Online gambling brand Stake.us is facing a class action lawsuit in Alabama brought by a mother and her child, claiming the child suffered harm from his mother losing her wages playing on the site.
Plaintiffs Laura Hall and her minor child filed a class action complaint against Stake.us alleging the company of running an illegal gambling operation in Alabama as gambling is “constitutionally and statutorily prohibited” in the state.
“Stake attempts to separate the element of consideration from chance by offering a two-tiered system of virtual coins, both of which function like casino chips, while calling the whole affair a ‘sweepstakes,’” reads the complaint.
Hall, an Alabama resident, is taking legal action against Stake.us after wagering and losing money with the company without the knowledge of it being an alleged unlicensed operator.
The Phenix City resident included her child in the suit as the minor “suffered an injury in fact resulting in the loss of money and/or property that is recoverable in Alabama.” The child “suffered an injury” due to their mother’s wagering with Stake.us in the last six months.
Suit compares Stake.us to internet cafes
The suit compares Stake’s operations in Alabama to internet sweepstakes cafes, citing a number of cases, including one in Alabama that concluded the sweepstakes-style approach of the internet cafes were in violation of the law. The plaintiffs expect Stake to argue that its operations are allowed due to its “legal” sweepstakes that have no consideration due to a duel-currency system.
Internet sweepstakes cafes were also raised in a California lawsuit against VGW and its brand ambassador Ryan Seacrest.
The two suits in California and Alabama provide similar arguments and are backed by the same law firm.
Hall, her child and others similarly situated are seeking damages and declaratory and equitable relief. The suit’s class members are “all Alabama residents who have paid and lost money or other things of value on Stake.us in the last six months.”
The class also extends to all spouses, children or next of kin of residents of Alabama residents have lost money on Stake.us during the same period.
Stake.us facing multiple lawsuits across the US
Last month, Stake.us was hit with two lawsuits regarding its social casino and sweepstakes.
Dennis Boyle, a California resident and gambling addict, filed a suit against Stake.us alleging that the gambling brand provides real-money, online wagering that is falsely marketed as free gaming. Boyle claims Stake.us violates California civil code by providing access to unlawful online gambling while also engaging in unfair business practices.
California law bans online casinos and the offering of online slots, blackjack and roulette.
Boyle’s suit also has a large focus on digital currencies used by Stake.us, which are alleged proxies for real-money wagering as they are used to play the brand’s games and sweepstakes.
Boyle is also taking legal action against social casino Pulsz.
Stake is also facing a lawsuit in the Northern District of Illinois, Last month, Brayden Urdan filed a suit against Stake claiming the brand of operating its free site as a real-money casino. Urdan claims Stake unjustly enriched itself by offering a workaround to offer prohibited gaming through its dual-currency system. The suit also considers consumer protection measures as it claims Stake used similar marketing for its free and paid sites.
