Stake.us, the online casino platform backed by Drake, is under legal scrutiny as it faces a consumer class action lawsuit in an Alabama federal court. The lawsuit alleges that Stake.us marketed itself as a free-to-play “sweepstakes” casino while operating as an unlicensed gambling platform, paying out winnings in cryptocurrency. The case is filed against Sweepsteaks Ltd., the parent company of Stake.us, which started in 2013 as an online crypto dice game project. The company’s founders have previously acknowledged “potential criminal and tax issues” with their business model.
The legal battle highlights a growing trend where regulators and plaintiffs are concentrating on online gambling models that incorporate cryptocurrency. Patrick Gruhn, the ex-head of FTX Europe, commented on this shift, emphasizing that the court’s decision will be instrumental in defining how existing laws apply to such digital business operations. For further insights, you can read more about the case here.