Let's Dish on the Latest Legal Drama: Stake.us in Alabama's Hot Seat
Lawsuit Accuses Stake.us of Unlawful Gaming Operations Due to Lack of Licensing in Alabama
In the heart of the US, Alabama is stirring up a storm over Stake.us, a cryptocurrency sweepstakes platform. A fresh federal lawsuit has hit the courts, threatening to complicate operations even further in this country. The complaint? Stake.us allegedly replicates those old internet cafes that were shut down a while back, and operates outside legal gambling channels in the state.
Did you know?
- Stake.us has already faced lawsuits in California and Illinois.
- The lawsuit compares Stake's model to shuttered internet cafes once used for under-the-table gambling.
- Alabama's gambling laws are strict, permitting only limited formats like tribal gaming and bingo.
This lawsuit, filed in the U.S. District Court for the Northern District of Alabama, throws down the gauntlet. It's a ban-hammer on Stake.us in the state and seeks financial compensation for users who claim to have lost coin on the site. Several Alabama residents have jumped on the plaintiff bandwagon.
The core issue in this disagreement is centered on the claims that Stake.us operates using the same playbook as those ancient internet cafes. These businesses were known to peddle commodities like phone minutes or internet time while offering sweepstakes entries - often to play slots for cold, hard cash. The courts eventually put the kibosh on them.
According to the lawsuit, Stake.us follows a similar pattern with its virtual currencies: Gold Coins, meant for nothing more than entertainment value, and the real deal, Stake Cash. Plaintiffs argue these digital coins are like casino chips, if you will.
"In essence, Defendant is copying the internet cafe playbook," the lawsuit claims, "instead of selling internet time or groceries, Defendant sells Gold Coins, which are then disregarded so that players can use the Stake Cash for cryptocurrency gambling."
Another major gripe from the plaintiffs revolves around how Stake.us tackles state restrictions. The suit alleges that Alabama wasn't marked as a restricted location on the platform, leading users to believe the site was legally accessible in the state. However, Alabama's gambling laws are some of the strictest in the country, limiting legitimate gambling activity to a few approved formats like tribal casinos, bingo, and horse racing.
The lawsuit also throws shade at Stake.us's use of celebrities. Drake has graced promotional content, and his name has been thrown around alongside phrases like "a chance to win big alongside Drake." Plaintiffs claim this type of marketing undermines any claim that the platform is not offering gambling.
Stake.us falls under the umbrella of parent company Sweepstakes Limited and offers over 200 games from popular developers—ranging from slots and poker to table games.
As the scrutiny on sweepstakes casinos intensifies, cases like this one follow. In 2023, the American Gaming Association called for regulators to investigate the business model, pushing for legislation to address the issue. With lawsuits piling up and public eyes watching more closely than ever, sweepstakes-based casinos like Stake.us are under the pursuit of the feds now more than ever.
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- Despite the legal issues, Stake.us continues to operate beyond Alabama's gambling channels, resembling shuttered internet cafes known for under-the-table gambling.
- The lawsuit against Stake.us argues that the platform uses a similar playbook as old internet cafes, selling seemingly worthless Gold Coins and disregarding them for actual Stake Cash, comparable to casino chips, for gambling.
- Alabama's residents are frustrated as Stake.us allegedly ignored the state's strict gambling laws by not marking Alabama as a restricted location on the platform, leading users to believe they could access the site legally.
- With lawsuits on the rise and regulators scrutinizing sweepstakes casinos, Drake has become a part of the controversy as his name has been associated with Stake.us promotional content, potentially undermining the platform’s claim that it’s not gambling.
- Alternatively, individuals seeking responsible gambling options might find alternatives in other online casinos such as 7Bit Casino, offering 177% up to 5BTC + 77 Free Spins, or Katsubet with a bonus of 5BTC or 111% + 111 Free Spins.
