Online gambling brand Stake is facing a lawsuit in a California court.
According to court documents, Dennis Boyle is suing Sweepsteaks Limited alleging the company of operating an illegal gambling website, Stake.us. Boyle filed the suit as a California resident and former gambling addict who has lost money with Stake. The suit was remanded, moving the case from state court up to federal court. The suit was originally filed on Feb. 14.
The case is focused on Stake’s social casino and sweepstakes offerings, with the plaintiff alleging that the gambling brand provides real-money, online wagering that is falsely marketed as free gaming. Stake’s alleged misconduct is considered a violation of California civil code as it provides unlawful online gambling and engages in unfair business practices.
“Because social casinos operate as if they are not subject to gambling regulations, they do not comply with the regulations that govern the operation of slot machines or other gambling,” says the complaint.
In the suit, Boyle claims Stake illegally operates in California, where the state prohibits the operation and offering of online gambling casinos, including slot machines, blackjack and roulette. Boyle alleges that Stake’s digital currencies, Stake Cash and Gold Coins, are a proxy for real-money wagering as they are used to play promo games and sweepstakes.
Boyle claims that the currencies foster gambling addiction by enticing players to play.
“A user playing promotional games with Stake Cash is gambling in the purest sense – they are wagering something of value (Stake Cash) on a random event with the hope and intent of winning more Stake Cash than wagered,” reads the complaint.
Boyle argues that Stake profiting from addiction is comparable to America’s opioid crisis.
Alleged unfair business practices by Stake
Boyle also argues that Stake’s offerings are illegal due to its unfair business practices.
The alleged business practices include the company’s play-through requirement, which is tied to Stake Cash. The brand’s play-through requirement for welcome bonuses and promotional giveaways sees players subject to a 300% wagering requirement requiring players to wager a significant amount of Stake Cash before they can redeem winnings.
The suit alleges that this practice is designed to keep players wagering with the platform.
Boyle also accuses Stake of unfair business practices for not randomizing casino results.
The suit claims social casinos maximize addiction by tailoring wins and losses and cheating players out of a profitable, randomized and safe gaming experience.
Boyle’s individual claims in the suit do not exceed $75,000.
The California native is seeking public injunctive relief with the shuttering of Stake.us’s online gambling website to “prohibit unlawful acts that threaten future injury to the general public as a whole, as opposed to a particular class of persons.”
Multiple legal proceedings for Boyle
Boyle filed his suit against Stake after taking legal action against social casino Pulsz.
Earlier this year, Boyle filed a suit in Orange County against Pulsz owner Yellow Social Interactive alleging the company of operating an offshore criminal enterprise.
The suit alleges Pulsz of using euphemisms including “social gaming” and “sweepstakes” to trick users into engaging with the platform. The suit considers Pulsz responsible gaming standards as it informs users to not seek treatment for a gambling disorder unless their symptoms have “sufficient severity” and have “been evident for at least 12 months.”
Boyle also argues that Pulsz’ digital currencies are a pretext for real-money gambling. Pulsz’s digital currencies operate in a similar fashion to Stake’s online cash and coins.
The suit also alleges that Pulsz does not randomize its results for social casinos while also providing players with access to the online slots that are barred across California.
Boyle is seeking public injunction relief against Pulsz to shut it down in the state.
