Stake.us Sued in Illinois for Allegedly Operating Illegal Gambling Platform
Sweepstakes casino platform Stake.us is facing a class action lawsuit in the U.S. District Court for the Northern District of Illinois, accusing the company of facilitating unlawful online gambling. Illinois resident Brayden Urdan filed the lawsuit, claiming that the site’s structure mirrors a traditional online casino, allegedly circumventing state gambling laws under the pretense of operating a "social casino."
According to the complaint, the central issue lies in Stake.us’s dual-currency mechanism. Players can buy Gold Coins, which are not redeemable for cash, while Stake Cash—granted as a “bonus”—can be wagered in games and later exchanged for real money. This setup, the suit argues, mirrors conventional gambling and violates state law.
Urdan claims he lost more than $15,000 on the platform since 2022, with approximately $10,000 lost in the last six months alone. He also challenges the platform’s claims of offering free-play opportunities, describing them as opaque and largely inaccessible. While the site allows users to request Stake Cash without making a purchase, the process is described as "friction-heavy" and “impractical,” relying on mail-in requests and limited promotional availability.
The lawsuit asserts that once users deplete their promotional Stake Cash, “the only viable way to continue gambling is to purchase more,” reinforcing a pay-to-play cycle.
Celebrity Endorsements and Alleged Risk Promotion
The legal complaint also scrutinizes the platform’s celebrity partnerships, including figures such as Drake and UFC fighter Israel Adesanya. The lawsuit suggests that these celebrity endorsements glamorize gambling and contribute to blurred lines between Stake.us and Stake.com, the latter being a crypto casino that is restricted in most U.S. states.
It is alleged that this form of advertising targets younger demographics and downplays the potential financial risks. Flashy promotional content and large winning highlights are said to mislead users about the realities of gambling on the platform.
The complaint contends that this strategy of celebrity-driven promotion not only confuses the brand identity between the two Stake platforms but also exploits the appeal of fame to draw in more players without proper risk warnings.
Illinois Legal System Seen as Favorable for Plaintiffs
Illinois has increasingly become a preferred jurisdiction for plaintiffs pursuing gambling-related litigation. This is due in large part to the state’s Loss Recovery Act, which enables individuals to recover up to three times their losses if they file a lawsuit within six months of incurring them.
Attorney Daniel Wallach commented, “There’s a good reason why Illinois is referred to as the gambling class action lawsuit capital of the United States.” He added that while most gamblers don’t typically sue operators—or do so within such a tight timeframe—the statute “quickly opens the door to a representative class action lawsuit for treble damages.”
Edelson PC, the firm representing Urdan, is taking its first steps into legal action against a sweepstakes-based platform after its prior success in Washington state, where the court ruled that virtual gaming chips held monetary value. That decision could carry persuasive weight in Illinois and potentially in a similar lawsuit underway in California.
According to Wallach, Edelson PC has “wisely identified several vulnerabilities in Stake’s business model,” particularly pointing to the nearly direct exchange rate between real currency and Stake Cash.
While Stake.us has not yet responded publicly to the lawsuit, it has previously maintained that it operates within the legal bounds of sweepstakes gaming by offering no-purchase-necessary options and free-access gameplay.
Source:
Stake.us Hit With Class Action Over Gambling Allegations in Illinois, LCB.org, April 2025