An Alabama resident, Laura Hall, has filed a class-action lawsuit in federal court, accusing Stake.us of violating state laws. According to her, the website runs gambling activities without a proper license. The case also involves her underage child, who allegedly lost money or valuables after being misled by the platform’s tactics.
The core allegation is that Stake disguises an online casino as a harmless lottery. Hall claims the platform intentionally deceives users by advertising a legal sweepstakes, while in reality offering slots, poker, and other gambling formats banned in Alabama. This is already the third lawsuit filed against Stake in the U.S. Similar complaints were previously brought forward in California and Illinois.
Stake.us offers two types of coins — some are given out upon registration, others can be obtained by entering contests or sending in postcards. These coins are not considered real currency, but they can be exchanged for gift cards or bonus credits. The entire system is framed as a no-purchase-necessary sweepstakes.
In practice, the user sees a typical online casino. Slot reels, poker tables, mini-roulette — all the classic features are there. There’s chance, there are prizes. Only the interface is designed to obscure the fact that real value is involved. The courts have seen this kind of setup before — it dates back to the early 2000s, only the names have changed. Stake calls it a “social casino.” But lawyers argue that the branding doesn’t change the nature of the activity — it’s still gambling.
Alabama is not the only state targeting these kinds of platforms. Louisiana, Connecticut, Montana, and New York are also discussing potential bans. The main argument is that such services operate without licenses, don’t pay taxes, and most importantly — fail to protect vulnerable users.
But whether they’ll succeed in banning illegal iGaming is another question entirely. Residents in these and other states have long been gambling via their smartphones using apps from online casinos and sportsbooks.
Practically every major brand has such a platform — Melbet, Megapari, Parimatch. And 1win is rapidly closing in on the top thanks to its wide range of games. According to app1win, the 1win app offers access to several thousand gambling games, with new ones added regularly. These apps — including Stake’s competitors — have been running smoothly for years. And it’s doubtful that state authorities, which don’t benefit from these operations through taxation, will have much success regulating them.
Regulation is clearly lagging behind reality. While some states delay legislation, others are filing lawsuits. The situation is evolving, but slowly. The company claims it’s operating within the law and that it does not run a casino in Alabama. Stake insists its site only features free games that require no payment to participate. Everything is legal, they argue.
The Stake.us homepage features bright banners, hundreds of slot machines, and an invitation to win big with Drake. The rapper has long promoted the brand, and the lawsuit notes that his celebrity endorsement helps break down consumer skepticism.
Stake operates through a legal entity called Sweepstakes Limited and uses the term “social casino.” But the plaintiffs’ attorneys say that’s just a facade. They argue it’s not just about wording — it’s about the consequences: financial losses, the involvement of minors, and evasion of regulation.
