Stake heading to Californian court over its sweepstakes casino

Stake is heading to court, as a new lawsuit claiming that the brand is piloting an illegal gambling website heads to federal court.

Originally filed on February 14, Dennis Boyle is seeking claims less than $75,000 and the shuttering of Stake’s website. According to the suit, this is to “prohibit unlawful acts that threaten future injury to the general public as a whole, as opposed to a particular class of persons.”

However, Boyle and his legal team want the case pushed back from federal to state courts. According to the plaintiff, this is “where it belongs.” Stake has pushed back on this, saying that it wants the court to “intervene” and put a stop to the blanket ban.

Boyle’s suit also claims that Stake’s sweepstakes casino site lacks randomization, among other bad practices. According to the suit, Stake allegedly makes its playthrough requirements far too high, causing pressure to ensure that the user continues to play for their earnings.

Sweepstakes casinos have been under fire for the last few months in America. Sites like Stake.us, the American arm of Stake.com, don’t use actual cash. Instead, they use a token system, in this case split between “Gold Coins” for “free games” and bundled “Stake Cash”, used for real money games. Other sites might call this “Sweep Coins” or something similar.

States like Maryland and New Jersey have begun pushing for the expulsion of these sites. New York, as of March 31, is also seeking to ban these casinos. This would put a $100,000 fine per violation if the bill is signed into law.

In the UK, Stake has shuttered its business after issues came ahead with the company using an infamous social media and adult film personality, Bonnie Blue. It operated through TGP Europe Limited.

Stake has used social media to its advantage to gain a massive foothold. Its logo appears on multiple viral videos, as well as huge partnership deals for live streamers.

ReadWrite has reached out for comment.

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