Stake.us faces lawsuit in Illinois over alleged illegal gambling operations

A federal lawsuit has been filed in Illinois against sweepstakes gaming platform Stake.US, with allegations that the company is operating a disguised version of its real-money gambling site in violation of state law. The legal action, brought by Illinois resident Brayden Urdan in the Northern District of Illinois, accuses the platform of unlawful gambling practices and consumer protection violations.

Urdan claims he lost $15,000 playing games on Stake.US since 2022 and argues that the site is not a legitimate free-play operation, but rather a strategic replica of Stake.com, a real-money cryptocasino. The complaint asserts that the company’s dual-currency model, a system often used in sweepstakes casinos, is a calculated attempt to circumvent state gambling restrictions.

“Critically, Stake.us and Stake.com sponsor the exact same celebrities and sports teams, further showing that Stake.us is simply a strategic copy of Stake.com, deceptively rebranded as a ‘social casino’ to evade gambling regulations,” the lawsuit states.

Prominent figures such as pop star Drake and MMA fighter Israel Adesanya are listed as promotional partners of both Stake.com and Stake.US, with the filing arguing that these celebrity endorsements are part of a broader strategy to obscure the risks of gambling.

“The point of Stake’s aggressive sponsorship strategy is clear: by linking itself with globally admired celebrities and teams, Stake aims to normalize online gambling, increase consumer trust, and disguise the risks of gambling behind an appealing entertainment-focused image,” the legal complaint notes.

The case mirrors similar legal challenges faced by other sweepstakes-based casino platforms. Another lawsuit against Stake.US is already underway in California, where plaintiff Dennis Boyle has filed claims echoing those in the Illinois case. That matter began in state court before moving to the California federal system.

The firm representing Urdan, Edelson PC, is the same legal team behind the high-profile lawsuit against High 5 Games in Washington state. That case resulted in a $25 million settlement in favor of the plaintiffs after a court found the operator violated state gambling laws.

Illinois permits individuals to seek financial recovery for gambling losses under specific circumstances, which forms the basis for Urdan’s claim. While such suits are uncommon, they are not without precedent. A previous case filed over a decade ago attempted to recoup gambling losses from a group of University of Illinois alumni and professional poker players, though it was ultimately dismissed without much progress.