A federal lawsuit has been filed against Stake.us, an online sweepstakes casino, accusing it of running an illegal gambling operation in California.
The complaint, brought by Dennis Boyle, argues that the site violates California law by providing casino-style games to residents in the state.
This case adds to growing legal scrutiny of sweepstakes casinos across the U.S., as several major operators face lawsuits challenging the legality of their business models. While critics argue these platforms facilitate unlawful gambling, supporters maintain that sweepstakes casinos are legal under existing frameworks and continue to operate freely in most states.
Stake.us is the American arm of Stake.com, a global cryptocurrency-based gambling company and one of the largest in the world by revenue. The lawsuit focuses on the platform’s sweepstakes model, which utilizes a dual-currency system involving “Gold Coins” and “Stake Cash.” Boyle contends this setup effectively mirrors real-money gambling.
According to the filing, users can buy Gold Coins and receive Stake Cash in return, which can then be redeemed for rewards like gift cards and cryptocurrency. Boyle, who identifies as a gambling addict, also claims the site deliberately targets California residents, highlighting that the platform requests users’ state information and has privacy policies tailored for Californians.
The complaint further alleges deceptive practices by Stake.us, including algorithms that may not produce truly random outcomes and “play-through” requirements that encourage ongoing play—both of which are said to exploit user behavior and increase revenue.
In addition to accusing the company of violating California’s Unfair Competition Law by operating without appropriate licensing or registration, the suit seeks to nullify user agreements and stop the platform’s operations in the state.
As seen in similar cases, the defendants transferred the lawsuit from Orange County Superior Court to federal court, a move often seen as raising the bar for plaintiffs pursuing legal action.
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