A lawsuit filed in Illinois seeks to recover all losses on the social casino platform for residents in the state. Brayden Urdan of Illinois filed the case against Stake on Monday and is represented by the same law firm that secured $25 million in compensation from High 5 Games in February.
The complaint opens by stating, “Stake.com is one of the most popular and profitable casinos on the planet.” and goes on to say, “Yet despite its global dominance, Stake.com was blocked from entering the U.S. market, where online gambling is highly regulated and banned entirely in many states, including Illinois.”
Stake markets itself as a social casino but many have argued that in reality it functions as an online casino and therefore should follow gambling licensing laws.
The site uses virtual currencies such as Gold Coins and Stake Cash to play casino games. These tokens can be purchased using a range of payments including many cryptocurrencies. As players do not directly gamble with real cash Stake claim that it does not require an online casino license.
Co-founder, Ed Craven, has boasted, however, that, “Stake has hit a point now where I’m confident our betting volume is the highest in the world out of any casino, land-based or online.”
Stake had over 23 million visits in February this year and on its website claims to be the “World’s Largest Online Casino and Sportsbook.” Set up in 2017, it is one of the leaders in the crypto casino industry.
A similar lawsuit was also filed in California last week by a resident seeking compensation for losses suffered on Stake.
A host of states have also attempted to ban social casinos, including Illinois. A bill attempting to criminalize platforms such as Stake has been proposed and last week moved forward in the Senate.
Idaho, Washington, and Michigan have managed to pass bills against the platforms. In Washington, stricter laws led to the first ever verdict against a social casino, High 5 Games, last year.
High 5 The law firm, Edelson, is also representing the plaintiff in this case in Illinois. After the Washington verdict, a statement by Edelson read, “This victory is the first trial in the years-long fight by consumers represented by Edelson PC and Tousley Brain Stephens PLLC to hold social casino operators accountable for the reality of their business operations: that they are illegal gambling operations preying on vulnerable gambling addicts.”
They will hope for a similar verdict in Illinois, but as there is currently no law explicitly banning social casinos, then it may be more difficult.
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