Ohio Lawsuit Targets Popular Stake.us Over “Illegal Casino Operations”

Stake.us, arguably the most popular US sweepstakes casino, is back in the spotlight for the wrong reasons. Its owner and operator, Sweepsteaks Limited, was hit with a new consumer class action suit on February 3rd in the Southern District Court in Ohio. 

With Brenda Krivatch as the plaintiff, the class suit accuses the crypto gaming platform of operating without proper licenses while processing over $200 billion in annual Bitcoin transactions. The complainants also argue the popular sweeps site misled players by presenting itself as a “legal sweepstakes platform”.

This branding gave locals the impression that the website is safe and legitimate, even though it’s not approved and authorized by the state to operate.

Private Complaints Target Popular Platform Over Its “Stake Cash” as Real Money

Stake.us is in hot water for its dual-currency model, the primary engine that drives sweepstakes casinos. Operators often use two virtual currencies, a Gold Coin and a Sweeps Coin, with the former used for free play, while the latter is redeemable for real-world prizes. Technically, these gaming platforms are legal in most parts of the country, but a shift in legal opinion in 2025 has tested plenty of operators.

The complaint argues that the company used the phrasing “legal sweepstakes” in its corporate communications and marketing, which can be misleading. The Krivatch’s lawsuit alleges that the site is legal and safe, even if it isn’t formally licensed and authorized to operate.

Krivatch further argued that Stake offers its users the option to redeem their winnings as Stake Cash and ultimately swap these for crypto. This redemption arrangement, of swapping Stake Cash for crypto, makes Stake “a gambling platform”, explained Krivatch.

The latest class action suit is also based on previous legal actions, which involved sweepstakes cafes, which were ultimately classified as illegal.

Current Procedural Status

The Krivatch consumer class action suit was officially filed on February 3rd and recorded under the Southern District of Ohio. It seeks more than $5 million in damages, an injunctive relief to stop the sweepstakes casino’s operations, and asserts that the platform offers locals over 200 casino games, including slots, roulette, and poker.

The Stake.us management has not released an official statement on this latest class action suit.

REFERENCES

• Krivatch vs Sweepsteaks Limited