Legal case filed against Stake.us in California court over sweepstakes model
Online gambling platform Stake faces growing legal pressure after the Los Angeles City Attorney filed a legal case against Sweepstakes Ltd, the operator of Stake.us, for offering illegal sweepstakes in the state.
The case, which was filed in the California Superior Court, Los Angeles County, seeks to prevent Stake from operating all sweepstakes and return any player losses.
Sweepstakes casinos offer players digital currency, which they can exchange for sweepstakes coins and redeem for cash or prizes. The case alleges that this model is “deceptive” to both players and regulators and that Stake offers an “illegal online casino.”
The filing goes on to add that Stake.us is designed to “skirt” the state’s anti-gambling laws by appearing to be an online casino but offering redeemable virtual currency on a one-to-one basis with USD.
“That Stake.us claims the Stake Cash, redeemable for cryptocurrency or gift cards are ‘free’ does not make them valueless, and that the gold coins cannot be redeemed for cash does not make them valueless, either. Gambling with either is still gambling,” the lawsuit reads.
According to the complaint, this model is “dangerous” and “continues to prey on Californians.”
Easygo, Stake’s parent company, also named in the case, told The Australian this week: “We have not been served at this time. However, we reject allegations that have been made in the media in relation to this potential claim and will vigorously defend this and all such claims.”
Last month, Stake partnered with the Caribbean Premier League cricket team Knight Raiders in a multi-year agreement.
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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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