Stake’s US operation has become the target of legal action over allegations that the operator is mirroring its real-money platform with a sweepstake site.
The case has come from a law firm with a strong track record when it comes to gambling operators, having previously had success in suing High 5’s social casino.
It centres around Brayden Urdan, from Illinois, who is alleging that the company is in breach of state laws with its workaround of gaming laws in the state.
One of the key elements of the case is the claim that both the sweepstake operation and the real-money operation of Stake both utilise the same promotional channels including the ambassadors they utilise, such as music legend Drake.
It forms a key part of Stake’s aggressive marketing campaign that it has undertaken on social media in the past year.
“The point of Stake’s aggressive sponsorship strategy is clear: by linking itself with globally admired celebrities and teams, Stake aims to normalise online gambling, increase consumer trust, and disguise the risks of gambling behind an appealing entertainment-focused image,” the filing noted.
“Critically, Stake.us and Stake.com sponsor the exact same celebrities and sports teams, further demonstrating that Stake.us is simply a strategic copy of Stake.com, deceptively rebranded as a ‘social casino’ to evade gambling regulations.”
It’s a campaign that caused Stake to have to depart the UK market after it collaborated with adult film star, Bonnie Blue.
The marketing video that led to the demise of the firm’s UK presence was set outside Nottingham Trent University and prompted an investigation from the UK Gambling Commission after it went viral across social media and featured Stake branding.
Off the back of the investigation, Stake will cease to have a presence in the UK market after TGP Europe Limited (TGP), which operates the site as part of a white-label arrangement, confirmed it will be shutting the site.
Furthermore, an added level of intrigue around the case centres around it involving the same law firm that produced a class action result against High 5 in Washington state.
