A class action lawsuit was filed last week in federal court in Alabama against Stake.US, a sweepstakes-based online casino, accusing the company of operating an illegal gambling platform accessible to Alabama users, despite the state having some of the strictest laws in the nation.
The lawsuit names Laura Hall and her minor child as plaintiffs, along with other Alabama residents who claim to have been harmed by the platform.
Similar lawsuits have been filed in California and Illinois. However, Alabama’s notoriously stringent gambling laws could make the case more winnable for plaintiffs compared to those states.
NEW: A class action lawsuit has been filed in Alabama federal court vs. sweepstakes casino giant https://t.co/yuYFZuEWJO for operating an illegal online casino. Stake has also been sued in CA and IL, but Alabama’s gambling laws are notoriously strict. Is Drake next? pic.twitter.com/3PRNDRAjLi
— Daniel Wallach (@WALLACHLEGAL) May 4, 2025
According to reports on the suit, the site promotes itself as a legal “sweepstakes” which helps them get around the gambling law, however the lawsuit claims that users are able to access slots, poker, blackjack, and roulette games, all of which are illegal under state law.
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Sweepstakes casinos are treated differently than traditional online casinos and Stake.US tries to claim it does not operate as a gambling operation.
“Stake will ask the Court to disbelieve its own eyes and conclude that Stake.us is not really a gambling operation, but instead offers legal ‘sweepstakes’,” the complaint reads. “That is an old gimmick that was once popular among criminals in the early 2000s…Stake attempts to separate the element of consideration from chance by offering a two-tiered system of virtual coins, both of which function like casino chips, while calling the whole affair a ‘sweepstakes.’”
State lawmakers have been unable to pass a legal sports gambling, lottery, or casino bill through both chambers of the Alabama Legislature during the 30 days allotted to them since 1999. At which point it must go to a vote of the people, as it requires a constitutional amendment to undo language in the 1901 Alabama Constitution that explicitly prohibits gambling and other games of chance.
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Michael Brauner is a Senior Sports Analyst and Contributing Writer for Yellowhammer News. You can follow him on Twitter @MBraunerWNSP and hear him every weekday morning from 6 to 9 a.m. on “The Opening Kickoff” on WNSP-FM 105.5, available free online.
