A law firm in Florida recently filed a lawsuit against the Stake online gaming platform. They allege that Stake allowed an underage gambler on the site.
Of the several legal battles filed against sweepstakes casinos, this lawsuit is the first claiming underage use. Stake is believed to be one of the largest online casinos in the world. Its U.S.-focused site operates the same way other sweepstakes casinos do, while its rest-of-world platform uses cryptocurrency for deposits and withdrawals.
The Rafferty, Domnick, Cunningham and Yaffa law firm in Pensacola said the group is representing a plaintiff who gambled on the rest-of-world site before turning 21.
“He actually cannot stop,” attorney Madeline Pendley told local media outlets. “He’s really addicted to this.”
Stake Searches For Lifelong Customers
According to the lawsuit, the plaintiff was exposed to gambling content through livestream platforms and social media influencers. Then, he began gambling online. Stake regularly uses streamers and celebrities, including the Canadian rapper Drake, to promote the platform.
The lawsuit alleges these types of promotions have normalized high-risk gambling behavior. Stake’s terms of service show the company does accept bets from those 18 and above, but it also geoblocks the US.
However, lawyers for the plaintiff argue the company’s influencers provided instructions on how to bypass geographic restrictions designed to block users who are physically in America.
“This case is an important first step in holding these gambling platforms accountable,” Pendley said. “Gambling addiction in minors is steadily increasing, and it’s not happening by accident. The defendants who design and market these platforms know that if they can entice young people to gamble, they have a customer for life.”
Birthday Money & Gift Cards For Gambling
The suit alleges Stake targeted minors, facilitated repeated cryptocurrency transactions to fund illegal wagers, and failed to implement meaningful safeguards despite clear warning signs of underage gambling.
The minor later became addicted, struggled in school, experienced strained family relationships, and required intensive, ongoing treatment, according to the suit.
“He would use Christmas money, birthday money, gift cards to gamble on these platforms,” Pendley said. “And after a couple of years, it got so serious, he did end up stealing money, using his dad’s credit card to really fund significant gambling expenses.”
Along with compensatory and punitive damages, the legal action also seeks injunctive relief aimed at stopping underage gaming.
Stake hasn’t commented on the lawsuit. In January, another suit was announced against the company’s US sweepstakes gaming platform alleging a racketeering conspiracy. Stake also faces a lawsuit in California.
