lawsuit compares Stake’s operations to internet café gaming establishments, which have been shut down throughout the United States.

“Stake will ask the Court to disbelieve its own eyes and conclude that Stake.us is not really a gambling operation, but instead offers legal ‘sweepstakes,’” the lawsuit states. “That is an old gimmick that was once popular among criminals in the early 2000s.” 

Stake.us Rejects Claims of Illegal Gambling

The complaint claims that Stake.us operates under the guise of Sweepstakes Limited and promotes over 200 games, including slots, poker, and table games.

On its website, customers are presented with the opportunity to “win big” alongside Canadian rapper Drake, who is described as a “long-time member of the Stake community.”

Stake has fired back at claims it is operating illegally, telling ReadWrite it “does not operate an online casino in Alabama. It operates a social casino with free-to-play games in compliance with all relevant local laws and regulations.”

The post Alabama Woman Accuses Stake.us of Running Illegal Gambling Operation appeared first on CasinoBeats.

 An Alabama woman has filed a class action lawsuit against Stake.us, accusing the platform of operating an illegal gambling operation in the state. The lawsuit, reported by gambling legal expert Daniel Wallach, was filed last Friday in the US District Court for the Northern District of Alabama. It names Laura Hall and her minor child
The post Alabama Woman Accuses Stake.us of Running Illegal Gambling Operation appeared first on CasinoBeats.