Plaintiffs in New Mexico argue that Stake.us markets itself as a sweepstakes or social casino while, in practice, offering gambling that violates state law. They ask the court to reimburse New Mexico players for their losses and to bar the platform from operating within the state.

The filing landed shortly after a Missouri class action that names Sweepsteaks Limited alongside Drake and Adin Ross. That case seeks recovery of losses over the past five years, civil penalties, and an order shutting down the site’s activities in Missouri.

How the complaints describe Stake.us and influencer promotion

Both complaints contend that Stake.us recreates the real money experience of Stake.com by selling nonredeemable Gold Coins while pairing them with Stake Cash, a token that can be wagered on casino style games and redeemed at a fixed rate. The plaintiffs say this structure converts the product into real money gambling prohibited by state laws.

They also focus on high profile promotion by Drake and Adin Ross, alleging the stars showcased Stake to large audiences on streams and social channels while playing with site provided balances rather than personal funds. According to the filings, that practice misled viewers about the nature and risk of the gameplay.

What the defendants say and what comes next

Stake.us has previously framed its product as a lawful sweepstakes based social casino that does not offer real money gambling, and the defendants are expected to contest the allegations in both states. Any responses will likely argue that the site’s structure complies with sweepstakes and promotional gaming rules.

Next steps typically include motions to dismiss, class certification battles and discovery over how the product operates and how it was marketed. Outcomes could hinge on state specific definitions of gambling and sweepstakes, and on whether the courts accept the plaintiffs’ theory that players are entitled to restitution of losses.

Source: https://x.com/WALLACHLEGAL/status/1983732358412149090