Class action alleges Stake.us operates a real-money casino behind ‘social gaming’ front

Stake.us class action lawsuit overview:

• Who: An Illinois resident has filed a class action lawsuit against Sweepsteaks Limited, doing business as Stake.us.
• Why: The plaintiff alleges Stake.us operates an illegal online casino.
• Where: The Stake.us class action was filed in Illinois federal court.

A new class action lawsuit alleges that Stake.us, operating under SweepSteaks Ltd.,  runs an illegal online casino in Illinois.

Plaintiff Brayden Urdan filed the class action lawsuit against SweepSteaks Ltd. and Stake.us on April 7 in Illinois federal court, alleging violations of state and federal laws.

In the class action lawsuit, Urdan states that Stake.com is one of the most profitable online casinos in the world and that  its co-founder, Ed Craven, has said its “betting volume is the highest in the world out of any casino, land-based or online.” 

However, Urdan alleges that Stake.com was blocked from entering the U.S. market, where online gambling is highly regulated and banned entirely in many states, including Illinois.

To evade these restrictions, Stake created Stake.us, a platform marketed to U.S. consumers as a so-called “social casino” that does not permit real gambling, Urdan says.

However, in reality, Stake.us is a virtual clone of Stake.com, rebranded to mislead regulators and consumers into believing it offers harmless gameplay instead of unlawful gambling, the Stake.us class action alleges.

Stake.us bundles gambling tokens with ‘harmless’ tokens, lawsuit claims

Urdan explains that on Stake.com, players buy chips, gamble and cash out their winnings just like at a regular casino. However, he alleges Stake knew that openly selling casino chips to U.S. customers would immediately expose Stake.us as an illegal online casino.

To hide the true nature of its gambling operation, the class action lawsuit claims that the only chips Stake.us sells to consumers are harmless tokens called “Gold Coins,” which can only be used for “casual” gameplay on the Stake.us platform, have no real-world value and can never be cashed out.

However, Urdan argues that Stake bundles every purchase of Gold Coins with a second type of token called “Stake Cash” as a supposedly free bonus. Unlike Gold Coins, Stake Cash can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. dollar, exposing Stake Cash as a clear vehicle for real-money gambling, Urdan says.

Urdan is looking to represent anyone in Illinois who has lost fiat or cryptocurrency wagering on Stake.us’ online casino games. 

The plaintiff is suing for violations of Illinois’ Loss Recovery Act and Consumer Fraud and Deceptive Business Practices Act and for unjust enrichment. He is seeking certification of the Stake.us class action lawsuit, an order requiring Stake to cease the operation of its gambling devices and return all lost monies, with costs, and damages.

In related news, DraftKings Inc. faces a class action lawsuit alleging it misled consumers about the terms of a deposit bonus offered on its sports betting platform.

What do you think of the allegations in this Stake.us class action? Let us know in the comments.

The plaintiff is represented by J. Eli Wade-Scott, Michael Ovca, Hannah Hilligoss and Ari J. Scharg of Edelson P.C.

The Stake.us class action lawsuit is Urdan v. Sweepsteaks Limited d/b/a Stake.us, Case No. 1:25-cv-03736, in the U.S. District Court for the Northern District of Illinois, Eastern Division.

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