U.S. District Court Judge James V. Selna referred the Boyle v. Sweepsteaks Ltd. case involving Stake.us, a top-rated social casino, to arbitration on Thursday. Plaintiff Dennis Boyle accused Stake.us of being an illegal online casino. Sweepsteaks Ltd. operates Stake.us.
Lawsuit Takes Aim At Sweepstakes Business Model
Boyle agreed when he signed up with Stake.us that all disputes would be resolved through arbitration. The court has finally enforced this motion to compel arbitration.
The lawsuit was filed by plaintiff Dennis Boyle in March and claimed Stake.us’s “no purchase necessary” business model for sweepstakes gaming should constitute real-money gambling.
Boyle alleged that the site’s “Gold Coins” and “Stake Cash” system is misleading. Players can purchase said Gold Coins and receive Stake Cash, which can be redeemed for prizes including gift cards and cryptocurrency.
He also argued that the website specifically targets California residents. The complaint states that Stake.us asks users to disclose their state during registration and has privacy policies tailored to residents.
Boyle Had Agreed To Stake.us’s Terms And Conditions
However, Sweepsteaks Ltd contested that the District Court should not hear the case since Boyle agreed to Stake.us’s terms and conditions when he registered with the platform on November 29, 2022.
In the end, the District Court disagreed with Boyle after he tried arguing that the clause in the terms and conditions would be voided if Stake.us is offering illegal gambling.
U.S. District Court Judge James V. Selna ruled that the case must pass through arbitration before the illegality of Stake.us can be determined.
SPGA Celebrates Ruling
Following Judge Selna’s ruling, the Social and Promotional Games Association (SPGA) applauded the result, finding that social and sweepstakes casino platforms are not forms of illegal gambling.
“This ruling affirms what we’ve long said: Social sweepstakes sites are not gambling,” said a spokesperson for SPGA.
“They are free-to-play games enjoyed responsibly by millions of American adults, and no purchase is ever necessary to play or have a chance to win prizes.”
“Anyone can file a lawsuit making any claims they like. This ruling is a reminder that facts – and the law – still matter.”