A class-action lawsuit has been initiated against Stake.us for allegedly running an unlawful online gambling site in Minnesota, following a federal ruling denying the company’s request to move the case to arbitration.
The lawsuit details five claims on behalf of the plaintiff, Chris Wolters, and a suggested group of other Minnesota residents. Wolters aims to recoup gambling losses in accordance with Minnesota Statutes Section 541.20, while also alleging breaches of the Minnesota Consumer Fraud Act, Minnesota Deceptive Trade Practices Act, and Minnesota False Statement in Advertising Law. Additionally, there is a claim for unjust enrichment.
Wolters initiated the lawsuit in August 2025, claiming that Stake.us operated illegally in Minnesota, misrepresented the legality of its services to Minnesota residents, and kept funds lost in purported gambling activities. He used the platform between April 2023 and February 2025, incurring losses exceeding $80,000, which led to his seeking treatment for gambling addiction.
As per the complaint, Stake.us operates as a real-money online casino allowing users to purchase two different virtual currencies: Gold Coins and Stake Cash. Users can wager these currencies on casino-style games, earn Stake Cash, and convert it to cryptocurrency that can later be exchanged for U.S. dollars.
Stake.us attempted to compel arbitration by contending that Wolters agreed to the online terms and conditions during account registration. These terms include an arbitration clause for conflicts related to the agreement’s existence, validity, enforceability, or termination.
In support of its argument, Stake.us provided a statement from its founder, which claimed that users had to accept the terms and conditions before setting up an account. The company also presented an internal screenshot it claimed was related to Wolters’s account.
U.S. District Judge John Tunheim ruled that Stake.us failed to establish the existence of a valid arbitration agreement. The court observed that Minnesota law generally nullifies contracts made in violation of statutory regulations meant to safeguard public interests.
The Judge noted that the complaint suggests Stake.us operates an illegal gambling entity under Minnesota law. Stake.us didn’t adequately address the essence of these accusations in its arbitration motion, maintaining instead that the legality of its actions should be resolved later in the proceedings.
“If Stake’s Terms and Conditions are deemed a contract created in breach of Minnesota’s gambling laws, the Court must regard the contract as invalid and non-existent,” stated U.S. District Judge John Tunheim. “Wolters has put forth allegations indicating that Stake’s Terms and Conditions pertain to an illegal gambling operation, and Stake has yet to provide evidence disproving this.”
The court concluded that the arbitration clause relied on the parties’ acceptance of the terms and conditions. It determined that the clause could not be enforced independently if the foundational contract was void under Minnesota statutes.
Furthermore, the court found that Stake.us did not prove that Wolters personally accepted the arbitration clause. The presented screenshot did not identify Wolters or indicate that he had agreed to the terms, thus proving insufficient to establish a contract.
The court indicated that even if it had dismissed Wolters’s claim regarding the contract’s invalidity due to alleged illegal gambling, a limited trial would still be necessary to ascertain whether an agreement existed between the parties before arbitration could be mandated.
“We are gratified by the Court’s ruling and eager to pursue this case on behalf of our client and all other Minnesotans affected by Stake.us’s unlawful gambling site,” stated the plaintiff’s attorney, Vildan A. Teske, in correspondence with Minnesota Lawyer.
Stake.us is currently facing several additional lawsuits across other regions of the United States, including a case filed in Los Angeles involving Stake.us, streaming platform Kick, and gaming suppliers.