A federal class action lawsuit filed in the Southern District of Ohio claims that sweepstakes casino Stake.us is operating as an illegal online casino under state gambling law. The suit, led by plaintiff Brenda Krivatch, argues that the platform misrepresented itself as a “legal sweepstakes” site, giving players the impression that its operations were permitted within the state. In reality, the filing states, Stake.us lacked the necessary licenses and did not list Ohio as a restricted jurisdiction.
The complaint compares Stake.us to the state’s former internet café sweepstakes model, which Ohio courts previously deemed unlawful. It highlights that Stake.us uses a similar structure, incorporating purchasable virtual currency and casino‑style gameplay that can yield redeemable value. This raises questions about whether the platform’s operations fit within Ohio’s definitions of gambling.
A major element of the lawsuit centers on Stake.us’s dual‑currency system. Players can engage with casino‑style games using promotional Gold Coins, but the complaint stresses that the real focus is on “Stake Cash,” a currency that can be redeemed for cryptocurrency and functions as a near 1:1 substitute for real money. Users purchase bundles ranging from $20 to $300, each providing both Gold Coins and Stake Cash, which plaintiffs argue satisfies the legal criteria of consideration, chance, and prize under Ohio law. [
The lawsuit claims this system mirrors the mechanics of earlier sweepstakes cafés that sold internet time or phone minutes tied to entries for slot‑style games. Courts have repeatedly ruled that these models constituted gambling, even when operators attempted to separate the purchase from the chance‑based element. Plaintiffs argue that Stake.us has simply modernized the same approach for online audiences.
This lawsuit is part of a wider wave of litigation targeting sweepstakes‑style casinos in states including Alabama, Illinois, Minnesota, and California. Similar lawsuits allege that operators present themselves as free‑to‑play or promotional platforms while still enabling users to purchase tokens that can be converted to items of real‑world value. Some claims rely on longstanding gambling‑loss‑recovery laws, allowing players to seek refunds for losses tied to alleged illegal gambling activity.
Stake.us is already facing multiple lawsuits nationwide, with at least nine cases filed against its parent company, Sweepstakes Limited. The increasing number of complaints signals growing scrutiny of the industry’s business models and could reshape how sweepstakes platforms operate in the United States. If courts determine that Stake.us’s system constitutes illegal gambling, the company could face operational shutdowns, refunds, and significant financial penalties in Ohio.
