Stake.us Operates Illegal Online Casino in Illinois, Class Action Lawsuit Alleges

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A proposed class action lawsuit alleges that Stake.us runs an illegal gambling operation in Illinois.

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The 35-page lawsuit claims that to work around Illinois law prohibiting online gambling, Stake.us deceptively markets its platform as a “social casino” where users can play casual, risk-free casino games. Although Stake.us claims to exclusively sell digital tokens with no real-world value called “Gold Coins,” the website bundles every Gold Coin purchase with “Stake Cash,” which can be wagered on casino games and cashed out for real money, the case contends.

“Despite [Stake.us’] claim that players are purchasing harmless virtual tokens, the pricing structure and game play reveal that Stake Cash—not Gold Coins—is the real product Stake is selling to entice players into engaging in real-money gambling,” the suit argues. “The Gold Coins merely serve to deceive regulators and lure players under the guise of ‘safe’ entertainment.”

The complaint was filed against Sweepsteaks Limited, Cypriot owner of the popular online casino Stake.com. According to the filing, Stake.com is prohibited from offering real-money gambling in the United States, where online gambling is strictly regulated or outright banned in many states. To circumvent these restrictions, the defendant created Stake.us, described in the lawsuit as a “nearly identical clone of Stake.com” but rebranded as a free-to-play “social casino,” the case alleges.

Contrary to the representations, Stake.us players were, until recently, able to redeem their Stake Cash winnings for cryptocurrency or real money at a 1:1 exchange rate to U.S. dollars, the complaint asserts. Currently, Stake Cash can be redeemed only in the form of cryptocurrency, the case says.

Per the filing, the platform intentionally uses two types of digital tokens to obscure the fact that players are engaging in real-money gambling on slot machines, bingo, blackjack, roulette and even live-streamed games with human dealers. As such, Stake.us is operating as an unlicensed and illegal online casino within Illinois, the case alleges.

“Unlike licensed casinos, which must comply with strict requirements to ensure fairness, transparency, and consumer protections, [the defendant] operates without these safeguards,” the suit says. “The absence of oversight leaves players vulnerable to unfair practices, such as manipulated game outcomes, misleading promotions, and nonexistent or inadequate mechanisms to address problem gambling.”

The filing argues that Stake.us’ alleged misconduct has exposed Illinois players to significant risks of financial ruin, psychological distress and gambling addiction.

The Stake.us lawsuit looks to represent all Illinois residents who have lost fiat- or crypto-currency wagering on the defendant’s online casino games.

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