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According to the new lawsuit filed in New York, sweepstakes casino stake allegedly allowed minor age gambling, while being totally dependent on the major cryptocurrency payment gateway, Coinbase, which was allegedly responsible for allowing such repetitive actions. These 2 platforms together made it reportedly possible for an illegal betting activity.
Lawsuit Triggers Stake’s Offshore and US Access
The complaint, named as “John Doe”, frames Stake’s operations as an overseas iGaming enterprise that is still reachable by Americans through its Stake.us sweepstakes website. Because of this, it has been able to bypass regulatory limitations. As stated in the document: “This lawsuit concerns the marketing and management of Stake.com, an illegal offshore iGaming business, as it targets and attracts minors. The claim that the plaintiff started wagering as a juvenile and was able to keep doing so is the principle of this case. The plaintiff was recruited to participate in underage gambling, and then directed to a U.S.-facing crypto platform”, according to the complaint.
Coinbase Mentioned as a Payment Method
This specific case circles around how cryptocurrencies can be used to avoid traditional banking regulations and promote gambling. In this case, the specific payment system used is named Coinbase. According to the petition, Coinbase directly assisted with enabling transactions connected with gambling: “Coinbase, the defendant, intentionally provided the payment gateway and routing that enabled this kind of wagering.”
Additionally, the lawsuit claims that the cryptocurrency platform made it possible to avoid regulations: “The measures and methods to evade and get around New York’s anti-gambling laws were supplied by Coinbase”. The alleged activity’s mechanics are also highlighted in the complaint, which reports that the company “facilitated the exchange and transfer of funds used for illegal gambling by a minor”.
The Court Issues a Showing Evidence Notice
Early legal action has already been taken in the case. Judge Dakota Ramseur issued an order to show cause just 2 days ago, scheduling a trial so the plaintiff can defend an ideal relief. As the lawsuit progresses in New York, the order sets a hearing date of May 19.
A Portion of the Larger Wave of Stakeholder Lawsuits
This is not a single situation, as Stake and Stake.us are currently facing an increasing number of legal problems, including the New York complaint.
It also lists allegations that the Sweepstakes platform is an illegal online casino in Illinois, Alabama, and Missouri. Multiple states are on a wagon when it comes to receiving the complaints, such as California, Minnesota, Mississippi, New Mexico, Utah, Virginia, and Ohio.
The Los Angeles City Attorney’s 2025 action against Stake.us and its collaborators is also highlighted in the current active case. According to that allegation, the platform operates as an illegal gambling platform and aims to recover residents’ losses. Additionally, Stake and five other significant sweepstakes companies were recently sued civilly by Baltimore.
A recurring legal dispute has surfaced in all of these cases: sweepstakes casinos operate as covert real-money gambling venues, and seem to trigger all these complaints in different locations. Nonetheless, courts have already ordered mediation or dismissed a number of lawsuits.
Source: globenewswire.com
