Lawsuit filed in Alabama Federal Court against Stake.us
A class action lawsuit has been filed in the Alabama Federal Court against crypto sweepstakes operator Stake.us, accusing the operator of running an illegal gambling site.
The suit names several Alabama residents as plaintiffs, who argue they were harmed by the site.
Stake’s platform offers a range of casino-style games, including slots, which are played with virtual coins that can be exchanged for cash or other prizes.
Sweepstakes companies such as Stake.us are not regulated in the same way as online casinos and claim not to offer gambling services, but the plaintiffs dispute this.
The lawsuit submitted to the Federal Court states, “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.’”
Similar lawsuits have been filed in California and Illinois. Still, opponents of the sweepstakes model are hopeful that Alabama’s strict gambling laws will give them a greater chance of success in the Yellowhammer State.
The only forms of gambling currently permitted in the state are pari-mutuel racetrack wagering, tribal casino gambling, and bingo.
At the same time, sports betting remains illegal throughout Alabama, unlike in neighbouring states, Tennessee, Florida, and Mississippi.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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