Stake.us Faces Legal Challenge in Alabama

One of the most popular sweepstakes casino, Stake.us, is hit with a lawsuit in Alabama.

The online gaming platform is accused of misleading users into believing that the casino was available to play in the state as a regulated platform. A group of Alabama residents has filed the lawsuit seeking to block Stake.us from operating in the state and to recover the money they claim to have lost.

The Lawsuit Comparison

The lawsuit compares this case to the internet cafés of the 2000s, which operated in ways that bypassed gambling laws at the time.

The lawsuit states: “These operations, often located in suburban strip malls, promoted the sale of products such as Internet time or long-distance telephone minutes by offering ‘free’ sweepstakes entries to customers.

When customers purchased the product, they received a corresponding number of ‘sweepstakes’ points for each dollar spent. Customers then used those sweepstakes points to play ‘casino-style’ slot machine games for cash prizes.”

Sweepstakes laws normally emphasize that free entry must be provided to every user upon registration, in contrast to real-money casinos.

Stake Security Measures

Stake.us also highlights the security measures on its site, noting that it uses protocols like SSL encryption to keep user data safe throughout financial transactions.

The platform provides responsible gaming features as well, including options to limit playtime and the ability for users to take a temporary or permanent break from the site.

Despite these precautions, Alabama’s strict anti-gambling laws continue to create legal obstacles for Stake.us across the state.

References

• Alabama's Gambling Commission