Stuart is a freelance journalist and marketing content & copywriter, having graduated from Canterbury Christ Church University. His writing covers topics including Sports Betting & iGaming news stories, as well as Technology, Aviation, and Travel...
Read Full BioStake is being accused of illegal gambling practices in Illinois just a week after being accused of similar practices in the Golden State.
Mirroring a similar case filed in California last week, Stake faces a second legal battle, but this time in the US District Court for the Northern District of Illinois.
Filed by Illinois resident Brayden Urdan, the suit primarily targets its sweepstake casino platform, Stake.us. He claims it is operating an unlicensed and illegal online gambling site under the guise of being a “social casino.”
Dual-Currency System Constitutes Gambling
Central to Urdan’s lawsuit challenge is the platform’s use of a dual-currency system, which he believes is deceptive as users buy “Gold Coins” but receive “Stake Cash” as a bonus. The plaintiff argues that while Gold Coins cannot be wagered, Stake Cash can, and any winnings can be cashed out, effectively qualifying as real-money gambling.
Despite Stake.us advertising claiming that users do not need to purchase to receive Stake Cash, the complaint argues that these procedures are obscure and insufficient for sustained gameplay.
The legal action asserts that while players can technically obtain small amounts of Stake Cash via platform promotions, daily logins, or a long-winded mail-in request process, he maintains most users on the site end up making real money deposits to play.
Stake Using Misleading Advertising in Illinois
In conjunction with the concerns raised regarding the dual-currency system, the filing also calls into question the operator’s use of celebrity endorsements. Stake uses stars like Drake and UFC star Israel Adesanya to promote both casino platforms. The plaintiff contends that Stake is using high-profile partnerships to actively normalize gambling while masking the risks, packaging it instead as an entertainment app.
Furthermore, Urdan is also seeking financial restitution, statutory damages, and an injunction to halt Stake’s operations in Illinois after claiming to have lost more than $15,000 on the platform since 2022, with $10,000 lost in the past six months.
These losses, he argues, illustrate the social casino platforms’ lack of responsible gambling measures, which should include safeguards, addiction support resources, and self-exclusion tools, which are typically mandated by law for licensed operators.
Illinois a Hotspot for Gambling-Related Class Actions
In light of Urdan’s recent filing against Stake.us, the move has also reaffirmed Illinois’ reputation as a hub for gambling-related lawsuits—due in part to its unique centuries-old statute, the Illinois Loss Recovery Act (LRA).
Under the LRA statute, plaintiffs in the Prairie State are entitled to reclaim three times their gambling losses if the losses stemmed from unlawful betting activities. The only caveat to the application of this statute is that the claimant must file the suit within six months.
The lawsuit in California could impact Urdan’s case in Illinois, as the law firm Edelson PC is challenging it. Edelson is the firm behind a recent prominent court case that secured a $24.9 million win against High 5 Games in Washington state over their comparable social casino model.
With the Washington state ruling against High 5 Games setting a new precedent that non-cashable virtual chips can constitute “something of value” under their state gambling laws, should a similar adjudication be made in California and Illinois, Stake may likely face more legal challenges in the near future.
