Stake.us, a sweepstakes casino, is currently embroiled in a lawsuit in New York, which accuses the platform of facilitating underage gambling. The lawsuit claims that Stake's operations, in conjunction with Coinbase's cryptocurrency infrastructure, enabled minors to engage in repeated betting activities.
The legal action, initiated by an individual identified as “John Doe,” characterizes Stake as an offshore gambling entity that remains accessible to users in the U.S. through its Stake.us platform. This accessibility allegedly allows it to evade regulatory oversight.
The lawsuit asserts, “This case is about the promotion and operation of an illegal offshore gambling platform, Stake.com, aimed at attracting underage users.” The plaintiff claims to have started gambling while still a minor and continued to do so over time.
According to the complaint, the plaintiff was “recruited to participate in underage gambling… and then routed to a U.S.-facing crypto onramp.” This situation purportedly resulted in significant negative consequences for the plaintiff, including “years of financial losses and a severe addiction-related injury, all incurred before the plaintiff was legally permitted to gamble.”
The lawsuit identifies several entities under the Stake brand as defendants, including Stake.com, Stake.us, and Easygo Entertainment, along with founders Bijan Tehrani and Edward Craven. It alleges that these entities operate as a unified organization with centralized control.
The complaint states, “The Defendants… collectively operated as an integrated machine that facilitated repeated offshore gambling activity.” It also claims there is a “complete unity of ownership and interest across the Stake Defendants.”
Coinbase is named in the lawsuit for its role in facilitating gambling transactions and bypassing traditional banking restrictions. The filing alleges that Coinbase knowingly provided the necessary routing and payment infrastructure for these activities.
The complaint further accuses Coinbase of enabling regulatory evasion, stating, “Coinbase provided the compliance evasion mechanism necessary… to bypass New York State anti-gambling restrictions.” It highlights that Coinbase “facilitated the conversion and transfer of funds used for illegal gambling by a minor.”
As the case progresses, Judge Dakota Ramseur has issued an Order to Show Cause, scheduling a hearing for May 19, where the plaintiff must justify the relief sought.
This lawsuit is part of a broader trend of legal challenges against Stake, which also faces lawsuits in states such as Illinois, Alabama, and Missouri, alleging that its sweepstakes platform operates as an illegal online casino. Additional complaints have been filed in California, Minnesota, Mississippi, New Mexico, Utah, Virginia, and Ohio.