Online gambling operator, Stake is set to be hit with a lawsuit in California court.
Court documents revealed that Dennis Boyle is set to take action against the firm over allegations of the operation of an illegal gambling website in the US.
At the heart of the case is Stake’s social casino and sweepstakes offerings, with the plaintiff alleging that there is false marketing around free gaming from the firm, making the case that this is a violation of California civil code.
The complaint stated: “Because social casinos operate as if they are not subject to gambling regulations, they do not comply with the regulations that govern the operation of slot machines or other gambling.”
The plaintiff alleges that the gambling brand provides real-money, online wagering that is falsely marketed as free gaming. Stake’s alleged misconduct is considered a violation of California civil code as it provides unlawful online gambling and engages in unfair business practices.
Underpinning the case, it claims that Stake’s digital currencies, Stake Cash and Gold Coins, are substitutes for real-money wagering as they are used to play promo games and sweepstakes.
The complaint stated: “A user playing promotional games with Stake Cash is gambling in the purest sense – they are wagering something of value (Stake Cash) on a random event with the hope and intent of winning more Stake Cash than wagered.”
Stake’s legal tussles
Earlier in the year, the operator abruptly exited the UK market following an advertising campaign with controversial adult film star Bonnie Blue.
The promotion went viral across social media and subsequently led to an investigation from the UK Gambling Commission.
As a result, TGP Europe Limited (TGP), which operates the site as part of a white-label arrangement, confirmed it will be shutting the site.
TGP has confirmed to the Commission that it will immediately stop accepting new registrations to the Stake.uk.com platform and remove redirection links from the main Stake website, with the final shutdown of the Great Britain site will take place by 11 March 2025.
Across social media, Stake embarked on an aggressive viral advertising campaign in the UK – emblazoning its logo across a myriad of viral social media clips. The Advertising Standards Authority (ASA) previously emphasised that it was maintaining “a watching brief” on the increasing prevalence of the ‘Stake’ watermark, an online sportsbook and casino.
