Class Action Lawsuit Claims Stake.us Online Casino Is Illegal in Minnesota

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A proposed class action lawsuit claims that Stake.us operates an online gambling scheme in violation of Minnesota law.

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According to the 26-page lawsuit, the online games of chance run by Sweepsteaks Limited, which does business as Stake.us, do not fall within Minnesota’s strict legal gambling allowances, which essentially include only “charitable gaming.” Per the case, lawful gambling in the state is limited to the operation of bingo, paddlewheels, tipboards, raffles and pull-tabs run by licensed non-profit organizations in physical locations owned or leased by the organization and with supervision from on-site gambling managers.

The lawsuit alleges that Stake is not licensed to operate charitable gaming in Minnesota and has failed to adhere to “hundreds of other regulations,” including the requirement that the profits from gambling games be used for charitable donations, venue repairs or a limited number of other lawful purposes.

In order to participate in Stake.us games, per the lawsuit, players must purchase and wager with one of the website’s two proprietary virtual currencies—Stake Cash or Gold Coins. While Gold Coins are exclusively an in-game credit, Stake Cash can be exchanged for cryptocurrency, which has been defined as money by federal courts because it can be easily exchanged for U.S. currency, the complaint writes.

Nevertheless, Stake.us deceptively advertises itself as a social casino, where casino-style games are played purely for fun and not for monetary gain. Although it is possible to obtain Stake Cash without making a purchase, the complaint claims that players’ main method of acquiring the virtual currency is through purchases of Gold Coins bundled with Stake Cash, where the dollar cost of the Gold Coins is “practically equal” to the amount of Stake Cash bundled in the purchase. The lawsuit argues that this effectively constitutes a purchase of Stake Cash, and that a purchase of either Stake Cash, Gold Coins or both is the only way for players to continue to play Stake.us’ games.

Players’ ability to purchase Stake Cash with real currency and then exchange their Stake Cash winnings for real currency renders Stake.us’ “social casino” and “free to play” advertisements false and misleading and renders its platform an illegal gambling scheme in violation of a host of Minnesota statutes and regulations, the filing contends.

“It is obvious that Players buy Stake Cash to gamble with as a proxy for real currency, which makes it indistinguishable from gambling with poker chips at a casino, where a person exchanges U.S. Dollars for casino chips at a 1-to-1 ratio and can later exchange those chips for U.S. Dollars,” the complaint states.

According to the suit, Stake.us does not disclose anywhere, even in its list of “excluded territories,” that its platform is illegal in Minnesota, further deceiving unwitting Minnesota-based players.

The plaintiff says he spent over $80,000 on Stake Cash between April 2023 and February 2025 and is currently in recovery for gambling addiction. Per the suit, although the plaintiff had previously gambled before using Stake, his addiction “never got as out of control” due to Minnesota’s anti-gambling regulations.

The Stake class action lawsuit seeks to represent all Minnesota residents who, within the applicable statute of limitations, have paid and lost money, cryptocurrency or other items of value on Stake.us.

If you or someone you know has a gambling problem, please call the National Problem Gambling Helpline at 1-800-GAMBLER for support, information and referrals to local services that can help.

Learn all about the legal process: What is a class action lawsuit?