Online gambling brand Stake faces a legal challenge against its U.S. platform, Stake.us. The accusations, which are sinking their teeth into Stake, claim it is operating an illegal gambling website in California. The real question is: Has Stake bitten off more than it can chew with this legal battle?
Boyle’s accusations against Stake
Dennis Boyle says Stake’s site looks free on the surface, but underneath, it plays like a real casino. His lawsuit claims players buy or earn virtual currencies—Gold Coins and Stake Cash—then use them to spin and bet just like in a real gambling environment. Boyle argues it’s more than a game; it’s gambling dressed up.
“By using Stake Cash to gamble on promotional games, users are essentially wagering real value on random events with the intent of winning more,” the lawsuit reads. Boyle claims this practice not only fosters addiction but also runs afoul of California civil codes governing gambling and unfair business practices.
Legal proceedings and challenges for Stake
The legal fight kicked off in February 2025 and has since climbed from state court to the federal level. Boyle is asking the court to shut down Stake’s California operations entirely. His legal team believes California’s case law gives plaintiffs a better shot, particularly when targeting sweepstakes platforms that operate without formal licences.
Stake, for its part, is standing its ground. A company spokesperson said California courts have typically supported social casinos and sweepstakes-style models like theirs. They remain confident that the court will back their approach, which they argue fits within the existing legal framework for promotional gaming.
Legal pressure mounts on sweepstakes casinos
It’s a case that arrives as pressure builds across the U.S., with sweepstakes casinos now facing questions from every angle. New York, Maryland, and New Jersey lawmakers call for tighter restrictions or outright bans.
Stake’s model relies on virtual currencies and a sweepstakes structure that mimics casino gameplay. The company says the model stays within the rules and avoids the red tape that comes with real-money gambling.
Supporters say there’s a clear line between Stake’s digital tokens and actual cash. But critics, including Boyle, believe the platform is designed to keep players engaged in the hope of cashing out. The rewards on offer? Be it crypto or gift cards, the prizes on offer blur the lines, adding real-world weight to games wrapped in virtual skin.
What the case could mean for the industry
It could set the tone for how U.S. regulators deal with sweepstakes platforms from here on out. Besides the legal dispute with Stake, Boyle has also filed similar lawsuits against other sweepstakes platforms, including Pulsz, highlighting his ongoing fight against what he describes as “illegal gambling” in the state.
The lawsuit has bitten deep, leaving Stake with serious wounds to heal. The heat is on in this ongoing clash. On one side, California wants sweepstakes casinos out. On the other, Stake stands firm, claiming it’s all above board. The bigger question? What happens when the line between harmless fun and something darker disappears?
